US options busy the Jan14 $17 calls were the most active. I bought 30 but it was a struggle. There is deffinitly manipulation here. Since there is a small number of trades you can see your order. If I added a penny the ask went up a penny and once while I had an order for 2.12 and order went through for 2.08. So I kept reducing my order by a penny and the price came down by a penny and after a few cents of my drop I went to the ask and low and behold the asks all dissappeared. Very frustrating. I like the calls and if you think we are heading to over 20 during 2013 then they are a fabulous deal. So I bought the equivilant of 3,000 shares at 17 with a 2.10 premium so I will need the shares to go above 19.10 before january 14 to make money but even a rise in the next few weeks will make these babies rise.
On something Y wrote a few weeks ago I bought some Jan 14 $35 calls for .10 and sold them for roughly .72 and by $1200 position went to $7200 in about 1 month. If you want a large position with small money calls can be the answer. There is also small downside risk. so this mornings trade had a cost of about $6500 which would have purchased 550 shares. so if rim goes below where it is now and stays there I can lose the $6500 but that is all. On the otherside if it goes to 25 I will make more than $7 on 3,000 or $21,000. BUT, someone once said that if you can make it easy you can lose it just as easy.
I know this strategy isn't for everyone but I thought I would share it.