There is no such thing. I'm making money selling short calls. My Jan 13 calls are likely to expire, worthless. Free money.
It appears that my short $11 calls will expire, worthless, and my long $11 puts will be exercised on Friday for a net profit of $1.25 per share, 1 years dividend. If, by chance, the share price goes above $11 by Friday, my $11 short calls will be assigned and my $11 puts will expire worthless. I will still get the same profit. That 's how a hedge works.
I forgot to say overbought last Tuesday. I was preoccupied with selling short calls. I chose the Jan 13 calls: Less money, but less time. I know I have said that I was through with BYD when my Dec short calls expired, worthless. However, I couldn't resist this opportunity to make more easy money. Given the follow through from the Jan 2'nd price drop, I can confidently assert that these calls will also expire, worthless.
That might be prudent. No one can accurately predict the short term movement of any stock. I have a plethora of short calls (weekly). I'm waiting for them to expire, worthless.
I can tell by the various posts that some people are looking for a short term resolution to the problem. It will take years for these new oil reserves to be pumped out. When there is a glut, small interruptions in deliverables mean nothing. This is a long term event.. We are going to pump as much as we can until it is gone.
Don't get feathers in a ruff. It results in unneeded stress. Being dissed by a jackass is nothing of concern
You know nothing. You certainly don't understand that buyers cannot create new contracts. 14.9 thousand contracts were created by short sellers. You don't even know the basics of placing an order.
What type of leverage will BREW get from this partnership?