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.
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 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 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
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 was afraid these were decaying going to zero. Am i able sell expiring calls premarket?
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
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
Losing all the intrinsic value so thinking i might as well pick up more shares at $7 anyone doing same
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?