Prashanth Cherukuri

Insuring My LDK Investment By Buying Puts

Hey Uncle Bill.
I dont wanna call names, but look at LDK stock and the price of Nov 30 puts.
Both you and that other clown didnt know what you were talking about. While you fools are likcing your wounds, I made good money even with the stock going down.
Some people like you never learn.

Insuring My LDK Investment By Buying Puts

Finally, a sane voice.
Thanks Michael D for making my point.

Insuring My LDK Investment By Buying Puts

hi ALC.
While its overly speculative, it works. Also, I never submitted the article here. I posted it on my blog, and SeekingAlpha would have found it relevant so they added it here.
Sorry you didnt find it useful

Insuring My LDK Investment By Buying Puts

I bought the Nov 30 calls at 10 cents, and if you think that is not cheap, I am at a loss for words.
First off, your assumptions are wrong, and so is your theory. I am hedging against 100 shares, or $4000, so if the stock does go to $25 in a month, I will make more than 4K on my options.
As for your last statement, feel free to make your own judgements.

Insuring My LDK Investment By Buying Puts

Uncle Bill,
thanks for the comment However, I am sad to day you couldnt be more wrong than this. I got 10 contracts of Nov 30 puts at 10 cents, which is $100.
I dont know what kind of premium you're talking about here.
And then, even with the stock up 2% today, I am still up 250% on my puts, so either way it was a win-win.
If the stock really does go up, the max I lose is $100.
As for your: "Adding long puts to a long stock position turns the position into a long call". , I dont know what you're talking about here.
Maybe you should read a bit on options.

Buy LDK Solar's Panic Selling Drop

There's some rules I follow, cdpayne:

1. If fundamentals havent changed, your trade should not change. Holds perfectly in this case.

2. When others are fearful, be greedy. After a drop of 50% on just claims, I wonder how much more down it will go.

3. For longs, there's a common rule that says buy on rumor sell on news. The same applies here. The shorts have shorted mercilessly on the rumor, and will cover when the news comes out with the company dismissing claims.

LDK's Business Remains Strong Despite Potentially Debilitating Allegations

Thats a big statement. You just quoted the three biggest forms of media and said people should not trust them. Then what do you go by? Sixth sense?

LDK's Business Remains Strong Despite Potentially Debilitating Allegations

You're kidding me arent you? Unless you're from some other part of the world, its rampant here in the USA. Just switch on Fox news.

Buy LDK Solar's Panic Selling Drop

Hey Ernie
Thanks for the humor. It does help to be funny in today's world. On a serious note howeverm it's both inaccurate and premature to compare LDK with WorldCom.

LDK listed its stock only on the NYSE, knowing very well how strict the regulations are here. They could have easily listed it in China and kept fudging their books, thanks to the poor regulations there.

Think about it: having gone public just three months back, would they really risk the future of the company by doing something like this?

And who do you believe more, the company's CFO and CEO, or a guy who was fired ? Would you say nice things about a company that fired you?