If you played this correctly you would have an offer to sell at 14.79, so far you could have done this 4 times with success. Your risking a few pennies to make 9 cents if you play your cards right. The options really do not provide any edge in a play like this, learning how to read the level II spotting buyers and sellers is where the edge is. My level II window has a prints(last sale) built into the side of the window so you can see when buying on the offer occurs. This is integral when timing your entry, especially if your going to take the offer. As i type this LVS has broke through 14.80 trading up to 14.90. My originally trade was play the break out, which i did by buying the 15 call on the offer...
Friday, September 4, 2009
By Hedge Ly | 9/04/2009 11:27:00 AM |
IN times where the market is thin, anything looks like a good set up. Most volume is all churning volume in spurts, with little room to capitalize unless you are a stock trader. I personally really only use stock to hedge a position, since i am an options trader i really can miss out on moves like i was seeing in LVS. The set up was buy around 14.70 and sell 14.79, there was a huge seller sitting on the offer at 14.80 refreshing every time the offer got thin more shares would show up.