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


To: Jim P. who wrote (1736)8/20/2016 3:04:56 PM
From: Cliff0rd  Read Replies (1) | Respond to of 2591
 
Oke thank you for your elaborate explanation. I really appreciate that. Indeed not a good business model, but if an opportunity arises one could of course profit from it because it would not affect the business of the firm.

I am not an option seller. Instead, I prefer buying them. However, I would like to note that I look for options to purchase that can be perceived as cheap, because the market does not price things in properly. Large moves are often priced in of tech firms or other hot stocks. A huge move needs to occur to profit from an IV crush. I see that very often, non-tech firms do not price large moves in. A recent good example was Target Corporation. The volatility increased only a little prior to the earnings release.

Because the earnings season has ended I am unable to profit from earnings release trades. Therefore, I have decided to study bio-pharmaceutical companies to profit from news of their products being developed. Has any one experience with this?

My views on the market in general are also pessimistic. In the recent time I have heard of many prominent investors of betting large against this market. The most recent person was Paul Tudor Jones.