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Ohene

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aeropostale showing a reverse head and shoulders to end this streak its had.

Look at June 3 to the Present and youll see it. Ill set a resistance of 14.70 which is also the 50 day SMA. If it doesnt pass that and head towards 15 I'm going in before (maybe after) earnings :smugdraper:
 
Mr swag

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Sachs said:
Call options are optimistic, meaning that you expect the stock to go up. Option pricing is a lot more complicated than collecting money if it goes up or down though.

Time value is a big component of pricing and it is affected by volatility, how far away from the strike you are, and how much time is left til the option expires. All in all, time value is the premium that youre willing to pay for an option in anticipation that it will increase in value.

Intrinsic value is the simple part. If you buy BAC options for a strike of 14, you currently have no intrinsic value because it is priced at 13.53.

Now lets say it does cross 14 before expiry but not by much...that intrinsic value will slowly become all the value as time deteriorates. So lets say you buy options that expire in January...right now they are about 80 cents a piece....

The only way you're going to make money is if by January 2014 the stock goes up more than 14.80. However, if you have good swings that happen before than and lets say by September BAC hits a price of 14.30 or so. Those options may be as much as $1.50 bucks for instance because now they'd have 30 cents of intrinsic value. But time will also have lowered...however maybe volatility went up. (70 cents time value + 30 cents intrinsic = 1.00)...a more positive outlook even though time has lowered...higher volatility...and them shyts might be 1.50. The numbers should be taken with a grain of salt but if you look at what goes into the Monte carlo/ Black scholes models youll see that option pricing isnt that simple. Until you understand how they work...but 6 month options at the minimum. Nothing sooner than that.
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Thank u! I'm just gonna stick with stocks.
 
Lakers Offseason

Lakers Offseason

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The stock market today
tumblr_lfkb8kAMdf1qawc2p.gif
 
Hiphoplives4eva

Hiphoplives4eva

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Mr swag said:
Should I buy in this stock at 4.21???? How high do u think it will go?
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Its hard to say. I definitely think it will likely cross $5 once earnings are announced (assuming their good). Today was when I was expecting it to fall quite a bit after the announcement of the Nokia 1020, but its holding strong at current prices. That bodes well for the future in my opinion. I personally think its a good buy now, but there is a chance it could fall in the next few days leading up to earnings.

@BlvdBrawler. How's that AMD holding up for you? :win:
 
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BlvdBrawler

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Hiphoplives4eva said:
Its hard to say. I definitely think it will likely cross $5 once earnings are announced (assuming their good). Today was when I was expecting it to fall quite a bit after the announcement of the Nokia 1020, but its holding strong at current prices. That bodes well for the future in my opinion. I personally think its a good buy now, but there is a chance it could fall in the next few days leading up to earnings.

@BlvdBrawler. How's that AMD holding up for you? :win:
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:win:

Just wish I had bought at $2.30 like I originally planned :angry:

Oh well, live and learn.
 
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