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CEO.CA members discuss high-risk penny stocks which can lose their entire value. Only risk what you can afford to lose.
@NewtonRandom thought here for you -- something about #torque. Leverage and optionality (even convexity) are useful phrases for talking about resource projects, but you generally have to be "out of the money" to get that. #options. Being in the money can reduce your convexity, but it also gives you more immediate upside. Comes to mind when looking at $rab as #copper producer that is currently in operation but has plans to scale-up. Could prove to be good timing for future copper bull market... tl;dr look to current copper produce for torque off immediate prices.
@dirkdigglerNo such thing as 'be right, sit tight', especially when you're using leverage, in this current political / economic backdrop (ie) holding a long Call position over the weekend in any of the Producer's would've been an extremely bad plan......it's all about booking what profit the market affords you, not being greedy.....and dodging bullets. $Gold$GDX$ABX$AEM#options
@dirkdigglerGreat example of a 'Death Cross', critiqued earlier by @Goldfinger ~ http://stockcharts.com/h-sc/ui?s=DGC.TO&p=D&yr=1&mn=0&dy=0&id=p45906759195 ~ we'll see if there's any follow-through-downside-destruction. The oscillators not quite in the extreme oversold zone. Another questionable chart pattern is the 'Key Reversal' or 'Shooting Star' in Candle terminology...... Larry Williams did a back-study on Key Reversal's a number of years back (mainly on commod's and the $SPX ) and discovered that they were not necessarily reliable indicators of a trend change. #options
@NewtonFWIW the $DGC#options have 35K OI on calls, 7K on puts. https://www.m-x.ca/nego_cotes_en.php?symbol=DGC* Could look at that as bullish sentiment because large buying of calls, or you could look at that as bearish with large selling of calls. Could be covered call writing or even naked, as in "collect whatever premium you can on calls as price is collapsing"...
@thenewjewHas anyone else here thought of making an option play into volatility indexes? If the $Trump election has buoyed the indexes to record highs heading into a particularly challenging series of events (Italian referendum, Fed rate hike, etc.) it might be an interesting play. I am currently researching $VIX, $VXX, VXZ, VIXY, VIXM
@Lee@thenewjew Regarding todays play... VIXY 061617 40C. Hmmmm. 197 days to expiration... Deep OTM... 0 Open Interest and 2 Volume... Bid .65 and Ask 1.75 Wide,Wide,Bid to Ask. How do you justify such a trade?
@dirkdigglermight be an 'option' @BS - if you can find a series with enough OI and a reasonable bid/ask spread. Volume is so limited though. looking at the Apr $3.00 Calls - the bid ask is a little less ridiculous than most strikes/months. $CNL#options
@dirkdigglerI don't believe in options as long term plays @Newton. If they're otm and 6 to 12 months out, by the time they go itm, there's a good chance your time value will have eroded sufficiently, and you'll still end up losing money. There needs to be a short term catalyst imo. Of course there are exceptions: $TCK would have been a brilliant long term Call play. #options
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@NewtonRoger that, @dirkdiggler. I recall that from prior discussions and was intrigued to see it borne out in case of $ASR recent price declines. I wrote an article back in July when #Turkey political problems happened suggesting 'obvious trade idea' of put options on the company and just checked back in recently. Nasty price decline since, though partly due to operational problems at mine.
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@NewtonI don't know of good ways to play short side of market in junior space, but think that put #options can be good for that on some bigger names.
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@NewtonAnd a different question for you here @dirkdiggler. You say "there needs to be a short term catalyst" -- any comment on what that may be? I think I've seen you refer to charts and news. Maybe strangest part of question: do you ever play for unexpected news?
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@dirkdigglerEarnings reports are often good for large price shocks @Newton: look at $DGC's recent qtr....A Put position placed at the close before the report was released would've given you fantastic multi-bagger gains over the following day(s). NFP numbers and their impact on the $gold price are good catalysts, if speculating on the large Producer's. Interest rate decisions (like the one we'll see on Thursday) MIGHT be a good way to speculate on severe price shocks, up or down. Unless you are a gifted number cruncher or have unique insights, all of the above scenarios can be little more than coin tosses. #options
@dirkdigglerThe market deplores uncertainty. Current $Gold sector participants are probably best described as 'twitchy F*uckers'. Tomorrow will likely remove much of the uncertainty; uncertainty that hangs over our collective (twitching) domes like a thunderhead. I'm positioning myself in some highly leveraged #warrants, perhaps some Calls and or Bull-Call spreads. #options But that's just $ME
@dirkdigglerThe $ABX 30DEC16 $21.00 Calls are up 1000%+ on this move. They went from no-where-near-the-money to suddenly-in-the-money with only a session and a half until expiry. Crazy action in #Options$gold
@thenewjew$SLX 031717 48 C (Call on Steel ETF): Bid at 0.15, Ask at 1.05. My book cost is 0.45... with a little less than 2 months to go (and anticipation of Trump's infrastructure announcement, including pipelines with AMERICAN STEEL), I am hoping for 100-300% some time in February. Today's closing price - 42.74