Options expiration today; Wednesday was 18th day of QQQQ short term up-trend; ABV


On to end of year/quarter mutual fund window dressing. My next post will be Monday morning.

I bought some January deep in-the-money call options on ABV yesterday.   It may be breaking our of a multi-week consolidation. Yesterday, though, there was little increase in volume as it rose.   If it falls back, I will sell. Click on this daily chart to enlarge.

3 thoughts on “Options expiration today; Wednesday was 18th day of QQQQ short term up-trend; ABV”

  1. Dr. Wish,

    When you said you bought calls with January Expiration did you mean the front month january or january of next year?

    If you bought the front month, as in this january expiration, but by doing that you are giving up any time premium in the call that was there when you purchased. You should have bought a farther out expiration so your time premium would grow if you are correct in ABV popping but even if your right witht he front month you will not gain any time premium you will only get its intrinsic value for the call.

  2. I only buy deep in the money calls in the front month with 4-6 weeks until expiration. I want to pay as little time premium as possible and am trying to make money on a rise in the intrinsic value of the call.

  3. Dr. Wish,

    How are you trading these option positions, are you stop-losses?
    And if so, do you find you are getting closed out at bad prices?

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.