Options trading this friday

[SFTrader]

I bought some puts on the qqqq last night and just sold them off on the open for a small profit.

Then I just bought some calls on the QQQQ shortly after the open thinking we are going to see a similar chart to yesterday.

[SFTrader]

I sold off the call earlier for a small loss.

I'm done for the day but I think the market will drop for the rest for the rest of the session.

[Jack24]

Mar-07 195.000 3.91 0.81 3.90 4.10 1,150 6,830 .GPYOS

This is the put option you want if GS closes below $200 on heavy volume this afternoon.

If it can't rise above $200, it is a clean set-up for a move towards $195 or lower next week. Any move below $196 will make you money as long as close your position at the appropriate time.

A break below $195 would result in a 200% gain most likely. You're talking 300% to 400% if it breaks below $190 next week.

[Jack24]

Originally Posted by Jack24

Mar-07 195.000 3.91 0.81 3.90 4.10 1,150 6,830 .GPYOS

This is the put option you want if GS closes below $200 on heavy volume this afternoon.

If it can't rise above $200, it is a clean set-up for a move towards $195 or lower next week. Any move below $196 will make you money as long as close your position at the appropriate time.

A break below $195 would result in a 200% gain most likely. You're talking 300% to 400% if it breaks below $190 next week.

GS is now at $195.67.

If it breaks below $195 Monday, on heavy volume, it is an all out short.

[cryder17]

I bought into the march 190 puts because they looked a little more attractive in price. the implied volatility is over-valued at 53% which is the same as the 195's. and the T-val is under 20% still. the stock was going down headed into EOD so i would say the decline will continue into monday morning.

but beware...if the dow stays above 12000....consider selling the put. GS has good fundamentals and WILL rebound if the market sentiment increases next week.

just remember time is not on our side on this one.

[Jack24]

Originally Posted by cryder17

I bought into the march 190 puts because they looked a little more attractive in price. the implied volatility is over-valued at 53% which is the same as the 195's. and the T-val is under 20% still. the stock was going down headed into EOD so i would say the decline will continue into monday morning.

but beware...if the dow stays above 12000....consider selling the put. GS has good fundamentals and WILL rebound if the market sentiment increases next week.

just remember time is not on our side on this one.

Excellent point. These puts have velocity on the upside and downside.

There will be firms trying to prop Goldman. It will be bears versus bulls.

I won't enter a position until I see the price/volume action on Monday morning.