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Post by parrerob on Aug 18, 2014 4:22:41 GMT -5
Hello all,
Considering I am still happy to be in MNKD and happy about the very good news we had since April 1st till now...
I have just 2 question and it will be nice someone can help me to understand.
1) why Mannkind has "weekly" options? Is it mandatory for wall street stocks? If not who decided this way ? Imo it is like to give a free truck of guns and bombs to the enemy... The drop since the approval to the "deal" announcement was quite a mathematical calculation Friday by Friday. I know the importance in the market of derivates and options, but why weekly?
2) Do you think, guys, Mr Mann is still guiding the company ? He was one important point for me to invest here and I was a little disappointed how he was silenced during the cc... (meaning just the tone.. He was treated like a child and not like the boss). Obviously I hope to be wrong but would like to here feelings from you. May be my bad English .... May be it was a prepared show... but not really happy.
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Post by alethea on Aug 18, 2014 10:27:01 GMT -5
Hello all, Considering I am still happy to be in MNKD and happy about the very good news we had since April 1st till now... I have just 2 question and it will be nice someone can help me to understand. 1) why Mannkind has "weekly" options? Is it mandatory for wall street stocks? If not who decided this way ? Imo it is like to give a free truck of guns and bombs to the enemy... The drop since the approval to the "deal" announcement was quite a mathematical calculation Friday by Friday. I know the importance in the market of derivates and options, but why weekly? 2) Do you think, guys, Mr Mann is still guiding the company ? He was one important point for me to invest here and I was a little disappointed how he was silenced during the cc... (meaning just the tone.. He was treated like a child and not like the boss). Obviously I hope to be wrong but would like to here feelings from you. May be my bad English .... May be it was a prepared show... but not really happy. I am no expert but I believe weekly options are a license to steal for Wall Street. You do not see them on all stocks. Just when stocks become very highly traded. A small cap stock like MNKD can be easily and totally manipulated by Wall Street. As we have just painfully seen again with the blatant destruction of MNKD's share price. Wall Street just made a massive fortune on MNKD by selling calls since the significant rise in PPS since the Ad Com panel on April 1. Lots of people have basically been wiped out by buying calls in recent weeks and months. In general, when you see weekly options appear on a small cap stock, you should turn around and run away as fast as you can. |
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Post by babaoriley on Aug 18, 2014 11:35:58 GMT -5
"In general, when you see weekly options appear on a small cap stock, you should turn around and run away as fast as you can."
Agree with what you say, except for the above. Don't buy options, sell them in appropriate circumstances and they can be very good for you.
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Post by thekindaguyiyam on Aug 18, 2014 11:40:00 GMT -5
From what TDAmeritrade told me from one of their reps: "Weekly options are extended to those companies most volatile with large volume"; presumably so that the trading houses can make more money. I agree that it's a side show; but can affect the trade price because of these superficial weekly dates which is a day traders wet dream.
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Post by alethea on Aug 18, 2014 14:10:16 GMT -5
"In general, when you see weekly options appear on a small cap stock, you should turn around and run away as fast as you can." Agree with what you say, except for the above. Don't buy options, sell them in appropriate circumstances and they can be very good for you. Baba, you seem to do pretty well with options so very good for you! Do you see much hope for Jan 2015 long calls? I am hoping that the drastic downward manpulation is well overdone and that we will see some bounce-back soon enough to help. If I get back to a bit of profit I think I will close-out those calls and reduce my leverage by reinvesting the proceeds in simple, long shares. Potentially much less profitable but I would sleep easier. |
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Post by babaoriley on Aug 18, 2014 16:11:41 GMT -5
"Do you see much hope for Jan 2015 long calls?" Alethea, regrettably, no, I don't think anything above a $10 strike is likely to be any good - sure hope my pessimism is not warranted there. However, for people that have lots of shares or warrants, perhaps they should sell a few Jan calls, at a strike with which they are comfortable. I certainly wouldn't want to cover all my long interests, as you never know what might happen.
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Post by alethea on Aug 18, 2014 16:18:08 GMT -5
"Do you see much hope for Jan 2015 long calls?" Alethea, regrettably, no, I don't think anything above a $10 strike is likely to be any good - sure hope my pessimism is not warranted there. However, for people that have lots of shares or warrants, perhaps they should sell a few Jan calls, at a strike with which they are comfortable. I certainly wouldn't want to cover all my long interests, as you never know what might happen. Thank you. Stupidly on my part, I forgot to specify that I'm talking about Jan 2015 $5 calls and a smaller number of Jan 2015 $5.50 calls. After today, I have better hopes of "getting out of Dodge alive" in these two positions. Thanks again. |
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Post by dreamboatcruise on Aug 18, 2014 17:23:48 GMT -5
1) why Mannkind has "weekly" options? Is it mandatory for wall street stocks? If not who decided this way ? The decision is likely entirely with the exchange. They probably consider it when some of the market makers propose it. I've known market making option traders and if there is sufficient volume they can make very good money even with positions that don't leave them exposed either long or short. If volume in weekly dry up then it probably makes it more difficult to balance everything out if they want to maintain neutral position. I think I have seen weeklies disappear for companies. |
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