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20july - of course cnbc is going to revisit a winning trade..just ignore the bricks.. first off, read what i wrote below.. both of those suggestions would have been juicy with the stock closing at 610... would have kept that whole $500 from the short call or made an additional $1500 on the ratio spread.. anyway.. the show revisits mikes GOOG call from last week.. heres tonights video GOOG clip . so mike is going to take the profits on this call and now buy the sep 625 call... rolling up the call.. ok thats one way.. another way that id prefer.. again since its a SEP call is to sell a series of front month or weekly short calls against it...such as the Aug 635 is going for $400. so will close out mikes call from last week for a winner and enter new trade into spreadsheet for the Sep625 call. see all of mikes on-air trades in this google docs spreadsheet
Buy the Sep 625 call for $1500
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13 july - this week mike lays out his case to make a bullish trade on GOOG by buying a call, here is the video clip GOOG clip
Buy the Sep 575 call for $29.50 ($2950)
Not exactly risking less to make more, spending 3000 bones on one option is no joke. the desk mentions that you might want to "spread this out" as in selling a higher strike call at some point if the stock moves up in order to lock in some profits.. sure thats an ok strategy but im not seeing the risk mediation part of this trade..going to get a little IV reduction after earnings..not as much as near term calls.. but what if anything is being done in case stock sells off.. going out to Sep makes me think to turn this into a diagonal spread from the get go.. such as also selling a July upside option since IV will be juiced since earnings are thursday before opex.. the july615 is going for about $5.00 now.. this lowers your cost 15% or so, gets a quick time decay to opex. plus if it closes below 615 on july opex you can sell additional weekly/monthly options all the way to SEP.. this is one way to reduce the cost.. could go up could go down..who knows.. but would try to take a cheaper bet than an outright call purchase. if instead you are bullish and agree with mike and carter and want some double upside.. add a July call ratio spread to this SEP spread.. as of right now, July options are pricing in about a $35 move..that gets you to about 610.. add a July 595/615 1x2 ratio spread for about 50cents gets you a double upside to 615..with max profit on the ratio at 615 pin on opex. max profit on the ratio is $2000.. the ratio profits from 595-635 in addition to any gain on the SEP call. lots of choices to be had.
see all of mikes on-air trades in this google docs spreadsheet
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