BBV come sweat the stock market with me

[En Passant]

shorting the S&P imo

[Gildwulf]

i hear pumpkins are going to peak around january

[ImsaKidd]

Man this [censored] is crazy.

[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.

[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

[ahnuld]

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.

[jasonfish11]

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.

[ahnuld]

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.

[imozyslow]

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.

[LovedBySgtSaLT]

[ 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