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Himax Technologies, Inc. Message Board

  • haschultz1 haschultz1 Dec 10, 2013 8:49 PM Flag

    HIMX Options 10-Dec 2013

    For those thinking of selling HIMX here and then shorting it back under $10 may want to look at today's options trading volume as this is real money betting on a continued rise in share price:

    - 4,962 contracts (496,200 shares) Jan 2014 $12 calls at $0.65 ($12.65 breakeven)
    - 2,000 contacts (200,000 shares) Mar 2014 $17 calls at $0.27 ($17.27 breakeven)

    Note that those touting this sell HIMX now and short it are newbies to the Message Board. And, they want you to sell HIMX twice...........sell your shares and then sell more shares short. Sounds like a perfect strategy for those wanting to buy shares.................like perhaps desparate shorts wanting to cover.

    If you do want to sell your shares, why not sell the Jan 2014 $12's and get $0.65/share now and perhaps $12 in Jan 2014? That is better than selling into the market now at $11 and certainly better than going short trying to make $1 as you will get $1.65/share with the Call Options ($0.65 now and then $12 in Jan).

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    • haschultz1,
      As always, sold logic backed with numbers. Thank you.
      I did consider selling CCs today and did not. instead I added a little to my already substantial holding (for me that is.) Reason being the opportunity of really having a big winner is at hand and decent gains are not what I expect or have planned for. I am simply talking risk/reward here.

      if things pan out with GG and HIMX becomes the supplier to both Google and "others" we will end up with HIMX's revenue and profits spiking and the stock becomes a "must own." Who knows where the top will be? A zero debt dividend paying stock become a growth stock? Or at least a momentum stock? Not too much to ask. It is happening every day/week/month to a less deserving companies.

      Personally, I have put all the eggs in one basket and watching the best I can. :)

      Sentiment: Strong Buy

      • 2 Replies to learnigisdkey
      • that is very smart strategy January 12 strike premium is not too bad but march 22, 11 strike would get little over $2.00 now $1.50 by the time stock reaches $11.50 (my calculation shows premium should be $2.00 plus) so until then (before even March) stock might be god knows 13,14 even $15 I think either plays are very smart.
        Happy trading

        Sentiment: Strong Buy

      • Hey learnigiskey,

        I am not advocating anyone stay in HIMX if they don't think that is right for them. I am just saying there are better ways to sell (using covered calls for Jan can get you an additional $1.63 or 14.7% for holding for another 7 weeks).

        Just be careful of shorting this as the shorts are proven wrong as over 8.6 million shares were shorted in November when the price entering the month was $9.68 so they are well underwater.

        And, these shorts are going to need to cover as good news will come. That is why I think there are posters saying to sell your shares..........and then sell even more shares short.

        If you feel you need to sell for whatever reason, you should. Just consider the covered call option. But, think hard about selling short as HIMX had a very strong close.

 
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