People are just scared of the current offering and afraid of the dilution potential. Thing is, it converts at $85.89.
I like the Jan 2009 $60s. At $4.60, I think this could go to $70 by expiration and result in an easy double. Check out prices for the rest of the calendar year of 2008. PRICES ARE WAY UP FROM OUR EXISTING HEDGES. Which means revenues should be above estimates. 2010 revenues could be double 2008 and at larger margins.
My Jan 2010 $70s, which I picked up at $2.70, have fallen by 30% in the past week. It takes a stomach.
Detach yourself man. You made the right move. let it play out.
I have July 60 Calls that I'm down big on, but at all worried. Eight weeks to expiration.
I don't necessarily expect $60 at end of July, but I think we'll trade above $58 - mostly likely by end of June - which will put me positive, even if still technically "out of the money."
January options likely work well with this and other NG stocks as everyone gets paranoid about NG supplies being to low starting around October or so. It will be a concern earlier if their are big storms in the Gulf this year.
I'm in a similar situation. I have Jan 75 calls but for 2010. I'm going just hold onto mine since I got all this time. I bought in when the stock was at 56.
Selling now would be panicking. That doesn't make sense unless the fundamentals have changed or the longer outlook on nat gas has changed. I would just hold onto them, but I would like to hear what more knowledgable people thought.