Comments on: TOL Dec09 Short http://www.thetaoptions.com/2009/11/11/tol-dec09-short/ The investor network seek positive Theta Option trades. Sun, 09 May 2010 04:34:19 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: ThetaTrader http://www.thetaoptions.com/2009/11/11/tol-dec09-short/comment-page-1/#comment-48 ThetaTrader Thu, 03 Dec 2009 14:44:57 +0000 http://www.thetaoptions.com/2009/11/11/stp-tol-dec09-short/#comment-48 <p>Toll Brothers dropped this morning to $19.10 after posting a worse than expected loss. Wait minute here, don't stocks usually go up on that sort of news these days! Well, it looks like whom ever sold those $20 callers for 55 cents yesterday is in the clear....That would be $220,000 profit against $1.5 million risk in margin for 2 weeks.....of course this investor is NOT risking anything, they know which direction the stock is heading; right :-) Besides, the DEC 20 callers have already traded 1200 options in the first 10 minutes. So our mystery investor from yesterday has already made 30 cents per contract * 1200 = $36,000. Not too bad for days work.</p> <p>So we cleared our $22 "Naked Callers" and manage to keep the $0.80 premium after buying back our short callers this morning for 0.05 cents.  That's $400 profit off $2100 margin for (4) weeks of risk or 18% return in (4) weeks. Not as good as the hot shot investor from yesterday's action, but we'll take it :-)</p> Toll Brothers dropped this morning to $19.10 after posting a worse than expected loss. Wait minute here, don’t stocks usually go up on that sort of news these days! Well, it looks like whom ever sold those $20 callers for 55 cents yesterday is in the clear….That would be $220,000 profit against $1.5 million risk in margin for 2 weeks…..of course this investor is NOT risking anything, they know which direction the stock is heading; right :-) Besides, the DEC 20 callers have already traded 1200 options in the first 10 minutes. So our mystery investor from yesterday has already made 30 cents per contract * 1200 = $36,000. Not too bad for days work.

So we cleared our $22 “Naked Callers” and manage to keep the $0.80 premium after buying back our short callers this morning for 0.05 cents.  That’s $400 profit off $2100 margin for (4) weeks of risk or 18% return in (4) weeks. Not as good as the hot shot investor from yesterday’s action, but we’ll take it :-)

]]> By: ThetaTrader http://www.thetaoptions.com/2009/11/11/tol-dec09-short/comment-page-1/#comment-47 ThetaTrader Thu, 03 Dec 2009 03:13:24 +0000 http://www.thetaoptions.com/2009/11/11/stp-tol-dec09-short/#comment-47 <p>Wow, 4400 options were traded on the $20 call side DEC strike today for an avg price of 55 cents.  Toll Brothers is schedule to report their earnings tomorrow & but some investors may have jumped the gun because the stock is already up 5% in after hours.  So let's see what happens tomorrow.  Our 0.05 cent option buy back stood at a bid ask price of .05/.10 ALL day long; we were hoping to buy back all (5) contracts as the market fell back this afternoon, but that never happened.</p> Hopefully TOL doesn't rise more 10% tomorrow. Wow, 4400 options were traded on the $20 call side DEC strike today for an avg price of 55 cents.  Toll Brothers is schedule to report their earnings tomorrow & but some investors may have jumped the gun because the stock is already up 5% in after hours.  So let’s see what happens tomorrow.  Our 0.05 cent option buy back stood at a bid ask price of .05/.10 ALL day long; we were hoping to buy back all (5) contracts as the market fell back this afternoon, but that never happened.

Hopefully TOL doesn’t rise more 10% tomorrow.

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