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A call option.

Lets say you want to have a position in siri, you buy for example purposes a Jan 13 $3 call option for .10 a share. The delta is .30, meaning theoretically if siri goes up a $1 the call option will gain .30c more value. The delta will constantly be changing and once siri hits $3 the option value will gain almost the same as owning the actual position after $3.

The risk on this trade would be .10c a share by Jan 13 expiration.

Options arent for everyone but its another way to trade a position. There are some other things I didnt explain like time decay or theta, and gamma that corresponds with the delta.


I take no responsibility for anyone trading options based off this example.
 
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You really have to know what youre doing.

I do it for work so, I get lucky more than the average joe.
 
And we have liftoff with rumours of a billion dollar buyback :D
 
Damn I got excited for a second until I looked... like .98% gain yay.......
BAC is currently 1.75% gain.

I was hoping to see a 5%+ gain on Siri with that news.
 
My calls are up 10% since posting...yes thats a penny on the option but percentages are percentages lol.
 
Just some profit taking at the stop. Perfectly normal for a nice run up on a friday.
 
Another nice run up today. huge volume. almost 4% up.



I'm also playing a huge risk with VRNG. They are currently in court against google, rejected their settlement offer and are starting trial proceedings. They must htink they can win to reject a 9-figure offer :) Damages are in the 1.2 bln range, and thats more than double the company's market valuaiton. IF it hits, the stock will likely double overnight.
For a $4 play, i think it's something to take a risk on.
 
Interesting. Good insight. Question is who else knows?
 
Most people who are active traders... there's a bunch of aritcles on fool and seeking alpha, etc.
 
HAHAHA. I saw that on the market this morning. Google accidently files QE12 early. Misses Earnings.
 
8/17/12 siri closed at $2.60, my calls example were .10c a share. Siri closed at $2.92 friday.

$.32c increase or 12.3% on stock purchase: 100 shares cost you $260, $32 gain

$.07c increase or 70% on call option purchase: 100 shares cost you $10, $7 gain

So with the same dollar investment the calls would give you a gain of $182


Either were good trades.
 
Briansol said:
I'm also playing a huge risk with VRNG. They are currently in court against google, rejected their settlement offer and are starting trial proceedings. They must htink they can win to reject a 9-figure offer :) Damages are in the 1.2 bln range, and thats more than double the company's market valuaiton. IF it hits, the stock will likely double overnight.
For a $4 play, i think it's something to take a risk on.
Click to expand...

This is finally paying off.

up 30% today on a 6%+ royalty rate from google. I love gaps. :)

http://finance.yahoo.com/q?s=VRNG

z
 
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