are now fetching 40 cents, about to sell 12 contracts between 45-50 cents for $570 cash premium vs. my 1,200 SA shares. that's the beauty of a volatile stock and owning 1,200 shares near $8.50 cost. sub $7 SA was not long ago and I don't yet see a catalyst to see a $10 before February option expire on 2/24. nice monthly dividend if/when it hits....very likely when SA crests $8.85+
$2 puts are way too far out of the money. better to look at and monitor the HK $3 puts between February and end of the year. they may well be decent insurance policy for Longs holding large HK positions. I'm Long HK (and heavy) below $4 but not adding shares here, the downtrend is very strong and the balance sheet is borderline awful. any sustained fall in crude prices (like below $80) will hurt HK further in the same way that the highly leveraged gold miners are now suffering (multi year lows) unless gold stabilizes here and eventually goes higher, the latter which I believe.
need to understand why it's trading $2 below the "cash tender" offer price, pre market this morning. very odd or outright #$%$?
once u figure it out (lol) ALWAYS use Limit orders when trading anything pre or post market, otherwise you'll be worked over. never use a Market order in extended hours.
not sure but they may be restricted for 90 days. we're not yet there. if anyone finds out definitively, please advise.
the Bid is now 23 cents with intraday low at 28 cents. massive risk and reward opportunity here, may be worth a trade up to 40 cents. no position but watching.
u left out - perhaps he left because he knows this company is doomed. 98 cents and CBLI cut in half in a matter of 3-4 months. price doesn't lie, there are simply no buyers.
SA - good out performance of the beaten metals players today, yes and good to see, but there was no volume behind it at all. look at the 3-6-12 month charts and you'll see nothing was extraordinary about today. I hold SA Long (cost near $7) and did notice the January $8 call options doubled today from 20 (contract low) to 40 cents. but you'll need several days of this type of action and/or volume behind it for something to be different. I still think SA is absolutely undervalued and worth $10+ in time but then again so are AUY ANV and a dozen other stronger gold players. the whole sector has bene crushed, as we know. I do like silver much more at these levels and own PAAS in a much larger position at $10 cost.
more accurately, time is running out for Shorts to cover. ANV is a clean double or triple from these levels and today was just an appetizer. a Short bet on ANV is a bet that gold will collapse well under $1,000. very unlikely. investment fact - ALL Shorts must eventually cover.
Sentiment: Strong Buy