o7's Penny Stock and Stock Options plays!

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 8 years ago '08        #181
o7media 47 heat pts47 OP
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$30,215 | Props total: 8640 8640
 kkkid said:


usually just peep the infocus.
Yeah, but the bad thing about that is by the time Market Watch releases that story, it's too late to buy the stock because 9 times out of 10 when earnings are about to come out the PPS is already baked in from heavy buying in the previous weeks.

Check out clearstation.etrade.com

They show all upcoming earning reports weeks in advance. Right now it's showing SIRI (categorized by volume - high to low) as the first stock with earnings expected on Feb 25th. So you would still have plenty of time before the original run happens to maximize profits.

From my experience.... Clear Station >>> Anything else :agreement6:
 8 years ago '06        #182
philly337 20 heat pts20
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$28,973 | Props total: 10626 10626
 o7media said:
But that's not how options work. Your example is based on a stock's price going up 10%. If a contract that costs $1.00 goes up 10% ...it won't be the same percentage for a contract that costs $10.00.

There are 4 reasons for this. Time decay, Volatility, and Premium rate change (If it's ITM it will change for every cent the PPS changes compared to an option that's not ITM). And lastly the volume. An option with low volume will have a larger spread than something that's very close to being ITM.


Take a look at some options chains for today. For example INTC:

Feb $18 Calls went up 11.34%
Feb $19 Calls went up 19.73%
Feb $20 Calls went up 29.82%
Feb $21 Calls went up 25%

All had different gains. INTC going up 1.42% today didn't effect each option the same way. Options don't work the same way as stocks do.
no i understand that...i was saying that if ur option price went up 10% it's a 10 percent profit however u cut it.Like u posted there will be different profits for different option prices with the same company.I guess what i'm gettin at is if u go and purchase calls for a dollar on one company and go purchase calls at 10 dollars for another and each companies prices on those two options both have a 10 percent profit u make out the same if u invest the same

just because google has a higher option price shouldn't effect the percentage gain should it?For instance i bought calls for google and jp morgan.Google is one call where jp morgan i have 50 calls.If each option makes a 10% gain (not stock price) it's the same percentage proft for the money u invested.Google will be more of profit because more money was invested but both have the same percentage gains
 8 years ago '06        #183
philly337 20 heat pts20
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$28,973 | Props total: 10626 10626
 o7media said:
Yeah, but the bad thing about that is by the time Market Watch releases that story, it's too late to buy the stock because 9 times out of 10 when earnings are about to come out the PPS is already baked in from heavy buying in the previous weeks.

Check out clearstation.etrade.com

They show all upcoming earning reports weeks in advance. Right now it's showing SIRI (categorized by volume - high to low) as the first stock with earnings expected on Feb 25th. So you would still have plenty of time before the original run happens to maximize profits.

From my experience.... Clear Station >>> Anything else :agreement6:
yea i'm checkin it out now...good link
 8 years ago '08        #184
o7media 47 heat pts47 OP
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$30,215 | Props total: 8640 8640
 philly337 said:
no i understand that...i was saying that if ur option price went up 10% it's a 10 percent profit however u cut it.Like u posted there will be different profits for different option prices with the same company.I guess what i'm gettin at is if u go and purchase calls for a dollar on one company and go purchase calls at 10 dollars for another and each companies prices on those two options both have a 10 percent profit u make out the same if u invest the same

just because google has a higher option price shouldn't effect the percentage gain should it?For instance i bought calls for google and jp morgan.Google is one call where jp morgan i have 50 calls.If each option makes a 10% gain (not stock price) it's the same percentage proft for the money u invested.Google will be more of profit because more money was invested but both have the same percentage gains
Right, in that case yes. But the odds of you investing in 2 different stocks' options both going up exactly the same amount are slim to none.

And even then, you'd still make more with the Google calls in your example because of fees. For me it would cost this much for fees to buy and sell:

JMP 50 Calls: $57.50
GOOG 1 Call: $10.75

So no matter what way you look at it, you'll always make a different amount with options. Well 99.9% of the time anyway.
 8 years ago '06        #185
philly337 20 heat pts20
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$28,973 | Props total: 10626 10626
 o7media said:
Right, in that case yes. But the odds of you investing in 2 different stocks' options both going up exactly the same amount are slim to none.

And even then, you'd still make more with the Google calls in your example because of fees. For me it would cost this much for fees to buy and sell:

JMP 50 Calls: $57.50
GOOG 1 Call: $10.75

So no matter what way you look at it, you'll always make a different amount with options. Well 99.9% of the time anyway.
right...i don't think i was explaining well last (was posting right before i went to bed)


now let's see how today goes :dancingcool:
 8 years ago '08        #186
o7media 47 heat pts47 OP
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$30,215 | Props total: 8640 8640
If anybody is holding on to calls, be very careful!! I would dump them now! I'm expecting a big drop very soon ...could be tomorrow ...idk yet.

But we're testing big resistance levels and the dow is going to come down big IMO.

At least keep a tight stop loss if you have any calls.

And I recommend buying puts right now...you'll make a lot of money this week :)
 8 years ago '08        #187
o7media 47 heat pts47 OP
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$30,215 | Props total: 8640 8640
 o7media said:
If anybody is holding on to calls, be very careful!! I would dump them now! I'm expecting a big drop very soon ...could be tomorrow ...idk yet.

But we're testing big resistance levels and the dow is going to come down big IMO.

At least keep a tight stop loss if you have any calls.

And I recommend buying puts right now...you'll make a lot of money this week :)
Nasdaq just went Red....

Bears are out to play. We're going dooown :cool-smiley-009::cool-smiley-009::cool-smiley-009:
 8 years ago '05        #188
kkkid 177 heat pts177
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$3,711 | Props total: 749 749
HPQ ending up opening high
 02-17-2010, 12:23 PM         #189
allstar32 
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Still waiting on DVME to make a move
 8 years ago '08        #190
j-dub82 
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 allstar32 said:
Still waiting on DVME to make a move
i think they're expected to release earnings or some other type of PR before the end of the month. until then, all you can really do is wait
 8 years ago '08        #191
j-dub82 
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$1,932 | Props total: 54 54
i decided to shift my strategy towards pinch plays. I've also been studying the Ichimoku charting system and have been using this as part of my TA to determine entry/exit points on stocks.

Currently my plays are EEE (in @ 0.26) and BQI (in @ 0.71). I passed on the CCTC pinch play because I don't play pinkies anymore and it's up 162% now :banghead:
 02-17-2010, 01:42 PM         #192
allstar32 
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Lol why don't do you pennies?
 8 years ago '05        #193
kkkid 177 heat pts177
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$3,711 | Props total: 749 749
Was watching GNK today, the ask n bid on the options were like 20cents apart. Needs more volume imo.
 8 years ago '08        #194
j-dub82 
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 allstar32 said:
Lol why don't do you pennies?
i play pennies, just not pink sheet (pinkies) penny stocks. too volatile and unpredictable for my tastes and i didn't have much luck with em when i did play em. I've been focusing on big board penny stocks lately
 8 years ago '08        #195
o7media 47 heat pts47 OP
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$30,215 | Props total: 8640 8640
 allstar32 said:
Still waiting on DVME to make a move
Same here. I'm waiting on them to release financials.
 02-17-2010, 04:18 PM         #196
allstar32 
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 j-dub82 said:
i play pennies, just not pink sheet (pinkies) penny stocks. too volatile and unpredictable for my tastes and i didn't have much luck with em when i did play em. I've been focusing on big board penny stocks lately
yea i understand. the pinkies are very volatile. i like the excitement lol
 8 years ago '05        #197
kkkid 177 heat pts177
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$3,711 | Props total: 749 749
hopefully hpq can make 1% in afterhours, might be reachin a bit. Your right about it got baked in a bit, s**t went up like 50cents before the bell.
 8 years ago '08        #198
o7media 47 heat pts47 OP
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$30,215 | Props total: 8640 8640
Rick Friedman just emailed me. DVME just reported their financials. I'm reading over them right now...
 8 years ago '08        #199
o7media 47 heat pts47 OP
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$30,215 | Props total: 8640 8640
According to the report, DVME's income increased 12% for the year of 2009 compared to 2008.
 8 years ago '05        #200
kkkid 177 heat pts177
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$3,711 | Props total: 749 749
 o7media said:
According to the report, DVME's income increased 12% for the year of 2009 compared to 2008.
ya so they goin up at the bell tomo?
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