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Yongye International, AŞ Message Board

  • yo_roe yo_roe Apr 28, 2011 3:27 PM Flag

    Calls and Puts

    I thought I'd start a new thread. Didn't like the old subject line...

    About as many October $5 and $6 calls wre written today as May puts. Interesting, a lot of $ being placed on long term value of YONG today. I suppose they don't think they will be able to buy them cheaper this month, or maybe just not willing to wait to find out.

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    • H-Grant_h: What is your new take on CAK that you mentioned last week?

    • A compelling (whether accurate or not) attack piece could potentially take us there, if only briefly. I would not sell the Puts, sunshine. The company will produce a timely and effective response if we get hit, but the market can always get irrational - as if YONG's market cap isn't irrational enough already...

    • In truth your right. My basic premise was not the mechanics of puts and calls, which is way to trivial for major discussion but whether anyone thought that the selling of the May put strike 4 was a steal? Other then thoughts on this I shall no longer respond and waste the boards valuable time.

    • I don't think that is the correct way to look at the "premium" you took in after the sale of a put.

      In your account, there should always be a pair of debit/credit from the put position you established. The premium was credit to your account, but at the same time, the value of the put was a debit item against the premium.

      You simply can't treat the premium as an isolated item. And that was what I meant.

      I mean, what you just said was way too simple to be worth the "discussion" here.

    • But Mr Grant and I appreciate not being on the ignore. I strive to learn...that said. I traded, I believe its called naked puts before, I always received the premium money up front. as long as the put expires above the strike I get to keep the entire premium I originally collected. Unfortunately for me I had a couple that tanked in the worst way and fell way below strike. I then had to buy those shares at the strike price upon expiration. Or when those puts were called. Word to all reading my posts, learn what I do and then invest the opposite. I am lucky in all things (health, family, wife, (that brings in a big pay check lol) friends and that includes NYPD)but investing or gambling the worst. But I am addicted..Maybe I should stick the crap table....oh well...

    • The madness continues.

    • sunshinecla...

      You and the first poster started this topic are the only ones not on my ignore list. I don't consider any of those on my ignore list worth my time.

      If you're looking to sell the put to "pocket" the "premium", I think you would be disappointed, if that was what you meant. B/c the "money" you're looking at may not be there when the option expires.

      Unless you actually trade, but not hold to expiration, the put option, you won't see "quick money" as you probably meant to ask.

      I've traded options way too long, and I don't look at options they way new traders perceive them.

    • No bigger schmuck then a yid on harley. LOL

    • OH BTW I also like hearing what Armando's charts have to say but I do not buy and sell based on that. I am still a fan of his too. In fairness to HGH he did say that YONG would reach near 6 and pull back. Maybe just a good lucky guess. But he was right. He says in his latest post we should now retrace to 6. If he is right again then maybe more respect shoould pass his way. No???? And he corrected himself for screwing up his posts on puts. I think...Now I'm not sure...but I think he did....LOL And let me also say I am a big fan of NYPD. Cause if I do not say this he'll just pick on me....LOL

    • I have a feeling you are probably going to be upgrading to a harley soon;)

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