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Post by dreamboatcruise on May 24, 2017 12:44:30 GMT -5
So Dreamboatcruise. What is your plan. Just curious I averaged down for way too long including some late last year. I held off on any further purchasing this year because I do view that we have a real risk of running out of money and that there will either be a bankruptcy reorg or financing with very heavy dilution. Back a few weeks ago, by chance on the all time low share price day (luck on my part), I realized that a strangle option trade might be a good trade... as I reasoned that the two likely scenarios were either a $0 share price or something significantly higher than where we were (even if there was dilution). Nothing is a sure bet, but that covered the bankruptcy risk I am still worried about. As we go up, the strangle at this point seems less attractive as the chance that dilution limits further price appreciation becomes an issue to consider. That is where my position stands. As for future action... if we retest all time lows, I might add to the strangle... and assuming scripts are showing even modest gains. If share price goes up from here I might sell some of my early purchases, booking a loss, and hold onto the call options from the strangle... that would be if we move up more than I feel warranted by the facts on the ground. If things are really looking like profitability is in view, I may hold onto all shares regardless of any pop. Though I'll have to admit, I'm not really considering a 10x or 20x pop as being something I need to plan a reaction to as I deem that unrealistic. [edit: The strangle was Jan 2019, $0.5 puts and $1 calls]
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Post by myocat on Jun 13, 2017 11:46:44 GMT -5
Sold non core position, yesterday. I am back averaging down again.
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