See that 1 Jan $2 call purchased today at $0.95? That is mine baby!
(I need it to go to $1.05 just to break even on the commission...ridiculous)
I guess I should have done "no partial fills" but those type of orders never fill.
Yeah I know. I bumped my jan $2 call purchase up to $0.95 and it filled 1 stupid call. What idiot sold me just 1 call? (Guess I am an idiot too)
I think we get it today, don't you? Market is closed Monday so this is a very long weekend. Around noon the market should start selling off as everyone exits positions for the holiday. If TC has not recovered above $2.90 by then, it should fall to $2.82 but maybe as low as $2.78.
It is not a huge deal if I don't get any today at $2.79 but that is my target price.
I may buy some common at $2.79 today. That is $0.22 below where I sold a batch a few days ago and a significant difference.
Bad news could just be a 100 point drop in the regular market. I think that would get us to 2.79.
Yes, but I am eyeing the $2 calls today. I have a bid in for 50 of them at $0.85 which perhaps has pulled the price down a tad. At some point I will try to raise it to $0.90 and nab them, paying a nickel time premium.
Invariably TC will go back up to 2.95 to 3.05 over the next month which is where I will sell more Jan $3 for $0.40.
I guess this is why I am up 60% this year when all of my stocks are doing rather poorly :-)
Do you even realize how much money could be made if it bobs like this for years? 20,000 shares on a $0.10 bob is $2000. Do that reliably for 12 months and you have made $24,000 profit.
If we get back to the 2.80's I might buy back some of the Jan $3 calls I sold for $0.40. They should drop to $0.25 or so.
You have to be careful also if you know about a leak. It could be safer to accumulate some options and perhaps slide by the SEC.
The real kicker will be when they dilute then ask us to approve a new compensation plan with repriced lower stock options for management.
I still have a lot of common and 100 $2 calls that are not covered by selling $3s, so yes, a buyout would be peachy. As the days go by with no hint of news and low volume, a buyout becomes less likely IMO. It was a good guess when the stupid TMed deal was done that there was some other reason, but now we have decided Perron just has no balls.
Then you make 66% and are happy. If it stays exactly at $3 you make 66% and are happy. If it goes to 8 trillion you make 66% and are happy...maybe not as happy as others but pretty happy. You are only really sad if it drops a lot below $2.60.
I think my post came off as negative when I was really just asking a serious question. I purchased a small initial position just now of 500 shares and will see where it goes from here. $500 a quarter for the next 2.5 years seems reasonable.
With no investing in growth, where is Seadrill in 2017? What will your $36 be then?
I think you are confused. First, your profit is not 30%, it is over 60%. Your total cash outlay for this trade is $0.60 (paying a buck for the $2's and getting back $0.40 for selling the $3's) You calculate profit based on the amount of money you have at risk, so it would be $0.40 return for $0.60 at risk = .4/.6 = 66%
Also, you don't need cash to sell the $3 calls against the $2 calls you own. You actually GET cash into your account when you sell short those $3 calls.
Shhh! I have been buying the $2's and selling the $3's for several days now. I now have 400 Jan $2 calls and have sold 300 Jan $3 calls. I cut my actual stock holdings back a bit though.
Don't thumb down logicaldeduction. He can hammer a 6 inch spike through a board with his peter.
I am both happy and sad for you.
Quote from one of my favorite movies but grats on the future baby and hope your dad is comfortable.