The open interest for the $15 call contracts expire at midnight tonight.
2 million shares at $15 will be exercised according to a broker I know and the shares will be delivered on Tuesday.
We most likely will open at $15.25 on Tuesday.
Shorts will scramble and panick causing the run to $17-$18
I think you are full of it.
I did not like the close Friday. Picked up 12.5 calls, sat there (I don't normally do this) and barely made a dime. Thought there might be an end-of-day run.
My take: Well, I am holding no calls right now. None. Staying flexible. March 7 gives two weeks of trading. Based on Friday, I'm guessing a shakedown BEFORE a runup.
Then again, maybe not. Which means I'll be watching.
I'm sincerely hoping that the stock price tumbles down before the AC, I have no desire for the shorts "to lose their ass", and I wish them an opportunity to esacpe and I would appreciate the opportunity to buy more.
i'm more than ready for eln pps to spike to 17-18 by 3/7. it is time to get eln pps back to 20+ after 3/26 and then i can sell some covered calls and make some loot as eln levels off in the mid 20's to high 20's as 06 unwinds. jmo-bucko
You replied to one of the most ignorant of the blowhard morons here. He clearly knows less than nothing about options and lies blatantly about things his make-believe broker told him. The scenario he lays out is absurd fantasy. Tuesday the market will open where it closed Friday, barring news, faux news, Dork Silver and Jerkfrey Krasner. There will be no exercise of out-of-the-money calls, period, not ever.
I just came accross this inspired post of yours. I am at a loss for words, overwhelmed with its remarkable brilliance. And we have, apparently, 26 other geniuses on the board, besides you. How refreshing it all is to ponder!
The sad thing is that, should they continue further to expand medical entitlements, I might one day have to pay for your medication. Proof positive, if ever there were such, that life really is unfair.
Fatfish put together theories others had posted and flew them in on a black helicopter. I hope Doodah gets to read the post.
Youkei will not be able to test anything on him as he has been abducted by thugs driving in a black limo who told him to get into the "cahr". When they get done with him, he'll be pumping Teva meds.
If the price were higher it might have been exercised,but to far away to even think about it.If eln had closed within 20 cents I might have agreed because if you go after 2 million shares the price will jump more than 20 cents but at our price you could buy 2 million shares before you hit 14.50.IMO
You rank somewhere between amoeba and crawfish on the intelligence meter. Please make sure you don't leave your mommy's side.
Let me be blunt here. You are a moron! NO calls above 12.50 will be exercised at this expiration, you freaking idiot. ALL puts at 15 and above which were not cashed out will be exercised, and the sellers of those puts will buy the assigned shares at the strike prices of 15 and higher Tuesday morning. This will not not affect the open, which will be at the same price it closed today.
while i wish it were true, based on history this has not been the case. out of the 19 past times we have been in this same situation, i do not recall a run-up similar to the one you are suggesting.
i hope my recollection does not come true and your prediction for tue is on target.
PS. do you have any history to signify this will occur or is it wishful pumping.
Great post! You really have the options all figured out. Spot on.
I'm sure they'll pay up $1.82m extra to buy the 2m shares at $15 rather than buy them lousy shares at $14.09 on the open market. Why buy cheap low-value shares on the open market when you can get high-quality expensive ones through the options market.
You have to pay for quality in this world.