I got lucky betting on some $105 jan 16 leaps , I paid $5.50 and they are about $21 today. I chose leaps because I am not comfortable jumping in and out as the stock swings. In this case they went almost straight up so I feel obligated to take the profit and reposition. I've considered selling and using the proceeds to purchase shares that I can hold onto forever. I've also considered rebuying jan 16 leaps at higher strikes but I have to o all the way to $160 to get anywhere near my original price of 5.50. I've also seen people on the board recommend deep itm leaps. Anyone in similar position that wants to stay levered to Gilds future run to $150 and beyond ?
I wanted to revisit this 10 days later the stock is up another dollar or more . I haven't sold any of my $20 jan 15 calls yet as they approach becoming itm. I did try and pick up jan 16 $25s with a plan to get out of these but my bid was too low (.75) on the day it sank4%. Now i am considering selling sept $20 s against , then oct and so on until mine are called away. Or my other thought is to hold through oct election and sell equal # of same exp jan15 22s as they jump To where my 20 s are now. Anyone in similar situation or have thoughts?
I hear you. Id love to hold these until it breaks through 120 s and higher but booking the gain and grabbing shares cannot lose.
Yes sorry these are jan 16 leaps. Might let them run little more. If they would take a break I'd add more calls. I need a good online tool calculator that tells a calls value in time if the stock price is x.
I picked these up a couple months ago and they have gone straight up. Paid 5.50 and they are 18-19 now. Im wondering whether to cash them in, secure the profit ,and buy shares with the proceeds. Or just let them run since so much time is left. Thoughts? Lets say share price in 6 months is $130 to 150.
Yes i am long the leaps. When i purchased i meant to create a spread by selling the same strike jan 22s. I didn't and ended up with $20 calls only for .40. they dipped to about .12 i think and then took off this summer. I just wondered if i could structure an exit by selling calls along the way ( since I was considering selling them now). So my question turned into, Can I sell equal # of calls at strikes below my long calls? And is this still covered? I thought if PBR is at $22 in say Nov and I had sold the Nov 20s, that I would 1. Get paid a pretty good premium around double my original investment in the .40 Jans. and 2. Force myself to take an even higher profit on the original calls b/c when the stock hits $20 these should be much higher than today. I asked trade desk at LPL and they acted like I may be stuck having to purchase all the shares to provide when called away.
Thanks. I would like to sell 20s in oct, then nov and dec until it hits and I'm called away. Just dont want to buy $100k worth of stock
You recommend holding through october election? Rather than lock profits and maybe reload the principle in Jan 16 $20s or higher? I also tried leaps ,2016s, with stocks i owned shares in ( gilead , celgene) but only b/c i could only afford so many shares. This allows me more leverage while still letting me "buy and hold " like my shares. I am not really knowledgeable enough to trade or learn technicals for closer months. I am interested in what others think of this coupling some shares with leap calls.
I did consider selling calls against this position and now could get good premium. I thought selling calls (creating a spread) would be a great way to exit this position as mine would ideally be called away at a price higher than todays. I do not own shares , only these calls and I was worried that selling nearer $20s in oct, nov would put me on the hook to purchase all of the shares to provide if called away at $20. Or would i just have to sell my Jan 15 $20s? Thanks again Im reading an options book but don't understand everything, thus my paying more for ""safer" leaps rather than near month calls.
But i can just sell them now even though out of the money for twice what i paid ? Iwould need 20.92 only if i am holding to expiration correct? I could sell them all now and purchase some more otm 2016s to take part in the rest of the run to30s. Thanks. Extremely basic I know but appreciate
Paid .40 for these at beginning of year. Trading for .91 today. If i think the stock will slowly drift towards/ past $20 mark , at what point does the time decay start eating into this value even if it reaches my strike. Since Im a novice in options other than buying leap calls and waiting, I'm inclined to take the profit and run without risking election pain.
I have started watching this also. I dont quite know the timeline but id like to grab some out of the money $35 or 40$ calls. They only go out to december is that far enough to capture the coming upside?
Not on yahoo and no news yet i see.
I like the long ones for more money, 2015, 2016. The prices continue to go up as stock falls. What do you all think happens to stock price if the analyst estimate for iron ore is close to the $80 he predict?
I sole some shares a while back and missed this up move, based on current analyst projections which sound a little conservative, I would like to buy some $35 calls, (looking at Jan 2015) and maybe sell some $40 (same Jan 2015. anybody else looking at options this far out?
wonder if those of you who see current prices as buying opportunity are selling any puts and willing to lock in shares at lower prices. I wish some options would come out that go farther than just april 2014. thoughts?
Anyone else holding shares through panel but buyings major put protection? Tough to by puts after stock goes from 7 to 5. I'm seeing it as the only option if going to hold all of shares through the event. Held it from 5 to 5. I'll be sick if I wait until zero. Still long,