Someone comes in nearly each month a week or so before options expiration and buys 100 call contracts at the next strike price. (Gora, is this you?)
I don't really see the value. $.60 per contract implies you need a 7+% return (from $23.86) in order to break even...and in just over a week's time. There is no expected information forthcoming and the stock has been treading water in/around this area for some time now.
I'd be much more a seller of those calls - which I have been.
Just my two cents for today.
I'm all for the challenge...though I hope you understand I would love you to win. If you win, that means we ALL win. Perhaps after a few more earnings quarters and updates (by April), we'll see some share price appreciation. But for now, it's still a wait-and-see game. We're seeing large block sells and with low volume, it's really driving us down. I've written quite a number of calls over the last few weeks...all over the spectrum...today I even wrote some Nov $22.50s. If the selling pressure doesn't subside, we could easily drop back into the $20s.
Everyone's clamoring for an update, but management has never really been a 'shareholder- minded' group. I've voiced my wish for insider buying, but years of nothing but sells have taught me not to no longer expect that.
Anyway, hoping we see a bottom soon.
I wondered if that was Gora as well.Btw
Hale check out the Bollingers,and amount of time we have been in this ever tightening range which now is around 23 x 24.50...i think a decent move is coming,but given short interest and high STOCHs,but would think that we are likely to be back down to the lower range 20-21ish soon. I agree with your call selling.
That Packers game was a complete mess. Can't believe the call at the end of the game.
I'm happy to share my trade. I would reiterate that these trades, like any investment, are part of a strategy that fits my plan and may not be the best or most logical trade for someone else. (gosh, that sounded awfully like a disclosure).
The reason I've been selling calls is simple. I am grossly overweight ADES in my portfolio and I need to start divesting a bit. Rather than simply outright sell, I'm staggering limit orders and simply selling calls at those prices. If we hit/exceed those strikes, then I get called away and I reduce my position. If not, I re-write and we start again...and I get paid to wait.
Gora's strategy of a net-zero cost buy call/sell put made sense for speculation, but not for me as I want to A) make money while I wait, and B)not be at risk to incur any additional loses (&/or purchase additional shares) should the share price drop significantly.
Most recently, I sold both Sept. $22.50 and $25 (calls). I bought back some of the $22.50s and rolled them over to November $25. (also, don't want to incur too much in cap gains for the year....though if Obama's plan goes through, I may reconsider that before year's end). I'm also selling Jan $30s....which is a good exit point for me on some of my shares. (That's only paying a buck, but it's still a 12% annualized return). Too bad we don't have $27.50s as an option. I'd probably sell some of those too.
I"m nervous about the headwinds here...both for the economy, the market and the industry. Obama, if he had his way, would eliminate coal. Republicans are opportunistic and will jump to whatever/wherever they can find a way to make money. Paying more for cleaner coal doesn't seem to be priority on anybody's list right now. That's another reason to simply write the calls and wait and see.
Good luck with whatever you do.
PS - this new message board format stinks!