Amazon.com, Inc. (AMZN) Message Board

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 : Amazon.com, Inc. (AMZN)

AMZN 233.22

+1.8%

Nov 28 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Jan Crawley who wrote (55371)	5/5/1999 2:07:00 PM
From: KeepItSimple	Read Replies (2) of 164684

Does anyone see an obvious flaw in this method? I've been looking back through a few internuts' options chains charts over the last few months, and i'm seeing something strange. By playing a 50/50 put-call stradle on ebay/cmgi/yhoo/amzn at a reasonable distance (10 or 15) away with 30 day time premium, you would have made around 10 percent per week if you stuck to a rule of selling the "winning" contract when it doubled +11%. And I'm not even counting the EXTRA profit you make by holding the "losers" until they _maybe_ make some profit at a later time.. This can be explained that these stocks RARELY have a <10 point trading range for over a month, wheras most "real" stocks do. Internet stocks can be defined by their volatility, really. Is anyone else out there doing this? It would require writing a bit of automated trading software, but as long as the volatility keeps up it should remain profitable enough for SOMEONE to do it.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next