Friday, June 13, 2008

Have a Nice Weekend !!! Option Rules--

EWZ who knows, but it might go up---

$BVSP = ewz--EWZ--Can't tell if this is the start of another leg up..But the USD might make it to it's 200 day--SO for EWZ this might be the start of another leg up---and UBB--EWZ financial--looks good too---

ADM--well**** The 200 weekly*** is about as compelling a buy signal as One can get on Technical Analysis---

fIRST POINT I never pay 1.90 for an ATM ( at the money) option. Cause I think I can get it for 1.00 / 1.40. In FPL case--FPL stock price was $64 or so and JULY 65 sold for 1.40 - 1.70--
Second Point FPL is usually the way a T40 ( Time - 40 days left)option should work.
The option price went from 3.00 aprrox--back up to 3.00 in a 10 day period---A lot of options don't work this way--I call them traps---
3rd point--Try to make records like this, So, that the next time a company comes into play, You'll know if the ATM option plays right...Other wise, just buy The FPL July $60 call--ITM--In the Money---

P.S. TRY to find companies with 2.5 stikes spreads, and keep those in a separated list---add the $1 strike spreads too...For Instance KO, I didn't know they had a 2.50 strike spread---I'm waiting for $53.6 entry price--I'll get the JULY 52.5 and 55 calls..
Usually on 2.50 spreads ATM and OTM--( at the money--and Out of the money ) will rise and fall with 25% to 60% delta--

Unlike ICE JULY $140 call---stock price went down $4, and option price went down $40, then ICE went up $9--and option only went up $60--SO delta 10 ICE going down, and Delta 5 ICE going up.( RIP OFF )

EMAIL ME !!! anytime