so ... u r into cam xxx now? ... lol ..
WELL, this does not mean the option player thought END will survive. It's simply risk management.
even if there is only a 1% chance .. .would you risk 5m ... to gain an additional 250k ? ...
I would have closed my position too
INVESTORNAVA yesterday asked:
"question is why would some one offer such option blocks priced cheap and who's buying them?"
Well, it is pretty simple: END holders. Let's say u have 2m shares of END in your Account and u can not liquidate them ... or ... u just want to hold them ...
so ... you can sell the calls ... covered ... ... still keep an upside potential till $1.5 ... or .. $2.0 ... while cashing in 0.05$ per share. at Current prices ... that's 10% ... and u still keep the netire upside potential ... since ... even if END survives ... I doubt it will even go above 2.00 (given huge dilution needed to survive).
1. The 10,438 call Sep20 $1.5 buy transaction
-- This transaction was made to close a Short Call previously open. Short Call is very bearish .. and the trader made lots of money on it.Not he closed it's opsition ... at basically no cost ...only 0.05 per contract.. So. yesterday trade is not bullish ... it just someone taking profit
How can I say that he did cover his short Call Position? ... well ... I can say it ... because the Open Interest Dropped by approximately 11k contracts. ... so .. someone colosed a Call position.
you can do the same analysis with the :
28k Dec 1$ call traded yesterday
19k Jan $1.5 call traded yesterday
10.5k Jan 2.00 call traded yesterday.
So .. this is why PPS lost already 15% from yesterday's peak. The Call trade did not signal any bullish view on the Company. It was just someone closing out a Bearish Position.
He closed since ... the potential gain was only marginal ... so ... even if there is only 1% of END surviving ... it was not worth the risk of Giving up a multli million dollar gain ... to just .... gain another 100k.
There is just one difference: ... I said ... buy All MTLR below 30 ... in 2 occasions this year ... while you were telling people to buy MT which was trading at 1.80
Now... MTL is trading at 1.62 ... just 5% above the all time low ... down 10++% from the prices you were pumping ... before disappearing from this board.
MTLR is up over 30% ...
PIPPA do not cry
Unfortunately ... we can not yet draw a conclusion based on today s option activity.
we have to wait till tomorrow to see the change in open interest. Only then, we can say is someone opened a long position in the calls ... ... or ... it it was someone with a Call Short position ... closing his trade.
... ... Dear MissionIR ... can you say this is a bullish development? ... lol
AH AH AH ... PIPPA PIPPA PIPPA
you are no one's employee ... ? ... lol ... did your former employer fire you? ..
do not worry, you can contact THE DERAM TEAM GROUP ... they will hire you ... to ... pump companies and write misleading Information.
Well, TheDreamTeamGroup does not issue newsletters ... it is an IR firm .. so .. someone is paying them. ... paying them ... to post misleading information about the company? ... it is hilarious ... stay tuned ... misleading statemetns made will son be Exposted.
pretending it's a better deal than MTLR..ah ah ah..
Piipi where are you?
I do agree ... this is why I think the SEC should have a closer Look at SBOTF, its CEO .. and the various writers of so called "financial newsletters" ...
BTW .... is the DREAM TEAM Group ... STILL INVOLVED? ... are you an employee?
Not looking good for the company ... isn't it?