As you can see from this March 25th post I picked the bottom within .10 cents. In any event I covered today at .27 for a .33 x 50 or $1650 profit I did not put up any money and took no heat…and this is why you SELL PUTS and DEFINE ENTRY. Out of LGF
Naked shorting at these levels may not be that prudent. Your income can evaporate fairly quickly if the stock turns around. If we're just looking at technicals it looks like a good trade, but if big money flips the switch and the stock goes up - watch out.
No thats not correct. Im ANTICIPATING A RALLY at any moment so the $3000 premium will be kept IF the stocks rally. IF tomorrow this is trading at $29 then the April $25 will be about .30 so IF I buy it back I make 5000 x .30 $1500 SHORTING PUTS Defines entry in this case IF I hold and it drops under $25 by April 19 or before I can be exercised at $25.00 - .60 premium or $24.40 and Im ok with buying at 24.40 if it rallies I just keep the $3000 premium
So what if the company is so silent because they are buying back shares right now through the MM right before the dividend date knowing next week they raise guidance as they said they would. Also options for management are always priced last week in March and first few days of April. These guys have to be smart enough to have a plan. They sure had one when Icahn came hunting them down. Ten trading days ago we were 7 point higher. Not even a pr for shareholders about Divergent taking the weekend and the next flick getting an official green light. No one is that smart at one thing like running this company and then all the sudden that bad at another like shareholder or company value. The guy controlling over 50% of shares runs a multi billion $ hedge fund and no one is knew to managing a public company. No insiders have sold shares in over a year except for auto tax withholding and Beeks sold a few. Give me a break here. If this is their plan the stock could pop up hard faster than it came down with less outstanding.
When did you do this, I mean who the heck would buy a April $25 put after the stock has already dropped basically one-third, and LGF has the dividend, and then the earnings release say by the first week in May for this Qrt. I mean really, there is no way the large money managers think this is going that low, my guess is they have been buying shares while small investors have been running saying the sky is falling. I would never buy an open put at this share price.