LFC China Life Insurance Options.

J

jllm03

Anyone else looking at this?
Took off like a rocket the past week or so.
Up about 40% in 8 days.
Options are overly priced and could be a candidate for a Bear Call Spread (150-155 range).
Stock currently trading @ 139.48, with the 150 calls @ around 4.30.
With such a fast run up to a all-time new high (146.50) It looks like it is getting stagnant and ready to pull back some.
The Fib. Retracement range on just the last 2 weeks would be in the 128 to 117 range.
 
2:1 stock split on Friday before the open. (did not catch that before I posted the orginal message)
This stock has had a steady uptrend in the past year, along with the major run up right after the split announcement.
I am going to be watching this one after the split to see if it continues the trend. May look at buying a couple Jul 07 ITM calls.
 
Quote from jllm03:

2:1 stock split on Friday before the open. (did not catch that before I posted the orginal message)
This stock has had a steady uptrend in the past year, along with the major run up right after the split announcement.
I am going to be watching this one after the split to see if it continues the trend. May look at buying a couple Jul 07 ITM calls.
More...

Just out of curiosity, why July?
 
Quote from NetCreditGuy:

Just out of curiosity, why July?
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No LEAPS on this stock. That is as far out as I can get for a calendar spread play (higher delta). May buy some Deep ITM calls and sell some near term OTM / ATMs off of it.
This will no doubt pull back after the split tomorrow, but the underlying stock has sustained growth over the past several months before it announced it was splitting.(China Govt subsidies). No reason to think it will not continue to do so in the short term.
 

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Quote from jllm03:

No LEAPS on this stock. That is as far out as I can get for a calendar spread play (higher delta). May buy some Deep ITM calls and sell some near term OTM / ATMs off of it.
This will no doubt pull back after the split tomorrow, but the underlying stock has sustained growth over the past several months before it announced it was splitting.(China Govt subsidies). No reason to think it will not continue to do so in the short term.
More...

I see. Very interesting. I'm a one trick pony (net credit spreads) and I'm trying to learn more so I can diversify. If you post your trades on LFC and the reasoning behind them, it sure would help me! :)

Good luck!
 
Completed the 2:1 split this morning (actualy was 2.6666:1), along with the change in the option symbol to TRL.
So far unable to find any quotes for the options today at all.
 
I'm fairly new to the market. When a stock splits, as China Life has just done, am I required to affirmatively respond to an "option"? And if so, is the option to accept or decline the stock split? If so, is there a deadline within which I must exercise this option?

I rather like the stock split that occurred and would like to lock in on it, unless that has already taken place automatically.

Any advice someone could render would be most welcome.

TMP
 
Quote from T. Michael Peay:

I'm fairly new to the market. When a stock splits, as China Life has just done, am I required to affirmatively respond to an "option"? And if so, is the option to accept or decline the stock split? If so, is there a deadline within which I must exercise this option?

I rather like the stock split that occurred and would like to lock in on it, unless that has already taken place automatically.

Any advice someone could render would be most welcome.

TMP
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Correct me if i am wrong someone...but most or all of the lfc options will become non standard options eg; the 100 calls would be now a 37 1/2call and would be for 266 shares instead of 100 . They will later issue more options which will be standard options like 50 calls etc.
 
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