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Post by charlespk on Sept 1, 2016 18:38:45 GMT -5
No reason to buy $1 calls for 2018. If 2018 comes around and the company is still alive, will be much higher than $1. You can multiply more buying $2 and up. Good luck friend! Previous to the past month I have owned all my shares but now have a very significant position with calls in addition to shares I hold. I bought at strikes of $1.00 and $1.50. I considered $2.00 very briefly but while I agree with you, that if Mnkd does not go BK between now and then (which I have previously stated I do not think it will in my current snapshot of the company) the share price should be significantly higher than $1 to $1.5. However, there is a middle ground I decided to consider in my decision. If the company should be sold for some reason, again I doubt it, but if it should be sold, it might be for $2.00 to say 3.50 pps in it's current state, or less as is all but a guess on my part. So I went with what I did as they seemed quite a bargain recently and seemed like a good offensive move with a prevent defense to me for all but a BK. Just my 2 cents... er dollars... Tomorrow , if the hammer the s/p down to the 60 cent range again , I will be buying more strike $ 1.0 calls for Jan 2018 . Agree with mannmade's rationale above , although i cam get less of them , I think they have a better chance in the future than the 2 strikes Also remember you don't have to hold them till strike price , you can sell the option if the price goes up . the other day I could have made 15 % on the option in one day , I elected not to . l
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