Already done, had to close out September on Friday. Would like to roll into a new month. Sept $6 in at .08 out at .53. Either 2016, or add to my open Jan 2014. Decisions decisions...
What does one do with a +562.5% return in less than 30 days?
Wait for NOK to fall back then roll it into 2016. I'm pretty sure that's written down somewhere.
So where's the bottom?
Just got the phone call. Ron from Scottrade is concerned that I don't have $60k available to cover. Told him we'd speak again in January.
Can't always be right, chart looked great, volume was picking up. Oh well. Need to close these $6's soon!
I believe they will propose a $0.25 ($1B) special dividend on 19 November, to be paid to shareholders on record prior to the transaction closing, paying out within 30 days of the transaction closing.
Volume lower than expected, honestly I think there is some fear, or perhaps even respect, to not put more money into this on the short side at this time. Expected a dip back to maybe $6.51, holding strong.
Keep this post flying high. Seems to me NSN might already have retaken #1, and is the most profitable in the sector. Remember, Q3 guidance was IN LINE with record Q4 2012 and will be DOUBLED on the NOK balance sheet this quarter.
I think it has a good chance of failing. If I was a large buyer, and holding a lot of calls, I'd toss a few more million in today just to keep my options at a juicy premium, especially if I believe it's an $8 stock.
Put it this way. I am holding 400 Jan 2014 $7 calls at avg $0.09. Been building it up for 2 years. Lost over $10k on prior mistimed calls, most notably Oct 2012,
These are worth $0.50 today, and I have not had 1 thought of closing them for less than $2.
NSN could report as high as $9B revenues in Q3 2013, profitably.
Selling Devices negates doubling NSN through the Siemens purchase. So Nok is *still* a $30B+ revenues company, except now it makes money.
Good for him. If he hadn't slashed NSN to the core and turned it around to start with before even messing with Devices, we'd be trading under $2 right now after this deal, as NOTHING at NOK would be making money.
Anyone thinking Symbian was going to continue growing is out of their minds.
My theory is that shorts on NOK were so very arrogant until recently that a great deal of NOK calls over the entire spread through January 2015 are naked. In other words the folks that sold the calls did so without actually owning any NOK shares to deliver if the calls are exercised. So by 3:45pm tomorrow, if they haven't already, they will be forced to purchase shares just in case, or buy to close their calls at a hefty loss.
Looks like we have about 5.6M shares on call from $6.50 and lower coming to term at close of trading tomorrow. I personally have 10,000 of those shares on call, but will just sell to close sometime tomorrow. I think it's fair to expect that since many of the calls are on the $4-$5.50 (about 4M) that many of them will be exercised and the writers need to buy shares to cover, especially on dividend prospects.
January 2014 is a total train wreck for call writers, approaching 100M shares covered on open interest underwater.
Agreed, but why now? When Mr. Ballmer is likely leaving in the Q1?
Tomorrow is MSFT's financial analyst day, so it will be discussed in my opinion.
That's *this* Friday. And now the $6.50 is in the money, most likely most of those are naked on the call side. Perhaps 5M shares needed to cover the spread. Have to check tomorrow, a lot of volume was probably on the bid side today, profit taking. But I am still holding my $6's.
And we have Sept OPEX on Friday. Busy week! I'm shopping for cars and new teeth!
... but it's not!
I don't know what to call this thing. Something is very wrong with this chart.
Doubtful, unless you mean after MSFT pays for Devices, then that cash is used for a special dividend, very possible.
The important thing here is that we will learn more about the deal on Thursday, at least from MSFT, Nokia will probably keep quiet.