When the stock was trading at $5.05, the price on the Oct 5 calls were bid=0.60, and ask=0.70. I put a buy in at 65 cents, and only got 4 filled, all with the price over $5.
Now, with the price down to $4.95, the bid has gone UP to 0.70, and the ask is UP to 0.75. When I saw the stock price down, I expected the rest of my order to be filled at 65 cents. I did not expect the option price to have gone up.
So, now with the stock 10 cents lower than it was when I bought my calls, I could sell those calls for a profit?? What gives????
Buy 20,000 shares of JADE for 4.94 and immediately sell 200 OCT calls for $.70. 15% return in a month provided JADE stays at $5 and not lower. 100K gets you 15K income by sitting on your butt in a months time. This is why people play the market. I personally would buy the 20K and wait for a pop then sell them for more than $.70. Of course JADE could go belly up and you lose everything. I'm doin this on AMD. Making easy dollars as that stock has been parked at 13 for months. They had a trader on CNBC the other day. He only follows a few stocks and nothing else. He makes million every year. When you follow a few stocks and know how they trade why go chase anything else. Does about 250 transactions a day. Averages only 10 losing days in a year. Anyone in this stock knew it was speculative in nature. Buying a stock that's been delinquent for months one should expect extreme volatility. Waiting for JADE to break the 5.75 level before entering. Don't wanna be stuck with dead money for a year.
You're correct and I would make that trade all day long if there were 200 contract available at .70... I have a feeling it would melt prett fast...as only 5 calls are available at .70...still long on JADE and JMO