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Post by sportsrancho on Sept 25, 2014 21:31:00 GMT -5
I'm waiting for the 2017 options to come out also. I will have the same invested in both the 2016 & 2017. The 2016 with a 7 dollar strike. I did get scared and sold my 2015 ones. I was also wondering what happens to the options if the company gets split off. I have shares also but if we get money for one part of the company if you only have options would you be out of luck? Thanks for any help on this.
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Post by papihoyos on Sept 29, 2014 13:17:34 GMT -5
I've invested approximately half my position using options and the other half in stock. On options, I use a strategy of selling puts to finance the purchase of the calls. I have 2, 4 & 5.5 calls all expiring in January 16 with 7 puts to finance. Since I've been doing this since the stock was 2ish, my basis in the 7 puts is less than $3, net of call premium. In other words, the stock would have to go down below 3 before I would be hurt by the puts. I plan on extending again in October to January 17. Probably, extend the puts first to take advantage of the premium and wait on the calls until January 15. Just after the partnership announcement, I extended my whole January 16 call and put position and collected on average $.60/contact.
My only regret is that I didn't sell (short-term deep in the money) calls against my stock and leap call position after partnership announcement. That was my plan and was looking to sell those calls when the stock was in the mid teens thinking it would settle back down into the 7ish price range. However, the stock never made the move I expected and didn't want to pull the trigger thinking it was a delay similar to DNDN (didn't make its move for 30 days after approval). My screw up that I regret everyday.
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