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Post by esstan2001 on Sept 8, 2016 9:48:48 GMT -5
To be on the same list as Apple, Facebook, Bank of America, etc. is just borderline comical I love it. True enough! And don't forget how high up on the list of shorted companies we've been. This stock has been a lightning rod for stock market gamblers and manipulators for years. Way out of proportion with our size. By the way, it also boasts an outsize share of message board posts! And baba- did you happen to notice that you are on the list too? ...Looks on balance like the markets are about 70/30 bullish on you. Who is willing to take this bet?
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Post by esstan2001 on Sept 8, 2016 9:51:57 GMT -5
To be on the same list as Apple, Facebook, Bank of America, etc. is just borderline comical I love it. You mean Mannkind, or BABAoriley? If you mean baba, well, now that IS comical.
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Post by kc on Sept 8, 2016 10:25:15 GMT -5
Doesn't take much for a big pop with some news. seems to be little risk on the 1.00 calls. Just a good announcement of a settlement or some good script numbers. Seems like a set up for somebody.
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Post by babaoriley on Sept 8, 2016 10:54:44 GMT -5
True enough! And don't forget how high up on the list of shorted companies we've been. This stock has been a lightning rod for stock market gamblers and manipulators for years. Way out of proportion with our size. By the way, it also boasts an outsize share of message board posts! And baba- did you happen to notice that you are on the list too? ...Looks on balance like the markets are about 70/30 bullish on you. Who is willing to take this bet? Hey, esstan, anyone that would list me as a 70/30 bullish bet is truly lacking in sense! In case you're wondering, yes, I do collect some modest royalties from Alibaba. But I still am not getting the option action, and not really understanding about the OI not moving on the Nov $3.00 call.
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Post by mnholdem on Sept 8, 2016 11:56:29 GMT -5
As I understand this diagonal spread, the investor/trader would first buy 38,000 contracts for long-term 2018 Calls (aka LEAPs) at $1 strike.
Then s/he writes 38,000 short-term $3 contracts against the LEAPs, eventually pockets the premium when the short-term option expires and then writes another 38k contracts. for short-term $3 strikes. This repeats, with the long-term LEAPS acting as the insurance against a price rally.
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Writing 38,000 Nov 16 $3 contracts @ $0.03 premium may not sound like much, but 38,000 x 100/contract = 3.8 million shares x $0.03 = $114,000 in premium collected (commissions excluded) each time the short arm of the spread expires. Repeated often enough, the trader could actually pay for the LEAPs.
Diagonal Bull Call Spread Construction Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call
Limited Upside Profit
The ideal situation for the diagonal bull call spread buyer is when the underlying stock price remains unchanged and only goes up and beyond the strike price of the call sold when the long term call expires. In this scenario, as soon as the near month call expires worthless, the options trader can write another call and repeat this process every month until expiration of the longer term call to reduce the cost of the trade. It may even be possible at some point in time to own the long term call "for free".
Under this ideal situation, maximum profit for the diagonal bull call spread is obtained and is equal to all the premiums collected for writing the near-month calls plus the difference in strike price of the two call options minus the initial debit taken to put on the trade.
Limited Downside Risk
The maximum possible loss for the diagonal bull call spread is limited to the initial debit taken to put on the spread. This happens when the stock price goes down and stays down until expiration of the longer term call.
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Post by kbrion77 on Sept 8, 2016 12:01:54 GMT -5
As I understand this diagonal spread, the investor/trader first buys 38,000 contracts for long-term 2018 LEAPS.
Then s/he writes 38,000 short-term contracts against the LEAPs, then pockets the premium when the short-term option expires, and writes another 38k short-term contracts. This repeats, with the long-term LEAPS acting as the insurance against a price rally.
Writing 38,000 Nov 16 $3 contracts @ $0.03 premium may not sound like much, but 38,000 x 100/contract = 3.8 million shares x .03 = $114,000 in premium collected and kept each time the short arm of the spread expires. Repeated often enough, the trader could actually pay for the LEAPs.
I would love to sit with the trader while they are executing these trades and hear them out on the strategy.
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Post by esstan2001 on Sept 8, 2016 12:28:59 GMT -5
baba - mnholdem's option diagonal explanation makes good sense from the persective of the LEAP buyer... On another note, was thinking about you a week ago after I power washed my Hobie 14 out from under 12 years of muck (all it needed was a few bungee return lines replaced!) so I could take my 11 yr. old son out for the experience... We were soooo close to flying a hull- In my best Maxwell Smart... "Would you believe:
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Post by liane on Sept 8, 2016 12:32:28 GMT -5
Like the diagonal spread explanation. What I still do not understand is why the OI of the Nov16 3C's didn't budge.
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akil
Newbie
Posts: 21
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Post by akil on Sept 8, 2016 12:40:25 GMT -5
Because someone sold calls that they owned to someone else?
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Post by babaoriley on Sept 8, 2016 15:31:27 GMT -5
Yes, mn, that could very well be the explanation. Thanks.
But I don't think they got .03, which would be great, more likely a penny to a penny and a half. But still, if you want to play the long position, which makes sense that the $1 Jan 18 was a bullish bet, nothing wrong with making a few bucks while you wait!
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Post by babaoriley on Sept 8, 2016 15:33:28 GMT -5
baba - mnholdem's option diagonal explanation makes good sense from the persective of the LEAP buyer... On another note, was thinking about you a week ago after I power washed my Hobie 14 out from under 12 years of muck (all it needed was a few bungee return lines replaced!) so I could take my 11 yr. old son out for the experience... We were soooo close to flying a hull- In my best Maxwell Smart... "Would you believe: esstan, very cool! Don't tell me you remember my story about pitch-poling the Hobie 16 in Mission Bay, San Diego (did I tell that here?). Catamarans are so much fun!
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Post by esstan2001 on Sept 8, 2016 15:47:09 GMT -5
baba - mnholdem's option diagonal explanation makes good sense from the persective of the LEAP buyer... On another note, was thinking about you a week ago after I power washed my Hobie 14 out from under 12 years of muck (all it needed was a few bungee return lines replaced!) so I could take my 11 yr. old son out for the experience... We were soooo close to flying a hull- In my best Maxwell Smart... "Would you believe: esstan, very cool! Don't tell me you remember my story about pitch-poling the Hobie 16 in Mission Bay, San Diego (did I tell that here?). Catamarans are so much fun! I think it was in a PM, and I do not recall anything about pitch-poling it... but yes! it is always fun to get wet, no matter what. Will be making an effort to get out a few more times this year (Peconic Bay, between the forks of Long Island, and hoping for more knots of wind than the low teens) so I can pretend that I am not getting old yet.
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Post by slugworth008 on Sept 8, 2016 20:41:13 GMT -5
I lost all hope a long time ago; this information doesn't move the needle. More importantly T1/T2 diabetics are in serious jeopardy of not discovering/having Afrezza in the next 6 months because of our nervous & soft-sounding/unconvincing CEO failing to find help (AKA another partner or outside of USA expansion). I wish Castagna were a miracle worker but the results aren't showing. How Technosphere is not even valued at a $1.00 PPS baseline is BEYOND me. Thus after drawing these conclusions the fact that the price cannot hold $1.00 is very alarming for the future. OF course this post will be edited or removed (possibly) because I was temp banned months ago for speaking the truth about the dire situation for US true LONGS. I don't care if any of you pile on, I know my investment is officially screwed. To ignore the anemic PPS movement is to deny the real truth that this company squandered one of the greatest opportunities to change modern medicine with wireless device monitoring...that first step could have been Afrezza. Imagine Dexcom & Afrezza technology in the same device. Oh wait...our management didn't. I feel you Tron - But buckle up buttercup. Things are about to get good - IMO.
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