CBOE rolling out 2.5s????

I will do a bit of research and then likely sink a portion of my profits into the Jan04 $5 Calls. They are selling for .25. I'm thinking ENE will emerge from bruptcy with some valuable assets that will get picked up. Two years is forever in this market.

Just be careful they don't go bankrupt or you lose all that premium. Heck, the stock is so cheap now you might as well just buy & hold. :D
 
They will go bankrupt now...no doubt about it. They are also getting sued by many employees as well because they locked them out of their 401Ks when the stock was around $20...so they were unable to exit ENE stock. I have a friend there as well and was advising him through this. I had him take a second on his house and borrow as much as he could to short ENE and create a box. I even loaned him some myself.

He managed to save mid 6 figures from this prescient move, but many in the company were not so fortunate and lost their entire retirement. This is an absolutely horrible situation and I feel for all of those who have to endure such a tragedy.
 
Buying puts or shorting the stock outside the 401k was such an obvious move, that I'm shocked more people didn't do it.

I have not even seen mention of the possibility in the press reports.

Are folks that ignorant or just sheeplike?

Both probably.
 
The fall was very fast. Peak to virtually -0- in less than a year. They were exposed to the hype machine daily and either never lost faith or were ignorant of how to protect themselves.
 
I saw a blurb in one of the money mags about the ENE 2.5's somebody quoted a CBOE rep as saying that it was a unique situation and that you would probably never see it again.

This morning, I'm seeing 2.5's on SONS. Has anyone seen anything from any source about the policy for rolling 2.5s?
 
I own SONS. They both very well could go b'rupt. KM looks closer than SONS. If they both go under, I'll have to start shorting every stock that gets a 2.5 from CBOE.
 
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