PETX/Pharm - Working out great, thanks!
Submitted on 2015/10/02 at 10:04 am
PETX/Pharm – NOW I'm interested. Unfortunately, the bid/ask spreads on the calls are INSANE, not even in the realm of reality:
You can sell the Nov $10 puts for $2.80 and that's the way I'd like to be long on these as it's net $7.20 entry so another $1 off (15%) and that's a 40% return even for IRA players if they get over $10 and, if not, if you gain $1 every two months you roll – no worries there.
Last sale on the Nov puts was $2.20, which is still pretty good as they are now $9.37. With PLX, I'd just buy the May $1 calls for 0.30 and cross my fingers.
SPY/Cervantd - Doubling down is NOT a good idea if you're in a position that can still rally against you. The top for SPY was $210 (now $197) and NEVER assume that a stock can't retake it's high. If you still think they are going down, then roll for time and position but Doubling Down is really something you only do when it's moving sharply against you AND you think it's hitting overhead resistance (so you are selling 2x into the excitement and taking advantage of a premium surge). Also, you likely want to cover a 2x move with a hedge - never just DD unless you are POSITIVE it's a fake move AND you can afford 2x losses.
As usual, with a Monday, our first poke at a short didn't work so we're just watching and waiting to see what sticks.
16,560, 1,967, 4,302 and 1,130 at the moment. 1,130 has been tough for /TF so bullish if they get over.
SQQQ/Tom - I just look at all the combos and pick the one I think has the best risk/reward ratio at the time.
