There were articles even a couple of weeks ago stating that the IV of HSH options was increasing. Pete mentioned that the volume of call buying last week for HSH was huge compared to their normal volume.
If there was insider trading, would we hear about it?
Special options will tend to have a wider bid/ask spread.
I have only been trading MNKD for 2 months so any comments (intelligent) would be helpful.
So who is Tesla Rowe and what does he have to do with MNKD? I found his blog from Aug 2010 where he stated that "Mannkind is garbage". Is this what you are referring to?
Why was this post deleted?
If anyone is going to play this, the risk/reward needs to be addressed. A timeline of events relative to the price changes would be helpful, especially for those who have only been in MNKD for a relatively short period of time.
With VIX at 11.36, what do you think of the VIX Aug 15/19 call spread for a debit of 1.00?
I am considering doing this to hedge my SVXY call spreads.
King, Tim Seymour recommended buying C today on CNBC.
I used to trade it prior to the reverse split. This was probably one of the actively traded stocks before the RS.
So are you are saying that this is going to go up substantially within one year from now?
How are you playing this? Jan2016 calls? ITM or OTM calls? call spreads?
I had made a mistake. I had meant XIV.
This is from InteractiveBrokers:
Securities Ineligible for Portfolio Margining
Outlined in the table below are ETN products which will no longer be eligible for Portfolio Margining and will be subject to Reg. T margin during the week beginning May 19, 2014.
Note that the term "Class Group" refers to an aggregation of securities of a like issue and which are afforded full offset between their respective risk computations at a given scenario. The term "Product Group" refers to an aggregation of one or more Class Groups which have historically exhibited sufficiently high positive correlation to allow partial offset between their respective risk computations.
Class and Product Group offsets are offered only under the Portfolio Margining methodology and once positions are subject to Reg. T methodology, these offsets will not be recognized and the margin requirement on positions previously offset will increase.
Could some of this be considered insider trading? Somebody knew about this increased offer and was trading on this info before it became public.
Has anyone heard about the coming change in margin requirements for these two ETNs?
Because of the perception that ETNs have a higher risk, they may not even be marginable with the new rules.
This would affect any long and short shares position. This may also affect the margin requirements if you are naked shorting the options.
Did anyone notice the large options trade this morning?
2500 of the June 105 put options were bought for 0.85
Is the buyer bearish or just hedging a large position?
If you are long UVXY, options would give you a slight edge. With UVXY at 45.30, the June 40/50 call spread could be bought for a debit of around 3.50. This would give you an effective share price of $43.50
I have been doing a variety of option strategies while waiting for the price to drop. One of them is the Jan2016 2.50/10.00 call spread for a debit of 2.50 This would give you an effective share price of $5.00 and a max profit of 5.00 (200%). Also, your account will not be subjected to the severe drawdowns of owning shares in the event of a price collapse.
Buying puts is part of my earnings strategy for stocks.
Lets say MNKD drops down to 5.50 during tonight's CC. I could then buy the shares AH at 5.50
I will have made money on the price drop by owning the puts, while also buying shares at a lower price. Now in case the shares were to drop further in price the next day, there would be no loss because they would be hedged by the puts.
With MNKD at 6.30, the May 6.00 will only cost you 0.08
This is relatively cheap insurance in case it really tanks tonight.
The May 6.50 calls are also relatively cheap.
It looks like the MMs are not expecting a large move in either direction, but you can never be sure.
If you plan to continue holding DNDN for the long term, consider selling some puts to collect premium. The best time to sell puts is when the stock is near it's low.
With DNDN at 1.95, the Jan2016, 1.00 strike puts could be sold short for around 0.44
Selling 100 of these short would give you $4400
In a worst case scenario with DNDN going to 0.00, your max loss would be $5600
You would achieve max profit as long as DNDN stays above 1.00
Are you referring to call options?
I am thinking of doing the Jan2015, 32/35 call spreads for a debit of around 0.75 with BX at 29.11 This would provide a max profit of 300%.
I also do a lot of near term call spreads as a short term trading strategy.
If you were short 2,400 shares of UVXY on 3-7-2012 and did not add to or cover your shares, you would now be short only 1 share of UVXY.
Just on CNBC
Is it time to go long UVXY?