Leisman and the Boys on Brokers

[aiki14]

They are saying the brokers are going to upside surprise again next quarter. Time to buy calls on GS and MER. Last Q GS options were the best play I ever had. An options straddle when we get to the week before GS reports.
Calls NOW, straddle in the run up.

[Lou]

Originally Posted by aiki14

They are saying the brokers are going to upside surprise again next quarter. Time to buy calls on GS and MER. Last Q GS options were the best play I ever had. An options straddle when we get to the week before GS reports.
Calls NOW, straddle in the run up.

Do you like MS at all with the Discover spin off?

[aiki14]

Not as much as GS at this level, MER is 2nd best, even though the price looks like a bargain they still have the SEC "Merrill Lynch" rule to contend with.

[Lou]

Originally Posted by aiki14

Not as much as GS at this level, MER is 2nd best, even though the price looks like a bargain they still have the SEC "Merrill Lynch" rule to contend with.

Whats your strike price for your calls?

[aiki14]

Originally Posted by aiki14

They are saying the brokers are going to upside surprise again next quarter. Time to buy calls on GS and MER. Last Q GS options were the best play I ever had. An options straddle when we get to the week before GS reports.
Calls NOW, straddle in the run up.

Well the calls were a bust and the straddle saved me from a big loss, I bought the July contracts so there is time to recover a piece on the upside.
On the positive side, this sets up a lower estimate for the next quarter, maybe an upside surprise in sept. I am not gonna pull the trigger on it until I can develop a little conviction. At least you can count on volatility so the straddle is still a good play.

[TonyM]

I think lowering the bar for GS is going to make the next Q a better play for you strategy, depending of course on how the overall market performs in the interim and the frequency and size of deals done by GS. I won't pretend to know as much about the options game as you obviously do, but the Oct $260 calls look interesting and could probably be sold long before expiration. Just thinking out loud, trying to understand the relation between the option and the underlying, feel free to tell me why I'm wrong about the Oct 260's.