Hey Guys,
The market came down some this morning and that finally presented me with some buying opportunities. I welcomed the trades with open arms after waiting patiently the last few trading days for new setups.
I picked up LULU and BX this morning. I bought the stocks in my main account and the options in my extra options account. I also bought XLNX options in both accounts.
A note about those XLNX options -- they had a super wide spread when I bought them. The bid and ask were like $3-4 apart (which means $300-$400 per contract). There are a couple of important things to note about options like this:
1) If you buy using a market order, you might be giving up a lot of extra cash to buy it.
2) It's hard to tell where exactly a limit order needs to land in order to get filled. It may be below the "midpoint" between the bid and the ask. It's up to you how much time you spend trying to find the best possible price, but when there is a big bid/ask spread, there is more of a potential payoff for that effort.
I didn't have any positions close yet today. Tomorrow PEAK is going to hit its time limit. It was near a full loss late last week but has climbed up some since then. We'll see where it lands when it reaches the finish line.
If you have any questions or feedback, I'd love to hear from you.