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Joined: 28 Dec 2005 Posts: 11748
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Posted: Fri Jul 17, 2015 8:53 am Post subject: Trading Examples |
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*Fri 7/17/15:
RMBS reports earnings Mon. Someone on Fri bought 5,000 RMBS Jul 13 calls, which expire in one day, when RMBS fell towards 12 3/4 for 0.02 or $10,000. Then, RMBS rose to about 13 1/4 and the calls could've been sold for at least 0.20 or $100,000. RMBS short ratio was high and bounced later. Also, big gains could've been made with FCX Jul 16 calls, when FCX fell towards 15 1/2 and then rose to about 16 1/4 intraday. FCX was in a downtrend for over three weeks falling from 20 1/2 towards 16 and then falling below 16 on Fri, the day options expire. RMBS was also in a downtrend for three weeks, falling from 15 1/4. However, a strategy will be needed, e.g. in case of buying too soon.
*Fri 7/24/15
AMZN reported earnings Thu and rose 87 points in afterhours to 570. It opened at about 580 and then fell to 550. The weekly Jul 560 puts, that expire in one day, opened at 2.45 with a low of 0.95. When it fell to 550, they rose to 11.50. The 570s had a low of 3.25 and a high of 20.00. The 550s had a low of 0.14 and a high of 5.15.
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