-
Saturday, January 26, 2008
Volatility
Not much is certain in the markets. It appears we're in a short to intermediate term "bounce" with the big picture being bearish still. One certainty is observable: high volatility. One way to profit off of this volatility is to take the top ten highest volume stocks on the market, and look for one to make swing trades with options by setting limit orders. For example, with Google I'm trading GOPRJ puts within 14.0 buy to 24.0 sell and GOQIW calls between 7.4 buy to 11.7 sell. There is some danger that the market will decidedly choose to break up or down with momentum but until then some 50%+ gains per trade could be possible. Also beware earnings disclosure after market on Thursday 1/31 evening; typically Google's earnings in January have been unexciting, but a surprise could cause the price to gap up/down overnight. Don't follow me if you can't stand a 100% loss.
Subscribe to:
Post Comments (Atom)
Subscribe in a reader
Follow the Twitter
Follow the Twitter
Some applications on your desktop can automatically pull news from an feed such as this one. Some of my subscribers prefer the convenience of having articles in their email client like Mozilla Thunderbird. Let me know if I can help with any concerns about configuring your client.
1 comment:
The GOPRJ trade was fairly low risk in my estimation, although I didn't want to make any public opinion about that beforehand. At 100% gain, its return paid off handsomely.
I'm still playing with the high calls, believing that GOOG will swing up eventually. Daily gossip about the MSFT acquisition of YHOO make for fun reading, and seem to cause GOOG to flux some.
Post a Comment