I love buying leaps on Celg, but I'm not sure whether 2017 is enough time to withstand any political bs that might hurt the stock, or if the premiums on 2018 leaps are worth paying for. I probably will buy both and expect both to to do well. Wondering if anyone is doing the same and which strikes, 1 or 2 years out. I was thinking Jan $130s for 17' and $150s for 18'.
So if I wanted a nice stake long term stake in Celgene ( currently all I own are these leap options) i could exercise them to own shares at 85 and 87. This would cost around 36k, or just take the current profit. I like the thought of getting 400 shares or so at 85 and holding for a long time better than buying shares above 100.
Purchased a few Jan 2016 $85 and 87.50 calls last year and failed to sell in the spring when stock was in 140s. I held on to them while stock dropped back thinking I would just exercise to get shares at those prices. At this point, with about 1 month and a stock price that we all expect to climb, Im wondering whether to just dump the calls for the much smaller profit ( as compared to earlier in year) or let them exercise and put up some serious cash ( for me, about 32k ) for 400 shares at 85/87.50. I like the stock soaring to 150 plus in the future so the shares seem good to me, anyone else?
I own zero shares of celg. But got a few $170,175 jan16 way otm calls before the split. They have done great and are nowin the money ($85,87.5). I would like to end up with a long term celg position through shares and with all the new sky high price targets I'm tempted to hold these to expiration to pick up my shares at $85 this Jan. The little I know about options is to rarely hold them to expiration, so Im wondering if this might be a case to consider holding leaps to expiration. Thanks
With expected deal closing second half 2015, i am interested in selling 2016 puts on bhi from strikes anywhere from $65 to $75. I understand i would be put shares if deal falls through or stock ends up below strikes.
But once bhi doesn't exist, what happens to my obligation ? If it is considered expired worthless than this seems like a fairly good bet. Thanks for input
Ok, but what is approach when deep otm leaps become deep itm like these $85s , 87s. Strategy from the beginning was to invest in great company w huge growth potential by putting in much less cash than was required for the shares. Id like to take some profit here only bc dealing w/ options but maintain similar exposure. Only thing i can think of would be either selling the calls and buying on next dip/ market correction or selling and re buying say 2016 $150s or even 2017s higher strike.
Im just looking for how people are locking in option gains and still maintaining exposure to celg if you are not someone who bought in long ago and can just let ride. Thanks
I am not a really experienced option trader so I purchased leaps instead of shares or more near dated calls as my long term investment here. These are up significantly, and while I love the stocks future, Im looking to reposition at maybe higher strikes and into 2017 leaps. With a stock like celgene that could be hundreds of dollars higher in jan 2017, would the use of a call spread like buying $150s and selling $175 s be a good way of maintaining exposure?
Losing all the intrinsic value so thinking i might as well pick up more shares at $7 anyone doing same
I was afraid these were decaying going to zero. Am i able sell expiring calls premarket?
I paid .80 for these leaps a while ago and did not take profit as they spiked above $5 so early in the year and never recovered. I am a long term holder and figured leap options over 1 year away would be a nice way to lever my shares. I'm now hoping a near catalyst takes sp above 4 and closer to 5$ so that I might be lucky enough to get this .80 back and try the strategy again for 2016 or just add more shares. a little over 1 month to luck out. Anyone in similar position, curious how others are playing the 5 strike that we all thought was an easy target.
I still like taking a chance on selling jan 17 put at $380, which we could hit this year, and get paid 10,500 today. Invest that well and in worst case you would be on hook for 28,000. Not counting any gains the $10k makes in 2 years.
Currently priced at $97. Anybody else see this as a chance to grab almost 10k now and invest for 2 years . Biogen should easily climb the necessary $60 in this time. If not however then this $10k would bring total cost of the 100 shares to $28 from $38k. Selling long dated in the money put sounds risky but I like the risk reward. Anyone recognize this?
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.