Weekend Updates - Archive

  • Avatar

    Posted: 26 August 2012 05:01 PM #106

    Jordan D - 26 August 2012 05:20 PM

    I know ZeroHedge is mostly just FUD / linkbait articles, but should we be expecting another DAQ rebalance soon?

    http://www.zerohedge.com/news/aapl-198-nasdaq-another-rebalancing-imminent

    Oh, that reminds me, I need to get some more guns and gold for the Zombiepocalypse.

    And LOL on Kass. Anyone who would short Apple as we head into the iPhone 5 release should be placed into conservatorship by his family. Especially on a Friday when you consider we were awaiting a huge verdict. What a dumbass.

    Signature

    We filed for over 200 patents for all the inventions in iPhone and we intend to protect them. — Steve Jobs, 2007

         
  • Posted: 26 August 2012 05:24 PM #107

    I have some news that some may consider to be bad and others may consider to be good.  I am trying to find the link with the information but have yet to locate it. It seems that starting next week (Sept 5th) there will be “MINI-AAPL” options.  Instead of 1 contract representing 100 shares, it will represent 50 shares.  This may now open the door to retail but I can only imagine the confusion…and I believe it will apply to monthlies and weeklies.  I will try to find the story.

    I feel JDSoCal rolling his eyes and smoke coming out of his ears as he reads this.

    Signature

    Keep Calm and Carry On

         
  • Avatar

    Posted: 26 August 2012 05:42 PM #108

    Phoebear611 - 26 August 2012 08:24 PM

    I have some news that some may consider to be bad and others may consider to be good.  I am trying to find the link with the information but have yet to locate it. It seems that starting next week (Sept 5th) there will be “MINI-AAPL” options.  Instead of 1 contract representing 100 shares, it will represent 50 shares.  This may now open the door to retail but I can only imagine the confusion…and I believe it will apply to monthlies and weeklies.  I will try to find the story.

    I feel JDSoCal rolling his eyes and smoke coming out of his ears as he reads this.

    I have no problem with options, per se, just the pain effect of close to the money calls, especially weeklies, which don’t give Apple time to run up the monthly strike OI. Travis Lewis posted a chart some time back showing this pain phenomenon can be traced right back to the start of weeklies.

    Actually, this is good news for IRA investors who might not have the equity to cover a full 100, especially for exercising calls into shares. I only wish it were even smaller, since 50 is still pretty large. When I first read about this, I thought I saw somewhere they were going to drop minis to 10, which would make more mathematical sense, and more easily fit into IRA’s.

    Signature

    We filed for over 200 patents for all the inventions in iPhone and we intend to protect them. — Steve Jobs, 2007

         
  • Posted: 26 August 2012 05:56 PM #109

    JDSoCal - 26 August 2012 08:42 PM
    Phoebear611 - 26 August 2012 08:24 PM

    I have some news that some may consider to be bad and others may consider to be good.  I am trying to find the link with the information but have yet to locate it. It seems that starting next week (Sept 5th) there will be “MINI-AAPL” options.  Instead of 1 contract representing 100 shares, it will represent 50 shares.  This may now open the door to retail but I can only imagine the confusion…and I believe it will apply to monthlies and weeklies.  I will try to find the story.

    I feel JDSoCal rolling his eyes and smoke coming out of his ears as he reads this.

    I have no problem with options, per se, just the pain effect of close to the money calls, especially weeklies, which don’t give Apple time to run up the monthly strike OI. Travis Lewis posted a chart some time back showing this pain phenomenon can be traced right back to the start of weeklies.

    Actually, this is good news for IRA investors who might not have the equity to cover a full 100, especially for exercising calls into shares. I only wish it were even smaller, since 50 is still pretty large. When I first read about this, I thought I saw somewhere they were going to drop minis to 10, which would make more mathematical sense, and more easily fit into IRA’s.

    Ok - forget all I just said - this is why I should read the article first before saying anything. Here is what is really happening:

    http://online.barrons.com/article/SB50001424053111904628504577593301497008594.html?mod=BOL_hpp_dc#

    Signature

    Keep Calm and Carry On

         
  • Avatar

    Posted: 26 August 2012 05:59 PM #110

    That doesn’t sound like retail traders can get half the shares at half price options…

    Signature

    The Summer of AAPL is here.  Enjoy it (responsibly) while it lasts.
    AFB Night Owl Team™
    Thanks, Steve.

         
  • Posted: 26 August 2012 06:08 PM #111

    Mav - 26 August 2012 08:59 PM

    That doesn’t sound like retail traders can get half the shares at half price options…

    no I said my information was INCORRECT - someone had conveyed it ass-ways to be quite frank.  This article actually reads that the advantage will be given to the market makers because they will only have to quote a 5 up market ... so less capital on the line for them. Any quote you would normally see was good for at least 10+ contracts…now you can only be assured of 5.  So worse for the little guy.

    [ Edited: 26 August 2012 06:46 PM by Phoebear611 ]

    Signature

    Keep Calm and Carry On

         
  • Posted: 26 August 2012 06:57 PM #112

    Take a look at Max Pain chart for Oct. 20.  Look at OI for $750!

    Note:  Highest OI for Sept. 22 are 20,285 for $700.

    [ Edited: 26 August 2012 07:00 PM by ByeTMO ]      
  • Avatar

    Posted: 26 August 2012 07:55 PM #113

    Phoebear611 - 26 August 2012 08:56 PM
    JDSoCal - 26 August 2012 08:42 PM
    Phoebear611 - 26 August 2012 08:24 PM

    I have some news that some may consider to be bad and others may consider to be good.  I am trying to find the link with the information but have yet to locate it. It seems that starting next week (Sept 5th) there will be “MINI-AAPL” options.  Instead of 1 contract representing 100 shares, it will represent 50 shares.  This may now open the door to retail but I can only imagine the confusion…and I believe it will apply to monthlies and weeklies.  I will try to find the story.

    I feel JDSoCal rolling his eyes and smoke coming out of his ears as he reads this.

    I have no problem with options, per se, just the pain effect of close to the money calls, especially weeklies, which don’t give Apple time to run up the monthly strike OI. Travis Lewis posted a chart some time back showing this pain phenomenon can be traced right back to the start of weeklies.

    Actually, this is good news for IRA investors who might not have the equity to cover a full 100, especially for exercising calls into shares. I only wish it were even smaller, since 50 is still pretty large. When I first read about this, I thought I saw somewhere they were going to drop minis to 10, which would make more mathematical sense, and more easily fit into IRA’s.

    Ok - forget all I just said - this is why I should read the article first before saying anything. Here is what is really happening:

    http://online.barrons.com/article/SB50001424053111904628504577593301497008594.html?mod=BOL_hpp_dc#

    But the mini-option contract thing is still coming, pending regulatory approval, based on what I have read.

    Signature

    We filed for over 200 patents for all the inventions in iPhone and we intend to protect them. — Steve Jobs, 2007

         
  • Avatar

    Posted: 26 August 2012 07:57 PM #114

    Mercel - 26 August 2012 09:57 PM

    Take a look at Max Pain chart for Oct. 20.  Look at OI for $750!

    Note:  Highest OI for Sept. 22 are 20,285 for $700.

    Yeah, I noticed that even last month! No prob, I’ll take a $749.99 close in Oct.

    Signature

    We filed for over 200 patents for all the inventions in iPhone and we intend to protect them. — Steve Jobs, 2007

         
  • Posted: 26 August 2012 08:16 PM #115

    JDSoCal - 26 August 2012 10:57 PM
    Mercel - 26 August 2012 09:57 PM

    Take a look at Max Pain chart for Oct. 20.  Look at OI for $750!

    Note:  Highest OI for Sept. 22 are 20,285 for $700.

    Yeah, I noticed that even last month! No prob, I’ll take a $749.99 close in Oct.

    Whoa - I’m thinking of that guy we spoke about who rolled up his 12k contracts in October this last week to the 700-750 strikes and pressed his bets. Huge pay day.

    Signature

    Keep Calm and Carry On

         
  • Avatar

    Posted: 26 August 2012 09:25 PM #116

    Whoever that dude was _couldn’t_ have known the outcome of the Apple-Samsung trial - but yeah, provisionally, that’s looking like one sweet trade.

    Signature

    The Summer of AAPL is here.  Enjoy it (responsibly) while it lasts.
    AFB Night Owl Team™
    Thanks, Steve.

         
  • Avatar

    Posted: 27 August 2012 12:45 AM #117

    Mav - 26 August 2012 07:31 AM
    cambrose - 26 August 2012 04:58 AM

    Is there anything wrong with putting in a market order for an options trade for Monday? I know it’s not normally advisable because options are thinly traded, but will it not just fill with something close to the opening price? I would think it’s safe to say options will be fairly heavily traded on Monday. Want to get an order in but I may not be able to when the market opens. What is the worst risk I’m taking?

    DON’T DO IT.

    Be ready to trade a limit order if you choose to do that.  Use CBOE iVolatility services/your broker platform to guess some prices you’re willing to pay.

    +1. you would get a terrible fill with a market options order on the open.

         
  • Avatar

    Posted: 27 August 2012 01:11 AM #118

    I’m still not 100% sure if cambrose was talking a buy or sell, but either way, limit orders are best IMHO.  I do market orders probably <2% of the time, and that’s probably during moments of non-lucidity, and even then, only to sell when I’m reasonably sure the price isn’t going off a cliff in the next few nanoseconds.

    Signature

    The Summer of AAPL is here.  Enjoy it (responsibly) while it lasts.
    AFB Night Owl Team™
    Thanks, Steve.

         
  • Posted: 27 August 2012 01:15 AM #119

    JDSoCal - 26 August 2012 10:55 PM
    Phoebear611 - 26 August 2012 08:56 PM
    JDSoCal - 26 August 2012 08:42 PM
    Phoebear611 - 26 August 2012 08:24 PM

    I have some news that some may consider to be bad and others may consider to be good.  I am trying to find the link with the information but have yet to locate it. It seems that starting next week (Sept 5th) there will be “MINI-AAPL” options.  Instead of 1 contract representing 100 shares, it will represent 50 shares.  This may now open the door to retail but I can only imagine the confusion…and I believe it will apply to monthlies and weeklies.  I will try to find the story.

    I feel JDSoCal rolling his eyes and smoke coming out of his ears as he reads this.

    I have no problem with options, per se, just the pain effect of close to the money calls, especially weeklies, which don’t give Apple time to run up the monthly strike OI. Travis Lewis posted a chart some time back showing this pain phenomenon can be traced right back to the start of weeklies.

    Actually, this is good news for IRA investors who might not have the equity to cover a full 100, especially for exercising calls into shares. I only wish it were even smaller, since 50 is still pretty large. When I first read about this, I thought I saw somewhere they were going to drop minis to 10, which would make more mathematical sense, and more easily fit into IRA’s.

    Ok - forget all I just said - this is why I should read the article first before saying anything. Here is what is really happening:

    http://online.barrons.com/article/SB50001424053111904628504577593301497008594.html?mod=BOL_hpp_dc#

    10 share option proposal from april. No decision as far as i know

    http://www.sec.gov/rules/sro/nysearca/2012/34-66725.pdf

     

    But the mini-option contract thing is still coming, pending regulatory approval, based on what I have read.

         
  • Avatar

    Posted: 27 August 2012 01:22 AM #120

    Mav - 27 August 2012 04:11 AM

    I’m still not 100% sure if cambrose was talking a buy or sell, but either way, limit orders are best IMHO.  I do market orders probably <2% of the time, and that’s probably during moments of non-lucidity, and even then, only to sell when I’m reasonably sure the price isn’t going off a cliff in the next few nanoseconds.

    I was talking buy. And I’m not anymore.

    Signature

    Long AAPL Short ME 5’3