Who likes them besides me?
Within the next three weeks, if we get a positive announcement regarding bank financing and news on the sale of either the Mirage or MGM Detroit, the PPS may cut through $7.50 really fast.
I noticed an unually high volume of May options action today. I picked up 30 contracts at .45 myseft. Any other gamblers out there?
I agree with you 100%. However, if you know well about stocks and their extreme movement, option could benefit in a huge way.
I buy both stock and options. Furthermore, during this uncertainty market sentiment, it is one of best time for option players as I see it. I might be wrong but options server me well.
Again, I agree with you it is risky but it is for those who can take the risk. That is why option is there for these players.
Good luck in MGM.
Sorry such a bad move.
Stock needs to be at $8 before you see any profit.
If I buy the stock at $5.5 and it goes to $8, that is 32% gain.
If stock stops at $8 you will be wiped out, IF just goes to $7 you get wiped out.
Stick with stock and get rich slowly than buying options and get poorer faster.
Not correct. You are assuming 100% decay of time value in the option which doesn't happen until day of expiration. If you bought a call option today and it jumped to $8 next week, the value of the option would most likely to have at least doubled from your original investment.
the 6's and the 7.50s will expire worthless
mgm is at the top of its pump range.
LVS is just getting warmed up and starting to go up, go buy shares or calls of that.
Who wants to buy MGM Detroit when both
Chrysler and GM are heading for BK court
in less than 60-days ?
What lender would be stupid enough to
loan money for that purchase right now ?
Mirage is the ONLY asset anyone might want,
but nobody will pay top-dollar. For proof,
TI was sold for $775m even though its new
owner admits it could not be built for less
than $2.7m and that doesn't even include the
land (according to his interview).
Thus, Mirage would need to be sold at 50%
or more discount just to attract interest
from someone willing to wait out the next
6-months of Vegas declines after auto BKs.
One week or less till FIAT dumps Chrysler.
You are not alone. I have that. It is either up or down big here. It is risky but I bet on it.
News? I think from now to the end of April we should know something significantly to move stock either way. I bet on the up way.
I sold $6 June puts; if the stock moves sideways, I capture the time value which will erode quickly. The down-side is bankruptcy, then I lose a lot. I am also considering buying some calls as a gamble.