Well, here we go again. The higher the index, the more money for GNK. March $1.00 put buyers will be wiped out this weekend. Next up on the chopping block is the April put buyers.
More money for GNK. The rising Baltic price improves GNK's ability to work out its loan challenges. That translates to better results and a slow squeeze on the shorts. I just sold some $.05 puts with a $1.00 strike price that expire in 8 trading days (March 22). My return after costs is at an annual rate of 149.5%
Since we the owners are taking an income cut, then management should take a cut too. We are paying over $4,000,000 a year for 2nd rate management. These people can be replaced and we can save $2,000,000. Please remember this when the annual meeting comes. Just vote out the Board who are not really representing us.
The company is already cash flow positive due to much better financial management. I would like to see more debt reduction and a share buy back program. That would set the stage for the company to be acquired at a price well above current levels.
The index is at 1197. This is a new high on this move. That means GNK is taking in more money everyday. The buyers of the $1 put options for March are slowly bleeding. 24 more days to go.
Look at Yahoo Finance, GNK, Key Statistics. Management owns a lot of the stock and they would not want to see it wiped out.
Sentiment: Strong Buy