I just bought me a boatload of options contracts for JBLU for June strike price 19. Airlines are going to explode for another huge run this Spring when oil prices continue to tank in next few months. Jetblue is incredibly cheap compared to the other airlines at the moment, stock is only at $17 at the moment.
This stock will be close to $30 by June fellas.....mark my words. My $10k will turn into $100k in a few months if it goes to $30.
To remove first post, remove entire topic.
I just bought me a boatload of options contracts for JBLU for June strike price 19. Airlines are going to explode for another huge run this Spring when oil prices continue to tank in next few months. Jetblue is incredibly cheap compared to the other airlines at the moment, stock is only at $17 at the moment.
This stock will be close to $30 by June fellas.....mark my words. My $10k will turn into $100k in a few months if it goes to $30.
He bought the 19 calls at around.80 which means he paid 80 dollars for each contract..10 contracts is 800 and 100 contracts are 8000 bucks..meaning that if jet blue goes to 30 bucks by the 3rd Friday in June each contract is now worth 11bucks..so 80 is now 1100..800 is now 11000.00 and your 8000.00 is now 110000.00 .
Options is all i trade up here..very volatile for sure but definitely a great trading situation for a daytrader like myself.
Nice part is if it runs up before u can SELL at ANYTIME u like dont have to hang on till the end.
He bought the 19 calls at around.80 which means he paid 80 dollars for each contract..10 contracts is 800 and 100 contracts are 8000 bucks..meaning that if jet blue goes to 30 bucks by the 3rd Friday in June each contract is now worth 11bucks..so 80 is now 1100..800 is now 11000.00 and your 8000.00 is now 110000.00 .
Options is all i trade up here..very volatile for sure but definitely a great trading situation for a daytrader like myself.
Nice part is if it runs up before u can SELL at ANYTIME u like dont have to hang on till the end.
Out of the money options with 3 months to expire is a horrible decision, especially when it means a 20% move is needed to break even. An airline stock wont generally move 20% in 3 months outside a large event happening.
If you are buying out of the money options then you need more time, if you buy in the money options then time is not going to work against you in the same way.
Good luck but I would not expect a 50% move in 3 months with an airline stock.
Out of the money options with 3 months to expire is a horrible decision, especially when it means a 20% move is needed to break even. An airline stock wont generally move 20% in 3 months outside a large event happening.
If you are buying out of the money options then you need more time, if you buy in the money options then time is not going to work against you in the same way.
Good luck but I would not expect a 50% move in 3 months with an airline stock.
Why don't you sell the June 16p (35 delta) instead of buying the June 19c (also 35 delta)? Crude below $50 again has to be great for $JBLU. I am not sure how much margin you have to have in your account to cover being short options and un hedged. Just a thought
#SellPremium
Also, if you really really like the June $JBLU, sell twice as many puts as you buy calls. Put your trade on for a credit!
Why don't you sell the June 16p (35 delta) instead of buying the June 19c (also 35 delta)? Crude below $50 again has to be great for $JBLU. I am not sure how much margin you have to have in your account to cover being short options and un hedged. Just a thought
#SellPremium
Also, if you really really like the June $JBLU, sell twice as many puts as you buy calls. Put your trade on for a credit!
Why don't you sell the June 16p (35 delta) instead of buying the June 19c (also 35 delta)? Crude below $50 again has to be great for $JBLU. I am not sure how much margin you have to have in your account to cover being short options and un hedged. Just a thought
#SellPremium
Also, if you really really like the June $JBLU, sell twice as many puts as you buy calls. Put your trade on for a credit!
That sounds like a good strategy. I just wanted to buy the options and let her rip without having to monitor it everyday and daytrading.
Quote Originally Posted by Dragon_Slayer:
Why don't you sell the June 16p (35 delta) instead of buying the June 19c (also 35 delta)? Crude below $50 again has to be great for $JBLU. I am not sure how much margin you have to have in your account to cover being short options and un hedged. Just a thought
#SellPremium
Also, if you really really like the June $JBLU, sell twice as many puts as you buy calls. Put your trade on for a credit!
That sounds like a good strategy. I just wanted to buy the options and let her rip without having to monitor it everyday and daytrading.
Jetblue released February traffic today (which is normally the slowest due to cold season) but it still had an increase in traffic while the other major carriers had a decrease. This is a good sign for upcoming spring metrics.
Jetblue released February traffic today (which is normally the slowest due to cold season) but it still had an increase in traffic while the other major carriers had a decrease. This is a good sign for upcoming spring metrics.
Another thread to trick you.... Unless you are experienced trader stay away. I am not...
You're silly, why would I need to trick you?? just trying to help and give some advice.
By the way, the stock is soaring today, as I mentioned yesterday about the February numbers, it had a definite affect on the stock. The stock just about it's 52 week high today. This is only the tip of the iceberg, more to come in April.
Another thread to trick you.... Unless you are experienced trader stay away. I am not...
You're silly, why would I need to trick you?? just trying to help and give some advice.
By the way, the stock is soaring today, as I mentioned yesterday about the February numbers, it had a definite affect on the stock. The stock just about it's 52 week high today. This is only the tip of the iceberg, more to come in April.
The options went nowhere today, the June 19's are flat with the stock up nicely..
When you buy out of the money options with little time, you will be absorbing the extra premium for another point before it starts to move.
Are you insane?? the options exploded today for the June 19's. Yesterday those contracts closed at .65 , today they last traded at $1.05 ....an increase of over 65% in one day.
You must be looking at the wrong charts dude.
Quote Originally Posted by wallstreetcappers:
Yeah but look at the options..
The options went nowhere today, the June 19's are flat with the stock up nicely..
When you buy out of the money options with little time, you will be absorbing the extra premium for another point before it starts to move.
Are you insane?? the options exploded today for the June 19's. Yesterday those contracts closed at .65 , today they last traded at $1.05 ....an increase of over 65% in one day.
Are you insane?? the options exploded today for the June 19's. Yesterday those contracts closed at .65 , today they last traded at $1.05 ....an increase of over 65% in one day.
You must be looking at the wrong charts dude.
Uhmmm no I think you are looking at old quotes..
From all my sources today was a flat day on those options.
1.00 to 1.05 on those, I show flat on my brokerage source.
Options will keep soaking up the premium you paid for another 1.50 or so...
Quote Originally Posted by CountCrisco:
Are you insane?? the options exploded today for the June 19's. Yesterday those contracts closed at .65 , today they last traded at $1.05 ....an increase of over 65% in one day.
You must be looking at the wrong charts dude.
Uhmmm no I think you are looking at old quotes..
From all my sources today was a flat day on those options.
1.00 to 1.05 on those, I show flat on my brokerage source.
Options will keep soaking up the premium you paid for another 1.50 or so...
The options went nowhere today, the June 19's are flat with the stock up nicely..
When you buy out of the money options with little time, you will be absorbing the extra premium for another point before it starts to move.
take a look at the options today......up a whopping 30%!
one thing about options, if the price of the stock goes up and it doesn't reflect in the options for a few days, a surge is inevitable due to the short squeeze and all the shorts covering their fools today.
we're almost at the strike price of $19 and I still have three months remaining.....told you fellas this stock is going to surge.
Quote Originally Posted by wallstreetcappers:
Yeah but look at the options..
The options went nowhere today, the June 19's are flat with the stock up nicely..
When you buy out of the money options with little time, you will be absorbing the extra premium for another point before it starts to move.
take a look at the options today......up a whopping 30%!
one thing about options, if the price of the stock goes up and it doesn't reflect in the options for a few days, a surge is inevitable due to the short squeeze and all the shorts covering their fools today.
we're almost at the strike price of $19 and I still have three months remaining.....told you fellas this stock is going to surge.
The only issue I had (and have) is how you played the trade..not the potential of the stock.
In order to see 30 oil would need to drop down into the 30s without any market drop all inside the next two months.
The smarter trade is to go in the money and out longer in time. If you are looking for only long shot homerun plays, you wont be trading options very long.
The only issue I had (and have) is how you played the trade..not the potential of the stock.
In order to see 30 oil would need to drop down into the 30s without any market drop all inside the next two months.
The smarter trade is to go in the money and out longer in time. If you are looking for only long shot homerun plays, you wont be trading options very long.
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