Dumped KGC CALLS on open this morning

Let go of the KGC CALLS this morning at a material 35% loss... I was seriously thrown off by the original benign post market response to the AA numbers but the market is clearly taking these seriously... I am heavily reassessing here from a 100% cash position... Many of the correlations I have followed have been thrown off this AM... Whenever that happens to the sidelines I go... Happy to be flat here souelle

Edited by souelle6, 13 April 2010 - 11:52 AM.

One may avoid calls/puts having bid/ask spread>0.05! Kinross Gold Corp. 2010 May 22 18.00 Call (@KGC 100522C00018000) Bid 0.90 Ask 1.0

Let go of the KGC CALLS this morning at a material 35% loss... I was seriously thrown off by the original benign post market response to the AA numbers but the market is clearly taking these seriously... I am heavily reassessing here from a 100% cash position... Many of the correlations I have followed have been thrown off this AM... Whenever that happens to the sidelines I go... Happy to be flat here

souelle

HI there, SGG going strong,put a stop in at breakeven. bought some MGM on the pullback this AM,Target= 17.00.
KLIC looks ok here,target 9.00, but it is getting late in the game and extreme caution is needed[STOPS]..
GOOD LUCK ALL,
pisces.

One may avoid calls/puts having bid/ask spread>0.05!


Kinross Gold Corp. 2010 May 22 18.00 Call (@KGC 100522C00018000)

Bid 0.90
Ask 1.0

Haha I have traded options with WAAYYY larger spreads than that... This is definitely not one of my rules... If you traded only on these types of options you would only be able to trade 50 stocks in the US and probably 10 in Canada... KGC is the a top three gold company by market cap... That is actually quite minimal for the options game

souelle

I stand corrected... There are NO canadian stocks consistently trading at less than a .05 bid ask spread right now... In addition the majority of XOM (as in largest company in the U.S) is trading at .10 spreads in the vast majority of its listed options... The number of options you can trade at .05 spread is far less than I originally stated souelle

Edited by souelle6, 13 April 2010 - 01:28 PM.

Higher volume stocks than KGC may have lower bid/ask spread!

http://finance.yahoo...g...0GG HMY SLW


Exxon Mobil Corp. 2010 May 22 70.00 Call (@XOM 100522C00070000)

Bid 0.75
Ask 0.77

Edited by vitaminm, 13 April 2010 - 01:49 PM.

Higher volume stocks than KGC may have lower bid/ask spread!

http://finance.yahoo...g...0GG HMY SLW


Exxon Mobil Corp. 2010 May 22 70.00 Call (@XOM 100522C00070000)

Bid 0.75
Ask 0.77

Come on man... What are you talking about... 13 out of 18 significant near dated listeds XOM's have >=.10 bid ask spreads... this conversation is a waste of time

souelle

Edited by souelle6, 13 April 2010 - 01:58 PM.

u r correct. But I prefer a spread<0.05 for stock or option market order trade!

http://www.nasdaq.co...p;qm_symbol=XOM

u r correct. But I prefer a spread<0.05 for stock or option market order trade!

http://www.nasdaq.co...p;qm_symbol=XOM

Fair enough can't argue with preference haha... Good trading

souelle