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I WANT TO EAT BABBY posted:So from July to August there will be a bunch of pissed off bankers finally selling the options they received instead of cash at bonus time. This means a flood of sales and I'm wondering how to best play this. Not every bank issued options so getting short of KBW or something similar would be inefficient. FAZ is retarded. I'm also not sure that, despite the eagerness to sell there won't be Smart Money laying in wait to snap up discounted shares thus whipsawing my dumb rear end. If the latter occurs it would be nice if one was able to pick up some low vega puts before people start selling, then dump them on the IV spike. Alternatively, one could wait until bank employees start dumping and sell puts/deep-and-wide iron condors with inflated vol. Thoughts? First off, do you mind explaining what this sentence means "Alternatively, one could wait until bank employees start dumping and sell puts/deep-and-wide iron condors with inflated vol"? Second, you are quite confident the bank stocks are going down. Given that, whether smart money buys or not, wouldn't selling puts still work out?
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May 5, 2010 18:24
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Nifty posted:First off, do you mind explaining what this sentence means "Alternatively, one could wait until bank employees start dumping and sell puts/deep-and-wide iron condors with inflated vol"? A sell-off results in Implied Volatility. If you did think that there will be a lot of people buying the dip you can sell puts with a higher IV. If you're not sure that there will purchases on the dip but still feel that the stock will stay between prices X and Y you sell an Iron Condor with the short positions such that you win between X and Y. The "deep-and-wide" comment was just a reference to the fact that X and Y may not be the 1 strike apart that makes up a "normal" IC. quote:Second, you are quite confident the bank stocks are going down. Given that, whether smart money buys or not, wouldn't selling puts still work out? Selling puts only works if there are buyers on the dip and the puts you sold expire OTM. Buying puts gives you the risk of (a) a whipsaw from dip buyers and (b) paying too high of a premium because of increased vol. Clearly I'm not the only person who sees extra volatility for bank stocks this summer I'm just wondering about the best way to play it.
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May 5, 2010 19:32
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Hobologist posted:I guess that means my tomorrow's also going to be hell, though. Yep, called it.
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May 5, 2010 20:41
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Ravarek posted:Cramer is an unimaginative perma-bull, just like almost everybody else on CNBC. 
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May 5, 2010 22:09
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I hope this pullback continues tomorrow. I'd like to go bargain shopping.
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May 6, 2010 05:05
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Is Europe really messing up Chinese solar this much? LDK anyone? I heard they made a killing this quarter
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May 6, 2010 16:41
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What the hell is up with USDJPY, it tanked like 3 yen in like 30 minutes...
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May 6, 2010 18:18
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Cheesemaster200 posted:What the hell is up with USDJPY, it tanked like 3 yen in like 30 minutes... Oh my god my t/p was at 90.0 before I sold it rofl
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May 6, 2010 19:19
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Cheesemaster200 posted:What the hell is up with USDJPY, it tanked like 3 yen in like 30 minutes... Ain't the only thing tanking, my DSX is down like 7%, luckily I sold some calls on DJX.
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May 6, 2010 19:25
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Pretty funny to see what took a month to gain dissipate in a few days for the PIGS (WYNN, CRM, CREE, SLG). Guess buyers didn't have that much faith in them after all. If this sell off ends up like 2008 did, there are a ton of Chinese companies that should sell for extremely attractive levels that shouldn't see too much of a growth slowdown as long as they have high internal country sales. Even if growth does stall, they're already trading at depressed levels as is. PWRD and CYD as two examples.
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May 6, 2010 19:26
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So... I guess the market doesn't like the approval of the Greek austerity bill.
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May 6, 2010 19:30
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Pretty brutal day if you're heavily into commodity stocks like I am. Have some spare cash though, so put in some bottom feeding orders for E and TOT, and also kind of tempted to pick up some EXC. We'll see how those work out.
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May 6, 2010 19:36
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I honestly thought yesterday was the turn, glad I didn't get too long of anything. Sold my dogs (financials, oil) this morning, got long GLD call spreads and then SPY put spreads once we broke 1135. See ya at 1100.
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May 6, 2010 19:42
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Tom Rakewell posted:Pretty brutal day if you're heavily into commodity stocks like I am. Have some spare cash though, so put in some bottom feeding orders for E and TOT, and also kind of tempted to pick up some EXC. We'll see how those work out. Yes, I'm not quite sure how an oil rig blowing up tanks the price of oil, or how either of those facts tanks the price of Linn Energy, a company that hedges all of its production for years in advance. I oppose averaging down on principle, but still...
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May 6, 2010 19:43
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Dow Down 511 (goddamn I just stopped there cuz it kept going down every second,) I wish I had some cash, excellent buy opportunity for some of the poo poo I watch, but Im still paying on taxes. Had some poo poo I needed to sell to pay said tax, but the stock value has dropped over 3 bucks per share since I needed. Ill just stick it out. No way Im taking hundreds of dollars of loss just to stem the blood flow. Dow now down 570. 
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May 6, 2010 19:44
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Wow, uh we might limit down.
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May 6, 2010 19:45
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Holy poo poo, what happened? Dow down 875 last I looked.
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May 6, 2010 19:47
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Oh my god my software is going crazy. Price is gapping a full 50 ticks on the mini dow, the DOM levels are all split up, this is complete chaos.
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May 6, 2010 19:48
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double post
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May 6, 2010 19:50
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this owns
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May 6, 2010 19:51
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What the hell? This is surreal. Was looking at EXC and saw it go from 40 to 30 to 20 to 39 on Google Finance. I hope that was a bug?!
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May 6, 2010 19:51
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At least there is the dead cat bounce!
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May 6, 2010 19:52
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LactoseO.D.'d posted:Oh my god my software is going crazy. Price is gapping a full 50 ticks on the mini dow, the DOM levels are all split up, this is complete chaos. My RUT puts have an Ask of $10,000,000/contract and a 0 bid. The 111 SPY puts I'm short are worth more than than the 112's I'm long.
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May 6, 2010 19:52
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Well we just had a recession and a recovery inside of an hour. My question is if any trades are going to get broken.
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May 6, 2010 19:55
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BUY IT ALLLLLLLLLl
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May 6, 2010 19:56
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I strongly predict that this next 1hr and 4 minutes is going to see insane changes. 
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May 6, 2010 19:56
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gently caress i put a market buy order in when we hit 9.8k and it still hasnt executed its sitting there taunting me - did the markets close?
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May 6, 2010 19:56
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I have no idea what's going on. I've owned AAPL since it was $40 a few years ago. It's now jumping around being down $40 to down $10. What should I be doing?
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May 6, 2010 19:56
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I just added to my NOV position at 39.90.
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May 6, 2010 19:57
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Luigi Thirty posted:I have no idea what's going on. I've owned AAPL since it was $40 a few years ago. What should I be doing? You should be smiling smugly that it's at ~$240. Don't go all crazy and sell right now. edit: in time it took me to post this, it went from $240 back to $245. Don't sell.
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May 6, 2010 19:57
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lol I guess the government turned the hose on at 2:45.
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May 6, 2010 19:59
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In other stocks, today is the cheapest day in months to buy Ford, if anyone was waiting for a good time.
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May 6, 2010 19:59
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Baddog posted:gently caress i put a market buy order in when we hit 9.8k and it still hasn't executed ok etrade was just slammed and not updating, this is nuts.
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May 6, 2010 19:59
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Scottrade is also taking absurdly long to update. I'm telling you, everyone's going all I kinda am 
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May 6, 2010 20:00
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I impulse bought UPI which I've been watching lately, at 3. Jumped to 4.8 today in the middle of the carnage. Yay for the incontinent I guess.
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May 6, 2010 20:01
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Haha all algo trading computers just got broken I think. Weird rear end spreads on everything as market orders entered during the 10 minute recession and recovery randomly print. Haha look at VYM, thinly traded stock went from 38 to .50, then to 41. Hit a 52 week low and 52 week high in the same hour. Jack fucked around with this message at 20:15 on May 6, 2010 |
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May 6, 2010 20:04
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pr0k posted:I just added to my NOV position at 39.90. Sold that pig today for a very small profit at open (overpaid for it a while back, sat on it hoping for a major increase that never came) and don't plan on looking back. I like the company, but the stock, and really those of most of the oil services sector has been dead in the water forever. What was your original cost basis? I may get back in this collapse keeps going and NOV tests 30, but that probably won't happen.
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May 6, 2010 20:05
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Jack posted:Haha all algo trading computers just got broken I think. Weird rear end spreads on everything as market orders entered during the 10 minute recession and recovery randomly print. Indeed. WIN went from 9.71 to 6.97 apparently without hitting anything in between. I wonder what actually happened.
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May 6, 2010 20:09
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So that's what happens when a million stop orders get taken out at once? I was curious what that would look like.
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May 6, 2010 20:15
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uhhhhh, did anyone else see every single iShares etf drop to 1 cent per share? what in the holy gently caress was that about?
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May 6, 2010 20:16
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