It has been a very nice week so far. AMAZON is ending the week in style and looks like next week could bring more multibaggers...
Option Millionaires Thursday Recap and Friday Gameplan
It was another great day today. I scalped X calls again. Got the $28 calls early for $.29 sold at $.40 (I have to check executions, I think that price is right) those calls closed $.51 bid. OM chat is becoming X rated courtesy of UPB. LNKD sold out from $.75 on the $105's they hit $2.25. SINA my $.17 calls from Wednesday I sold out at $.38. SLV $30 calls I bought on Wednesday I sold out at $.40, they went over $.45
For tomorrow My gameplan:
I'll be looking to sell.............
AMZN Option Traders Will Wake Up To Potentially 1,000% Gains
AMZN blew out its earnings tonight and the stock surged almost $30 after hours. Call buyers who needed a 4% move higher just to break even tomorrow, will be sitting on some amazing gains when AMZN opens for trade. This is exactly why you trade earnings events. It also shows the potential gains stock options can provide.
If AMZN opens at $225 tomorrow those who bought the $220 calls will be able to sell them for over $5. Those calls closed at $.33 and were as low as $.12 earlier in the day. 10 contracts at $.33 would cost $330, if AMZN goes to $225 they could be sold for $5k. $330 into $5k.
The call buyers of the less riskier strikes will also see some rather lofty gains. The $215 calls closed at $.70 they should be at $8-$10 tomorrow.
The call and put volume was not skewed in either direction and volume was evenly distributed. A move like this is great for option traders.
One could have played both the puts and the calls and made out with a big profit. This is a strategy known as a strangle.
You could have bought the $215 calls 5 contracts at $.70 for $350.
And bought 5 of the $175 puts for $400 cost. Total cost $750. If AMZN opens at $225 you are looking at $5,000 - $750 for a $4,250 profit. This will be the norm tomorrow for AMZN call holders.... big profits. Congratulations.
AMZN option chain at today's close:
Whats going on in Chat???
One of the reasons to join Option Millionaires is the chat room. I have been in many chat rooms, and have yet to find as diverse a trading community as we have here. Not only are there many trades and strategies being posted, but it feels like one big community focused on making money!
Here are some of the trades from yesterday I posted in chat that made some serious moves:
1. BIDU was on the morning watchlist. Here is what i wrote:
BIDU earnings were great, but stock tanked AH’s. Looks like all the ANALysts reduced PTs but kept rating, so stock should bounce IMHO to $137+ or so. Will look for $135 calls at open.
What i said in chat:
2012-04-25 09:29:41 Message jimmybob Option Millionaires Live BIDU $135 calls... have order for 10 @ .40
2012-04-25 09:30:37 Message jimmybob Option Millionaires Live opentrade BIDU #$135 calls @ .47 AVg 10 of them
2012-04-25 10:57:50 Message jimmybob Option Millionaires Live BIDU will be green today SAID it PM when it was 128
BIDU ran from $128 to $136.14 and went green just like i said. The $135 calls i bought in the morning were a 400% gainer.
2. LNKD was on the morning watchlist. Here is what i wrote:
LNKD- FB IPO rumored delay brought some more selling pressure to the stock, but it is trading over $100 pm, and still like her to go nuts over $110 VERY SOON. 105 and 110 calls will provide more profit oppty’s just like last week.
What i said in chat:
2012-04-25 11:55:56 Message jimmybob Option Millionaires Live opentrade LNKD 105 calls added 20 more @ .50 avg
2012-04-25 12:37:40 Message jimmybob Option Millionaires Live LNKD volume is shit... great sign
The LNKD 105 calls hit 2.15 today from .50 entry yesterday. a 400%+ gainer.
3. With Bernanke speaking, there was sure to be a movement in the USD. Any weakening and commods would move to the upside. Silver became the play in the afternoon on the bounce. Brought silver to the chatroom, then posted the AGQ trade on the calls.
What i said in chat:
2012-04-25 14:10:31 Message jimmybob Option Millionaires Live SILVER TIME FOLKS
2012-04-25 14:09:59 Message jimmybob Option Millionaires Live opentrade AGQ 11 of the 50 calls @ .35
2012-04-25 14:11:07 Message jimmybob Option Millionaires Live AGQ 48.12
AGQ hit 50.75 today, and the 50 calls hit 1.05 for a 300% gainer.
These were some of the calls in the chat from myself, and there are many others from everyone in the room. And there are many experienced traders ready to answer any questions you may have. Cool think about the site, is you get a 14 day trial to give it a whirl. Check us out: https://www.optionmillionaires.com/subscribe/
UPB’s GamePlan – AMZN WDC X LNKD SBUX
Was an exciting day for OM. Late in the day especially. BIDU ramped into the green.