BBV come sweat the stock market with me
 

just set up a small options straddle on etrade. What that means is I need the stock to go either up alot or down alot to make money. If it stays the same I lose. I stacked it so I make a killing if the price rises alot, lose money if it rises a little, and make a small amount if the stock goes down. Here are the payouts.


3 740
4 240
5 -260
5.5 -510
6 -760
6.5 -1010
7 -1260
7.5 -1510
8 -1760
8.5 3240
9 8420
10 18420


Notice max loss is 1760 and max gain is huge (for every dollar the price rises past 10 I make an extra 10k). The options expire on november 17th so the price (currently 5.75) needs to really move tomorrow and on friday.


edit: Company is Etrade, symbol ETFC

Re: BBV come sweat the stock market with me
 

what stock?

Re: BBV come sweat the stock market with me
 

Good luck to you but I think they are going to file for bankruptcy soon. The stock went from 26/share in August to 6/share now. Not to mention a 60% downswing on monday or tuesday.

The graph of their stock in the last couple months would make FGators cry.

Re: BBV come sweat the stock market with me
 

[ QUOTE ]
Good luck to you but I think they are going to file for bankruptcy soon. The stock went from 26/share in August to 6/share now. Not to mention a 60% downswing on monday or tuesday.

[/ QUOTE ]



erm i dont now much about this but im sure ahnuld is betting on swongs, unless ure implying the price wont move?

Re: BBV come sweat the stock market with me
 

Man this [censored] is crazy.

Re: BBV come sweat the stock market with me
 

[ QUOTE ]
Good luck to you but I think they are going to file for bankruptcy soon. The stock went from 26/share in August to 6/share now. Not to mention a 60% downswing on monday or tuesday.

[/ QUOTE ]

do you not see that this would be good for me? For every dollar etrade drops below 8 I make 500 back from my fixed costs so if it drops to 2$ ill make 1250

Re: BBV come sweat the stock market with me
 

[ QUOTE ]
just set up a small options straddle on etrade. What that means is I need the stock to go either up alot or down alot to make money. If it stays the same I lose. I stacked it so I make a killing if the price rises alot, lose money if it rises a little, and make a small amount if the stock goes down. Here are the payouts.


3 740
4 240
5 -260
5.5 -510
6 -760
6.5 -1010
7 -1260
7.5 -1510
8 -1760
8.5 3240
9 8420
10 18420


Notice max loss is 1760 and max gain is huge (for every dollar the price rises past 10 I make an extra 10k). The options expire on november 17th so the price (currently 5.75) needs to really move tomorrow and on friday.


edit: Company is Etrade, symbol ETFC

[/ QUOTE ]

So you're saying you need the stock to lose another 40% or go up 60% to make money. That's pretty -EV. You might as well go play roulette and put it on black.

Re: BBV come sweat the stock market with me
 

No but you are hoping it goes up. I dont think it will. I think it will either go down big or they will be able to tread water and stay where they are. I think they will go bankrupt but their stock did rebound a little today. Good luck.

Oh here is a graph since BBV needs one.

http://i2.photobucket.com/albums/y20...h11/Etrade.gif

Re: BBV come sweat the stock market with me
 

except for the fact of this:

"And mark this date: November 15: According to accounting rules, says Sean Egan, of Egan Jones, that’s when E-Trade must mark its mortgage portfolio to market not a computer model. "

and

"After the market close on Tuesday, E*Trade Chief Executive Mitch Caplan canceled a scheduled presentation on Wednesday at a Merrill Lynch banking conference in New York.

E*Trade spokeswoman Pam Erickson did not provide a reason for the cancellation, but said Caplan was focusing on "priorities." Following that news, E*Trade company's shares rose 4 percent to $5.20 in electronic trade.

"Usually when CEOs cancel these appearances it means that something corporate-related is up," said Patrick O'Shaughnessy, an analyst with Morningstar. "And certainly there are a lot of rumors out there that E*Trade could get bought out."

http://www.cnbc.com/id/21777486



gogogogogo buyout/bankruptcy or no mortgage asset writedowns

Re: BBV come sweat the stock market with me
 

Since you're not in the finance forum might want to put up a disclaimer saying you're not recommending people do this themselves, you're not responsible ect.

Re: BBV come sweat the stock market with me
 

jason, what part of my post did you not understand? I even took the time to show the actual results cause I figured people wouldnt understand. If it drops below a certain price I make money, and I will recoop some of my loses as long as it closes lower than 8.

Re: BBV come sweat the stock market with me
 

I realise this. But in your original post you seemed to be hoping for it to go up. I was saying I dont think that is a good posibility. I could be wrong but I think they will tank and you will make money, but it is more likely that they stay close to where they are than them having a big increase in stock price.

Re: BBV come sweat the stock market with me
 

yeah, you are right, sorry if my tone was harsh. I just felt like gambling on small loss or huge payout. I could have stacked the bet the other way, so I make a small amount if it goes up but a big amount if it drops but that would also require a much larger capital outlay . I wanted to set it up as an all or nothing bet and thats what I got.

Re: BBV come sweat the stock market with me
 

this is interesting...set one up for me!

Re: BBV come sweat the stock market with me
 

ahnuld,

isnt this more fun than poker? i sure think so ( just started learning about the different strategies myself).

edit: i really wouldnt waste time trying to explain this to bbv clowns. just amke a graph and say how much you made/lost.

Re: BBV come sweat the stock market with me
 

[ QUOTE ]
ahnuld,

isnt this more fun than poker? i sure think so ( just started learning about the different strategies myself).

edit: i really wouldnt waste time trying to explain this to bbv clowns. just amke a graph and say how much you made/lost.

[/ QUOTE ]
i rather want an mspaint plz

Re: BBV come sweat the stock market with me
 

[ QUOTE ]
this is interesting...set one up for me!

[/ QUOTE ]

I'll take one too !! stake me !!

Re: BBV come sweat the stock market with me
 

[ QUOTE ]
Options trading is like crack.

[/ QUOTE ]

Re: BBV come sweat the stock market with me
 

I'd rather sweat the CDN/US ratio

0.96692 GOGOGOGO

Re: BBV come sweat the stock market with me
 

ruling out bankruptcy can't be good for team ahnuld

Re: BBV come sweat the stock market with me
 

I like your option combo and wonder how much you make / loose but the trend seems to be stabilizing prize and lower volumes last 3 days so it might as well "stay horizontal" for a while (very well possible after ur option expiry date)

Good luck though

Re: BBV come sweat the stock market with me
 

As you know Ahnuld, I got into ETFC near the bottom on Monday, and am staying long. I'm up ~60%+.

Holla.

The CEO was on CNBC today, and said bankruptcy was not likely. Here's a rough summary of what he had to say:

Q - Citigroup report? Thoughts?
A - Fundamentally, analyst can do what he wants. But our view is bankruptcy is unlikely; absolutely irresponsible of that analyst to make that comment.

Q - Write down is not enough. How much more is to come?
A - We do not know the answer; market changes; market is volatile; we are well-capitalized; ability to sustain $1 billion in writedowns; calls and inquiries about concerns have slowed.

Q - Can you rule out bankrupsy?
A - We can categorically rule out bankrupsy given what we know now.

Q - Vulnerable for takeover?
A - Not more or less vulnerable for a takeout but this positions us for finding the right partner. We can absolutely turn this around. We need to separate success in the core franchise from the problems in the balance sheet. Core numbers have never been stronger in growth in numbers, assets, margins, etc.

Q - But the Market sees it differently?
A - I understand but we are correcting our balance sheet problems. We should not have owned certain assets. My job is to continue to strengthen the franchise. We hired a very well known third party consultant to value mortgages and we are comfortable with their guidance.

Q - Layoffs, writedown, reductions?
A - No, we need to reposition the balance sheet. Reduce liabilities. Balance will shrink but get better.

Q - How much longer will cycle last?
A - I remain bearish for 18-20 months.

Re: BBV come sweat the stock market with me
 

[ QUOTE ]
lower volumes last 3 days

[/ QUOTE ]

O RLY? Lower volume???

1.25x the float turned over Monday - Tuesday.

Re: BBV come sweat the stock market with me
 

can someone explain, in layman terms, how you would set something like this up? I'm new to trading and all i know how to do is buy/sell/short stock

Re: BBV come sweat the stock market with me
 

[ QUOTE ]
can someone explain, in layman terms, how you would set something like this up? I'm new to trading and all i know how to do is buy/sell/short stock

[/ QUOTE ]

You generally need to apply for the ability to trade options. You'll also want a margin upgrade.

Who is your brokerage? They can help set you up. If it's Etrade, you can complete the apps online.

Re: BBV come sweat the stock market with me
 

yeah I didnt state it in this thread but I got in on the bottom on monday too and made 1500$ on a 1000$ investment, so im considering this a freeroll for fun. Most likely it will close somewhere near 6$ and ill lose a small amount.

Re: BBV come sweat the stock market with me
 

how much more would it cost you to have a longer duration on the option?

i think it's ironic we are electronically sweating electronic trade company, and we care about the stocks of a stock trading company

Re: BBV come sweat the stock market with me
 

[x] knows what OP is talking about
[x] corporate finance & investment analysis paid off
[ ] thinks this is a smart play
[ ] knows what i'm talking about

Re: BBV come sweat the stock market with me
 

[ QUOTE ]
yeah I didnt state it in this thread but I got in on the bottom on monday too and made 1500$ on a 1000$ investment, so im considering this a freeroll for fun. Most likely it will close somewhere near 6$ and ill lose a small amount.

[/ QUOTE ]

nh, sir.

Re: BBV come sweat the stock market with me
 

[ QUOTE ]
can someone explain, in layman terms, how you would set something like this up? I'm new to trading and all i know how to do is buy/sell/short stock

[/ QUOTE ]

this is something different, you are buying put and call options that gives you the right to sell/buy the stock at strike price however, this usually expires with a certain period, so if the stock goes up 1 day after OP bought it, but the options expired, then OP is SOL

i think that basically explains it

Re: BBV come sweat the stock market with me
 

[ QUOTE ]
i think it's ironic

[/ QUOTE ]

Fail.

Irony is an implied discrepancy between what is said and what is meant.

Re: BBV come sweat the stock market with me
 

also what happened to etrade? i'm not following any stocks

Re: BBV come sweat the stock market with me
 

well no, not fully. The gist of it is I make money if the stock moves heavily in either direction. But ill et a little something back no matter what because one of the options will finish ITM while the other will finish OOTM

Re: BBV come sweat the stock market with me
 

[ QUOTE ]
[ QUOTE ]
i think it's ironic

[/ QUOTE ]

Fail.

Irony is an implied discrepancy between what is said and what is meant.

[/ QUOTE ]

paradoxical (spell fail)?

Re: BBV come sweat the stock market with me
 

[ QUOTE ]
also what happened to etrade? i'm not following any stocks

[/ QUOTE ]

Portfolio write-downs and a hit piece from a Citi analyst saying they had a 15% chance of bankruptcy, and then said there may be a run on the bank because of it.

Re: BBV come sweat the stock market with me
 

do you guys mind if i ask how many shares does th eoption let you buy?

Re: BBV come sweat the stock market with me
 

[ QUOTE ]

paradoxical (spell fail)?

[/ QUOTE ]

head asplode.

Re: BBV come sweat the stock market with me
 

options trade in contracts. Each contract is the right to buy/sell 100 shares. I bought 5 put contracts and 100 call contracts.

Re: BBV come sweat the stock market with me
 

strike price on those contracts how much was each contract?

Re: BBV come sweat the stock market with me
 

$8 strike, puts were 2.25 and calls were .05