Case Study

How very interesting that I just had lunch there today! Great restaurant, great bar, great beer.

Good find, Jeff. I hear these are popping up all over.

I've never heard of the place buy hey, I'll try anything a couple hundred times. So I'm in.

As long as you're looking at small stuff, check out the recent action in ONT. Tiny price but recently trading in HUGE volume.

Karen R.

I've never heard of it either but I like looking at different ideas. I think I'd like to find out a little more about them first and then I'd probably jump in, small dive...

pasadena, ca

From white mochas, to JBX and now GCFb...what is it with all the food trades you folks are making me hungry. Hey, JBX is open...

as i start the day today, i'd like to ask for a small moment of silence for my first OTM option which will expire worthless today (technically tomorrow). speculated bearishly on ADBE over earnings back in mid march. more of a learning trade for me than anything with a VERY small position so no big deal, but boy did that one go the other way. anyway, never let an option expire before so it seemed worth a moment.

anyone have any great candidates for strangles over earnings? i am thinking about MNST. Looks like it's moved between 5-7 points the last couple of announcements. Seems pretty volatile with lawsuits, investigations and recent breakdown on outlook adjustment. it's pinned right between a possible 40/50 strangle which only costs about $1 right now. but, question is, has the market already priced in the move? thoughts? any other underlyings to consider?

How about LVS? Breakout on Weds w volume on sym tri. 10 point move possible.

Thanks for the Case Study Jeff. A very knowledgeable (where is spell check when you need it ?)sports talk host locally likes the Warriors chances. 3-0 vs. Mavs this year.

I'm watching BUCY today. Breaking an Asc Triangle. 10 point possible move. After CAT earnings I am looking in this space.


Tim, if you have access to Investools' Master Talk then watch Jeff's recorded session from this week and you will get a better answer than I can give to your question.

Is that a H&S on CRM? It's been breaking down on heavy volume the past week or so, and is now sitting at support around 41-42. Seems like a decent put candidate if it closes below support.

Peter V.

Your comment brought a tear to our collective eyes, hear at C&C Enterprises. We had that happen but it was the protection on an Iron Condor (or Iron Chicken, as I like to call them.) I huffed, and I puffed but no wind would make that thing sell. Who was it that said a sucker is born every minute? Being as how no one would take my put back, I guess that would make me the sucker.

Don't know what to do about DRYS. Want to get out with the buckets of money I've made so far... but if it's got legs left I want to let it run. How far should I let it re-trace when it does? I've let CG retrace all the way to break-even on what was once a great trade.


Chris and Catherine.

Everyone should look at OO's flag breakout wrapped inside a cup and handle breakout today after earnings. 2 for the price of 1!!!

Any bear trades out there? Feel I need to diverify further on the down side for next week.

Held RHI over earnings and have been rewarded. Was prepared to lose entire postion if went wrong way.

NTAP continues to work downward also.


HI, I'm in need of some insight. I recently attended Mike Coval's AO class and he threw out the idea of selling an OTM call on the SPX at the close of trading the Thurs night before expiration. The idea is to collect a small premium for an overnight trade. Once the SPX settlement prices are released, Fri morning, the trade is complete. I did this successfully last month and collected .50. I repeated the trade this month and got clobbered. I recently learned that the settlement prices for indexes such as the SPX are an accumulation of the opening prices of the stocks contained in that index and NOT on the opening price of the index itself. (or something to that effect)

Here is the bottom line. The SPX closed yesterday at 1470.73. Before the market closed yesterday I sold the 1480 call and wisely (I think) covered with the 1485 for a .30 credit. The settlement price for the SPX came in at 1485.57 (nearly 15$ higher than the close yesterday). As far as I can tell so far the index itself hasn't even traded that high today. Does anyone know if this is a common occurance? I really felt like the trade I put on had a very high probability of success. There was almost 10 points between the current price action and the strike I sold. Needless to say, I'm a little discouraged. I knew going in that the r/r wasn't great but in my eyes the probability of the trade being successful WAS.

Any thoughts?

Cinda (sobbing in Santa Rosa) Just kidding ;)

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  • I'm Option Addict
  • From Saratoga Springs, Utah, United States
  • I am a professional trader and an instructor for Investools. I've had relations with the markets for 9 years. Born in Concord, CA, but reside in Saratoga Springs, Utah. Father of THREE, Husband of one.
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