Options update for 18 Sep...50 ways to lose your money.
I realise I've been a little lazy about posting since I've come back from holidays...still trying to get my house fixed from the flooding that occured when I was gone.
The worst of all scenarios has happened in BCE the last few days... the volatility has caved as the stock rallied. Guess what my position is? Right, long calls and short stock. BCE up .35c and Feb 45s down
.25c. The jaws of death. Someone actually called me today, indignant that the Feb 45s weren't going up as much as he thought they should. I told him that it was people like him hammering the price that lowered the price and that I was in the same boat as him. Volatility is the single most important component to understand wheen trading options.
ABX: Good rally today off a very oversold condition. I think it's going a fair bit higher. (33,33)
N: This has been possibly the worst performing stock on the board for the last month or so. Something about the Inuit and Voisey Bay. Too much for me to figure out, but...first up day in a long while. I look for a little more up unless some court decision comes out negative.
BCE: Pick your poison...if you think the stock has more on the upside, the calls are desperately cheap...if you think its had its run, then sell them. Personally, I hate the stock. Interest rates are going up. (25--,25)
I hope somebody had some Geac the last few days. What a run.
I met the lady in charge of making automation happen the other day.
When I spoke to her about the absolutely devasting results this would have, particularly on the TXF/TXO complex, she nodded blankly, so I fear the worst is indeed going to happen...they don't know what they're doing...just following orders.
Just remember this--any system that does not allow incoming orders to be auctioned means the worst possible fill for that order. The market place *must* be allowed to respond to every order, and that is precisely what they are eliminating with their new system. The public governors of the TSE and TFE should hang their heads in shame for allowing this to get this far.
Happy trading,
Porter |
