Yeah, kinda fishy. I suspect the MM is our option buyer.... And if that's true, then we are sitting pretty... MM should have a better clue to where we're headed, and option buyer says it's going up.
Yeah, but you're missing all the fun!! And the $$$ !! I've got 310 GV $2.50 contracts that expire Friday. Will it close above $2.50, or below? My cost basis is around $2.20, so either way I win. If I lose the 31,000 shares, I will take the cash and buy more dividend stocks. If I still have them, I can sell them again.
I guess the trick is to keep a certain percentage of you position for speculation, and sell calls on the rest. That's how I do it anyway, and only with GV. All my other stocks, I buy for the dividend. And only if they have an option chain. I'm getting about a 15% cash flow doing that. It would be much higher than that if I didn't have so much tied up in GV (about 60% of my assets). So, I'm hoping I lose them anyway.
But there ain't nothing wrong with a little speculation!!! I made my fortune doing that in 2013, when GV ran up. It was then that I decided to change my strategy from speculation to income. It changed my whole perspective on the market .And I also worry les no about the share price.... If you're doing it right and have some luck, you just ride along on the cash flow. Don't give a hoot about up or down anymore.
Somebody is quite confident GV will go higher,.. just spent $15,00.00 on 300 calls. I have sold quite a few myself, of all the expirations. But from the activity I've seen lately, I don't think I'll be selling many more. Fair PE value for this stock, it should be $3 + right now. And it would be, if J.S. was more proactive about selling GV's story.