StockFetcher Forums · Filter Exchange · on blow out earnings- you can get rich doing this<< >>Post Follow-up
MARY4MONEY
806 posts
msg #81498
Ignore MARY4MONEY
modified
10/21/2009 1:07:12 PM

you find a very strong stock like aapl that had a nice strong move up on earnings or any great news and here is what you do-- on the gap up- 95% of the time its will fall 2-4% below its high after the open and you wait for the consolidation in the price and then you buy the calls options 5-10-15% above the stock price--aapl closed at 198.75-- so you bought the 210-230 calls for nov(and it works especially good on a stock wqhen we hve 2-4 weeks until exp)--the 210 s were 2.00$ they are now 4.50 the 220 s were 0.60 they are now 1.69 the 230 s were 0.22 they are now 0.60 and the 240 s were 0.08 they are now 0.25-- on one of the account i trade for someone--im up >800k$ on 4000 220 calls--AAPL Nov 09 210.00 Call 4000 $4.43 $1,770,000.08 $964,000.00 $806,000.08 0n 5800 220 calls im up--549k$--AAPL Nov 09 220.00 Call 5800 $1.67 $971,499.97 $421,600.00 $549,899.97 and on the 230 calls im up 150k$AAPL Nov 09 230.00 Call 5000 $0.58 $292,499.99 $135,000.00 $157,499.99 --since im up 110% on my 210 calls- i sold them all -so i cant lose now with the 220 and 230 calls--2009/10/21 Sell to Close AAPL Nov 09 210.00 Call AAPL -2.0 $4.45 -- $890.00
2009/10/21 Sell to Close AAPL Nov 09 210.00 Call AAPL -2.0 $4.45 -- $890.00
2009/10/21 Sell to Close AAPL Nov 09 210.00 Call AAPL -3.0 $4.45 -- $1,335.00
2009/10/21 Sell to Close AAPL Nov 09 210.00 Call AAPL -1.0 $4.45 -- $445.00
2009/10/21 Sell to Close AAPL Nov 09 210.00 Call AAPL -1252.0 $4.45 -- $557,140.00
2009/10/21 Sell to Close AAPL Nov 09 210.00 Call AAPL -729.0 $4.45 -- $324,405.00
2009/10/21 Sell to Close AAPL Nov 09 210.00 Call AAPL -11.0 $4.45 -- $4,895.00
2009/10/21 Sell to Close AAPL Nov 09 210.00 Call AAPL -1447.0 $4.45 -- $643,915.00
2009/10/21 Sell to Close AAPL Nov 09 210.00 Call AAPL -15.0 $4.45 -- $6,675.00
2009/10/21 Sell to Close AAPL Nov 09 210.00 Call AAPL -112.0 $4.45 -- $49,840.00
2009/10/21 Sell to Close AAPL Nov 09 210.00 Call AAPL -1.0 $4.45 -- $445.00
2009/10/21 Sell to Close AAPL Nov 09 210.00 Call AAPL -14.0 $4.45 -- $6,230.00
2009/10/21 Sell to Close AAPL Nov 09 210.00 Call AAPL -1.0 $4.45 -- $445.00
2009/10/21 Sell to Close AAPL Nov 09 210.00 Call AAPL -106.0 $4.45 -- $47,170.00
2009/10/21 Sell to Close AAPL Nov 09 210.00 Call AAPL -171.0 $4.45 -- $76,095.00
2009/10/21 Sell to Close AAPL Nov 09 210.00 Call AAPL -133.0 $4.45 -- $59,185.00
2009/10/20 Buy to Open AAPL Nov 09 210.00 Call AAPL 2.0 $2.41 -- -$482.00
2009/10/20 Buy to Open AAPL Nov 09 210.00 Call AAPL 1507.0 $2.41 -- -$363,187.00
2009/10/20 Buy to Open AAPL Nov 09 210.00 Call AAPL 3.0 $2.41 -- -$723.00
2009/10/20 Buy to Open AAPL Nov 09 210.00 Call AAPL 27.0 $2.41 -- -$6,507.00
2009/10/20 Buy to Open AAPL Nov 09 210.00 Call AAPL 148.0 $2.41 -- -$35,668.00
2009/10/20 Buy to Open AAPL Nov 09 210.00 Call AAPL 84.0 $2.41 -- -$20,244.00
2009/10/20 Buy to Open AAPL Nov 09 210.00 Call AAPL 1742.0 $2.41 -- -$419,822.00
2009/10/20 Buy to Open AAPL Nov 09 210.00 Call AAPL 487.0 $2.41 -- -$117,367.00
2009/10/20 Buy to Open AAPL Nov 09 230.00 Call AAPL 6.0 $0.27 -- -$162.00
2009/10/20 Buy to Open AAPL Nov 09 230.00 Call AAPL 2294.0 $0.27 -- -$61,938.00
2009/10/20 Buy to Open AAPL Nov 09 230.00 Call AAPL 1191.0 $0.27 -- -$32,157.00
2009/10/20 Buy to Open AAPL Nov 09 230.00 Call AAPL 1087.0 $0.27 -- -$29,349.00
2009/10/20 Buy to Open AAPL Nov 09 230.00 Call AAPL 5.0 $0.27 -- -$135.00
2009/10/20 Buy to Open AAPL Nov 09 230.00 Call AAPL 414.0 $0.27 -- -$11,178.00
2009/10/20 Buy to Open AAPL Nov 09 230.00 Call AAPL 3.0 $0.27 -- -$81.00 my 220 and 230 call are now up 822k$ and counting

MARY4MONEY
806 posts
msg #81504
Ignore MARY4MONEY
10/21/2009 1:57:04 PM

the 220 and 230 s are now to >1 million$AAPL Nov 09 220.00 Call 5800 $2.09 $1,215,099.88 $421,600.00 +$793,499.88 -----AAPL Nov 09 230.00 Call 5000 $0.81 $407,500.00 $135,000.00 +$272,500.00

MARY4MONEY
806 posts
msg #81506
Ignore MARY4MONEY
10/21/2009 3:04:51 PM

alert buys on sndk and slm- before the close buy the sndk 25-27 nov calls and the slm nov 12-13 calls-this is the exact same play as on aapl from yesterday--sndk daily rsi-2 at 88 and slm daily rsi-2 at 96%--meaning they can both easily move up another 20-40% before exp--their volume is 4x tday on very strong and positive news--Activity Date Transaction Description Symbol Qty Fill Price Commission Net Amount
2009/10/21 Buy to Open SNDK Nov 09 27.00 Call SNDK 5.0 $0.25 -- -$125.00
2009/10/21 Buy to Open SNDK Nov 09 27.00 Call SNDK 2.0 $0.25 -- -$50.00
2009/10/21 Buy to Open SNDK Nov 09 27.00 Call SNDK 1.0 $0.25 -- -$25.00
2009/10/21 Buy to Open SNDK Nov 09 27.00 Call SNDK 9.0 $0.25 -- -$225.00
2009/10/21 Buy to Open SNDK Nov 09 27.00 Call SNDK 15.0 $0.25 -- -$375.00
2009/10/21 Buy to Open SNDK Nov 09 27.00 Call SNDK 143.0 $0.25 -- -$3,575.00
2009/10/21 Buy to Open SNDK Nov 09 27.00 Call SNDK 825.0 $0.25 -- -$20,625.00
2009/10/21 Buy to Open SNDK Nov 09 26.00 Call SNDK 3.0 $0.44 -- -$132.00
2009/10/21 Buy to Open SNDK Nov 09 26.00 Call SNDK 66.0 $0.44 -- -$2,904.00
2009/10/21 Buy to Open SNDK Nov 09 26.00 Call SNDK 133.0 $0.44 -- -$5,852.00
2009/10/21 Buy to Open SNDK Nov 09 26.00 Call SNDK 1.0 $0.44 -- -$44.00
2009/10/21 Buy to Open SNDK Nov 09 26.00 Call SNDK 13.0 $0.44 -- -$572.00
2009/10/21 Buy to Open SNDK Nov 09 26.00 Call SNDK 89.0 $0.44 -- -$3,916.00
2009/10/21 Buy to Open SNDK Nov 09 26.00 Call SNDK 211.0 $0.44 -- -$9,284.00
2009/10/21 Buy to Open SNDK Nov 09 26.00 Call SNDK 78.0 $0.44 -- -$3,432.00
2009/10/21 Buy to Open SNDK Nov 09 26.00 Call SNDK 406.0 $0.44 -- -$17,864.00
2009/10/21 Buy to Open SNDK Nov 09 25.00 Call SNDK 1.0 $0.72 -- -$72.00
2009/10/21 Buy to Open SNDK Nov 09 25.00 Call SNDK 1.0 $0.72 -- -$72.00
2009/10/21 Buy to Open SNDK Nov 09 25.00 Call SNDK 6.0 $0.72 -- -$432.00
2009/10/21 Buy to Open SNDK Nov 09 25.00 Call SNDK 31.0 $0.72 -- -$2,232.00
2009/10/21 Buy to Open SNDK Nov 09 25.00 Call SNDK 67.0 $0.72 -- -$4,824.00
2009/10/21 Buy to Open SNDK Nov 09 25.00 Call SNDK 277.0 $0.72 -- -$19,944.00
2009/10/21 Buy to Open SNDK Nov 09 25.00 Call SNDK 617.0 $0.72 -- -$44,424.00
Activity Date Transaction Description Symbol Qty Fill Price Commission Net Amount
2009/10/21 Buy to Open SLM Nov 09 13.00 Call SLM 2.0 $0.25 -- -$50.00
2009/10/21 Buy to Open SLM Nov 09 13.00 Call SLM 1.0 $0.25 -- -$25.00
2009/10/21 Buy to Open SLM Nov 09 13.00 Call SLM 85.0 $0.25 -- -$2,125.00
2009/10/21 Buy to Open SLM Nov 09 13.00 Call SLM 62.0 $0.25 -- -$1,550.00
2009/10/21 Buy to Open SLM Nov 09 13.00 Call SLM 4.0 $0.25 -- -$100.00
2009/10/21 Buy to Open SLM Nov 09 13.00 Call SLM 846.0 $0.25 -- -$21,150.00
2009/10/21 Buy to Open SLM Nov 09 12.00 Call SLM 1.0 $0.45 -- -$45.00
2009/10/21 Buy to Open SLM Nov 09 12.00 Call SLM 10.0 $0.45 -- -$450.00
2009/10/21 Buy to Open SLM Nov 09 12.00 Call SLM 2.0 $0.45 -- -$90.00
2009/10/21 Buy to Open SLM Nov 09 12.00 Call SLM 20.0 $0.45 -- -$900.00
2009/10/21 Buy to Open SLM Nov 09 12.00 Call SLM 3.0 $0.45 -- -$135.00
2009/10/21 Buy to Open SLM Nov 09 12.00 Call SLM 24.0 $0.45 -- -$1,080.00
2009/10/21 Buy to Open SLM Nov 09 12.00 Call SLM 269.0 $0.45 -- -$12,105.00
2009/10/21 Buy to Open SLM Nov 09 12.00 Call SLM 414.0 $0.45 -- -$18,630.00
2009/10/21 Buy to Open SLM Nov 09 12.00 Call SLM 257.0 $0.45 -- -$11,565.00


skymuse
14 posts
msg #81548
Ignore skymuse
10/22/2009 12:36:49 PM

Actually you'll make someone else rich doing this.

I bought in the SLM Nov 13 calls as directed and am now >50% down, less than 2 hours later.......

I'm sure the logic is sound and works in a lot of instances, but people need to be careful and remember the DD. I'm just glad I was playing with a small amount. Who knows, maybe it'll pop back up, but at the moment I'm underwater FAST.

karennma
6,830 posts
msg #81556
Ignore karennma
modified
10/22/2009 3:23:49 PM

Skymuse:
That's the problem with options.
You BETTER BE RIGHT.
It's not like a stock, where if you're wrong, you can just hold it and wait.
However, you still have 3 weeks, so it might work out for you.
Don't make the mistakke I made the other day with AAPL, and get out too early.
You've still got "time".

BTW, you've got AMZN and BIDU coming up.
Another opportunity.
:>)


skymuse
14 posts
msg #81601
Ignore skymuse
10/23/2009 9:49:00 AM

Yup -- AMZN Nov 110 -- from .30 to 6.00 today.....and only 20 minutes in....wow!

BIDU also up, but AMZN; where's my time machine?!?



Kevin_in_GA
4,549 posts
msg #81611
Ignore Kevin_in_GA
modified
10/23/2009 10:56:05 AM

That's the catch - you have to place your bet BEFORE earnings are released to catch these moves. No question that these are awesome % gains.

Here's what I (paper traded) this morning. I waited for MSFT to announce - things look good, stock up ~10%. Once things settled down a bit, I decided to buy 200 contracts for the Nov 28.00 put @0.44 (total investment = $8800).

Here's how it played out:

Sent: Oct 23 2009 09:46 AM
Subject: FILLED: #45 BOT 200 MSQWC @ 0.44
Account #XXXX-6950 FILLED: Order #45 BOT 200 MSQWC Nov09 28.00 PUT @0.44 to Open

Sent: Oct 23 2009 10:09 AM
Subject: FILLED: #46 SLD 200 MSQWC @ 0.59
Account #XXXX-6950 FILLED: Order #46 SLD 200 MSQWC Nov09 28.00 PUT @0.59 to Close

In 23 minutes I made $3000 (a return of 34.1%).

I like this approach - you wait for the news and the big move, then fade the gap.

Kevin

karennma
6,830 posts
msg #81660
Ignore karennma
10/23/2009 7:01:11 PM

Yep, Kevin.
It's the ol', "buy the rumor, sell the news" technique.
Works like a charm!
I still have my AAPL puts.
Which will "cut" the small gain I made on the AAPL calls.
I bot some "V" calls today.
Hope I'm going in the right direction, otherwise ... I'll be S.O.L.

:>)


bullrun
27 posts
msg #81697
Ignore bullrun
10/24/2009 5:31:49 PM

You can also hedge your bets by buying both a call & put. Let's take AMZN for example. It closed at $93.45 the day before earnings. You could've bought either the 85/90 put AND 95/100 call. You would sacrifice the money lost on the put, in this case probably 90% to all of it. On the other hand though, you would've made more than enough on the call portion to make it up on the put loss.

CAVEAT: This ONLY works well if there's a big move either way. A small move can make you lose money both ways. In that case, cut your losses as soon as you realize the move isn't huge and move on!

HTH

StockFetcher Forums · Filter Exchange · on blow out earnings- you can get rich doing this<< >>Post Follow-up

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