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Thu Nov 1st 15:05 PM | Rating: 0 0
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Insuring My LDK Investment By Buying Puts

"I bought 10 contracts of Nov 30 calls, and at the price they are right now, they're a really great deal."

That you claim any LDK options are cheap is farcical. Implied vol. is up 50% over levels from July-August before the lawsuit was announced. With the front month contracts you suggest, you are just going to bleed premium because of the high theta, even if you don't hold until expiration. Your puts might even go down in value following a negative announcement due to the resulting volatility crush.

I assume you are "hedging" against 1000 shares, or about $40k worth of equities, given the 10 contracts you purchased. Given your (mis)understanding of options, I would be very afraid to have you wildly speculating with that kind of money on my behalf.
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Thu Nov 1st 14:53 PM | Rating: 0 0
Commented on:
Insuring My LDK Investment By Buying Puts

"I bought 10 contracts of Nov 30 calls, and at the price they are right now, they're a really great deal."

That you claim any LDK options are cheap is farcical. Implied vol. is up 50% over levels from July-August before the lawsuit was announced. With the front month contracts you suggest, you are just going to bleed premium because of the high theta, even if you don't hold until expiration. Your puts might even go down in value following a negative announcement due to the resulting volatility crush.

I assume you are "hedging" against 1000 shares, or about $40k worth of equities, given the 10 contracts you purchased. Given your (mis)understanding of options, I would be very afraid to have you wildly speculating with that kind of money on my behalf.
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