tderrick 

So you would just go long with a direction trade? Is the straddle used as a hedge against risk? tia

I have an idea that the market may retest the prior high, so I might go long on Monday, if the market confirms my idea. Confirmation means failure to go lower.

The straddle is not a hedge against risk. It is a non-directional trade with a long volatility position. But as @timmyb pointed out: If implied volatility is already high any long options positions - including straddles and strangles - might lose premium very quickly, so maybe it is a bit late for a long options position.

I am not an option trader, and I am not a gambler. If I do not understand something, I do not trade it.

So did you throw caution to the wind and take a position? I'm expecting yes.
You had stated you were limiting your risk to $300, so it wouldn't be the craziest move anyone has ever made,
but what were your assumptions to turn $300 into $50k (or even $25k)?

Snoop 

So did you throw caution to the wind and take a position? I'm expecting yes. You had stated you were limiting your risk to $300, so it wouldn't be the craziest move anyone has ever made, but what were your assumptions to turn $300 into $50k (or even $25k)?

Call 33 March 2011 was quoting $3.00 this morning.
So if you buy this call ($300), and if VZ quotes more than $503 before March 18th, you'll win $50k:
(503 x 100) - $300 = 50.000.
Ok, it's only +1400% of the stock value in 3 month...

traderwerks 

Might be better to sell a call vertical. IV is highish and the market does not expect much of a move ( no skew between Feb and the next month ). Sell the FEB 39's and buy the 40's against it. Net 0.05 or 0.06

I saw these going for 0.07 yesterday and 0.01 today on a buck spread between the 39's and 40's so it would have done a few percentage points in a couple of days. So sold at 0.05 or 0.06 , buy back at 0.01

I miss trading options.

After the announcement :

Shares in Verizon Communications fell 82 cents, or 2.3 percent, to $35.10 in afternoon trading Tuesday. The shares are still close to a two-year high of $37.70, set last week. Apple shares lost $1.20, or 0.4 percent, to $341.29, while AT&T lost 53 cents, or 1.9 percent, to $27.81.

Snoop 

So did you throw caution to the wind and take a position? I'm expecting yes. You had stated you were limiting your risk to $300, so it wouldn't be the craziest move anyone has ever made, but what were your assumptions to turn $300 into $50k (or even $25k)?

In order

No.... taking a few more hours to at least understand how options work! lol

Not the craziest move by far in this business

An assumption by a novice doing incorrect calculations with not enough coffee...

sam028 

Call 33 March 2011 was quoting $3.00 this morning. So if you buy this call ($300), and if VZ quotes more than $503 before March 18th, you'll win $50k: (503 x 100) - $300 = 50.000. Ok, it's only +1400% of the stock value in 3 month...

Hey... How did you know I placed that call!! ; )

Well... From my brief studies on this event, I think Apple will be the winner in all this.

Verizon will fall for a while until all the numbers come in from the iPhone subsidies.
AT&T should drop a bit.
Google?

So How about some help in a long call in AAPL...

What is the minimum delta I should be looking at for a mild OTM call on say the last contract offered this year...

Would someone recommend a few call contracts to me.


Hey!! I've been reading!! ; )

Thanks again for saving me from some dismal trades, gang.

ThatManFromTexas 

After the announcement : Shares in Verizon Communications fell 82 cents, or 2.3 percent, to $35.10 in afternoon trading Tuesday. The shares are still close to a two-year high of $37.70, set last week. Apple shares lost $1.20, or 0.4 percent, to $341.29, while AT&T lost 53 cents, or 1.9 percent, to $27.81.

Buy the rumor, sell the fact.

tderrick 

Well... From my brief studies on this event, I think Apple will be the winner in all this. Verizon will fall for a while until all the numbers come in from the iPhone subsidies. AT&T should drop a bit. Google? So How about some help in a long call in AAPL... What is the minimum delta I should be looking at for a mild OTM call on say the last contract offered this year... Would someone recommend a few call contracts to me. Hey!! I've been reading!! ; ) Thanks again for saving me from some dismal trades, gang.

You can be correct about the direction of the underlying stock itself and still not be profitable trading the Options .

Edumacate yursef!