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  • wileyjames666 wileyjames666 Mar 5, 2010 10:01 AM Flag

    OT: Options Players interesting idea...

    Looks like that worked out for you. So now what? Do you hold your March 22.50 or sell it?

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    • Three scenarios:

      1. Close the trade yields 30 cents... (If you are streched out on the $$$)

      2. Sell the 22.50 at a NICE premium... (Almost +4 in gains) And wait for the TV (Time Value) of the 20 to erode (Given that it looked very toppy at 25 and 24....) Very likely you can buy it back for less than 22.50. YIELD Unknown.

      3. Sell the 22.50 as above mentioned, buy the underlying security... On a dip below the 22.50 mark. YIELDS about ~1.80

      • 1 Reply to pepitumbrunom
      • Mr. Bruns,

        "2. Sell the 22.50 at a NICE premium... (Almost +4 in gains) And wait for the TV (Time Value) of the 20 to erode (Given that it looked very toppy at 25 and 24....)"

        Since you said so I sold some earlier, just to counter the Mar $16 calls I wrote the other day, which is in deep red now.

        "3. Sell the 22.50 as above mentioned, buy the underlying security... On a dip below the 22.50 mark. YIELDS about ~1.80"

        I do not have to do that. Instead I sold some Mar $25 PUTs to counter the Mar $15 calls I worte the other day, which is in deep red now.

        However, my Apr $10 PUTs and Mar $15 PUTs are sitting pretty. Last time I look at my account I saw beautiful North Carolina Blue on them.

        "If God is not a Tarhill, why is the sky North Carolina Blue?"!

        Best luck to you!

 
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