Ok, so my INTC trade which is my largest position now is in the black, but back to NAL which is not my largest position. I really spend too much time on NAL. I know, I know. The stock was up 3.25% today. Not even blog sites are talking about this one.

I think I am learning a lot about thinly traded options. NAL today traded lightly … err.. not at all except for the front month near the money call. Thinly traded options seem to trade more near the end of the day when I am asleep. I did increase my position in NAL. I had a buy limit that got filled at the end of the day, lowered my costs to about 0.34 for the spread.

I put in orders at 0.30, 0.25, and 0.20 before I went to bed. The 0.30 is about my break even, the 0.25, & 0.20 was just there in case someone moved the market past market makers. I would not think about it on something like INTC or AAPL. I don’t think the market makers are AS active in a thin stock. You can see the market makers on the screens, just not like large cap stocks. Just not much volume on the options: 8,800 on the front month, 1,600 on the back month.

The 1,600 is the one that matters. Can’t do a calendar without both sides. Seven friggin trading days to expiration. Open interest is down to 7,000 on the front month, 3,000 on the back.

Related posts:

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2. The “Weekend Theta” Trade Doesn’t work. Sorry. In my last post, I mentioned...
3. Out of INTC Well, I closed out of INTC today. The price was...

This entry was posted on Thursday, June 7th, 2007 at 9:52 am and is filed under Option Trading.