OFFICIAL STOCK MARKET & ECONOMY THREAD VOL. SCHOOL'S OUT

[johnnyredstorm]

Bidding on some spreads. Let's see if I get filled.

SODA Jan 40-45 call spread for .15. Good risk to reward here if this one gets bought out for its rumored price of $46. Bidding on a 15 lot I believe so no pain if this duds like it very well could.

FB Oct 10 78-80-82 call fly for .24. Just a 5 lot for now so not much harm if I'm wrong.

TWTR Oct 10 53-55-57 call fly for .22. 5 lot as well.

INVN Oct 3 22-23 call spread for .15. 10 lot. countertrend bounce attempt.

Getting a little bullish, but I'm keeping the size low where if I'm wrong and the market actually does correct instead of simply pulling back a little, I won't be in too much trouble. If I'm right, sweet.

Edit: Didn't get filled on anything.

 

[rightguard]

Just got this book in

I was looking into buying the book. How do you like it so far?

 

[johnnyredstorm]

From what I've learned, you'd want to get the implied target to see where the market makers think it could go and create a strategy from there. You'd also want weekly options ideally since you're playing the catalyst this week, not a month from now.

The at the money straddle for LOCO is about $5 so you'd subtract that from the straddle strike to get your downside target and add it to the straddle strike for the upside target.

So you'd be looking at about 30 or 40 (using the $35 strike) as your targets. You'd then look for a spread or fly with good risk-reward within that range. Something like a 34-33 put spread for .30 (just an example the actual market is really wide and closest expiration is Oct 18, not this week). Ususally you wanna use spreads to protect yourself from volatility. In this case since LOCO only has monthlies, you might be able to buy an at the money or near the money put and do ok if LOCO went lower. Going out of the money like 30 let's say would be in lotto territory.

Front month options are tough but they have could offer great returns, and you gotta be careful of that time decay if you're just buying calls or puts outright.

 

[based mod]

Anybody have thoughts on gold/gold miners? Haven't seen Andy for a minute.

Heading into oversold territory, but just wanna know what you guys think long(er) term.

 

[wizards23]

rightguard I haven't gotten into it but it comes highly recommended from someone I respect

Gold hmm? I would like to think we get a bounce or move but I've been thinking that for a while smh

 

[johnnyredstorm]

Got filled on a YHOO call fly for Nov 41-44-47 for .38. Just a 5 lot. Risk is $38 per 1 lot reward is $262 per 1 lot.

Edit:

Grabbed a FB call fly for next week 79-81-83 for .35. only a 5 lot. not as confident in this trade, but I wanted some skin in the game in case this breaks out next week. this could wind up working against me since the market maker is pricing in a move below the weekly ATR (straddle is around 2.45 vs weekly ATR of 3.36) so I won't be surprised if this gets stuffed at 80 or pulls back and chops around between 76-79.

 

[johnnyredstorm]

I've heard good things about this book if you want to learn more about the ichimoku cloud:

 

[based mod]

WLT :x

Can't believe I actually made money trading that one. -86% on the year. Lord.

 

[chiang2k6]

Nice volume and trend on $MU riding into earnings...bullish there. Looking for a bounce after earnings tomorrow.

As for $GTAT, I was riding high on it and followed it very closely with a stop loss during Apple's announcement, Been swing trading it ever since and have been net positive there after taking a small loss after the announcement. I still believe it's a solid company and hopefully management's conference will reiterate guidance and help stabilize it.

Grabbed some options for Oct 18 $INVN 21.00 calls on that sell-off Monday and flipped for a quick 27% gain. Any thoughts on holding the stock?

Looking for some long-term holds...$RAD/$BP/$DIS?

 

[johnnyredstorm]

BP is great but there's been weakness due to Russia. Could be a buying opportunity if you have a long timeframe. Just have a plan since 44 looks possible.

I like INVN but if it breaks 20.67 it's probably going to the 18s. Just have a plan with that one as it finds it's footing. Once it settles it could be worth swinging.

GTAT is one of those stocks that you gotta buy at the low end of the range and flip it when people want it instead of trying to buy the breakout or near the highs. But if they're in the iPad they should catch a bid.

 

[thefuncooker]

Bp has dropped a lot lately more due to Brent collapsing than anything else. The stronger dollar can't help either. The problem with these oil majors is that they can't replace reserves cheaply enough in size. The high dividends make them Kind of interesting though. I'd look at total or statoil if I wanted to go with European oil major and not have to worry about the gulf or rosneft

 

[johnnyredstorm]

Grabbed an EBAY call spread for next week 54-55 for .15. Liked the chart but this market needs to cooperate unless there's some chatter that pops it next week.

2,000 Oct 18 INVN 19 puts were bought today. Chart's looking ugly.

 

[chiang2k6]

thanks for the input gentlemen, today is an ugly day...

 

[johnnyredstorm]

SPY's been heavy these days. It could flush some more and test the cloud at 194.68. Wouldn't wanna see it break the cloud to the downside or trade beneath it for any substantial time. That'll be correction territory.

Holds it, could be a decent buying opportunity with a tight stop.

 

[based mod]

Of course GPRO is up today

 

[wizards23]

I took off all my TVIX 2.65s today 3.08-3.09. My thinking is we get a bounce soon (Friday or Monday) due to RSI nearing 30 on SPY daily chart so I would rather be safe and turn paper profits into realized gains

There are a lot of ugly charts out there which says something to me. Make sure you have stops in place gentlemen

 

[digital022]

Any thoughts on Smart & Final as a long term buy?

 

[trueprada]

Fwiw a lot of good value stocks decently priced on the BSE Ltd. (Bombay Stock Exchange) - get in early my advice

@stock1digets

 

[johnnyredstorm]

GPRO is crazy

This is gonna be a *****ing short when it's ready, but it might take a while. Gotta look up their lockup info.

 

[dathbgboy]

NKE jumping after that earnings report. I've been watching but didn't get in, now I have to wait for a pull back. GPRO is performing solid too, glad I got in, not for many shares tho. Slow process for me with not much capital but I'm gon get there

 

[johnnyredstorm]

NKE jumping after that earnings report. I've been watching but didn't get in, now I have to wait for a pull back. GPRO is performing solid too, glad I got in, not for many shares tho. Slow process for me with not much capital but I'm gon get there

Take your time. Slow grind and small profits adds up. I tried to do things too fast with too much size and it backfired. This whole game really is psychological.

 

[dman14]

chinese stocks taking a beating :x
retail :x

 

[johnnyredstorm]

Got filled on a TSLA put fly for next week for .18.

235-237.50-240

Decent risk-reward, just a 10 lot. Starting to pierce the cloud a little.

The implied move was around $9.50 and it's weekly ATR is 17 so we'll see how this goes.

 

[chiang2k6]

NKE jumping after that earnings report. I've been watching but didn't get in, now I have to wait for a pull back. GPRO is performing solid too, glad I got in, not for many shares tho. Slow process for me with not much capital but I'm gon get there

12% gain on the day jesus, missed that earnings play but don't think many people saw that coming.

$MU beat helped me out, probably won't cross $34 this week but will hold for now as I think the sell-off is over. could climb to new highs next week given that resistance was $33ish for the longest time.

 

[wizards23]

"Buy stocks that are being bought, sell stocks that are being sold"

Keep it simple