I am trying to build some positions for January. Hope I can harvest some coins.
-wang-lao-wu(钻石王老五);
2007-12-28(#16296@43)
What you are looking?
-fidofido(哈哈);
2007-12-28(#16302@43)
I am buiding some long positions on AIG, MMM, NYX, DELL, RIMM, GS. No short position. I bot long term calls and then sold short calls at the same strike, or higher strike.
-wang-lao-wu(钻石王老五);
2007-12-28(#16355@43)
100 is standard unit. For options, we call it a contract
-wang-lao-wu(钻石王老五);
2007-12-28(#16383@43)
what's ur opinion on diagonal spread compare to covered call? currently, i only trade covered call, but never tried diagonal spread.
-speed(如风);
2007-12-28(#16382@43)
Diagonal spread need more skills. For stocks like GS and FSLR, covered calls are too expensive.
-wang-lao-wu(钻石王老五);
2007-12-28{418}(#16384@43)
I bot AIG 01/2009 $50 calls, and then sold 01/2008 $60 calls. I plan hold them for 3 weeks until January 2008 OE.
Here are my considerations. 1) AIG cleared itself of sub-prime shit and it is less likely to crash; 2) AIG's evaluation is low (PE=8). 3) AIG has moderate volatily; 4) 01/2009 won't depreciate very much if I hold them for 3 weeks. 5) If AIG goes down, I will switch to $55 call on the short side.
Here are my two cents.
-wang-lao-wu(钻石王老五);
2007-12-30{751}(#16452@43)
1. I do not predict the movement of stocks based upon TA. I don't believe wave theory.
2. I know AIG is a cheap stock. Institutions will buy it when the market is turning up.
3. I know AIG is a big stock, so it's a day dream to ask for it to move up a lot in a short time.
4. I know AIG has some resistance and supports
5. I know the long call will not depreciate severely if AIG does not go up by 01/18/2008
6. I know I may be wrong in this bet, and AIG may goes down for whatever reason. If thats' case, 01/2008 $60 can be used to offset my loss a little bit
7. I believe there will be some January effects
8. Again, I believe I may be wrong, so I sold 01/2008 $60 call. Otherwise, I would just hold 01/2009 $50 call.
AIG is a stock different from AMD. I buy calls when it does down. Of course, I cannot guarantee that AIG won't go to $35, if something is wrong.
-wang-lao-wu(钻石王老五);
2007-12-30{178}(#16453@43)
Control the size of position is life line.
AIG's PE Is only 8. I don't think it will goed to $35 or $20 based upon your wave theroy prediction, unless it has some scandals.