CRAZY gains thread..1000% gainers or more. (options) - Page 52

Quote:

Originally Posted by charulz 

wynn 105's trading @ .02 x.06

Good call. .23x.28 right now

Damnit.  WYNN had the same setup as LVS.  FML ..... I probably would've sold out too early like I did on LVS.

lol MCP 10 puts were @ .01 yesterday.. high of .26 today

Quote:

Originally Posted by charulz 

lol MCP 10 puts were @ .01 yesterday.. high of .26 today

Sickening.

I was wrong on that bad boy.  Apparently there are still plenty of sellers, even after that last climax.

MCP must be female.. multiple climax

Quote:

Originally Posted by Rock Sexton 

 

Sickening.

 

I was wrong on that bad boy.  Apparently there are still plenty of sellers, even after that last climax.

AIG 33 weekly puts trading @ .09 x .11

I posted in the Unusual Options thread:  I thought it was interesting that the BAC Jan15x calls are trading at 0.1 x 0.2 with a ridiculously high O/I of 449,380. The contract doubled from 0.01 to close at 0.02 today, it seems to me like an easy way to get a crazy bagger if BAC stock price continues to move up. What do you guys think?

I think that 5 months is a long time, and considering the steady climb of BAC lately plus the probability of QE3, we could see BAC go over $10. I don't think it will get to $15 but that isn't the point; if it starts rallying hard in the near term and hits the $10 mark, that would be enough to send the option from 0.01 x 0.02 to something like 0.02 x 0.03 which is still a big gain. My experience with options is limited so perhaps my thinking here is faulty, but that's why I'm posting 

I posted in the other thread as well.  The basic idea is just that the spread is too much (if you ever want to get out, you lose 50% or forced to hold until the stock moves up enough to bump the bid).  You can still make more than a hundred percent by just buying near the money, especially if you expect it to go over $10 like you said.  Except then you don't have the spread to worry about (lose a few percent instead of 50%).

If this doesn't seem to fit, just ask or bring up counterpoints.

i think 15 is too far out, if you think its going to hit $10, why not buy the 10's or 11s.. if it rallies to 10 in near term, those things should be up 200%+

Quote:

Originally Posted by Dtwizzy2k5 

I think that 5 months is a long time, and considering the steady climb of BAC lately plus the probability of QE3, we could see BAC go over $10. I don't think it will get to $15 but that isn't the point; if it starts rallying hard in the near term and hits the $10 mark, that would be enough to send the option from 0.01 x 0.02 to something like 0.02 x 0.03 which is still a big gain. My experience with options is limited so perhaps my thinking here is faulty, but that's why I'm posting 

Quote:

Originally Posted by pftq 

I posted in the other thread as well.  The basic idea is just that the spread is too much (if you ever want to get out, you lose 50% or forced to hold until the stock moves up enough to bump the bid).  You can still make more than a hundred percent by just buying near the money, especially if you expect it to go over $10 like you said.  Except then you don't have the spread to worry about (lose a few percent instead of 50%).

 

If this doesn't seem to fit, just ask or bring up counterpoints.

I guess this makes sense. I don't think I fully understand the concept of Bid and Ask; if the option has a spread of 0.01 x 0.02 then can't i buy it for 0.01? And if so, can the option drop below 0.01? I know I'm missing something here, I'm just a bit confused. 

I know with penny stocks you have share prices that extend beyond 2 decimal points (i.e. fractions of a cent) so the price can fluctuate between 0.00 and 0.01. Is this also the case with options? What is the downside of buying an option for $0.01?

You generally buy at ask and sell at bid.  You can't really expect to buy at bid and have a decent or timely fill (you're essentially waiting for someone who has the calls to be desperate enough to exit at 50% loss).

Quote:

Originally Posted by Dtwizzy2k5 

I guess this makes sense. I don't think I fully understand the concept of Bid and Ask; if the option has a spread of 0.01 x 0.02 then can't i buy it for 0.01? And if so, can the option drop below 0.01? I know I'm missing something here, I'm just a bit confused. 

I know with penny stocks you have share prices that extend beyond 2 decimal points (i.e. fractions of a cent) so the price can fluctuate between 0.00 and 0.01. Is this also the case with options? What is the downside of buying an option for $0.01?

If the bid is 0.01 and the ask is 0.02, then you could buy it right now for 0.02 because there is an order out there to sell it at that. If you put in a buy order at 0.01 it might just sit there forever. Some might fill, or none. Look at the volume and the last trade price to see if anyone has bought/sold at the bid or ask. When you are looking at stuff that far out of the money, you have to expect to pay the ask and sell at the bid. So that trade would be a 50% loss by default, without some significant movement.

bid = the amt of money ur willing to spend to buy an option contract; ask = the amt of money someone is requesting that you pay for an option contract. & ya options can drop below .01 to 0.00.

options don't trade at fractions like penny stocks. .01 is the lowest you can possibly pay for a contract depending on the underlying strike price

downside of buying at .01 is that the option expires worthless (e.g. worth $0.00) and you lose 100% of ur investment aka $1/contract (+commissions)

Quote:

Originally Posted by Dtwizzy2k5 

I guess this makes sense. I don't think I fully understand the concept of Bid and Ask; if the option has a spread of 0.01 x 0.02 then can't i buy it for 0.01? And if so, can the option drop below 0.01? I know I'm missing something here, I'm just a bit confused. 

I know with penny stocks you have share prices that extend beyond 2 decimal points (i.e. fractions of a cent) so the price can fluctuate between 0.00 and 0.01. Is this also the case with options? What is the downside of buying an option for $0.01?

Quote:

Originally Posted by Splashartist 

Hey guys, I'm new to trading and would like to know a little about options. Say I wanted to buy calls on AAPL because I feel it would rise to 1000 a share. How much would a contract for that be or how does that work exactly. I did some research but I'm still a little confused.

http://www.cboe.com/LearnCenter/courses.aspx

or

http://www.investopedia.com/university/options/

FSLR 21 puts were .01, now .78.. SICKKKKK