Just a side note on options with the Nasdaq up 10 days in a row (chronicled in the posts below) for the fun of it.
I have three signals that are triggered on the end of a trading day for the next mornings open. They are based on price, breadth and volatility. On July 7th all three registered buys. Since then on a swing trade basis, both breadth and volatility have fluctuated but the price signal has remarkably (and relentlessly) stayed the course for these past nine full days from the open of July 10th.
There are only three things that can happen buying options (in this case, calls) – they go your way, they go down with sideways time decay, or they go against you. Two of the three on the long side will lose money. But when they go your way for a long time, like now, like for 10 days in a row, the results can be dazzling.
All of the call options below were purchasable on the open of July 10th at the prices stated and will expire tomorrow:
TSLA in-the-money (ITM) calls opened at 10.65 and today closed at 19.61.
GOOGL ITM calls opened at 16 and closed today at 51.
AAPL ITM calls opened at 1.41 and closed today at 5.43.
FB ITM calls opened at 3.21 and closed today at 14.52.
AMZN ITM calls opened at 15.10 and closed today at 44.57.
NFLX ITM calls opened at 7.05 and closed today 33.20.
A more spectacular 10-day return one could not ask for – I’ll leave the calculation of each percentage gain to anyone who wants to bother.
(A disclaimer: the information provided here is for educational or entertainment purposes only, mostly my own entertainment, and is not to construed as direct investment or trading advice.)