Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
So the question really is are they going to be a company a couple years from now? :P If you think the answer is yes, please post your thoughts.


Hmmmmmmmmmmmm........you only asked for thoughts from anyone who thinks the answer is yes...................I don't feel confident the answer is yes, but I don't feel confident the answer is no either...so what the heck, here are some thoughts.

You were looking at March call options. Why look so far out? You obviously believe the company is going to survive or you would be looking elsewhere for opportunities. Why not look at the DEC 10 or JAN 10 calls? Good returns a lot quicker (will give higher annualized returns than the MAR 10).

Sure, there is some risk that things will calm down and lower volatility will mean lower option premiums when it's time to write future calls after the DEC or JAN expire. But there is also less time for the stock to build up a head of steam and blow through the $10 level. By writing DEC or JAN calls you might reduce the chance of the stock being called away and you might be able to write future calls at higher strikes.

Ed
Print the post  

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.