Thu, Jul 24, 2014, 8:24 PM EDT - U.S. Markets closed

Recent

% | $
Click the to save as a favorite.

Genworth Financial, Inc. Message Board

  • teknowiz teknowiz Mar 8, 2013 2:07 PM Flag

    Why are June strike 12 calls so cheap?

    Going for 23 cents ask? I have been buying, but someone keeps writing.

    I dont understand the option writers logic. Yes it is 9% annualized return on GNW holdings, but then you are risking a lot of capital if there is market downturn and missing out a lot of gains if stock takes off beyond 12

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Several reason, if you"buy calls" you're paying 0.23 cents to buy a stock at $12, or take the profits "if" it goes up. Since the YE SP for GNW is 12.80ish, then a run from $9.80 to $12 by June is highly unlikely unless huge news comes down the pipe. So in reality, its a roll of the dice for .023.

      If you truly intend to take the stock long with options by June, then the $10 call would of been a better option...IMO. Plus you have less capital involved if you take the shares long with a much higher percent chance of winning.

      My 2 cents with 100% less spam!

 
GNW
16.50-0.04(-0.24%)Jul 24 4:01 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
Amazon.com Inc.
NasdaqGSThu, Jul 24, 2014 4:00 PM EDT
Atlatsa Resources Corporation
NYSE MKTThu, Jul 24, 2014 4:00 PM EDT
Puma Biotechnology, Inc.
NYSEThu, Jul 24, 2014 4:02 PM EDT