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Strategies & Market Trends : Option Strategies -- Ignore unavailable to you. Want to Upgrade?

To: Bridge Player who wrote (912)	12/20/2013 11:33:12 AM
From: Bridge Player	Read Replies (1) \| Respond to of 2591

With the stock at 59.26 sold a short TWTR Dec.27th 61 call for 1.15. Weekly calls, half-point strikes, good premiums. Twitter selling at 38 times book value, 58 times sales (Yahoo!), not expected to be profitable in 2014. Edit: son of 2000 internet bubble.

To: Bridge Player who wrote (912)	12/20/2013 5:38:41 PM
From: TheNoBoB	Read Replies (1) \| Respond to of 2591

Remember that the VIX index doesn't directly measure volatility, but rather the premium S&P500 options traders are willing to pay for downside protection (which is why it's sometimes called the fear gauge). When stocks are falling you have to pay up for that protection, so VIX spikes. Exercise caution with the structured products designed to track the VIX (VXX, UVXY, etc). They all have a structural flaw that causes them to badly mistrack the actual index. That's why VXX has had reverse splits totaling 1:64, and UVXY 1:600 (!)