CNBC just did a documentary on IAG and the power of research reports sites, and new technology being used to scan the markets via research reports. Savvy investors that follow research reports are often statistically ahead of the street by DAYS, this can often translate into millions in potential profits. They mentioned that flash market research (google them ), a site I can vouch and have personally profited over $190k net profits, is now using this technology. This could change the markets for IAG and all public companies!
It helps to stand in the corner on your head when thinking of puts. When you sell a put, you are giving someone the right to "put" the stock to you at a price. You get paid up front. There are several reasons to sell a put. I'll illustrate with IAG.
I own several thousand shares of IAG. However I sold some Dec 4 puts recently for 25 cents. The stock was at 4.20 or so when I sold them. I am betting that by Dec expiration the stock will be over 4 and they will not be put to me. However I am keeping dry powder to be able to buy the stock at 4 if it is put to me. In that case I will have paid 3.75 for the stock (4.00 - .25).
I only sell puts on stocks I know something about and on which I would not mind owning more of at a lower price. In my case I also only sell just -out -of -money puts. I would get far less for a 3 put, and do not want to sell a 5 put for more money and much more likely have the stock put to me. That is just me. Now that you know, do your own math and see what works for you.
Does this make sense?
exactly gold fell .50 today, FIFTY CENTS and IAG plummeted 4%?!?! Look the CEO and CFO would not have bought 100,000 shares at $6 unless they believed in the company. Just relax, let the US continue on its path of failure and enjoy the growth in gold
I think we go to the $5.50-6 by next thursday and god forbid we default $7.50-8 right after on anticipation of a rocketing gold price.
This company is dirt cheap almost $700M in cash and cash equivalents, $1.7B market cap means $1.50 of the share price is cash.....