Option Trading College

Subject: A month in the life of a put option
Instructor: The donFranko

Length: 3 sessions

Training  Home

Entry is Key...Exit is Everything! TM

Session 1 Did you know

 

There are many places on the internet to get options information, advice, suggested plays and a whole lot of sizzle, but hey...where's the steak?

 

Well, my trading friends, I have decided to give you a daily view of the life of an option contract.

Each day I will post the opening and closing prices of four options: ITM, ATM, OTM and DOTM. We will watch how the option price is effected by the stocks movements throughout the month. I will also ad comments as we go along.

I know this will open your eyes and bring home the need for you to really consider buying ONLY options that are ITM for short-term trades.

 

I am going to pick a very hot and volatile stock as our example. You will get to see how it reacts to the year end rally and how the options react to their earnings announcement...this is going to be fun!

 

Trading (Start Here)

 

Controlling Losses

 

Calls

A month in the life

 

Puts

A month in the life

 

Day Trading Intro

Charting

Covered Calls

L.E.A.P.S.

Spreads

Naked Puts

Naked Calls

Compounding

Pair Trading

 

PORTFOLIOS

 

Model Portfolio

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Lotto Trades

 

Members

Training Links

 

Bull/Bear 180's

Day Trading

Risk Free Trading

Hit Options Lotto

 

Session 2 Making heads or tails of an option trade

 

Have you ever wondered how a front-month call option reacts to day-to-day changes in the price of the underlying stock? I would venture to say you, like most options traders, have never followed the life of an option for an entire month. Most of the time we are playing a guessing game and gambling for a big score, only hoping we made a correct choice before our option expires.

I get asked multiple questions all the time like: How does an option price change? What makes it change so much? When would I know it's a good time to take a profit or cut a loss? In my other training modules I have often referred to the GREEKS, commonly called: Delta, Theta, Vega, Gamma, RHO. Each plays a pivotal point in the life of an options price movement, but you need a masters degree in abstract mathematics to figure them out on the fly. In fact, it takes a very sophisticated calculator to work out the probabilities of future prices in an options life, but that can be changed in a split second by unforeseen market forces...and greedy market makers!

 

So, my trading enthusiasts, I am going to keep track (for educational amusement) of the life of four call options, for the front month, from one expiration day to the next. I am going to pick a beloved stock that has a ton of volatility (Vega) and show you just how much time decay (Theta) can effect your profits and or losses. What you will find even more amazing is how much the price of the option will fluctuate (Delta) based on how much sun it gets...better known as "Gamma" radiation...lol. Now lets not forget about the horse race name RHO. Rho is the change in the options price given a one percentage point change in the risk-free interest rate. HA! There is certainly no "risk-free" opportunity when it comes to options trading. And that is what makes it so much fun...that is, if you are on the right side of the trade ;-)

 

Google is one of the hottest stocks over the past two years. It has very wide swings in price movement and reacts wildly to negative news, as well as positive news. The stock is extremely expensive, so millions of small investors use options to get their piece of this pie. What many/most of those investors do not realize is how dangerous trading a stock like Google can be.

I like to play Puts more than Calls because the volatility of a Put will gain bigger profits than a call. When stocks get knocked down, the Put options get fat with profits quickly!

 

We are going to experience the wild price swings of this stock as it approaches earnings. This year (Jan 08) they are announcing in the middle of an expiration cycle so it's going to be interesting to see what they say and what happens next.

I hope you learn valuable insight and save thousands of dollars from this great example.

Day 1

 

We are going to pick four options to watch. I want you to see the swings in different options prices:

ITM (safest)

ATM (most expensive)

OTM (gambling)

DOTM (deep out of the money Lottery plays)

 

 

 

Here are all the results for quick viewing, but be sure to look below for commentary and charts to show what really happened.

 

 

 

 

 

Below is a breakdown of the daily activity of these options:

 

 

Google Inc (GOOG)

Jan 18th, 2008 Close

EARNINGS: JAN 31st (after market close)

600.25 down -0.54 -0.09%

After Hours: 598.30 -1.95 / -0.32% Vol. 91,131

Previous Close

600.79

Bid

594.98

Open

608.36

Bid Size

300

Day's High

609.99

Ask

604.50

Day's Low

598.45

Ask Size

100

Volume

8.54 Mil

52 Week High

747.24

Avg. Daily Vol. (13 wk.)

6.19 Mil

52 Week Low

437.00

 

Notice the open interest of these puts compared to the calls as we start this process. There are less speculators placing bets on DOTM puts than they are on the calls. This gives you some insight as to the sentiment and potential move. What we may find as we progress, what you see is actually NOT what you will get. Even though we see the calls are stacking up with more gambling it will go higher, often we know that the "crowd" is wrong more than they are right. This is going to a great learning lesson for you...I am very excited!

Day 2

Google Inc (GOOG)

Jan 21st, 2008 Close

600.25  unch

 

Previous Close

600.25

Bid

594.98

Open

NA

Bid Size

300

Day's High

NA

Ask

604.50

Day's Low

NA

Ask Size

100

Volume

NA

52 Week High

747.24

Avg. Daily Vol. (13 wk.)

6.19 Mil

52 Week Low

437.00

 

The markets were closed today for Martin Luther King Jr.'s birthday.

Day 3

Google Inc (GOOG)

Jan 22nd, 2008 Close 

584.35 down -15.90 -2.65%

After Hours: 570.75 -13.60 / -2.33% Vol. 36,261

Previous Close

600.25

Bid

569.50

Open

562.03

Bid Size

100

Day's High

597.50

Ask

570.75

Day's Low

561.20

Ask Size

100

Volume

9.48 Mil

52 Week High

747.24

Avg. Daily Vol. (13 wk.)

6.19 Mil

52 Week Low

437.00

 

 

OPTIONS:

 

====================================================================================

.GOOND quote

 

49.80 up +8.80 +21.46%

Open

67.400

Open Interest

2,026

Bid

49.100

Previous Close

41.000

Bid Size

10

Volume

829

Ask

49.500

Day's High

68.300

Ask Size

19

Day's Low

42.000

Strike Price

620.000

Days Until Expiration

25

Expiration Date

February 16, 2008

====================================================================================

.GOONT quote

 

37.80 up +7.40 +24.34%

Open

56.400

Open Interest

2,157

Bid

36.800

Previous Close

30.400

Bid Size

31

Volume

2,367

Ask

37.500

Day's High

56.400

Ask Size

19

Day's Low

31.400

Strike Price

600.000

Days Until Expiration

25

Expiration Date

February 16, 2008

====================================================================================

.GOONP quote

 

27.70 up +5.87 +26.89%

Open

39.200

Open Interest

1,038

Bid

27.300

Previous Close

21.830

Bid Size

21

Volume

2,275

Ask

27.700

Day's High

44.000

Ask Size

19

Day's Low

23.800

Strike Price

580.000

Days Until Expiration

25

Expiration Date

February 16, 2008

====================================================================================

.GOPNO quote

 

6.60 up +2.50 +60.98%  - CHA-CHING!

Open

10.000

Open Interest

849

Bid

6.600

Previous Close

4.100

Bid Size

41

Volume

2,164

Ask

7.000

Day's High

10.000

Ask Size

31

Day's Low

6.100

Strike Price

500.000

Days Until Expiration

25

Expiration Date

February 16, 2008

====================================================================================

 

WOW! We could not get a better market to show the power of volatility than this one. Today, the Federal Reserve cut interest rates by a whopping .75 basis points. This sent the markets into a tail spin opening nearly 500 points down before rebounding nearly all of it on massive short covering and bargain hunting. Will this be the bottom for 2008? That remains to be seen. After the bell Apple announced earnings and made a hefty profit, but investors took it to the woodshed and spanked the crap out of the stock in after hours trading. I am sure this favorite will spring back as time marches on. The Apple news caused Google to slip lower in after hours. Take note the DOTM puts were up over 200% at the open!

 

Day 4

Google Inc (GOOG)

Jan 23rd , 2008 Close

548.62 down -35.73 -6.11%

After Hours: 548.89 +0.27 / +0.05% Vol. 40,942

Previous Close

584.35

Bid

548.50

Open

560.71

Bid Size

100

Day's High

568.00

Ask

548.98

Day's Low

519.00

Ask Size

100

Volume

16.90 Mil

52 Week High

747.24

Avg. Daily Vol. (13 wk.)

6.23 Mil

52 Week Low

437.00

 

 

Option Quotes:

 

====================================================================================

GOOND quote

 

71.80 up +22.00 +44.18%

Open

67.800

Open Interest

1,998

Bid

75.500

Previous Close

49.800

Bid Size

23

Volume

418

Ask

76.500

Day's High

103.700

Ask Size

33

Day's Low

62.000

Strike Price

620.000

Days Until Expiration

24

Expiration Date

February 16, 2008

====================================================================================

.GOONT quote

 

58.30 up +20.50 +54.23%

Open

52.500

Open Interest

2,300

Bid

59.700

Previous Close

37.800

Bid Size

33

Volume

1,751

Ask

60.700

Day's High

85.600

Ask Size

23

Day's Low

47.800

Strike Price

600.000

Days Until Expiration

24

Expiration Date

February 16, 2008

====================================================================================

.GOONP quote

 

44.40 up +16.70 +60.29%

Open

40.000

Open Interest

1,381

Bid

46.100

Previous Close

27.700

Bid Size

43

Volume

2,377

Ask

47.000

Day's High

69.200

Ask Size

23

Day's Low

36.900

Strike Price

580.000

Days Until Expiration

24

Expiration Date

February 16, 2008

====================================================================================

.GOPNO quote - JACKPOT!

 

12.90 up +6.30 +95.45%

Open

11.100

Open Interest

1,537

Bid

12.900

Previous Close

6.600

Bid Size

65

Volume

3,037

Ask

13.200

Day's High

25.000

Ask Size

8

Day's Low

9.500

Strike Price

500.000

Days Until Expiration

24

Expiration Date

February 16, 2008

====================================================================================

 

Another day of deluge as Google gets decimated in early market trading. Once the bottom was put in place in the overall markets, Google and others had quite a snapback rally erasing most of the losses on the day but the stock is still down a hefty amount of points heading into earnings. As you can see from the wide price swings in these calls options, you have to have an iron stomach if you trade Google.

 

Day 5

Google Inc (GOOG)

Jan 24th , 2008 Close

574.49 up +25.87 +4.72%

After Hours: 588.00 +13.51 / +2.35% Vol. 71,549

Previous Close

548.62

Bid

586.21

Open

558.80

Bid Size

100

Day's High

579.69

Ask

588.00

Day's Low

554.14

Ask Size

100

Volume

9.41 Mil

52 Week High

747.24

Avg. Daily Vol. (13 wk.)

6.39 Mil

52 Week Low

437.00

 

Options:

 

====================================================================================

GOOND quote

 

52.50 down -19.30 -26.88%

Open

63.400

Open Interest

1,862

Bid

53.200

Previous Close

71.800

Bid Size

23

Volume

505

Ask

53.700

Day's High

65.700

Ask Size

21

Day's Low

52.500

Strike Price

620.000

Days Until Expiration

23

Expiration Date

February 16, 2008

====================================================================================

.GOONT quote

 

39.10 down -19.20 -32.93%

Open

53.000

Open Interest

2,257

Bid

39.400

Previous Close

58.300

Bid Size

11

Volume

1,466

Ask

39.700

Day's High

53.900

Ask Size

10

Day's Low

38.000

Strike Price

600.000

Days Until Expiration

23

Expiration Date

February 16, 2008

====================================================================================

GOONP quote

 

27.90 down -16.50 -37.16%

Open

39.100

Open Interest

1,519

Bid

28.100

Previous Close

44.400

Bid Size

11

Volume

1,458

Ask

28.600

Day's High

40.600

Ask Size

34

Day's Low

27.500

Strike Price

580.000

Days Until Expiration

23

Expiration Date

February 16, 2008

====================================================================================

.GOPNO quote

 

5.60 down -7.30 -56.59%

Open

10.300

Open Interest

2,008

Bid

5.300

Previous Close

12.900

Bid Size

100

Volume

1,897

Ask

5.600

Day's High

11.100

Ask Size

12

Day's Low

5.300

Strike Price

500.000

Days Until Expiration

23

Expiration Date

February 16, 2008

 

====================================================================================

 

After yesterday's roller coaster ride, Google showed some love and moved back over the 200 day moving average. This is a key support area for any stock, especially a heavy weight like Google. As earnings approach next week on the 31st, many investors are starting to place their bets. There are a lot more call DOTM speculators than put buyers.

 

 

Day 6

Google Inc (GOOG)

Jan 25th , 2008 Close

566.40 down -8.09 -1.41% 

After Hours: 568.00 +1.60 / +0.28% Vol. 21,869

Previous Close

574.49

Bid

525.00

Open

591.81

Bid Size

300

Day's High

595.00

Ask

999.99

Day's Low

566.18

Ask Size

200

Volume

6.97 Mil

52 Week High

747.24

Avg. Daily Vol. (13 wk.)

6.45 Mil

52 Week Low

437.00

 

Options:

====================================================================================

.GOOND quote

 

53.90 up +1.40 +2.67%

Open

40.400

Open Interest

1,863

Bid

59.600

Previous Close

52.500

Bid Size

13

Volume

714

Ask

60.500

Day's High

57.200

Ask Size

34

Day's Low

38.400

Strike Price

620.000

Days Until Expiration

22

Expiration Date

February 16, 2008

====================================================================================

.GOONT quote

 

45.00 up +5.90 +15.09%

Open

29.000

Open Interest

2,322

Bid

44.800

Previous Close

39.100

Bid Size

39

Volume

1,732

Ask

45.600

Day's High

45.000

Ask Size

33

Day's Low

26.900

Strike Price

600.000

Days Until Expiration

22

Expiration Date

February 16, 2008

====================================================================================

.GOONP quote

 

32.30 up +4.40 +15.77%

Open

20.200

Open Interest

1,429

Bid

32.400

Previous Close

27.900

Bid Size

23

Volume

5,163

Ask

33.100

Day's High

32.300

Ask Size

34

Day's Low

18.400

Strike Price

580.000

Days Until Expiration

22

Expiration Date

February 16, 2008

====================================================================================

.GOPNO quote

 

6.50 up +0.90 +16.07%

Open

3.600

Open Interest

2,273

Bid

6.300

Previous Close

5.600

Bid Size

52

Volume

2,612

Ask

6.700

Day's High

6.700

Ask Size

21

Day's Low

3.100

Strike Price

500.000

Days Until Expiration

22

Expiration Date

February 16, 2008

====================================================================================

What a week of volatility we had and what an awesome example of how options can swing wildly on a stock like Google! As you can see, if you were put buyer last week, you are a very happy camper right now and most likely should have bagged some profits! If you bought calls it's lick your wounds time and hope that this stock will get a move on next week into earnings. If you look at the DOTM puts vs. calls the call buyers are banking over 3:1 that Google pulls a rabbit out of its hat. We will see next week!

Recent News:

===================================================================================

Week of 1/28/08 - 2/1/08 - Earnings Release on 1/31/08 after the close

===================================================================================

 

Day 7

Google Inc (GOOG)

Jan 28th , 2008 Close

555.98 down -10.42 -1.84%

After Hours: 553.15 -2.83 / -0.51% Vol. 9,695

Previous Close

566.40

Bid

553.15

Open

570.97

Bid Size

100

Day's High

572.24

Ask

554.69

Day's Low

548.60

Ask Size

100

Volume

5.82 Mil

52 Week High

747.24

Avg. Daily Vol. (13 wk.)

6.51 Mil

52 Week Low

437.00

 

 

Options:

 

====================================================================================

.GOOND quote

 

69.50 up +15.60 +28.94%

Open

61.500

Open Interest

1,805

Bid

68.700

Previous Close

53.900

Bid Size

41

Volume

117

Ask

69.500

Day's High

74.200

Ask Size

22

Day's Low

61.500

Strike Price

620.000

Days Until Expiration

19

Expiration Date

February 16, 2008

====================================================================================

.GOONT quote

 

53.20 up +8.20 +18.22%

Open

42.700

Open Interest

2,448

Bid

52.800

Previous Close

45.000

Bid Size

62

Volume

499

Ask

53.900

Day's High

58.000

Ask Size

52

Day's Low

42.700

Strike Price

600.000

Days Until Expiration

19

Expiration Date

February 16, 2008

====================================================================================

.GOONP quote

 

40.00 up +7.70 +23.84%

Open

34.100

Open Interest

2,469

Bid

39.200

Previous Close

32.300

Bid Size

20

Volume

901

Ask

39.800

Day's High

43.000

Ask Size

22

Day's Low

31.700

Strike Price

580.000

Days Until Expiration

19

Expiration Date

February 16, 2008

 

====================================================================================

.GOPNO quote

 

8.90 up +2.40 +36.92%

Open

6.200

Open Interest

2,652

Bid

8.200

Previous Close

6.500

Bid Size

13

Volume

2,230

Ask

8.600

Day's High

9.600

Ask Size

42

Day's Low

5.700

Strike Price

500.000

Days Until Expiration

19

Expiration Date

February 16, 2008

 

====================================================================================

 

Not much action today but showing no love going into earnings this week. Volume was light and in after hours it traded down which does not bode well for call players at the moment. Put players just keep getting richer with this stock.

 

Day 8

Google Inc (GOOG)

Jan 29th , 2008 Close

550.52 down -5.46 -0.98% 

After Hours: 551.89 +1.37 / +0.25% Vol. 71,656

Previous Close

555.98

Bid

549.01

Open

560.47

Bid Size

100

Day's High

561.33

Ask

550.00

Day's Low

540.67

Ask Size

100

Volume

6.15 Mil

52 Week High

747.24

Avg. Daily Vol. (13 wk.)

6.55 Mil

52 Week Low

437.00

 

Options:

 

.GOOND quote

 

72.75 up +3.25 +4.68%

Open

65.400

Open Interest

1,825

Bid

71.400

Previous Close

69.500

Bid Size

20

Volume

124

Ask

72.900

Day's High

81.000

Ask Size

10

Day's Low

65.400

Strike Price

620.000

Days Until Expiration

18

Expiration Date

February 16, 2008

 

.GOONT quote

 

55.70 up +2.50 +4.70%

Open

50.300

Open Interest

2,426

Bid

54.900

Previous Close

53.200

Bid Size

20

Volume

331

Ask

56.500

Day's High

65.000

Ask Size

20

Day's Low

49.400

Strike Price

600.000

Days Until Expiration

18

Expiration Date

February 16, 2008

 

.GOONP quote

 

41.80 up +1.80 +4.50%

Open

36.950

Open Interest

2,729

Bid

40.600

Previous Close

40.000

Bid Size

22

Volume

2,867

Ask

41.900

Day's High

49.200

Ask Size

10

Day's Low

36.700

Strike Price

580.000

Days Until Expiration

18

Expiration Date

February 16, 2008

 

.GOPNO quote

 

8.80 down -0.10 -1.12%  <============NOTICE!

Open

7.700

Open Interest

2,888

Bid

8.500

Previous Close

8.900

Bid Size

57

Volume

1,676

Ask

9.100

Day's High

11.800

Ask Size

44

Day's Low

7.500

Strike Price

500.000

Days Until Expiration

18

Expiration Date

February 16, 2008

 

 

Great lesson on what happens to DOTM options. Even though Google went down today, these options actually lost money? Huh? That's right, they lost because they have zero intrinsic value and the MM can do whatever he pleases with the price. Even though the open interest increased the price still ended down for the day.

 

So far, Google is looking weaker heading into earnings. If they disappoint like Yahoo did, this stock could take a serious beating and our puts would catapult to new highs. I find it suspect these DOTM puts actually showed weakness today...hmmm...could be a sign to GET IN!

 

Day 9

Google Inc (GOOG)

Jan 30th , 2008 Close

548.27 down -2.25 -0.41%

After Hours: 546.49 -1.78 / -0.32% Vol. 7,990

Previous Close

550.52

Bid

545.00

Open

549.19

Bid Size

100

Day's High

560.43

Ask

546.48

Day's Low

543.51

Ask Size

100

Volume

7.92 Mil

52 Week High

747.24

Avg. Daily Vol. (13 wk.)

6.54 Mil

52 Week Low

437.00

 

Options:

====================================================================================

.GOOND quote

 

76.60 up +3.85 +5.29%

Open

72.000

Open Interest

1,869

Bid

75.400

Previous Close

72.750

Bid Size

31

Volume

306

Ask

76.600

Day's High

79.500

Ask Size

43

Day's Low

66.650

Strike Price

620.000

Days Until Expiration

17

Expiration Date

February 16, 2008

====================================================================================

.GOONT quote

 

56.20 up +0.50 +0.90%

Open

56.500

Open Interest

2,427

Bid

58.500

Previous Close

55.700

Bid Size

41

Volume

547

Ask

59.500

Day's High

63.300

Ask Size

33

Day's Low

51.300

Strike Price

600.000

Days Until Expiration

17

Expiration Date

February 16, 2008

====================================================================================

.GOONP quote

 

43.50 up +1.70 +4.07%

Open

41.600

Open Interest

2,704

Bid

43.400

Previous Close

41.800

Bid Size

20

Volume

1,835

Ask

44.300

Day's High

48.000

Ask Size

21

Day's Low

37.800

Strike Price

580.000

Days Until Expiration

17

Expiration Date

February 16, 2008

====================================================================================

.GOPNO quote

 

9.00 up +0.20 +2.27%

Open

9.400

Open Interest

3,129

Bid

8.600

Previous Close

8.800

Bid Size

20

Volume

2,606

Ask

8.800

Day's High

11.500

Ask Size

10

Day's Low

7.300

Strike Price

500.000

Days Until Expiration

17

Expiration Date

February 16, 2008

 

 

Tomorrow is the big day when Google announces earnings after the close. There are more puts being bought than calls which could mean a surprise and massive short covering rally. Now that the Federal Reserve has lowered interest rates .500, things could get exciting tomorrow and Friday. Tomorrow is month end and I am suspect that Google will beat and the shorts will cover massively. We shall see.

 

Day 10

Google Inc (GOOG)

Jan 31st , 2008 Close

564.30 up +16.03 +2.92%

After Hours: 525.00 -39.30 / -6.96% Vol. 900,294

Previous Close

548.27

Bid

524.72

Open

539.01

Bid Size

300

Day's High

573.00

Ask

524.95

Day's Low

534.29

Ask Size

200

Volume

14.78 Mil

52 Week High

747.24

Avg. Daily Vol. (13 wk.)

6.56 Mil

52 Week Low

437.00

 

Options:

 

====================================================================================

.GOOND quote

 

64.55 down -12.05 -15.73%

Open

84.800

Open Interest

1,875

Bid

64.400

Previous Close

76.600

Bid Size

11

Volume

487

Ask

66.100

Day's High

85.900

Ask Size

10

Day's Low

56.000

Strike Price

620.000

Days Until Expiration

16

Expiration Date

February 16, 2008

====================================================================================

.GOONT quote

 

49.00 down -7.20 -12.81%

Open

65.200

Open Interest

2,401

Bid

49.100

Previous Close

56.200

Bid Size

11

Volume

860

Ask

50.000

Day's High

70.700

Ask Size

1

Day's Low

41.000

Strike Price

600.000

Days Until Expiration

16

Expiration Date

February 16, 2008

====================================================================================

.GOONP quote

 

36.70 down -6.80 -15.63%

Open

50.700

Open Interest

2,019

Bid

36.500

Previous Close

43.500

Bid Size

22

Volume

1,494

Ask

37.700

Day's High

53.400

Ask Size

10

Day's Low

30.300

Strike Price

580.000

Days Until Expiration

16

Expiration Date

February 16, 2008

====================================================================================

.GOPNO quote

 

7.20 down -1.80 -20.00%

Open

10.800

Open Interest

3,833

Bid

7.000

Previous Close

9.000

Bid Size

6

Volume

8,527

Ask

7.300

Day's High

13.600

Ask Size

1

Day's Low

5.800

Strike Price

500.000

Days Until Expiration

16

Expiration Date

February 16, 2008

====================================================================================

 

Google announced earnings and missed analysts expectations. The stock was rocking during the day then plummeted nearly $60 bucks into the close and after earnings were announced. Tomorrow will be pivotal for the next few months as the stock finds bargain hunters or it continues the wholesale slaughter in its share price. Should the stock drop, the puts will BANK and we still have two weeks to expiration!

 

 

 

Day 11

Google Inc (GOOG)

Feb 1st , 2008 Close

515.90 down -48.40 -8.58%

After Hours: 516.79 +0.89 / +0.17% Vol. 2,799

Previous Close

564.30

Bid

464.00

Open

528.67

Bid Size

100

Day's High

536.67

Ask

567.00

Day's Low

510.00

Ask Size

200

Volume

17.60 Mil

52 Week High

747.24

Avg. Daily Vol. (13 wk.)

6.69 Mil

52 Week Low

437.00

 

====================================================================================

.GOOND quote

 

97.90 up +33.35 +51.67%

Open

86.670

Open Interest

1,762

Bid

104.100

Previous Close

64.550

Bid Size

25

Volume

547

Ask

105.200

Day's High

110.100

Ask Size

25

Day's Low

84.600

Strike Price

620.000

Days Until Expiration

14

Expiration Date

February 16, 2008

====================================================================================

.GOONT quote

 

79.00 up +30.00 +61.22%

Open

70.900

Open Interest

2,389

Bid

84.400

Previous Close

49.000

Bid Size

45

Volume

576

Ask

85.300

Day's High

89.000

Ask Size

11

Day's Low

64.900

Strike Price

600.000

Days Until Expiration

14

Expiration Date

February 16, 2008

====================================================================================

.GOONP quote

 

62.30 up +25.60 +69.75%

Open

53.600

Open Interest

2,210

Bid

65.200

Previous Close

36.700

Bid Size

45

Volume

1,332

Ask

66.000

Day's High

71.000

Ask Size

35

Day's Low

49.100

Strike Price

580.000

Days Until Expiration

14

Expiration Date

February 16, 2008

====================================================================================

.GOPNO quote

 

10.00 up +2.80 +38.89%

Open

7.100

Open Interest

6,250

Bid

9.700

Previous Close

7.200

Bid Size

10

Volume

9,312

Ask

10.100

Day's High

15.200

Ask Size

42

Day's Low

5.500

Strike Price

500.000

Days Until Expiration

14

Expiration Date

February 16, 2008

====================================================================================

 

MONSTER HOME RUNS ON THE PUTS - Notice the wide price swings, but still a huge winning day for the down side and we still have two weeks to go until expiration.

 

 

 

Day 12

Google Inc (GOOG)

Feb 4th , 2008 Close

 

495.43 down -20.47 -3.97%

After Hours: 493.10 -2.33 / -0.47% Vol. 56,374

Previous Close

515.90

Bid

480.00

Open

509.07

Bid Size

100

Day's High

512.78

Ask

504.99

Day's Low

492.55

Ask Size

300

Volume

13.16 Mil

52 Week High

747.24

Avg. Daily Vol. (13 wk.)

6.89 Mil

52 Week Low

437.00

 

===================================================================================

.GOOND quote

 

124.35 up +26.45 +27.02%

Open

112.000

Open Interest

1,687

Bid

122.900

Previous Close

97.900

Bid Size

49

Volume

45

Ask

124.500

Day's High

124.350

Ask Size

11

Day's Low

112.000

Strike Price

620.000

Days Until Expiration

12

Expiration Date

February 16, 2008

====================================================================================

.GOONT quote

 

104.00 up +25.00 +31.65%

Open

93.520

Open Interest

2,309

Bid

103.600

Previous Close

79.000

Bid Size

21

Volume

199

Ask

104.400

Day's High

107.200

Ask Size

11

Day's Low

89.000

Strike Price

600.000

Days Until Expiration

12

Expiration Date

February 16, 2008

====================================================================================

.GOONP quote

 

84.20 up +21.90 +35.15%

Open

72.880

Open Interest

2,116

Bid

83.900

Previous Close

62.300

Bid Size

31

Volume

436

Ask

84.600

Day's High

87.400

Ask Size

10

Day's Low

70.810

Strike Price

580.000

Days Until Expiration

12

Expiration Date

February 16, 2008

====================================================================================

.GOPNO quote

 

17.40 up +7.40 +74.00%  <=====KaCHING!$$!

Open

12.200

Open Interest

5,988

Bid

17.300

Previous Close

10.000

Bid Size

126

Volume

8,763

Ask

17.700

Day's High

20.200 

Ask Size

1

Day's Low

11.000

Strike Price

500.000

Days Until Expiration

12

Expiration Date

February 16, 2008

 

 

The deluge keeps coming as Micro-softie flexes some muscle and puts in a bid for Yahoo. With their megabucks, Google can now face some tough competition in the future, and a high flying stocks price is solely based on future earnings power. The puts are BANKING now, but will we get a bargain hunting reversal starting tomorrow?

 

Day 13

Google Inc (GOOG)

Feb 5th , 2008 Close

506.80 up  +11.37 +2.29%

 

Previous Close

506.80

Bid

504.50

Open

489.43

Bid Size

100

Day's High

509.00

Ask

515.00

Day's Low

488.52

Ask Size

100

Volume

11.20 Mil

52 Week High

747.24

Avg. Daily Vol. (13 wk.)

6.96 Mil

52 Week Low

437.00

 

 

 

===================================================================================

.GOOND quote

 

112.60 down -11.75

Open

NA

Open Interest

1,355

Bid

NA

Previous Close

112.600

Bid Size

NA

Volume

NA

Ask

NA

Day's High

NA

Ask Size

NA

Day's Low

NA

Strike Price

620.000

Days Until Expiration

10

Expiration Date

February 16, 2008

==================================================================================

.GOONT quote

 

92.04 down -11.96

Open

NA

Open Interest

1,808

Bid

NA

Previous Close

92.040

Bid Size

NA

Volume

NA

Ask

NA

Day's High

NA

Ask Size

NA

Day's Low

NA

Strike Price

600.000

Days Until Expiration

10

Expiration Date

February 16, 2008

====================================================================================

.GOONP quote

 

73.40 down  -10.80

Open

NA

Open Interest

1,937

Bid

NA

Previous Close

73.400

Bid Size

NA

Volume

NA

Ask

NA

Day's High

NA

Ask Size

NA

Day's Low

NA

Strike Price

580.000

Days Until Expiration

10

Expiration Date

February 16, 2008

===================================================================================

.GOPNO quote

 

11.00 down -6.40

Open

NA

Open Interest

6,501

Bid

NA

Previous Close

11.000

Bid Size

NA

Volume

NA

Ask

NA

Day's High

NA

Ask Size

NA

Day's Low

NA

Strike Price

500.000

Days Until Expiration

10

Expiration Date

February 16, 2008

====================================================================================

 

As I suspected last night, Google managed a snap back rally (albeit a small one) today putting on some green in the midst of a really red day on both indices. This could be shorts taking some profits and if yesterdays low does not hold it's going to be UGLY for the longs and SWEET for the puts!

 

Day 14

Google Inc (GOOG)

Feb 6th , 2008 Close

501.71 down -5.09 -1.00%

After Hours: 495.00 -6.71 / -1.34% Vol. 77,733

Previous Close

506.80

Bid

494.25

Open

511.14

Bid Size

100

Day's High

511.17

Ask

496.50

Day's Low

497.93

Ask Size

200

Volume

7.64 Mil

52 Week High

747.24

Avg. Daily Vol. (13 wk.)

7.00 Mil

52 Week Low

437.00

 

 

 

.GOOND quote

 

117.80 up +5.20 +4.62%

Open

119.600

Open Interest

1,326

Bid

117.100

Previous Close

112.600

Bid Size

1

Volume

59

Ask

118.400

Day's High

120.000

Ask Size

11

Day's Low

114.900

Strike Price

620.000

Days Until Expiration

10

Expiration Date

February 16, 2008

 

.GOONT quote

 

98.21 up +6.17 +6.70%

Open

91.100

Open Interest

1,168

Bid

97.100

Previous Close

92.040

Bid Size

45

Volume

55

Ask

98.400

Day's High

100.000

Ask Size

10

Day's Low

91.100

Strike Price

600.000

Days Until Expiration

10

Expiration Date

February 16, 2008

 

.GOONP quote

 

77.90 up +4.50 +6.13%

Open

72.900

Open Interest

1,778

Bid

77.200

Previous Close

73.400

Bid Size

1

Volume

66

Ask

78.500

Day's High

79.900

Ask Size

10

Day's Low

72.900

Strike Price

580.000

Days Until Expiration

10

Expiration Date

February 16, 2008

 

.GOPNO quote

 

12.50 up +1.50 +13.64%

Open

9.700

Open Interest

6,085

Bid

12.200

Previous Close

11.000

Bid Size

29

Volume

8,397

Ask

12.800

Day's High

14.600

Ask Size

30

Day's Low

9.100

Strike Price

500.000

Days Until Expiration

10

Expiration Date

February 16, 2008

 

 

sellers step back in as more selling pressure hits the markets. The big loser today was the CME which dropped over $100 bucks today! WOW - The DOTM puts banked today!

 

Day 15

Google Inc (GOOG)

Feb 7th , 2008 Close

504.95 up +3.24 +0.65%

After Hours: 505.05 +0.10 / +0.02% Vol. 923

Previous Close

501.71

Bid

505.03

Open

496.86

Bid Size

100

Day's High

514.19

Ask

505.99

Day's Low

494.76

Ask Size

100

Volume

7.93 Mil

52 Week High

747.24

Avg. Daily Vol. (13 wk.)

6.99 Mil

52 Week Low

437.00

 

===================================================================================

.GOOND quote

 

113.00 down -4.80 -4.07%

Open

111.600

Open Interest

1,282

Bid

114.300

Previous Close

117.800

Bid Size

31

Volume

2,681

Ask

115.100

Day's High

115.570

Ask Size

11

Day's Low

110.100

Strike Price

620.000

Days Until Expiration

9

Expiration Date

February 16, 2008

==================================================================================

.GOONT quote

 

96.80 down -1.41 -1.44%

Open

101.200

Open Interest

1,110

Bid

94.300

Previous Close

98.210

Bid Size

31

Volume

62

Ask

95.200

Day's High

101.200

Ask Size

11

Day's Low

89.800

Strike Price

600.000

Days Until Expiration

9

Expiration Date

February 16, 2008

==================================================================================

.GOONP quote

 

75.70 down -2.20 -2.82%

Open

79.100

Open Interest

1,503

Bid

74.300

Previous Close

77.900

Bid Size

31

Volume

168

Ask

75.200

Day's High

82.500

Ask Size

11

Day's Low

68.600

Strike Price

580.000

Days Until Expiration

9

Expiration Date

February 16, 2008

====================================================================================

.GOPNO quote

 

9.90 down -2.60 -20.80%

Open

14.500

Open Interest

6,420

Bid

9.800

Previous Close

12.500

Bid Size

1

Volume

8,523

Ask

9.900

Day's High

14.700

Ask Size

10

Day's Low

6.350

Strike Price

500.000

Days Until Expiration

9

Expiration Date

February 16, 2008

 

Bouncing around at the $500 support area but with very little conviction. Notice the large swings in the opitons prices intra-day. As I said in my commentary, you have to have an iron stomach when you play options, even if they are in the money.

 

 

Day 16

Google Inc (GOOG)

Feb 8th , 2008 Close

516.69 up +11.74 +2.32%

After Hours: 516.69 unch / unch Vol. 58,253

Previous Close

504.95

Bid

516.10

Open

509.41

Bid Size

500

Day's High

517.73

Ask

516.80

Day's Low

508.70

Ask Size

200

Volume

6.83 Mil

52 Week High

747.24

Avg. Daily Vol. (13 wk.)

6.85 Mil

52 Week Low

437.00

====================================================================================

.GOOND quote

 

105.80 down -7.20 -6.37%

Open

106.900

Open Interest

1,136

Bid

103.400

Previous Close

113.000

Bid Size

10

Volume

28

Ask

104.300

Day's High

107.000

Ask Size

10

Day's Low

104.200

Strike Price

620.000

Days Until Expiration

8

Expiration Date

February 16, 2008

====================================================================================

.GOONT quote

 

86.90 down -9.90 -10.23%

Open

85.900

Open Interest

1,075

Bid

83.400

Previous Close

96.800

Bid Size

21

Volume

90

Ask

84.300

Day's High

87.400

Ask Size

10

Day's Low

84.400

Strike Price

600.000

Days Until Expiration

8

Expiration Date

February 16, 2008

===================================================================================

.GOONP quote

 

65.10 down -10.60 -14.00%

Open

68.700

Open Interest

1,276

Bid

63.400

Previous Close

75.700

Bid Size

31

Volume

202

Ask

64.200

Day's High

68.700

Ask Size

11

Day's Low

64.200

Strike Price

580.000

Days Until Expiration

8

Expiration Date

February 16, 2008

====================================================================================

.GOPNO quote

 

4.80 down -5.10 -51.52%

Open

8.000

Open Interest

6,780

Bid

4.800

Previous Close

9.900

Bid Size

61

Volume

8,491

Ask

5.100

Day's High

8.200

Ask Size

76

Day's Low

4.500

Strike Price

500.000

Days Until Expiration

8

Expiration Date

February 16, 2008

 

Google moved on up today as the $500 support areas continues to hold ground. The stock closed near the highs of the day which could be a good thing heading into option expiration next week. Notice how

the DOTM puts where cut literally in half today. It will be interesting to see how these play out next week.

 

 

Day 17

Google Inc (GOOG)

Feb 8th , 2008 Close

521.16 up +4.47 +0.87%

After Hours: 520.20 -0.96 / -0.18% Vol. 17,503

Previous Close

516.69

Bid

520.20

Open

520.52

Bid Size

100

Day's High

523.71

Ask

520.50

Day's Low

513.40

Ask Size

100

Volume

5.82 Mil

52 Week High

747.24

Avg. Daily Vol. (13 wk.)

6.78 Mil

52 Week Low

437.00

 

Options:

 

 

===================================================================================

.GOOND quote

 

103.00 down -2.80 -2.65%

Open

103.500

Open Interest

1,147

Bid

98.300

Previous Close

105.800

Bid Size

49

Volume

6

Ask

99.200

Day's High

103.500

Ask Size

33

Day's Low

103.000

Strike Price

620.000

Days Until Expiration

5

Expiration Date

February 16, 2008

===================================================================================

.GOONT quote

 

82.50 down -4.40 -5.06%

Open

79.600

Open Interest

634

Bid

78.400

Previous Close

86.900

Bid Size

21

Volume

20

Ask

79.200

Day's High

84.000

Ask Size

33

Day's Low

79.600

Strike Price

600.000

Days Until Expiration

5

Expiration Date

February 16, 2008

===================================================================================

.GOONP quote

 

59.00 down -6.10 -9.37%

Open

58.900

Open Interest

808

Bid

58.400

Previous Close

65.100

Bid Size

39

Volume

53

Ask

59.000

Day's High

66.200

Ask Size

22

Day's Low

57.000

Strike Price

580.000

Days Until Expiration

5

Expiration Date

February 16, 2008

===================================================================================

 

.GOPNO quote

 

2.60 down -2.20 -45.83%

Open

3.900

Open Interest

6,662

Bid

2.500

Previous Close

4.800

Bid Size

81

Volume

3,937

Ask

2.700

Day's High

4.900

Ask Size

108

Day's Low

2.350

Strike Price

500.000

Days Until Expiration

5

Expiration Date

February 16, 2008

 

===================================================================================

 

Nothing going on today. It's shaping up to be a very boring expiration week but anything can happen so time will tell as we watch the action develop.

 

Day 18

Google Inc (GOOG)

Feb 12th , 2008 Close

518.09 down -3.07 -0.59%

After Hours: 517.75 -0.34 / -0.07% Vol. 7,537

Previous Close

521.16

Bid

517.02

Open

523.39

Bid Size

400

Day's High

530.60

Ask

517.75

Day's Low

513.03

Ask Size

200

Volume

6.66 Mil

52 Week High

747.24

Avg. Daily Vol. (13 wk.)

6.70 Mil

52 Week Low

437.00

 

Options:

 

======================================================================================

.GOOND quote

 

103.70 up +0.70 +0.68%

Open

91.400

Open Interest

1,146

Bid

101.600

Previous Close

103.000

Bid Size

11

Volume

12,509

Ask

102.200

Day's High

103.700

Ask Size

31

Day's Low

91.400

Strike Price

620.000

Days Until Expiration

4

Expiration Date

February 16, 2008

======================================================================================

.GOONT quote

 

78.00 down -4.50 -5.45%

Open

78.000

Open Interest

607

Bid

81.400

Previous Close

82.500

Bid Size

48

Volume

2,423

Ask

82.200

Day's High

78.000

Ask Size

31

Day's Low

71.800

Strike Price

600.000

Days Until Expiration

4

Expiration Date

February 16, 2008

======================================================================================

.GOONP quote

 

62.70 up +3.70 +6.27%

Open

56.200

Open Interest

789

Bid

61.600

Previous Close

59.000

Bid Size

21

Volume

1,555

Ask

62.200

Day's High

66.900

Ask Size

28

Day's Low

51.200

Strike Price

580.000

Days Until Expiration

4

Expiration Date

February 16, 2008

======================================================================================

.GOPNO quote

 

2.20 down -0.40 -15.38%

Open

2.000

Open Interest

6,607

Bid

2.300

Previous Close

2.600

Bid Size

27

Volume

5,041

Ask

2.400

Day's High

3.200

Ask Size

21

Day's Low

1.000

Strike Price

500.000

Days Until Expiration

4

Expiration Date

February 16, 2008

======================================================================================

Slipping into expiration and these calls will be expiring worthless. These puts are FAT with profit s and should stay that way!

 

 

Day 19

Google Inc (GOOG)

Feb 13th , 2008 Close

 

534.62 up +16.53 +3.19%

After Hours: 543.00 +8.38 / +1.57% Vol. 335,244

Previous Close

518.09

Bid

540.70

Open

522.50

Bid Size

100

Day's High

534.99

Ask

543.99

Day's Low

518.69

Ask Size

100

Volume

6.63 Mil

52 Week High

747.24

Avg. Daily Vol. (13 wk.)

6.68 Mil

52 Week Low

437.00

Options:

 

=====================================================================================

.GOOND quote

 

85.50 down -18.20 -17.55%

Open

97.800

Open Interest

1,057

Bid

85.200

Previous Close

103.700

Bid Size

55

Volume

1,311

Ask

86.100

Day's High

97.800

Ask Size

11

Day's Low

85.500

Strike Price

620.000

Days Until Expiration

3

Expiration Date

February 16, 2008

=====================================================================================

.GOONT quote

 

66.00 down -12.00 -15.38%

Open

78.400

Open Interest

300

Bid

65.200

Previous Close

78.000

Bid Size

64

Volume

30

Ask

66.100

Day's High

79.840

Ask Size

11

Day's Low

66.000

Strike Price

600.000

Days Until Expiration

3

Expiration Date

February 16, 2008

=====================================================================================

.GOONP quote

 

45.80 down -16.90 -26.95%

Open

57.500

Open Interest

572

Bid

45.300

Previous Close

62.700

Bid Size

44

Volume

45

Ask

46.200

Day's High

60.100

Ask Size

11

Day's Low

45.800

Strike Price

580.000

Days Until Expiration

3

Expiration Date

February 16, 2008

=====================================================================================

.GOPNO quote

 

0.35 down -1.85 -84.09%

Open

1.360

Open Interest

6,064

Bid

0.350

Previous Close

2.200

Bid Size

45

Volume

4,274

Ask

0.400

Day's High

1.600

Ask Size

101

Day's Low

0.350

Strike Price

500.000

Days Until Expiration

3

Expiration Date

February 16, 2008

=====================================================================================

 

Nice day in the markets lifted Google from the basement of a big sell off. Notice now the DOTM puts were shellacked.

 

 

Day 20

Google Inc (GOOG)

Feb 14th , 2008 Close

532.25 down -2.37 -0.44%

After Hours: 532.75 +0.50 / +0.09% Vol. 1,808

Previous Close

534.62

Bid

532.50

Open

538.35

Bid Size

200

Day's High

541.04

Ask

533.49

Day's Low

531.00

Ask Size

500

Volume

6.48 Mil

52 Week High

747.24

Avg. Daily Vol. (13 wk.)

6.65 Mil

52 Week Low

437.00

Options:

=====================================================================================

.GOOND quote

 

86.20 up +0.70 +0.82%

Open

80.500

Open Interest

1,054

Bid

87.700

Previous Close

85.500

Bid Size

19

Volume

21

Ask

88.500

Day's High

86.600

Ask Size

29

Day's Low

80.500

Strike Price

620.000

Days Until Expiration

2

Expiration Date

February 16, 2008

=====================================================================================

.GOONT quote

 

66.60 up +0.60 +0.91%

Open

60.500

Open Interest

281

Bid

67.700

Previous Close

66.000

Bid Size

30

Volume

11

Ask

68.400

Day's High

66.600

Ask Size

29

Day's Low

60.500

Strike Price

600.000

Days Until Expiration

2

Expiration Date

February 16, 2008

=====================================================================================

.GOONP quote

 

45.30 down -0.50 -1.09%

Open

43.000

Open Interest

257

Bid

47.700

Previous Close

45.800

Bid Size

19

Volume

18

Ask

48.500

Day's High

45.500

Ask Size

29

Day's Low

42.600

Strike Price

580.000

Days Until Expiration

2

Expiration Date

February 16, 2008

=====================================================================================

.GOPNO quote

 

0.05 down -0.30 -85.71%

Open

0.350

Open Interest

7,060

Bid

0.050

Previous Close

0.350

Bid Size

44

Volume

1,226

Ask

0.100

Day's High

0.350

Ask Size

6

Day's Low

0.050

Strike Price

500.000

Days Until Expiration

2

Expiration Date

February 16, 2008

=====================================================================================

As the expiration comes Google slips and notice how the DOTM puts actually go down?? Open interest grew too as speculators jockey for position in hopes that Google will miraculously drop over $32 bucks and give them a profit....it could happen right?

 

 

 

Day 21

Google Inc (GOOG)

Feb 15th , 2008 Close  OPTION EXPIRATION DAY

529.64 down -2.61 -0.49%
After Hours: 530.20 +0.56 / +0.11% Vol. 7,530
Previous Close 532.25 Bid 520.50
Open 528.31 Bid Size 100
Day's High 532.66 Ask 535.00
Day's Low 524.33 Ask Size 100
Volume 5.24 Mil 52 Week High 747.24
Avg. Daily Vol. (13 wk.) 6.58 Mil 52 Week Low 437.00

 

 

Options:

=====================================================================================

.GOOND quote

 

92.70 up +6.50 +7.54%

Open

89.400

Open Interest

1,059

Bid

90.200

Previous Close

86.200

Bid Size

5

Volume

21

Ask

90.800

Day's High

94.900

Ask Size

24

Day's Low

89.400

Strike Price

620.000

Days Until Expiration

0

Expiration Date

February 16, 2008

=====================================================================================

.GOONT quote

 

74.50 up +7.90 +11.86%

Open

73.780

Open Interest

279

Bid

70.200

Previous Close

66.600

Bid Size

5

Volume

15

Ask

70.800

Day's High

74.500

Ask Size

29

Day's Low

73.780

Strike Price

600.000

Days Until Expiration

0

Expiration Date

February 16, 2008

=====================================================================================

.GOONP quote

 

50.80 up +5.50 +12.14%

Open

49.300

Open Interest

256

Bid

50.200

Previous Close

45.300

Bid Size

5

Volume

53

Ask

50.800

Day's High

55.000

Ask Size

40

Day's Low

48.000

Strike Price

580.000

Days Until Expiration

0

Expiration Date

February 16, 2008

=====================================================================================

.GOPNO quote

 

0.05 unch

Open

0.050

Open Interest

6,748

Bid

NA

Previous Close

0.050

Bid Size

NA

Volume

273

Ask

0.050

Day's High

0.100

Ask Size

105

Day's Low

0.010

Strike Price

500.000

Days Until Expiration

0

Expiration Date

February 16, 2008

=====================================================================================

 

Expiration brings this training to a close. We had a very good run on the put side, and 3 out of 4 of the plays finished very profitable! Did you notice how the DOTM puts expired worthless? Even when things go your way, if you are too far from the action, you can still lose everything! Timing is critical when trading opitons, and as I always say, "Entry is Key....Exit is Everything!TM"

 

 

 

 

 

 

 

 

 

Profits Up!

The donFranko 

 

If you feel that I have taught you a valuable lesson, then consider Subscribing to my members only site for access to my live portfolio's, daily suggested plays and my Lotto Trades!

 

 

 

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