BBV come sweat the stock market with me

[ahnuld]

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

[bluey]

what stock?

[jasonfish11]

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.

[tufat23]

[ 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?

[ImsaKidd]

Man this [censored] is crazy.

[ahnuld]

[ 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

[budblown]

[ 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.

[jasonfish11]

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.

[ahnuld]

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

[Requin]

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.