Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
There are bulls, and bears, on Amazon, due to their rather high price/earnings ratio.
So, if the other 45 Amazon that you did not buy, has a bigger downside risk, than 1000 BAC, then..........
You are in no man's land on Amazon and options. You'd need another 45 shares to use weekly, or monthly, covered calls.
Or get Etrade to elevate you to level 2, so you could buy a put option to protect your 55 shares of Amazon.
Amazon is also a candidate for deep in the money calls, due to the high volatility. Ex: Buy 100 Amazon for $180 and sell the January $170 call for $16.00. In the money $10.00, so profit potential is $6.00.
By the way, Amazon rallied to $180.40 as we speak. Did you sell for a one day profit of 55 x ($180.40 - $173.00) = $407.00?
That is more in one day, than you most likely make in BAC over the next 4+ weeks.
No..I did not..I was more tempted to sell it..But most likely I am going to dump them tomorrow or friday and restart fresh.
Since I cannot do anything but covered calls, I feel restricted right now..I have to wait almost until the end of expiry to start next.
I think I will do a mix of options and regular day trading for while.
I have to wait almost until the end of expiry to start next.
What do you mean?
Many stocks have weekly options.
The December monthly options expire this Friday.
There are options, for at least 3 months out, and leap options, on almost all stocks.
You should pin Etrade down, on what their account equity and financial requirements are, for the next option level.
If you buy 100 Amazon and want to protect it, by buying a put option, you can not under Level 1.
I'd suggest to them, that Level 1 does not let you protect your positions properly, using put options.
Many stocks have weekly options.
The December monthly options expire this Friday.
There are options, for at least 3 months out, and leap options, on almost all stocks.
You should pin Etrade down, on what their account equity and financial requirements are, for the next option level.
If you buy 100 Amazon and want to protect it, by buying a put option, you can not under Level 1.
I'd suggest to them, that Level 1 does not let you protect your positions properly, using put options.
I check in Yahoo finance. For all the stocks I checked, I see one per month.
Where do you see weekly call prices?
I checked, BAC/AAPL/AMZN/BAIDU..they all show prices per month
I check in Yahoo finance. For all the stocks I checked, I see one per month.
Where do you see weekly call prices?
I checked, BAC/AAPL/AMZN/BAIDU..they all show prices per month
Options that expire Dec. 24th open up for trading today. That gives you Thursday's and then 6 more market days. It's a good way to manage risk. There are several stocks where you can get $1.00 in premium, on a weekly option, with only 2 days left until expiration.
The quotes for next week, will be available after 9:30am.
On option expiration, the date for this week is stated at Dec. 17th. That is when the actual "assignment occurs" (each Saturday).
However, the person who has the right, can exercise his options up to 5pm on Friday.
I'll post screen shots so you can see, the weekly options on BIDU, BAC, AMZN, and AAPL as I see them on my Street Smart Pro software. They can be seen on the CBOE website. So far, Yahoo Finance has not added weekly options.
I'll be back soon with some screen shots on weekly's.
If you are new to stocks and options, I'm very slightly surprised that your risk tolerance seems high. AMZN, AAPL, BIDU, are very volatile, both up and down. And you have no way to protect the downside without put options.
Yes, the premiums on those will be high, but the risk on the stocks themselves is high too. The last time AMZN was close to $230 it fell to under $180. BIDU is $117 down from $165.
Lower priced stocks have big volatility too. You can make some good % gains, by selling calls on lower priced stocks.
And when selling January options, you need to make sure you know the date their earnings will be released. The stocks you mention, excluding BAC, could go up or down 10-15-20%, and those are big numbers for AMZN, AAPL, and BIDU on 100 shares.
Last edited by howard555; 12-15-2011 at 07:07 AM..
AMR declared bankruptcy. The stock will trade for awhile so people can close their positions. (stock or options)
Shorts covering could make it go up slightly.
In the end, I have heard a few analysts say, the stock is ultimately worth zero.
They'll re-structure and come out of BK with a new stock.
You did not see the weekly's on Amazon yesterday, because the ones for next week did not open until today. So, all you saw were the Dec. 17th options, which are the monthly options.
The ones for Dec. 31st will open for trading next Thursday Dec. 22nd.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
