DNDN – CoolKid has the correct attitude. We buy out our callers and wait or flip to June. Don’t forget there are millions of shorts who got smoked on the initial run and all the FDA was send out a note requesting more information. That’s the kind of favor a fund manager can pull in a pinch as it has no impact on the FDAs decision but wipes out roughly $1Bn worth of share value ovenight.
TM – I forgot about them in all the excitement but I’m going to DD on leaps but I may roll too – have to give it a day.
RTP – June $270 puts may be attractive, waiting for a price. Offering .10 for DNDN calls but will go .25 just to clear them out.
DNDN reality check. “Just” 6M shares traded so far and this company is worthless ($4 maybe) if they are rejected as this stage. Who is buying and who is holding if this is such awful news??? CNBC just had an analyst on saying this was a $1.50-$2 stock and that makes me even more suspicious that this is just a flush job.
I’m picking up June $7.50s for .75 and will roll to the $5s if they come down to around a buck. XXX This is risky but those calls were $11 yesterday and a $2 bounce will let me sell the $10s for more than I paid with a free ride.
DNDN $10KP Aug $7.50s for $1, sell Jun $7.50s for $1 or better – stop at .75 if uncovered, well worth the risk of 10 contracts. XXX I’ve shifted my previous June buy order to Aug on that basis.
DNDN – More data – I question the timing. Why ask today and not make the decision on the 15th as scheduled? Judging from the total collapse of options all the way out to ‘09 thought, you may very well be right. By the way, for those of you with a $9 basis on stock ownership there is no reason to panic as the Jan ‘09 $5s are $4.50 so that’s pretty much your worst case scenario (Jan ‘08 $7.50s are $2.18 but not worth the risk). There is no way near enough selling for me to believe this thing is dead though (otherwise, where is the put value?).
TSO June $110 puts are a nice mo play at $2.92 XXX
DNDN – you can buy the Aug $5s for $2.70 and sell the May $7.50s for .68, which is a nice 25% return for 8 days. Risk of $2.05 of course but the Aug $7.50s are $1.45 and you can roll your caller as the action has already slowed considerably. XXX but very dangerous nonetheless.
SHLD – for my open posiitons I’m hoping to be saved by earnings but that’s no reason not to sell May $180s for $1.75 XXX
Posted May 9, 2007 at 11:06 am Permalink (Edit)
GENZ – I’m riding my $65 putter out, hoping it will flatline to expiration as that was my original expectaion but it will be a very painful week! Just remember that that position would cost just .10 to close out and we got paid .55 to initate it. Frankly if it wasn’t “just” 20 contracts I would never take a chance on this kind of gain as it’s a huge % return. The caller is down to a .60 premium so that is THE BEST you will gain over 8 days. If we have a strong rally later I will stop out my caller but DNDN is a bummer for the whole sector this morning. Wearing my optimist hat. they have to finish at $66.10 next week before I owe them more than I do now so I’m not going to be too worried under $65.75.
WYNN – I worry if the bomb thing artifially depressed them but this is a pretty strong position to ride out since my caller needs to hit $102.75 to win.
DNDN Aug $7.50s – sorry that was a buy into the initial disappointment play, by the time I wrote it up it was gone. Might get another shot at it in an afternoon sell-off but I won’t put that in the $10KP as there was no way anyone could have bought it after the open (they hit $1.60 just 20 mins later).
Good a time as any to bite the bullet and move my DIA $132 puts at .65 to June $132s at $1.45 XXX
