On Tuesday morning these options were bid at $0.00. (THAT'S ZERO WITH A Z!) I happened to own a bunch of them and had written them off. (I bought June $4 calls last week for $.10) Today, I sold some of my March calls for $.20, and some for $.21. I bought a few June $4 calls for $.47 and pocketed the difference. My remaining March options (more than half) are waiting for ? I don't know if I'm selling tomorrow or waiting for next week. It is like "found" money (and I still have my June $4 calls) and I'm not sure how much risk I want to take with them.
IT'S NICE TO HAVE THESE KIND OF CONCERNS!
(It beats the hell out of the last few months..............)
This will be an interesting day for all of us who own March $4 calls. (They were bid at $.21 at yesterdays close, and are currently bid at $.15.) For some strange reason, I am not concerned. Profit taking is to be expected after such a huge run-up. It looks like I will probably hold some or all of my options till (the very scary) next week. I still believe we go higher from here, possibly much higher!
I wonder what will happen tomorrow? Starting next Monday things start getting very risky with March $4 calls. At this point, if C does not drop in price tomorrow, it seems wise to take most off the table. Obviously, the problem with that is if C goes significantly higher next week.
The only thing I know for certain, is that I am not going to do everything exactly right.................
well at least set yourself a hard stop, not a mental one that you won't enforce. protect some of your profits...i know it sucks to get out early and miss a nice run, but sure beats the hell out of the alternative doesn't it?
I prefer, if you want to call it gambling, (which it is) that options are more closely related to poker than roulette. Hopefully, those of us "betting" on C are doing it based on the company and its prospects.
Great job, I just sold a bunch of March $5 puts, with the anticipation that the stock is going to rally into the $4.50-$5.00 range by next week. I understand it's a long shot that it will reach $5.00, but then again, it only needs another 20% move up and we're there. In this market, ANYTHING is possible! Do not underestimate hype, greed and investors/traders who chase profits. Suddenly the banks are ok?? I don't believe it, but if everyone else does, then I'll find a way to profit. This is a trade on momentum, not fundamentals. Most likely, it will reach the $4.50 range and I'll buy back my puts at a cheaper price and pocket the difference for a nice profit.
Citi options are an ok deal but you have to be aware of the option price relative to the stock price.
I looked at the options when citi was in the $2.75 PPS range and decided to buy the stock rather than the options.
The stock is the buy here:
I have about 55k shares at an average of $3.40. Of course I expect the stock to go up but the hidden value is the eventual dividend. In 2009 their dividend was about $1.30 per share.
If the 2012 dividend goes back to $1.50 per share I end up getting nearly 50% annualized return on my original investment just from the dividend!!! Citi will produce a dividiend of better than $1 for a long, long time after this ruough patch. With 55k shares I basically bought a $55k per year pension for the rest of my life (and my childen's lives) for about $180k.
Buy the stock, put it under your mattress and thank god for making the right moves during the finacial mess....
Congrats bill. I'm also in on the June $4 calls for .10 per share and asking myself the same question. I think I'm in them for a while.
I'm kicking myself a little bit because after I bought the June $4, I almost bought a huge # of April $4 when they were selling at .03 and .04!
But this is my first exp w/ options
what was your purchase price for the march 4 calls? your previous posts aboout riding over 100K+ in profit down to zero will always stick in my mind, so I'm wondering what you are doing differently, or if it's just blind luck but still with little risk management.
I paid $.08 for them. In regard to "blind luck", I would like to think there is more to it than that! I built my account to $100K+ primarily with C options. I lost it back, primarily with C options. Time will tell, but my attitude is, that I like C and a couple of good options trades will make up for quite a few bad ones. This week reminds me of the "good old days". So far this week, I have made a great deal of money......