i made a gut trade and used all my powder when i purchased 30,500 shares at 1.34. i'm not going just for a "good" trade.. i'm holding until this trade is dry. i want to get the h e l l out of this country and relocate where $500K will let you live like a king. h e l l i'm 62 and figure that will provide a comfortable retirement. i sure hope the h e l l i made the right play. life is nothing but rolling the dice everyday. i could drop dead tonight so what the h e l l, take a risk because your sure not gonna get where ya wanna go playing it safe.
Okay I did some more math for ya. Apparently you have made about 50,000 dollars, your in around 1.34 and its about 2.94. So your up 1.6 at 31,000 shares. Cash out and take your 50,000 shares. You then buy 310 contracts at about a dollar a piece for the 2.50 strike for 10 or 11. That will cost you about what 31,000 dollars. You have your risk in City and your walking away with at least 18,000 or around that. Then place that 18,000 in a bank and that is your start. When Citi hits certain marks buy more options and cash others out. My sincere advice is go find a good oil company as well and diversify. Maybe a PQ or SGY, high risk reward, or go with PBR. I would also look at AKS or AA as these prices as well as MOS. And I think you could be there in 3 years maybe two probably three.
Dude cash out what you made and then play that on options, that away you made your money and move on. Go buy a 100 contracts at 1.00 or 2.50, I would say 2.50 with your earnings and then you still have your current amount of money. Then go buy some options at something else like an oil stock. Dude take what you made and place it in options.
Good luck and I hope your shot pays off for you but I still have a hard time wrapping my head around whether C is solvent based on the quality of the underlying assets or intervention of Feds. If Geitner's plan results in C being forced to sell assets at a rate closer to bid then ask doesn't this destroy the balance sheet and wipe out equity and take a bite out of bondholders. At least you seem to acknowledge that your gambling - better than most idiots on this board!
You made the right call, just may not like the ride. Are you writing cover calls? I would at least try to seek some protection. I believe they may try to drive this down til late late friday, and have the share move back up. Anything under $2.25 is an steal.