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instead of short and stop loss? look at the put price, they are too expensive

I was doing good, investing in stocks for about 5 years, then a coworker told me about options and how good lenny dystra was. That's when shit hit the fan. Didnt blow up but lost about 55k buying naked DITM calls when i first started trading options following lenny dykstra's "strategy" -...

pick a good entry, short the underlying with a stop loss and buy july otm call of same position size pure speculative play, but the reasoning is it will either sell for $2 or gap up if the deal fails.

Yes but what if it gaps due to news/event? will you be fast enough? Also stop loss is more difficult on options than stocks due to the wide bid/ask gap. More importantly what if such event occurs in pre/after hours? BSC announces buy out for $2 when stock is at $30 on weekend..what will...

are you sure that's normal commission? i just tried the same spread on IB for april, and the commision is only $36 vs $260 optionsxpress charges! ES Vertical Spread (1) ESJ8 P1270 (1) ESJ8 P1250 DAY SELL 10 commission 36.20 USD

did not take any position, dud so far and didnt help the market. waiting to see how it does next week.

agreed, looks to be a good short. Only reason i am still on the sideline is because of the visa ipo, that might keep the market in the green tomorrow. Going to wait and see how it unfolds tomorrow.

This is a hot and hyped stock backed by a very profitable company that is not tainted by the current subprime mess, usually those type of stock does run up a bit in the first few days, ie: goog, vmw. It all depends on the initial price, if <50 i think it's a good deal, >70 no, anything in...

You gave cramer way too much credit. The people that listen to him (other than for entertainment) wont cause a run on anything. Noone is blaming him for the bad call, it's just a dog&pony show like most tv financials, "the next big stock to move!" will always get viewers, even if every one of...

noone knows when this will start trading? I thought the shares were assigned tonight, does that mean it will be traded in premarket tomorrow before the open as well?

why are you amazed? this could gap up and down 50% easily (well down mostly) daily. So the options are priced as such. There were a lot of talk, but i still dont think anyone has a clue why it went up to $6 except the insiders who bought it.

i am no expert by far, but been playing with options for about a year now. in general naked call/put is not a good idea unless you are monitoring this 930-4 every day, even then you are still powerless against afterhour news. Just look at bsc and leh the last few days. And today's rally...

You cannot argue with someone who does not have common sense and reasoning logic. So lets just end this on a high note... OldTrader's last job:

man you need to use some common sense, clearly cramer made a very bad call telling some poor sap to hold bsc. He then later try to cover it with some technicality bullshit about fund in bsc vs owning the stock. Like others said, who the hell would call him to ask about their account with bsc...

Since everyone is so tense, thought you guys could use a funny. I think it's about $5k a month to use. Too bad it didnt work on its own portfolio :D "Award winning"!! "Best Risk Analytic"!!! http://www.bearxplorer.com/index.htm

How do you know asset - liabilities is NOT negative? The situation must be really bad for the $2 a share. And if bsc goes bankrupt, it will set off a nuke in the financial market. Many firms have counterparty risk with bsc.

You idiot, this is not a bid/reject tug o war like yhoo and msft. The bsc/jpm $2 deal is pretty much done, just a matter of letting the ink dry and close it out, which i am sure the feds will help to speed it up. I am sure there will be many law suits etc in the coming weeks, still...

yes the situation has to be catastrophic, otherwise no way bsc would agree to sell at $2 when it closed at $30 on friday. Although I am sure there were a lot of pressure from the government and others to sell bsc before the market opens too. Monday will be a interesting day, see how all this...

glad i stayed the fuck away from this one, although some otm puts would be nice. Can someone answer this: BSC closed at 30 friday, now the offer from jpm is $2. Does that mean the stock basically just dropped from $30 to $2 on monday open? So all the bottomfeeders who bought at $30 on...