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Post by derek2 on Jul 28, 2017 11:11:39 GMT -5
At a share price of $1.3, you can currently buy Aug 11 $1.00 calls for $0.32 - a 2 cent time premium. ($0.32-[1.29-1.00])
You can buy $1.50 puts for $0.32 - a 12 cent time premium ($0.32-[1.5 - 1.30)
If you think that either:
1. Hot money will come into the stock as day traders position for earnings news
or
2. There will be good news on the earnings call that will bnost the SP
Then calls are cheap right now.
So cheap that I put my money where my mouth is and bought some. I had moved to close my trading account but never got around to confirming the request. Hope I don't regret it.
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Post by peppy on Jul 28, 2017 11:22:02 GMT -5
At a share price of $1.3, you can currently buy Aug 11 $1.00 calls for $0.32 - a 2 cent time premium. ($0.32-[1.29-1.00]) You can buy $1.50 puts for $0.32 - a 12 cent time premium ($0.32-[1.5 - 1.30) If you think that either: 1. Hot money will come into the stock as day traders position for earnings news or 2. There will be good news on the earnings call that will bnost the SP Then calls are cheap right now. So cheap that I put my money where my mouth is and bought some. I had moved to close my trading account but never got around to confirming the request. Hope I don't regret it. whoa people, the tide is changing, Derek2 went long MNKD. August 11 isn't much time. An earnings play, I see. |
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Post by derek2 on Jul 28, 2017 11:29:47 GMT -5
At a share price of $1.3, you can currently buy Aug 11 $1.00 calls for $0.32 - a 2 cent time premium. ($0.32-[1.29-1.00]) You can buy $1.50 puts for $0.32 - a 12 cent time premium ($0.32-[1.5 - 1.30) If you think that either: 1. Hot money will come into the stock as day traders position for earnings news or 2. There will be good news on the earnings call that will bnost the SP Then calls are cheap right now. So cheap that I put my money where my mouth is and bought some. I had moved to close my trading account but never got around to confirming the request. Hope I don't regret it. whoa people, the tide is changing, Derek2 went long MNKD. August 11 isn't much time. An earnings play, I see. short-term based on risk/reward. Rank speculation on my part. The lotto ticket was so cheap, I bought it... |
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Post by rockstarrick on Jul 28, 2017 12:13:27 GMT -5
whoa people, the tide is changing, Derek2 went long MNKD. August 11 isn't much time. An earnings play, I see. short-term based on risk/reward. Rank speculation on my part. The lotto ticket was so cheap, I bought it... I stand by my previous comment 😎 Still waiting Derek good Luck !! I hope you win 🇺🇸 |
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Post by n8 on Jul 28, 2017 15:53:33 GMT -5
Buy the s#$t out of this.....
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Post by buyitonsale on Jul 28, 2017 15:59:04 GMT -5
I have never traded options but have been thinking lately about them to increase my long term position for less.
To me paying .32 a share for something that expires in 2 weeks is not attractive (no matter how low premium is).
I am eyeing 2019 $1 to $2 strike calls instead.
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Post by mnholdem on Jul 28, 2017 16:10:44 GMT -5
The gamble with the short term options is that if share price jumps after Mike's guidance, you win. If not, you're only out 32 cents. Traders love to play short-term options this way. Mike is a good communicator and may give better guidance than his predecessor which plays into the risk analysis, especially if he conveys confidences on the subject of obtaining finances.
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Post by buyitonsale on Jul 28, 2017 16:30:14 GMT -5
mnholdem, just so I understand "you're only out 32 cents" part...
if on August 8 the SP is 1.22 one can still sell these calls for around .22
So, the trader would be out .10 correct?
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Post by sportsrancho on Jul 28, 2017 16:38:01 GMT -5
I have never traded options but have been thinking lately about them to increase my long term position for less. To me paying .32 a share for something that expires in 2 weeks is not attractive (no matter how low premium is). I am eyeing 2019 $1 to $2 strike calls instead. I only trade leaps. I have long term options on all my stocks. ( about 12 ) all 2018-2019. If everything goes well I will hold them over a year and sell 3 months before expiration. |
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Post by derek2 on Jul 28, 2017 17:46:46 GMT -5
The gamble with the short term options is that if share price jumps after Mike's guidance, you win. If not, you're only out 32 cents. Traders love to play short-term options this way. Mike is a good communicator and may give better guidance than his predecessor which plays into the risk analysis, especially if he conveys confidences on the subject of obtaining finances. I'm only out 32 cents if the SP drops below $1.00 If, for example, it goes down to $1.25, the $1.00 call options are still worth 25 cents. |
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Post by mnholdem on Jul 28, 2017 18:10:48 GMT -5
That is correct. I was thinking generically, but the $0.32 premium was for the $1 option, so you could sell them for something depending on the bid established by MMs. My bad...
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