Idea for all you IO bulls---
When IO was at 25 in June I took advantage of an excellent opp. I sold naked November 15 puts for 2 1/16. If you DO NOT know what a naked put is, than SKIP THIS MESSAGE as they are very risky. I do not have access to my main computer so I cannot tell you what these puts are at now, but they must be upwards of $2. What this means is that as long as IO closes above $13, (if the bid on the puts is $2), you will not lose any money. Above, $15 and you will make all the money you wrote. Hyptheticaly, the third wee in November comes and IOMG is at $5. You will be down $7 a share . So if you wrote 10K shares, or 100 contracts at $2, (20K), and IO closes above $15, you make all 20K. If IO closes AT $13, you break even. If IO closes at $5, like I mentioned above, you will be down 80K. Thats the risk/reward factor. IMO, I do not see IO sub $13 for a LONG time, if ever. I will probably cover my puts before 3Q earnings, just to be safe, assuming IO is in the $35+ range and the puts are priced around 1/4. Again, pay NO attention to this post if you do not know about naked puts/calls. They VERY RISKY. Go IO. --Matt (Turk636363), (Stockman) |
