This is a record for me to see:
The high was actually $11.30, which would be +22,500.00%.
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Shocked that companies and mutual funds would invest OPM (Other People's Money) in high-risk investments, the Shocked Investor was originally on a mission to find out if our money ended up in these dubious instruments. This blog now also discusses other financial topics, such as straddles, options, gold, natural gas, agri/food stocks, and the collapse of the US Dollar.
5 comments:
Wow! Now you can boast of your own get rich quick strategy with proof! just kidding!
Amazing. Congratulations :-) If we can find a few such opportunities, that is good enough to retire. Do you know any method to scan for straddle options that offer potential opportunities?
Thx, but, I did not own those options, that's why I said "for me to see". If I had owned them I'd be partying ;-)
There was no way to predict that would happen to Baidu as it was a response to Google's announcement, which is totally unexpected. Some say sometimes these things are done on purpose, that would be indicated by unusual otions activity on either Gooogle or Baidu. You'd think that's unlikely with Google, but I'll check.
However, this is the typical straddle play that I do with earnings, hoping for surprises. Every once in a while you get a winning play. I have had AMZN options going +10X. You can do the same with drug companies ahead of FDA approvals. Sites to use are optionslam and optionmonster which offer a number of tools.
For the earnings play, typically how many days before the earnings do you buy the straddles?
re. earnings plays: 1 to 3 days before they are released. Volatility and price tend to increase ahead of earnings (options get more expensive). If the stock does not move, both calls and puts may actually drop. Keep that in mind.
How far it is from expiry makes a big difference on the moves, i.e, risk and gain are very interrelated. It's always the same story, no pain, no gain!
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