Marvel June 25 Puts Anyone?

May 7th, 2007

7 May 2007 - I just spent an hour writing this morning’s blog entry about why Marvel June 25 puts were a compelling play last week and why I decided to buy in at $0.40 a contract last week (by the way they were at this exact same price when the markets opened this morning in New York as after hours trading had caused the stock to open considerably higher). Unfortunately, when I went to post my entry, my internet connection reset and wiped out my entire entry. Right now, I’m too frustrated to re-write my entire entry, but let’s just say for now, the rationale for making this option play last week were based upon receipts of Spiderman in Asia and Europe that preceded the U.S. premier, predictable actions based upon the receipts of major markets that had already been reported, and the chart pattern below.

Let’s just say that this play is not nearly as low risk as the BIDU puts and the GM calls I discussed earlier, and that though those two option plays were 100% my idea, that the idea for this play came from numerous stories in several financial publications about the historical patterns of Marvel stock behavior. However, the rationale for entering this play was 100% mine, and I have yet to see anyone discuss the reasons I have for making this play. Of course, I just wrote all the reasons but my entire post was wiped out when I went to post this article. Perhaps, when I’m not so annoyed anymore, I’ll repost my original article that I finished this morning at market opening. However, right now, I’m way too annoyed. Furthermore, trading volume right now is still way too light to determine if weekend box office receipts of Spiderman will cause any significant price appreciation in this stock today. Perhaps if by the end of the day this is still worth talking about and I didn’t get stopped out of my positions, I’ll rewrite this blog entry.

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J.S. Kim is the founder and Managing Director of SmartKnowledgeU™, a comprehensive online investment course that uses novel, proprietary advanced wealth planning techniques and the long tail of investing to identify low-risk, high-reward investment opportunities that seek to yield 25% or greater annual returns.

Entry Filed under: Option Investing