What do you think about ETFC?

Quote from newguy05:

i dont understand, i can buy 100 share for $320 or 1 contract of 2010 5 call for $120. If it goes bankrupt, i lose $120 instead of $320?

The doubling is true but only if it doubles by expiration at 2010 jan. Also you would only lock $120 instead of $320 for 2 years, leaving you with $200 extra to invest in others.
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Are you investing in ETFC to make money or not to lose money?

2010 $5 call has a delta of approx 2/3 with a 20 ct spread. Stock must go up 30 cts to break even. Stock has one ct spread. If I were bullish on this POS, with a one cent spread in the stock, I'd trade it silly for the next two years.
 
Quote from marketfly:

Hey jack ass, with that logic what if it gets bought for $10??? The calls would go up 400+% and you would only be risking a third of capital.
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And if it gets bot out for $6.20, the $5 call will break even and the stock holder will nearly double. Betting on a $5 call is a long shot. Betting on a $10 buy out is a fool's lottery wish. Could happen but that's a terrible way to deploy money.
 
Quote from spindr0:

Are you investing in ETFC to make money or not to lose money?

2010 $5 call has a delta of approx 2/3 with a 20 ct spread. Stock must go up 30 cts to break even. Stock has one ct spread. If I were bullish on this POS, with a one cent spread in the stock, I'd trade it silly for the next two years.
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this brings up a good question, if you have 2010 $5 call, what happens if etrade gets bought out tomorrow by amtrade for $6. Does that mean now my 2010 $5 call will be worth $1 and lose all time premium? or do they transfer the option over to the amtrade options?
 
Quote from newguy05:

this brings up a good question, if you have 2010 $5 call, what happens if etrade gets bought out tomorrow by amtrade for $6. Does that mean now my 2010 $5 call will be worth $1 and lose all time premium? or do they transfer the option over to the amtrade options?
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If the company is bought for $6 cash, your options will be worth a bit less than $1, with no time premium.

If the company is bought for stock, your options will be to buy howevermuch stock was given for 100 ETFC for $500, and will be priced accordingly.

That's all theoretical. No company gets bought out for 100% premium unless it's in settlement of litigation or something. You'd need the stock to hit almost $5 on its own before a takeover for $6 would be realistic.
 
So if ETFC goes BK what happens to the price of the stock? If they are bought out by TD, wouldn't the stock go up? Thanks for the help!
 
Quote from busajimmy:

So if ETFC goes BK what happens to the price of the stock? If they are bought out by TD, wouldn't the stock go up? Thanks for the help!
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What if TD offers $1 per share?
 
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