But to be fair, you can technically make money on something that far OTM even if the share price only goes up a couple dollars before expiration. May not be a best option choice in the world but its still viable for profits.
Exactly. There is still money to be made without it having to go up that much.
But that is a good reminder from @sleepy, thanks. It's easy to get carried away with solar b/c of the crazy growth it's having.
I understand this, but there is still no benefit in buying the Dec $18 call option, unless you know that the stock will be above $23 at expiration. In order to justify buying the $18's to sell for a quick profit, you will probably need the stock to move 40% by next week.
The $18's are out there only for the market makers to make money, they are a bad idea. In order to break even you will probably need the stock to go up 15%-20% by next week, 25% in 2 weeks, 30% in 3 weeks, 40% in 4 weeks, etc.
The potential reward for buying the $18's vs. $17's is miniscule, while the risk is significantly higher.
I am working on a website and would also like to cover options trading strategies and how I decide which options to buy.
Where as chances of it doubling in the next 6 months (March-June time frame...) are quite a bit higher? (though still low of course) I just wanted to make sure the options I bought weren't ridiculous because I used the phrase "overpaid" and wanted to make sure you weren't talking about me. I think it's extremely risky, but I didn't think it was ridiculous
It won't hurt my feelings if it was, I just want the truth!
Your June time frame is definitely correct, and March should have a chance as well. The problem is the price you paid for them, I got those same March calls at $0.50, while you paid $0.80. Even though I think they might finish in the money, at some point the price gets too steep that it is not worth the risk anymore. You could have gotten those same options at $0.65 later in the day; and that $0.15 will make a huge difference in return.
Right now the volatility is high on these options and they are not so great anymore. I bought mine two weeks ago during the weakness and consolidation period, when they were cheap. Right now I would be buying stock in JASO and not as many options. Buy and hold JASO is the best play, because it might take the market 6+ months before this stock goes up big. I know that it will, but don't know when. It is only a matter of time. It might happen over the next month or it might happen next summer.
Blah, and here I was sitting around hoping for a better entry point to load up on more of those $25 calls
When are the earnings, is 11/11 the official date?
This is not official and some websites lead you to believe that it is. We are also planning on having accurate earnings dates on our website. It is just so hard to get investment information on companies because everybody has outdated or incorrect data.
