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Thread: huge trading in sept option trading

  1. #1
    FUNFUN99 is offline
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    Joined: Apr 2008 Posts: 68

    huge trading in sept option trading

    Sep 19 2009 Calls | 155 Days to Expiration
    Symbol Bid Ask Type Last Change Vol Op Int
    +QXOIA 0.10 0.15 S 0.15 0.10 12,584 1,894

    12584 contracts traded and only 1894 available strongly suggest huge upside to come.

    maybe the rise is announcement of apple IPOD app

  2. #2
    Whynot is offline
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    Joined: Sep 2008 Location: The Mid-Atlantic Posts: 113

    upside?

    What do you think this upside will be and when??

    Cheers,
    -WhyNot

  3. #3
    Dr. Dave is offline
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    It's because there was high volatility that day to the money side, so it was actually worth trading contracts. Just people taking profits, and others getting in, with faith of more on the upside. The bid you are showing for the day you posted is a 100% gain of what the last was yesterday, and the last that you show above is a 200% gain from yesterday's last contract trade. Friday's close is likely akin to the same close prior to that move, as we are so far out from expiration at this point, time decay isn't so great, and that SIRI is still far from the strike. I don't have history for the day before you posted, nor do I know what time of day you got the quote - but likely these contracts weren't being traded when the stock was a little lower in price and stuck in the consolidation, so who wouldn't take a 100-200% gain when there were actually buyers you know? Especially since you have to trade a minimum of 10 contracts just to make it worth hitting the buttons.
    Last edited by Dr. Dave; 04-26-2009 at 01:22 AM.
    Positions: Change so often, it's no longer useful to update this...

  4. #4
    Dr. Dave is offline
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    Also take into account, the options contracts may be moving in 0.05 increments for the most part, so 0.05 is the lowest it can go - you can't trade them for 0.00. So any one who wants out would surely sell at 0.10.

    Remember options are a derivative of the stock price, and the stock price is a derivative of the news (to a certain extent)... because of that relationship - the options contract pricing and trading is a further step away from the news than the stock price.

    Note, I'm an options novice, but I put more about it here:
    http://siriusbuzz.com/forum/showthread.php?t=1872
    Positions: Change so often, it's no longer useful to update this...

  5. Ad Fairy Senior Member

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