Wednesday, October 17, 2007
Killer day...
Can you say 'bull trap'? What a reversal in today's market after seemingly good earnings news from techland and JPM. Oh well, I did get a couple alerts when the markets dived right before 2pm (est).
One is really intriguing: HCBK, I set an alert at $14.85 and the stock ultimately hit $14.74. What is most interesting is that I checked and paper traded a single $10 April 08 call contract. The average between bid/ask was $5 even. So for an ~$0.15 time premium, I would control 100 shares HCBK until the end of 1Q08. Interesting...
The second alert was for JLL, the call options were crazy expensive $90 Mar 08 going for $16.55 (huge spread) with a stock price of ~$95.20. An $11 time premium just doesn't work for me. I would like to keep the extrinsic value below 3% of the stock price. Nonetheless, the stock may be a good buy for my standard folioFN trading...The alert was for $95 even and the stock ultimately touched $94.89. I'll revisit the stock tomorrow before the AM trade window and see if I want to jump in.
For now,
Masterjaz out
One is really intriguing: HCBK, I set an alert at $14.85 and the stock ultimately hit $14.74. What is most interesting is that I checked and paper traded a single $10 April 08 call contract. The average between bid/ask was $5 even. So for an ~$0.15 time premium, I would control 100 shares HCBK until the end of 1Q08. Interesting...
The second alert was for JLL, the call options were crazy expensive $90 Mar 08 going for $16.55 (huge spread) with a stock price of ~$95.20. An $11 time premium just doesn't work for me. I would like to keep the extrinsic value below 3% of the stock price. Nonetheless, the stock may be a good buy for my standard folioFN trading...The alert was for $95 even and the stock ultimately touched $94.89. I'll revisit the stock tomorrow before the AM trade window and see if I want to jump in.
For now,
Masterjaz out
# posted by Masterjaz Out @ 12:37 PM 
