Here is a trick to lock in your profits after hours if you are holding options. If you are holding calls, then just short enough shares to cover your call profits. If you are holding puts, then just buy enough shares to cover your put profits.
There is no reason for him to go to such an expensive school for his undergraduate degree, unless he just wants to go there to have a good time. Today, a bachelor's degree is not considered to be enough to get a good job. Your son should start thinking ahead about his grad degree. If he were to get an MBA from Harvard or Wharton, then everyone would stand up and take notice.
Make him a deal. If he were to go to a state university, you would buy him a house and make the mortgage payments until he graduates. He could rent the empty bedrooms to some of his buddies to help cover the mortgage payments. After he graduates, he would then have something of substantial value to begin his new life rather than being broke like all of the other Princeton graduates.
Your comment "never cover" may sound a bit risky until one realizes that if you had been short 600 shares of UVXY on March 7, 2012 and had never covered any shares, then on June 10, 2013 you would end up being only short 1 share of UVXY.
When you say 48, are you referring to the share price? I found another one of your posts where you mentioned that you had sold them for 9.50. This is huge compared to their current price. Shorting the March 32 calls could be a good trade if there is no major correction.
The Jan2016 options offer some new possible strategies. What do you think of this Jan2016 ratio call spread, long 25/short 40/short 45 for a net credit of around 6.00 if entered as a spread, with UVXY at 20.83. Do you think this spread would offer less drawdown than just shorting a Jan2016, 44 call?
One of the reasons Dana was upset at the post fight conference is probably because he is afraid he will be losing a big money maker for the UFC. Whenever GSP fights, the gross receipts is almost double that of the other events without him. Also, the UFC probably has no rules or requirements regarding title defenses. Since it is foremost a money making business, they are making the requirements vague to their advantage. If the UFC were really serious about these events as implied by Dana, then they should have some clear rules in place, such as 3 title defenses in one year. If a fighter fails to do such, then they must give up their title. The only way to get it back would be to earn it.
I remembered this trade you had made. I had shorted some calls at 60-90 strikes a few months out during this UVXY rally. Looking back on all of this, yours was probably the best trade with the lowest risk.
The one year price range for the Jan2015, 130 call is: high 39.70, low 0.76
The bid/ask is now at it's low of 0.75/0.90
What was the price you had sold these calls for? Are you still holding this position?
Today there was a lot of activity for the Jan 2015 calls, especially the higher strikes. What was really interesting was the 325 calls which traded for the Jan 2016, 44.00 strike. This looks like someone took a short position to collect the premium.
I presume that some news would be released by the company at this time. Otherwise, it was meaningless to have closed trading for today.
Will that take place today? I presume trading will at least resume by tomorrow. Otherwise, this would be a big problem for the options which expire tomorrow.
If the sale price becomes finalized, all OTM options will become worthless, and the time premium portion of ITM options will also be lost. Even talk of a specific price and date will have a negative effect upon the time portion of all the options. This is what had happened to the options for DELL when it became a private companyy.
With DNDN at 2.53, the Jan2015, 2.00 puts could be sold short for 1.00 (50% of the strike).
This would be the equivalent of finding a $25 stock and selling it's Jan2015, 20.00 put for 10.00
Of course the high premium reflects the risk associated with this trade.
Another trade which looks interesting is to buy the Feb 3.50 call and short the Feb 1.50 put for net cost of 0.00
This would be a good trade for those who anticipate a buyout of DNDN.
These are trades I recommended to some friends who want to own DNDN for a buyout but with limited risk.
Sometimes you have to make some unusual trades to play the market. Remember back in Nov 2008 when Ford had dropped to around 1.00? I sold short a large number of Jan2009 2.50 puts and collected around 2.00 in premium. I figured it was worth the risk since the most I could have lost was 0.50 if it had gone bankrupt. I had confidence in Ford because it was the only auto company which did not need assistance from the Gov.
Another trade to collect 50% of the strike is the Jan2016, 0.50 puts which could be sold short for around 0.25
This would be a good trade for those who think DNDN is going down to $0.50!
70 Chapman Road Toronto, ON M9P 1E7 Canada
If you look at the picture of this address, it appears that Sylvia Soltan is operating this company out of her home.
How long has this stock been trading? I can only get a trading chart for one week.
Whatever their decision is on Thursday, do you think there will be an immediate announcement this week or will it have to go through the channels for a formal release by the FDA?
Option premiums are high and they decay quickly. One way to get around this problem is to do option spreads. If you pick the right strikes, you can usually do a bull spread while paying little or no time premium.
You may see 150 this week because of options expiration. Also, the gap may need to be filled before any further decline.