C-Cube Message Board - Msg: 3773766

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : C-Cube

CUBE 35.90

+0.2%

Dec 26 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Peter V who wrote (31192)	3/19/1998 9:04:00 PM
From: ViperChick Secret Agent 006.9	Read Replies (1) of 50808

just pick a couple of stocks and watch how it operates doesnt happen with all stocks it doesnt happen all the time with one stock but the propensity is there...and it doesnt have to end up at 20..but I figured this friday it would be close to 20 for exp. at that time i wrote that I think cube was in the 18's. the OI is really not much on this stock compared to stocks I work with...so I am not sure that it is enough to make a different but then the volume on this stock is negligible...so it probably is.. and dont forget the volume on a NASDAQ stock is computed differently than the DOW stocks Fred is right in that 50 volume in calls is nothing However, for CUBE I would disagree that you need a volume of 500 to show something might be happening and if you have the right concept on the bear credit spread but you dont need it to get all the way to 20 to make money I will give you an example of one from last week that was done but I wont say the stock for a couple of reasons March 20 call 5.5 premium sold 25 call 7/8 premium paid net credit 4.625 in your pocket risk .375 right now the stock is 24 today a profit of 1.125 can be had on this spread. do 50 contracts....max risk would have been 1875 profit today would have been 5625 if the stock had dropped to below 20 the profit would have been 23125. not including commissions and some other considerations which are too much to get into here...(I didnt double check my math so I hope its right) but that is the basic way it works however...finding bear credit spreads with only .375 risk are tough and you have to keep an eye out...or know someone who alerts you which was the deal in this case. However, I didnt act on this one right away and it disappeared before I could get in.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next