• Ocean Man
    Bought Jan $40 puts on $HLF for $6.75.
    1/2/13
    Reply (9)
    • neobliviscar: ballsy. John Cofran just sold his long, so maybe you guys see something. I've got to stick to things I can value better against economy.
      1/2/13
    • Ocean Man: Realornot sold his long too.
      1/2/13
    • neobliviscar: Looking good Mr. Valentine...
      1/2/13
    • Slim Cuda: Question OM, why the $HLF Jan $40 Puts and not say $25 or $30 Puts?
      1/3/13
    • Ocean Man: HLF puts are very expensive. Breakeven on the $30 is $29. Breakeven on the $40 is $33.25, already below that.
      1/3/13
    • Ocean Man: Out of the money options have higher % gains when they work, but are far riskier and expire worthless about 70% of the time.
      1/3/13
    • neobliviscar: Slim: the Options premium being usually bell curved around the nearer strike, if the position moved against OM towards $40, the premium part
      1/3/13
    • neobliviscar: would increase while the intrinsic value decreased. He's lose money, but not % as much as fast as he would with the $30 strike.
      1/3/13
    • Slim Cuda: I understand...thx
      1/3/13