Hi all, this pull back has been pretty damn good to me and I'm already playing with the houses money with two targets left before I'm out of my shorts completely.
I have started working on a buy list to be ready when I get the buy signals and there are two stocks in particular that I feel so strongly about I want to leverage with options.
My experience with options is pretty limited. I usually only trade options that I think will create investor excitement or nervousness going into earnings and I'm am almost always out before earnings. For this strategy it is relatively easy to choose a strike and expiration, but playing a bottom or bounce is a completely different animal.
BTW the two stocks are CAT and NFLX
I know that many people use the Greeks, but I still can't make the connection as to how to use them for entry, strike, exp, etc.
So... looking at NFLX if I wanted to enter the trade today my target would be $120 and my inclination would be slightly out of the money calls and baring any other catalyst I'd probably go with Sept calls (after earnings).
That's just my simple and probably less probable strategy I'm kicking around. I was wondering how some of you option pro's would approach this trade if you felt like I do.