The calls are not worthless. In this scenario, you would close the position in the calls buy buying them for pennies. Yes, you would still have unrealized losses in the long stock position but you'll mitigate some of the losses with the covered call trade. Also keep in mind that premiums on the May options are through the roof right now. After the announcement from the FDA, those premiums will tank to the point that if the stock goes up to about 30, you'll be able to buy the option(close your position) probably for about 5 to 7 bucks.
Simply a way to hedge your long position(but it can cap your gains). Be assured that institutions are hedging,whether they are long or short, and they are not buying the outrageously priced options(call or puts) they are selling them.
if you're long, you should consider selling May covered calls. Using the May 25 as an example, it is now trading for about 5 bucks. If the results are good, the stock may double and you'll break even on your options, while profiting from owning the stock. If the results disappoint, the stock tanks and the calls expire worthless, so at least you've mitigated your losses.
You are absolutely right. That's why when I trade options, I always try to trade right after an event, rather than before.
Spreads are the only way to trade options on this stock. The I.V. on the April and May options are well over 300%. What the options market is saying is that the move, one way or another, after April 30th will be massive.
not going to happen-Wall Street doesn't trust management right now(nor should they), and any initial bump will be greeted with profit taking and more short selling. On the other hand, DGLY will probably spike on this news.
DGLY was never a candidate for NYPD. The only 2 being tested are TASR and VIEVU. DGLY doesn't have the manufacturing capacity for such a large order.
Dom has always been looking out for Dom. In retrospect, the vote of no confidence was the best thing that could have happened to shareholders, because it probably convinced Dom to sell out before he was forced out.
It's an AP story because these are government contracts, and any hint of bribery is a very serious issue. A press release from Rick isn't going to make it go away.
this story is not going away. At the very least, it will force Taser to be less aggressive(wink, wink) in its sales practices
Well, at least you've stopped with the annoying CAP LOCKS, but you still can't seem to get past reposting old PR's from the company. Rick should hire you as his PR guy. If anymore Tulsa stories come out, he's gonna need all the help he can get.
well let's see, pumper, DGLY is up another 6% today, and this stock that you've been pumping for 6 months is down another 2% today.
I see the market is also discounting the TOTAL ORDER
that's because the PR fails to point out that theTucson order was for all of 70 cops.
Or GS just doesn't like the stock. I find it humorous that every time a firm downgrades a stock, longs always cite ulterior motives.