propertymanager - I like you more when you talk about your rental business... :O)
This is one of THE BIGGEST mis-conceptions regarding options. The Q's DO NOT have to hit that Strike price for me to make a PILE of money.
At that point...... FORD has to climb to only $10/share and Ole JED's a MILLIONAIRE!!!!!
With all your negative TALK about where this stock market is heading......WHERE'S THE WALK???????
Topped off my June 09 QQQQ $16 PUTS to an even 1000 contracts at .40
One of THE BEST things you can do as an investor is keep a WRITTEN account of OPTION Prices. I do this religously. Here's how the June $16's have traded for the last 2 months.Oct 20 .40 QQQQ @ $33.20Oct 27 1.10 QQQQ @ $28.69Nov 4 .38 QQQQ @ $33.95Nov 20 1.12 QQQQ @ $25.56The 1.12 high for the $16's was put in on Nov 20th....The Q's traded to a low that day of $25.56.........They closed Friday at $29.56 a $4.00 difference and NO WHERE near the $33 highs seen just a few weeks ago. All I need to happen in this market is a BREAK below the previous $25.56 low on those Q's. (Hell, that's only $4) We break below that $25 low and you'll see those Q PUTS EXPLODE, you'll also see the open interest BOOM. Guess WHO will be SELLING into that BOOM???? IT AIN'T ROCKET SCIENCE FOLKS......They WANT you to believe it IS....But it AIN'T!!!!!!!!!