0
0

Just Bought FAZ $30 calls for July


 invite response                
2014 Feb 20, 5:08am   1,511 views  4 comments

by meetyaks   ➕follow (0)   💰tip   ignore  

What do you think?

Comments 1 - 4 of 4        Search these comments

1   mell   2014 Feb 20, 5:54am  

Ballsy. I'd hold this stuff short-term only, ideally only for a day because of the decay. And because Yellen-o-matic and the cronies at the Fed will do everything to keep this market levitating until they have to taper close enough to a dollar crisis. I like SRS below $20 here a bit better, but they often do move in lockstep. Housing has topped out.

2   meetyaks   2014 Feb 20, 8:14am  

My goal is to sell when I double my money (if it happens in next couple of weeks). Otherwise I am hoping i would come out without too much loss

3   meetyaks   2014 Feb 20, 2:18pm  

Anybody thinks this is not worth it?

4   control point   2014 Feb 27, 1:35am  

Its retarded. Tons of decay on FAZ, and the delta on an option that far out of the money is about .25. That means in order for you to "double your money" the stock has to increase about $4 per share in the next month or so.

Almost 20% increase in a stock with that much decay, a beta value of -3.66 in a rising market is akin to putting money on a single number in roulette, but you are hoping for a 1x payout on a 1/35 chance. Bad odds.

For FAZ to increase 20% in a month, the Russell 1000 Financial index needs to fall 7-8% in the next month.

Very, very low probability.

Do you even know the companies in the Russell 1000 financial services index? Hint: It is not just Bank stocks. Berkshire Hathaway, Fiserv, Equifax, Thomson Reuters, Fiserv, Rayonier, Western Union - just to name a few...

Please register to comment:

api   best comments   contact   latest images   memes   one year ago   random   suggestions