Jill, just wanted to let you know that your threadmates ( Rocketman, LBstocks, 100cfm, tekboy , Jill, Poet, etc. ) were very helpful and I placed my first option trades today; all on GMST. I posted a few questions before on the thread and followed up with some PMs to not annoy everyone with my silly newbie posts.
The following GMST call contracts were purchased today:
1 call of GSTHL ( GMST Aug 60 ) at the open for $18.125
4 calls of GSTHQ ( GMST Aug 85 ) at the open for $8.125
6 calls of GSTHQ ( GMST Aug 85 ) at the noon for $7.125
What I learned and comments:
1) The people on this thread / board are VERY helpful
2) I spent a lot of time thinking about a little money vs with common shares
3) I used limit prices and it helped to get my price
4) I would wait 15 minutes after the open to adjust my bid
5) The options are very thinly traded ( especially for Aug ) and lots of opportunities to buy them cheaper during the falling market and stock price falling ( volatility is good, now I will find out about the time factor )
6) I purchased the Aug 60 call as a tracking option to test its volatility and to experience and ITM call
Next steps:
1) If GMST keeps following, then I will buy 10 to 20 more contracts of Aug 85s ( OTM ) calls
2) According to some of the sources, I will not have to make a decision on these calls until April / May
3) I will sell some of the calls to buy the common later, however if I buy more calls, then I might roll them up into the November calls
An interesting experience, risky, however Gemstar is a great company and I believe in their future and bought the calls the farthest out as I could. I did not use a lot of capital and I am willing to lose it all in the calls, however it would always be nice to make some money for to buy the common later.
Thanks to all the REAL options players,
David ( the newbie options player, GMST only )
PS: I will be back later to find out on exercising these GMST options |
