I was astounded to see Dilma and Petrobras discussed on his comedy/news show tonight on HBO for nearly 10 minutes. The take away? Dilma certainly played a major role in the entire scandal and clearly the sentiment is that the corruption runs extremely deep. Of course I foolishly bought PBR at 8.25 a few months ago and have watched it steadily drop to below 5 now. I have also sold the 6 and 5 Puts about a month ago never expecting it to get this low and have lost on those too. My gut feeling now is that it will continue a slow but steady decline and I will take a 50K loss or more in the next few days. I f.cuked up big time.
Well, my options trades came back to haunt me. I SOLD covered calls (5C) at .08 when the stock was trading around 3.30. Only problem is that my cost basis for my shares is 5.57 and I never expected the stock to even get close to 5 bucks in the past week.Those options I sold are now costing over 1.00 (1200% increase in value!) So now I will have my shares taken away at 5 bucks if it is trading close to 6 on Friday or simply a penny above 5. So my hope is that linfrom china is right and we get back to 4.99 on Friday so I keep my shares or get to close that position for anything close to .08. You just never know what will happen that is a game changer with biotech!