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Post by chiu on Jul 20, 2006 12:04:29 GMT -4
In the Option Championship and forced to play earning game, on 18 Jul 2006, buy FLIR Jul $25 Call at $0.9, before the earning announcement, on 19 Jul 2006, big gap down, sell Jul $25 Put at $0.15 loss=$0.15-$0.9=-$0.75($75). On 19 Jul 2006, buy MOGN Jul $22.5 Call at $0.2 for 5 contracts before the earning announcement. On 20 Jul 2006, big gap down, option becomes worthless. Lost $1.0($100). Actually placed order for AAPL Call but did not get filled, what a waste ! Trade details :
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Post by Conrad Alvin Lim on Jul 20, 2006 12:32:05 GMT -4
I respect all those who tried for this Championship. Congrats on a fine performance. This is what happened when I assumed the first 10 minutes was an indication of the continued bull run. Why do I always break my own rules?
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Post by chiu on Jul 20, 2006 13:39:03 GMT -4
Always interested in earning play, revisited and picked HRB some time back. On 7 Jun, buy Jul $22.5 Put at $1.05 for earning play when HRB at around $22.5. Being inexpereinced on earning game, it did not go down much and slowly moving up. Seeing the broader market bear, decide to stay on . Cannot believe it, the stock stay strong even with the boarder market made big move down. HBR actually moved up very slowly $1 to $23.5, and loses all the time decay on option. On 20 Jul, second last day of July contract, sell the contract at $0.05. Lost=$0.05=$1.05=-$1.0($100). Lesson learned, tor earning games, never play on counter that is not liquid enough.
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Post by Conrad Alvin Lim on Jul 20, 2006 22:27:45 GMT -4
A couple of over-ambitious 5DPEG Strangles-Gone-Wrong. Could have taken small profits on each of the Call legs before earnings but got caught out on Day 03 (DNA) and Day 04 (AA) and constipated. After earnings, didn't gap down enuf to make money on the Put legs and the Calls went *poof!* Expiring worthless today. Lesson learnt: Don't be too ambitious and don't get cheap on the 5DPEG by buying so far OTM.
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Post by Conrad Alvin Lim on Aug 3, 2006 11:50:40 GMT -4
Another perfect earnings trade that lost money. Beats everything, outstanding forward guidance, superb revenues, second highest super gapper for the day and no possible way to lose. Click here to see what went wrong.
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Post by paperplay on Dec 20, 2006 2:29:23 GMT -4
i used to think that stock split days are usually bullish.
AEOS tanked on the day it split 18th , just this monday.
i was following GRMN previously and it had a super run on the week it split , on friday and when i looked @ it this monday , the price still looked the same ie: hasn't split yet.
makes me wonder about the accuracy of yahoo's split dates.
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Post by Conrad Alvin Lim on Dec 20, 2006 2:54:05 GMT -4
Paperplay, you signed up for the tutorial right? Then you're going to find out exactly why you don't trade Split Plays on execution. You wait for an entry after the announcement and exit before execution. I hope you're not putting real money on trades like these without knowing the pattern of play.
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