tag:blogger.com,1999:blog-15245709.post1692648394782594943..comments2023-10-15T04:16:17.489-07:00Comments on stock option trading | Singapore online option trading experiences: A Losing Trade - The Cooper Companies Inc. (COO)Tony Chaihttp://www.blogger.com/profile/10273078092056627454noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-15245709.post-46562739892779418192007-06-09T21:14:00.000-07:002007-06-09T21:14:00.000-07:00Hi :Thanks for your comments.If you buy an options...Hi :<BR/><BR/>Thanks for your comments.<BR/><BR/>If you buy an options a few days too early before earnings, the premium would lose money if the share price keeps going against the option you bought. <BR/><BR/>Your comment about implied volatility (IV) is very true. That's why in my earnings gapping analysis technique I must be very careful in searching a stock which has past gapping history of at least > $2.00 after earnings so that I can cover the IV I paid for.<BR/><BR/>It's good to receive a comment from someone who knows the risks involve. I would usually weigh the potential rewards before deciding whether to enter the position.<BR/><BR/>Thanks, buddy.<BR/><BR/>Tony ChaiTony Chaihttps://www.blogger.com/profile/10273078092056627454noreply@blogger.comtag:blogger.com,1999:blog-15245709.post-89124384451786725672007-06-08T20:38:00.000-07:002007-06-08T20:38:00.000-07:00Your rule on waiting to buy right before earnings ...Your rule on waiting to buy right before earnings is a bad rule. Don't do it. If you're going to buy an option before earnings you should probably get in early as a rule. The reason for this is because the implied volatility of the option is usually jacked up right before the announcement. If you buy early and the value of the call increases due to the rise in implied volatility before earnings, you'll probably trim your losses should the move go against you.<BR/><BR/>Later,<BR/><BR/>95omegaAnonymousnoreply@blogger.com