|
|
Post by trenddiver on Jun 6, 2015 17:00:52 GMT -5
it might have been at the suggestion of someone on this board (perhaps Babo) that I decided to sell out of all of my warrants, which expired in Feb 2016, and trade into the Jan. 2017 $3.00 call options. i had about 50,000 warrants (exercisable into 30,000 shares at a price of $2.40 per share). It took me about three months to accomplish this but yesterday was a perfect day to complete my trade. Yesterday, the call options and the warrants were both selling at no premium to the stock price so I was able to extend out my time almost a year for no additional cost or premium. I strongly suggest anyone owning the warrants look into this strategy. Yesterday MNKD price closed at $6.12. The $3.00 Jan. 2017 calls closed at $3.10, a small discount to the share price. In my opinion, the $3.00 Jan. 2017 calls are very undervalued relative to the share price.
Trend
|
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on Jun 6, 2015 17:34:15 GMT -5
I was looking at $7 Jan. you can write the puts and buy the calls for $2.64 credit, synthetic long position equivalent to getting shares for $3.48.
That's crazy, and is indicative that options are pointing to this going lower again. Ugh.
|
|
|
|
Post by compound26 on Jun 6, 2015 17:42:27 GMT -5
I was looking at $7 Jan. you can write the puts and buy the calls for $2.64 credit, synthetic long position equivalent to getting shares for $3.48. That's crazy, and is indicative that options are pointing to this going lower again. Ugh. fugacity, do you mean getting the shares at $4.36=（$7-$2.64）？ |
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on Jun 6, 2015 17:44:00 GMT -5
Oops
|
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on Jun 6, 2015 19:27:27 GMT -5
it might have been at the suggestion of someone on this board (perhaps Babo) that I decided to sell out of all of my warrants, which expired in Feb 2016, and trade into the Jan. 2017 $3.00 call options. i had about 50,000 warrants (exercisable into 30,000 shares at a price of $2.40 per share). It took me about three months to accomplish this but yesterday was a perfect day to complete my trade. Yesterday, the call options and the warrants were both selling at no premium to the stock price so I was able to extend out my time almost a year for no additional cost or premium. I strongly suggest anyone owning the warrants look into this strategy. Yesterday MNKD price closed at $6.12. The $3.00 Jan. 2017 calls closed at $3.10, a small discount to the share price. In my opinion, the $3.00 Jan. 2017 calls are very undervalued relative to the share price. Trend usually deep in the money options tend to have no premium... |
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on Jun 6, 2015 19:29:54 GMT -5
I was looking at $7 Jan. you can write the puts and buy the calls for $2.64 credit, synthetic long position equivalent to getting shares for $3.48. That's crazy, and is indicative that options are pointing to this going lower again. Ugh. writing puts are cash secured unless you are a baller with your broker .. so you have put up $7... but u get that $2.64 in credit. |
|
|
|
Post by babaoriley on Jun 7, 2015 10:12:26 GMT -5
it might have been at the suggestion of someone on this board (perhaps Babo) that I decided to sell out of all of my warrants, which expired in Feb 2016, and trade into the Jan. 2017 $3.00 call options. i had about 50,000 warrants (exercisable into 30,000 shares at a price of $2.40 per share). It took me about three months to accomplish this but yesterday was a perfect day to complete my trade. Yesterday, the call options and the warrants were both selling at no premium to the stock price so I was able to extend out my time almost a year for no additional cost or premium. I strongly suggest anyone owning the warrants look into this strategy. Yesterday MNKD price closed at $6.12. The $3.00 Jan. 2017 calls closed at $3.10, a small discount to the share price. In my opinion, the $3.00 Jan. 2017 calls are very undervalued relative to the share price. Trend Well, it may have been me, Trend, I certainly was at least one person espousing that strategy. I've done the same thing over the last few months, but went mainly for the $2.50 strike, just to more closely mimic the $2.40 exercise price of the warrants. The difference for the extra year was minimal. |
|
|
|
Post by trenddiver on Jun 7, 2015 10:58:01 GMT -5
it might have been at the suggestion of someone on this board (perhaps Babo) that I decided to sell out of all of my warrants, which expired in Feb 2016, and trade into the Jan. 2017 $3.00 call options. i had about 50,000 warrants (exercisable into 30,000 shares at a price of $2.40 per share). It took me about three months to accomplish this but yesterday was a perfect day to complete my trade. Yesterday, the call options and the warrants were both selling at no premium to the stock price so I was able to extend out my time almost a year for no additional cost or premium. I strongly suggest anyone owning the warrants look into this strategy. Yesterday MNKD price closed at $6.12. The $3.00 Jan. 2017 calls closed at $3.10, a small discount to the share price. In my opinion, the $3.00 Jan. 2017 calls are very undervalued relative to the share price. Trend Well, it may have been me, Trend, I certainly was at least one person espousing that strategy. I've done the same thing over the last few months, but went mainly for the $2.50 strike, just to more closely mimic the $2.40 exercise price of the warrants. The difference for the extra year was minimal. I went for the $3.00 call, no premium for the longer time and was I able to buy 10% more calls with my warrant equity. What doesn't make sense to me is that the $3.00 Jan 2016 call closed on Friday at $3.20, and the $3.00 Jan 2017 call closed $3.10. Why no premium or the extra year? I have to disagree with Iam2 that the cause is a result of "deep in the money". I say that because Jan. 2016 and 2017 "deep in the money" puts are selling at frothy premiums. It appears to me based on the implied volatility numbers that most of the option premiums are on the puts. Those who wrote the puts are going to look for higher share prices to capture the premium. That is why the calls seem very cheap to me and we could see some expansion of premium soon. Trend |
|
|
|
Post by babaoriley on Jun 7, 2015 11:59:28 GMT -5
I was looking at $7 Jan. you can write the puts and buy the calls for $2.64 credit, synthetic long position equivalent to getting shares for $3.48. That's crazy, and is indicative that options are pointing to this going lower again. Ugh. Fugacity, I assume you mean Jan 2017 as opposed to Jan 2016, as both are near a $2.60 credit, but it seems to me that 2017 would be safer. As far as your "ugh" comment about the downward indication, look at it this way, suppose you knew nothing about Mannkind, but we're just looking at stocks in general and came across MNKD, and saw the size of the short interest - what would that indicate to you? The fact that the options yield that "crazy" result is consistent with the overall short action on this stock. As we well know, it is one of the most gambled and gamed stocks in the non-pink sheet US market. |
|
|
|
Post by ashiwi on Jun 7, 2015 13:09:22 GMT -5
The PUT premiums have been great. I've been selling a bunch. Getting a great return on the cash secured for them. I only sell out of the money, $3.5 - $6. In most cases if the stock were to get "put" to me I would be getting it at a depressed price. After the stock got whacked last month, I had some 5's PUT to me. Sold them for .75 so my cost was $4.25.
The shares were immediately loaned out and are now getting 29%.
My next bunch of PUTS come due in August. As long as we stay above $6, I am golden. Making ~20% over 6 months.
As long as the volatility continues and the premiums stay so high , I will continue to keep rolling them out.
All the while just keep waiting for a big catalyst that starts a TSLA type move. Perhaps the ADA CONFERENCE this weekend will get the ball / squeeze rolling.
|
|
|
|
Post by babaoriley on Jun 7, 2015 13:37:47 GMT -5
Ashiwi, I perceive you as this giant cash register, ringing up the proceeds every month!  |
|
|
|
Post by ashiwi on Jun 7, 2015 14:11:45 GMT -5
I wish, still have my day job. Still need a TSLA move to retire early, but I'm not complaining.
|
|
