Hi Telemarker, How are you doing?
>>Seemed to me like the risk/reward profile may favor the latter -but I haven't created the charts yet. Starting to think that interest rates increases are going to be needed to seriously dent the financials, and that is another reason why rates may not be going anywhere for quite some time.>>
Yes, I have been recently been going over my alternatives with FRE. Fortunately have a profit in these puts, and close to covering the losses from my Jan 02 puts. Added a bunch at the low end of the price range on the option I own. One could short the stock and sell covered puts and buy protective calls, or do as you suggested sell short and buy protective calls. All kinds of options. These risky situations always take longer to unfold than one expects. If you come up with an interesting strategy please let me know.
No, you did not say anything to encourage me to take on EOT. I dug into the financials, etc. etc. etc. and found a den of investors selling short and the longs running for the hills. <ggg> I get myself in these kind of investment messes every once in a while and sometimes the problem takes longer to solve than one would like. Finally solved my GEMS and FMO problems, but buying these stocks in size in the 50 cent range gets to be a gut wrenching experience. Finally got my money back with some profit and currently holding the stocks - free. Heck it took 4 years for me to have a break even position in TIE, but when this stock ran we had a good time. Am not sure that Washington will come up with tort reform until after the next elections to help FMO with their problems.
Have been watching ARLP thinking about a third position, but have not bought since I want to get my EOT mess under control first. Most of the coal companies I watch are trading at the low end of their trading ranges right now.
Take care,
Joan |
