FAS / FAZ / Daily Discussions / Archives / 11-04-2011 / Friday, April 15, 2011

Topie: Friday, April 15, 2011
April 15th, 2011 06:47 AM
membar Allen, for FKOS 2.0, do you want me to test mx + b only or also that opening gap thingy?

AGQ is apparently optionable. Two potential ways to play this:

- buy equal amounts of calls and puts at the current strike price
- buy OTM calls and puts

I think my options book said to do this for an expiration several months out. Any takers?
April 15th, 2011 10:23 AM
allen314159 I would start with the mx+b and then do the gap. Baby steps...
April 15th, 2011 01:21 PM
membar
Quote:
allen314159 wrote:
I would start with the mx+b and then do the gap. Baby steps...

Will do. I'll keep you posted.
April 15th, 2011 01:42 PM
allen314159
Quote:
membar wrote:

Will do. I'll keep you posted.


I'm going to look into if trigger times for FKOS.

There might be a relationship where the later FKOS triggers, the less of your batch you should sell (instead of selling the whole thing).
April 15th, 2011 07:23 PM
membar
Quote:
allen314159 wrote:


I'm going to look into if trigger times for FKOS.

There might be a relationship where the later FKOS triggers, the less of your batch you should sell (instead of selling the whole thing).

That's an interesting thought. There's too bad there's no way to buy back earlier in the day, based on your observations of when FAS or FAZ hits its peak. Unfortunately, you can't buy back too soon or else you'll get PDT-busted or risk losing a ton without a stop.