candle , dave, you guys are lucky.... im stuck at an avg of .15 for my contracts
dont know if i should worry or not, but i did buy hoping that Q4 report would do something if that Q3 was a dud...so i still have some firepower left for a profit or a breakeven.. gl all.
The fact that earnings came in at 0 this quarter, and with xmas and such coming up, can see perhaps a run by the next earnings season.
But here's the thing with options, they are soo tricky, that if you do have a chance to yank your original out, do so. Remember, it's not just the price that moves them, but the volatility. So, if SIRI makes a strong move up (like a spike), the option will increase in price based on that besides the siri pps - so if you're worried about taking some money off the table - time it on a spike. If we do get some run up in the 70's or 80's you should be pretty good for taking a profit.
Right now, you can see the volatility is really low, so the price is deflated because of that... the candles are tiny, nasdaq isn't looking to hot at the moment, etc. AAPL is pulling back - broke it's trendline today (I got out of that on friday I think)... but AAPL should rally before it's earnings, as - iphones and their other products had a lot of strength last xmas - so that should lift the nasdaq and other tech plays.
Example of volatility and the price - I actually have had my order in for about 3 weeks - I couldn't get a fill at 0.05 until today. I dropped it from 20 to 10 contracts a few trading days ago - but regardless - the siri stock price is higher today to buy contracts at 0.05 at times, then it was during the last few weeks where I couldn't get a fill unless I went to 0.10... I know, cause I couldn't get a fill - or maybe I was in line for so long... that's not true either, because when I modified the order, it canceled the previous - so strike that - basically, the lull in volatility made it possible for me to finally get a fill. You can see that a price for siri stock of 0.60 was almost hit in the last few weeks several times, and my order wasn't taken. I'll likely try to get another 20 tomorrow - and make it 30. That's still within a money management range that I'm ok with. I'm not the greatest with buying options for more than 1-3 days. So until I learn, I'm not putting up a lot of dough, but I think the probabilities are good at coming out ok.
Last edited by Dr. Dave; 12-07-2009 at 05:48 PM.
By no means am I counting my chickens ($$$$) before they hatch, so to speak. I can dream about where I want this pps to be at, can't I? As long as I'm not putting ernest money down on that million dollar home I've been eyeing, right? Im in the green now and if my gut is wrong, I know what pps I will be happy with if it does start to head south, so I won't cry if I don't hit it big with this one.
Thanks again, Andy
Last edited by Alaska Guy; 12-07-2009 at 07:32 PM.