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Krispy Kreme Doughnuts, Inc. Message Board

  • no_fear_go4it no_fear_go4it Mar 17, 2003 3:59 PM Flag

    I'm in

    Just bought some May 35 puts for $2.10. With max pain at $35, I'm not going to pay the high premiums on the March expirations. (No perfect storm this time.)

    Good luck to all...

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    • JYucca, good point - thanks for the correction. It must be a very rare occurance when OTM options are exercised after the Friday close, but as you say, it's certainly a possibility.

    • <<They actually expire on the Saturday following the third Friday of the month. I'm not sure what time of day, but I suppose it doesn't really matter. Maybe it will matter some day, if we ever see 24/7 trading. >>

      Noon, i vaguely recall, and yes, indeed it can matter. News that can vaporize a stock or double it can emerge Friday evening after the markets have closed, making it profitable to exercise options that are still technically out-of-the-money by several points on Saturday morning. Or the Saturday morning news could announce the start of a war, a natural disaster, etc. This has come as a surprise to people with short option positions who thought the options expired worthless but on Monday find a big loss in their accounts. So, options still have a small time value on Friday after 4 pm.

    • No fear Years back the options closed on Friday but I believe it closed two hours or so before the DJ. Thats why I was surprised it was trading up to the close. Years back my broker bought the calls the day before much as you and had remarkable success.

    • << No fear- At what time of day do the options expire? >>

      They actually expire on the Saturday following the third Friday of the month. I'm not sure what time of day, but I suppose it doesn't really matter. Maybe it will matter some day, if we ever see 24/7 trading.

    • No fear- At what time of day do the options expire?

    • I'm out - ended up getting $.25 for the remainder of the March 35 calls. Average cost: $.083 (I had bought 50 contracts at $.15 before the 100 at $.05). I can't believe I held expiring options to literally the last minute of trading two months in a row. And like in February, someone stole them at the end for less than market price because I didn't want the hassle and risk of exercising. I also made some additional profits on a 1000-share day trade (average cost $33.745, sold for $35.19). Overall, profits were less than 10% of what I made in the last options cycle, but considering the factors were much more mixed this month, I'm not complaining.

      Still holding May 35 puts - amazingly they only dropped about 25% today. Looking forward to possibly adding to that position soon, depending on the technicals, but I'm not going to get in front of this war-driven freight train until the dust clears. (Side note: Due to a surge in open interest for April 35 puts, max pain for next month has moved from $30 to $35. Looks like a big chunk of March put holders rolled over into April.)

      Good luck to all...

    • I wish I would have had the balls to sell some naked 35 puts yesterday. I thought about it but did not have a long enough history with KKD.

      When I saw the open interest jump even higher in the last few days it caught my eye.

      BC

    • I am out - sold all at .20

      BC

    • No_fear,

      I am currently selling them at .20 for about a 100% gain. I have about half my position left. this is my first time trading KKD. I am going to have to do it again.

    • Congrats no_fear_go4it. You were right once again. I hate it :-)

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