OK so the stock was at $17 a month ago, headed back to $3. Earnings out today and yesterday SBLK posts and pops 25%, BDI is up 300% from the lows. DRYS trading at $4. Given the above what would you sell the March $5 calls for? All I know is that unless I had some inside info there is no way in hell I would be selling them at $0.1, not even for a covered write.
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Drys
- Thread starter Mvic
- Start date
Quote from Mvic:
OK so the stock was at $17 a month ago, headed back to $3. Earnings out today and yesterday SBLK posts and pops 25%, BDI is up 300% from the lows. DRYS trading at $4. Given the above what would you sell the March $5 calls for? All I know is that unless I had some inside info there is no way in hell I would be selling them at $0.1, not even for a covered write.
I'm not sure where you're going with this, but they're a buck OTM with 3 days left until expiration...would you BUY them?
Quote from Mvic:
OK so the stock was at $17 a month ago, headed back to $3. Earnings out today and yesterday SBLK posts and pops 25%, BDI is up 300% from the lows. DRYS trading at $4. Given the above what would you sell the March $5 calls for? All I know is that unless I had some inside info there is no way in hell I would be selling them at $0.1, not even for a covered write.
Was actually bidding 3.50.
B
I've been wrong plenty of times before, but I agree with you here. DRYS is probably too cheap or at least the risk/reward ratio would be terrible for selling calls IMO, be it Mar or Apr.
Maybe a Call Ratio Backspread might work, but then again, it would be better if DRYS had every dollar options (like CSCO for example) and not just 2.5 strikes.
Anyways, be interesting to see what happens come earnings.
JJacksET4
Maybe a Call Ratio Backspread might work, but then again, it would be better if DRYS had every dollar options (like CSCO for example) and not just 2.5 strikes.
Anyways, be interesting to see what happens come earnings.
JJacksET4
Idiot broker told me earnings was today after close, in actual fact no date set yet. Added the april 5 calls again today.
Check here for date:
http://www.irwebpage.com/dryships/ir.html
Added Rimm April 50 Calls today as well.
Check here for date:
http://www.irwebpage.com/dryships/ir.html
Added Rimm April 50 Calls today as well.
Took profits (perhaps being too aggressive again but looking at over a 100% return and am already overweight commodities), will buy back in after earnings date is announced. Edit: Picked up 80 April 7.5 calls to keep a toe in as the contract announced effectively takes the risk of BK off the table and gives DRYS the cash infusion it needed.
From IR "The exact date for the release of fourth quarter and full year 2008 results has not been determined yet. A date is expected to be announced sometime over the next two weeks. A press release will be issued announcing the date of the earnings release and time of conference call prior to the release of earnings. "
From IR "The exact date for the release of fourth quarter and full year 2008 results has not been determined yet. A date is expected to be announced sometime over the next two weeks. A press release will be issued announcing the date of the earnings release and time of conference call prior to the release of earnings. "
going back to $3
dry shits
dry shits