just looked at the options. the oct 12.50 call is bid at 75 cents. that's pretty good insurance for someone looking to buy PDC today.
normally, you would sell the covered calls when the stock is flying high. 1 contract = 100 shares (normally). as an example, if the stock is trading at 12.50, and you sell a dec 12.50 call for 50 cents, then you have to hold your stock until the third friday in december (or buy back the call that you sold). come dec, if the stock is > 12.50, you will lose your stock (a sell at 12.50). if the stock is less than 12.50, then you made 50 cents by selling the call, but your stock-holding went down. this doesn't appear to be a good time to buy the stock and sell a covered call. if you were to buy the stock at 12.50, and if it were to rebound to 14+, then you would be correct in considering selling a short-term covered call (at the 15 strike-price). just my humble opinion. good luck trading. Sam, long 800 shares.
look at earnings per share and year-over-year earnings per share growth. if you were a fund-manager that had been burned over the last year, would you buy more now? even if the stock price crossed $30, you would probably not be enticed. it would take several quarters of big-time growth to justify higher prices. disclosure: 0 shares at this time, expecting a retrace to the low 20's. good luck trading, Sam
remember when NERX cured a mouse, and its stock went from 2 to 70 ?
holding 1325 shares of AVII at cost of 1.26 - (homerun doesn't even begin to describe what could happen here).
to me, this company is a 9 to 12 month story. sure, you could make a case that the company will go bankrupt, or have to raise cash and end up on some pink list. but you know, you could also make the case that if the company were to succeed (and success is raising revenue by 20 percent), then the stock-price could triple from today's prices. in my mind, it's at least a fifty-fifty chance. and i'll take those odds. this is exactly the type of investment that i look for (either lose half or triple with a relatively short timeframe). with companies like DFIB, there are more triples than losses.
ok, at 11.95 a share, it was time to place your bets. at that time, i posted that 5 percent moves (up and down) were both good bets. well, the 5% loss (11.35) hit last week, and the 5% gain (12.55) will probably hit this week. holding patiently....
here's the numbers if you buy at 11.95. a 5 percent gain is 12.55 and a 5 percent loss is 11.35. there's a good chance that either could occur within a week. a good bet for both shorts and longs.
if you can pick the bottom, you can make some decent returns in a short timeframe. what's the bottom? barring another downgrade, we may be looking at the bottom now. there's very little risk in buying anywhere below 14 (imho). good luck to all longs.
if the stock were > 20, then yes it should have been downgraded. looks like the old truism is still true: the market over reacts on both bottoms and tops. there's some blocks of 25K or more shares trading. somebody bought, and they'll probably make a decent profit.
don't ride rfmd down to 3 bucks. take your 5 bucks and put it on a horse that's already stumbled from 5 to 3 - and ride it for a double. need help finding a horse? i know several. here's one in medical supplies - bdal. and there's a kicker in this company - they make chemical and bacterial detection devices. never know when the kicker will kick in - hopefully never. oltarheel
you may be better off if you take 100 percent in shares (and refuse the 25% in cash). if you like your investment in bdux, you have to like your new investment in bdal. the odds are in your favor of someday "easing out" of bdal with much more than the penny and half premium that you computed on "correction day". of course, if you don't like bdal, be sure to take the 25% cash - at least that part of the deal is locked in at the 27 percent premium. good luck.
(or) someone had a large position with a "stop loss" on it, and a big player wanted in "cheap". the player could enter a few sales, then a huge buy. anything is possible in thinly traded stocks.
looks like 100,000 shares changed hands, in a strange manner. there must have been a large limit order at about 6 percent below the ask, and someone took them up on it. the net effect of the dump appears to be "nil" - as the stock immediately returned to it's prior trading range. hummm. in my mind, i'm sure insiders know what they are doing, but they don't know a damn thing about how to sell their stock. oltarheel
would have expected some volume early today - geez, we did have some good news about bookings. wonder why they released it? after all, it was what was expected. looks like we're gonna have to cut some costs and post a blowout quarterly earnings per share. that may be doable, but probably won't happen. that's the news release that I am waiting for. this stock's a double in the next 12 months, but the street doesn't realize it yet. long, a comparatively small holding to most of you guys, but my only holding at this time. oltarheel
ML did not change their rating (neutral) in this morning's research report. they did shave a penny or two off future forecast - they are now forecasting break-even for the near-term. positive comments about avenues for growth. negative comments about pricing pressures and costs (even though brcd met their quarterly goal for cost-reduction). personally, i think the company is doing great in maintaining book value when others have burned cash every quarter. as ML once said, paraphrasing, "no tech company is more poised for the future than brcd".
happy trading, oltarheel