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Still amazing premiums in SFE options. For example the Aug. $115 call is bid $9 1/8. That means if it is sold against a long position in SFE [currently $86 5/8] The return if not called is 10.5% for just over 3 mo. or 40% + annualized RofR. If SFE is called at $115, the strike price, the return is $37.5 or 43 % or around 170% annualized. If SFE goes down, selling the call reduces cost basis by $9 1/8. Not a recommendation, but I thought it was worth bringing to your attention. Could be useful for those with very low cost basis, with a guarded view of market over the next 3 mo. and for tax or other reasons don't want to sell SFE around $86, but who wouldn't mind letting some go for $124. If SFE is in a trading range, even one with a slightly upward bias, or if SFE drifts down, the $9 1/8 is extra pocket money if SFE closes the Aug exp. below $115. Not an insignificant sum with interest rates close to 6% which if it holds, one would reasonably expect the big upside on many stocks to be limited. Sir Francis Drake: While manipulation goes on, I have not had any experience with stocks that had a flavor of manipulation, and any limitations on performance, are self directed. Don't take this wrong way, but since you stated "I can mention to you a virtually endless number of stocks that have been viciously controlled by such activity." could you mention a few examples of such stocks and the evidence you have of vicious control. I am sincerely interested. Again, not being sarcastic, just would like to pursue this deeper. Mike |
