Gersh's Option trades Message Board

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Strategies & Market Trends : Gersh's Option trades

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To: Mark Johnson who wrote (626)	11/23/2007 11:45:03 AM
From: Mark Johnson	Read Replies (1) of 652

Shorting ETFC call options, with the December 10 or 11 calls trading in the 20 cent to 25 cent range and 15 to 20 cent range respectively. This may be sort of a speculative play since the ETFC may be a buyout candidate. The reality is that no one, no even ETFC may not know their exact exposure to bad debt. I think that will keep a significant lid on the up side of its shares (yes, I could be wrong). I really do not see its shares trading above the $10 to $11 range by December options expiration (I'll say it again, I'm not always 100% correct, on the last 20 + trades I've recommended, I've been correct). Shorting the call December options figuring you have to front about $500 to potentially earn $150 to $200, Looks very tempting. I do not think a suiter will come in and pay a significant premium the the present share price give the amount of uncertainty that exists in the sector. Use caution but I think it looks like an easy short. Good luck option writers.

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