View Full Version : A Good Option Play

08-17-2005, 02:45 AM
Tommorow morning buying OIS Sept 30 calls. This stock has been a winner this year and is currently listed on IBD's 100. It is in the a healthy pull back. Common closed yesterday at 30.50 down from a recent high around 36. Sept. 30s are 1.70. Real good risk reward in oversold bull market. Oh, and it is the Oil business. GL.

08-17-2005, 10:17 AM
Thats a very illiquid option, be careful with the spread.

08-17-2005, 12:30 PM
I don't know, oil is at an all time high, demand is likely to go down as summer ends. Seems like demand and oil price more likely to go down in the next month.

Your Mom
08-17-2005, 02:00 PM
you can buy those real cheap now. Down to .85 X 1.10

08-17-2005, 03:37 PM
Since your post, the calls have gone down to $1.20. Quite a loss. Right now the bid is $.95. That means as soon as you buy 10 contracts ($1,200) you will have a loss of $250 (because bid is $950 on 10).

Its ATR is low (like .2) and the stock has historically been under 31 and is in a downtrend. IV of 33 makes this option not too cheap either.

08-18-2005, 02:27 AM
Stock chart looks like a one way ticket to 25. I realize this is probably highly leveraged off the price of oil but yowza - looks risky. If you are bullish - why not do a put credit spread?? or what the hell - sell naked puts and take advantage of inflated option premiums.