The SEC knocks on Flemings door
Well, only have 2k of FLM and had sold Dec 7.5 covered calls last week to lower my cost. Then FLM slowly edged down and the covered calls I sold were half of what I sold them for.
I was going to wait until next week to buy them back cheaper and sell the 5's. When I was looking at the Apr 5's, I noticed someone had been selling calls on the bid. Not good.
So I decided to buy back the Dec 7.5's and sell the Apr 5's. I consider myself lucky to have sold the Apr 5's for 2.15 and if the calls get exercised for 5 bucks, that's OK with me. Still walk away with at least 2.50 share profit overall.
I think someone knew the SEC announcment was coming out and sold the calls naked or covered for a quick play. I just got lucky and noticed the activity.
Funny how the shorts and hedges always have the "inside" information.