New to this thread, but will at least lurk here daily and participate when I might have something to contribute.
Am relatively new to investing/trading and have done options only 4 times, with one expiring worthless (AOL puts), one closed at a loss (Intel puts) and 2 closed at a profit (GTIS calls and Intel calls).
My broker says that my experience with them is atypical and I need to tread carefully lest I think it's too easy. I closed my INTC July85 calls Wednesday for $4.00, and average cost was $0.4473. Purely luck, however, I bought them when the company had been hammered over the DEC issue, but knew that a split and earnings would happen before the calls expired. Ended up doing very well in the 11th hour on those. :)
Anyway, that's what's attracted me to this thread. The split did my options quite a bit of good, with earnings (a small upside surprise) kicking in the afterburners.
Question time:
Is a price increase immediately after a split the norm? If so, any idea how much one can expect a stock's price to go up the week or two after a split?
Do people in here prefer to play long-term or short-term options?
Is there a URL out there I can go to for the quickest education in terms and strategies? For example, no idea what a LEAP is. As for strategies, wanting to see what approaches people really like. I played a straddle on Intel and really liked it that way because with a split, earnings, and DEC, it was like betting that a tossed coin was going to be either heads or tails; that it wouldn't land on its edge.
Any options out there that folks really like? And, of course, splits coming up?
I'm sure some of these questions have already been answered in the thread. Time for me to go read it now.
Thanks,
Bob Zumbrunnen |
