Online Options Trading: What LVS did

Online Options Trading: What LVS did

It’s been a couple days since I asked the question, “What will LVS do?”

From what I can tell, LVS hit the resistance, and fell back into the channel.

Why? Well fundamentalists will tell you it is because LVS missed on earnings. Actually their earnings were pretty good but below analysts expectations so the stock took a beating.

Was that it? Or was it a technical move – LVS hitting its head on the ceiling of its trading range?

Who knows? But it was fun to play. Congrats to all those that got it right.

LVS online option trade

As for my trade, it is still doing ok. I don’t get into trouble until LVS goes below 145. Even then, I am happy because I will get to buy the stock at that price, which is the lower end of the range. I want to keep LVS long term and trade around it, so i plan to sell the shares when LVS gets to the upper end of the range again. (If I am forced to buy them at 45.)

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Another way to play it would be to have enough shares to sell to offset the short options.

Say I had 500 shares, and then sold 5 45 puts. If LVS goes lower and it tooks like it will be below 45 at expiration. I can sell my 500 shares at close to 45 and then have to buy them back at 45 at expiration because of the puts. This keeps me in my position. Or I can just buy 500 more.

So at first glance, the trade might seem risky, but things are not always as they appear.

Let us know on the comments section below and be sure check out our previous blog posts for best option selling advisory service and great tips on how to do option trading for a living.

1 Comment

  1. Sarah Hansen on February 14, 2011 at 12:42 pm

    I have a friend who is in a trade on this so it is interesting to me.

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