Purchased a few Jan 2016 $85 and 87.50 calls last year and failed to sell in the spring when stock was in 140s. I held on to them while stock dropped back thinking I would just exercise to get shares at those prices. At this point, with about 1 month and a stock price that we all expect to climb, Im wondering whether to just dump the calls for the much smaller profit ( as compared to earlier in year) or let them exercise and put up some serious cash ( for me, about 32k ) for 400 shares at 85/87.50. I like the stock soaring to 150 plus in the future so the shares seem good to me, anyone else?
So if I wanted a nice stake long term stake in Celgene ( currently all I own are these leap options) i could exercise them to own shares at 85 and 87. This would cost around 36k, or just take the current profit. I like the thought of getting 400 shares or so at 85 and holding for a long time better than buying shares above 100.
I love buying leaps on Celg, but I'm not sure whether 2017 is enough time to withstand any political bs that might hurt the stock, or if the premiums on 2018 leaps are worth paying for. I probably will buy both and expect both to to do well. Wondering if anyone is doing the same and which strikes, 1 or 2 years out. I was thinking Jan $130s for 17' and $150s for 18'.