So what do we do? Sit around and conjecture where the price will be, on the open, or formulate a plan of attack to take advantage of a very quick(IMO) recovery.
I have been reviewing the different contract months for Call plays and the best guess for entry tomorrow. Here is what I have:
These are hypothetical(best guess) prices for the open. These should be the best months for the respective strike prices.
I like the 13Jan32's as they should place you .20 over Par, wherever we start out or end tomorrow. You can take the current PPS, tomorrow, and add .20 to it. Then subtract 32 from that and that should be your price for the 13Jan32Call.
We hit 36.00 and you make 1.30/contract. If you buy the 13Jan35Calls for .80 and we hit 36.00, you make .20/contract. Hence, the advantage of the deeper ITM Calls.
Disclaimer: Trading options accompanies great risk. You can lose all of your price paid for these Calls if the PPS declines and stays below 32.00 at 13Jan OPEX.
Good luck. I wish you all much success....
Long 2.4 shares with 3.82 shares in reserve in case i need to buy more
if this thing runs up to 4,254,423.38 per share i could really do well. maybe ill get a few dividends along the way too.
oh wait the dividend was going to be suspended someone else mentioned.
Doc, thanks for the strategy, I am pretty green in options compared to many here, but your logic made sense and I picked up 40 130119C32 @2.70 and 50 130119C35 @.7648 at the open. Small potatoes to many here but thanks for the insight, I cant get that from a book.
Wow am I ever late to the party (SPO news) today, but hooray it's here at last! Doc I've looked at lots of points for calls and like your Jan 32's the best as long as the price looks right this morning. Will be joining the party too!
According to my research, the best (i.e., lowest) prices for Call options occur about 3 weeks after the SPO. That's the time for me to buy in again. I'm on the same page as you, just a different paragiraffe.