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Casey > Trade Notes

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Casey: Trade Notes

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Trade

Bought to Open 1 BDU CX at 1.15

Casey posted on 03/18/08 at 01:48 AM (Note posted about 8 hours after the trade)
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Users Bought (30 Days) 0 (0%)
Users Sold (30 Days) 0 (0%)
Market Cap 0
52-Week High 0.00
52-Week Low 0.00
10 Day Volume 0
P/E 0.00
EPS (Trailing 12 Mos.) 0.0
1Day 5Day 1Mo 3Mo 6Mo 1Yr

Transaction: Bought to Open
Symbol: BDU CX
Quantity: 1
Price: $1.15
Value: $115.00
Stop Order: No @ $N/A
Target Price: $4.00
Just looking for a quick bounce from the Fed decision. This is a way out of the money, low priced call. The potential for a bounce exists with this stock because of it's volitility and the fact that it had a very big drop yesterday. i will be out of this position after the Fed anouncement, either way.
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Posted by Casey on 03/18/08 at 01:48 AM

Tag It | 1 user tagged it: BDU CX, option, buyopen

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ReformedPatriot

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ReformedPatriot
Posted March 18, 2008 (02:39AM)

Casey, I was wondering if you could explain this trade to me. In other words, is this a call or a put? What are you hoping it does? Do you own any of the stock? How much could you lose if this goes the other way?

I'm having trouble understanding these things and need someone to explain it in a clear cut way.

Thanks 

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WallStreetKing

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WallStreetKing
Posted March 18, 2008 (03:44AM)

I don't even understand what your asking, that is how far behind I am in all of this. I know an option is a contract. but that is about it. I have gone thru some of the material on TradeKing, that is helping further my understanding. Also, I looked into one of the suggestions that  TradeKing gave and that is on CBOE, I am looking at the sight now and might (Might) signup for free. they have a section on option basics and strategies, also. I am still going thru TradeKing learning Center to grasp all of this.

http://www.cboe.com/LearnCenter/Tutorials.aspx#Basics

In the lerning center at tradking they also suggest optionetics with other sights.

Casey looks like he is trying to take advantage of the current downturn in the market. So, He Placed a low priced long Call that is out of the money. (Which isn't recommended by the optionguy)

but in certain rare circumstances this might be a good play

Casey's head line reads Bought to Open 1 BDU CX at 1.15 if you click on his avatar (America shirt) and click on his portfolio you can see what he is investing in. So after checking it looks like this is his only play on BDU. Also looking to exit quickly around the time of fed anouncement.

The question I have will he Sell the Long Call to exit the trade or will he exercise the Call and sell the shares on the open market? Hopefully he will give us some insight on this shrewd play.

If I have all that correct in my understanding of basic options. I hope so, otherwise correct me and let me know were I am confused. Peace

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Casey

Member since: Jul 07
5 Day -2.16%
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Casey
Posted March 19, 2008 (01:17AM)
You are somewhat correct. It was a low priced long shot. I was looking for a big bounce from the Fed decision coupled with the fact that BIDU was down big the day before. This is a rare play that dealt only with BIDU. It was a low cost high risk play that didn't pan out.
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WallStreetKing

Member since: Mar 07
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WallStreetKing
Posted March 19, 2008 (05:52PM)

I noticed the date after I posted, I was looking on the top rather than lower of you portfolio. Thnx for your reply and letting us know how it turned out. Maybe let reformed know.  Peace

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