Updated Buy Limit On LNN puts
Buy to open the August 17, 2018 put on Lindsay Corporation (NYSE: LNN) with a strike price of $95 at $3.35 or lower. Symbol (LNN180817P95)
I apologize for the update, my system was not updating with a current price on these puts so I need to increase the buy limit price.
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John Williams
Your first alert came at 8:55 a.m. central — by 9:04 and 9:05 a.m. central, AGCO was $2.10-2.30, TITN was $2.30-2.40 — I didn’t capture LNN’s prices other than they were well above the initial (pre-update) price ceiling. Frankly, for what I’m paying for this service, I hope I don’t have to sit on the computer all day waiting for the one or two or three minute window to get the price you suggest.
Linda McDonough
John,
I understand your frustration. Options prices move quickly, especially when the overall market is having a particularly strong or weak day.
My suggested limit prices are just that, suggestions. On top of the volatility in options, they are also traded with HUGE spreads. Many subscribers use my suggested prices as a framework and enter their trades with limits for the day. I have found that most usually get filled within a day or two and that chasing them on price is not worthwhile.
The update on price today is unusual and due to a glitch in my trading system which gave me a stale price.
Best,
Linda
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MODERATOR: Lisa G
John,
It is rarely like this. Most of them time I enter the trade when I get the alert and it fills within in few days. I would suggest you give it a good chance before getting overly critical about the service.
Lisa
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J Ronald White
I notice that your recommendations result in high volume on the particular strike price and expiration you recommend. This results in driving the price out of the buy zone. Would you recommend going to the next higher or lower strike price and/or another expiration price? Ron
Linda McDonough
J Ronald,
Many subscribers tailor my suggestions to different strikes and/or expiration dates if they find a better bargain. It can be difficult for me to find the “best” strike and expiration series but the bearish thesis remains for any that you choose.
Best,
Linda
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Derek: Las Vegas, NV
It is my belief that options volume does NOT affect price movement of a stock. That said, it can make a huge impact on where the stock price ends up on expiration day.
More likely than not, you’re missing the options entry by pure price fluctuation and volatility. Option prices move very quickly and at times requires patience. In my experience it’s not worth chasing the price higher, it’s best to set a limit order and let it sit until filled or until a specified date. If not filled by that date then just cancel the order.
Liquidity also plays a big role in getting filled in options trading. If liquidity is low it can take many hours or days to get filled.
https://www.thestreet.com/story/11346823/1/how-options-expiration-affects-stock-prices.html
https://www.investopedia.com/articles/optioninvestor/04/060904.asp
Then you have options traders who have contrarian beliefs.
https://www.quora.com/Does-Options-trading-drive-the-price-movement-of-the-underlying-or-vice-versa
Derek
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Michael Tingley
Linda on this trade for Lnn 95 strike buy at put at $3.35 . Does this mean that the price on 8/17/18 should be $91.65 before I make money? 95 – 3.35= 91.65 is this correct?
Derek: Las Vegas, NV
The short answer is, it depends. If LNN goes down tomorrow, the value of the option will go up. You have to account for time value and intrinsic value, so on expiration day the stock needs to be lower than $91.65 to be profitable because the time value will have decayed. As the option becomes deeper ITM the intrinsic value of the option will rise and will simultaneously lose time value as you get closer to expiration. So, again, it depends.
Derek
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Linda McDonough
Thank you to Derek for the timely and correct answer. There other several variables that affect options pricing with the price of the underlying stock being just one.
Best,
Linda
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Fo
Linda, is this a new recommendation or a reiteration of an earlier alert? I am hoping to find the overall trade rational somewhere. Thanks!
Derek: Las Vegas, NV
https://www.investingdaily.com/profit-catalyst/alerts/42533/betting-against-the-farm-buy-put-options-on-agriculture-equipment-makers
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Linda McDonough
Fo,
The update on the trade limit was an unusual one. It is tied to the original trade alert that hit that morning. My trading service gave me a stale quote so the suggested price limit on the puts was too low.
LNN is bouncing a bit today so many subs are able to get filled.
Please let me know if that answers your question.
Best,
Linda
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Victor
LNN filled @ 3.35 on TASTY
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Ian
LNN filled @3.30 debit
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MODERATOR: Lisa G
LNN filled for $3.30 at Fidelity/CBOE
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Steve S.
LNN filled @ 3.00 debit, Schwab, at 14:18.
Thanks Linda.
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ETKTRIDE
LNN – filled @ $3.20 ND (IB)
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Ignacio Perez
Lnn finally going down, your thoughts will go down farther Linda
Linda McDonough
Ignacio,
I’m keeping a close eye on it. Certainly, the tariff news is negative for the group. I didn’t understand the move up after earnings so I do expect it to drop further. I hope to see the puts making money soon.
Best,
Linda
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