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Re: kabunushi post# 86227

Sunday, 12/04/2016 9:16:55 AM

Sunday, December 04, 2016 9:16:55 AM

Post# of 689593
I 'm just a small time investor that could have retired if the market was not so manipulated.
Instead I had to learn valuable lessons that may help protect my investments in the future.
So when I try and think like a large investor, Hedging always comes into Play.
People don't know if Woodford lost I doubt very seriously he did. He may have even been happy the share price declined. Did his Action not help cause it?
A lot of people don't understand Options very well, Unfortunately I had to learn the hard way.
The Time premium is really the only thing you lose with options if the share price gets flats or does not move in the direction of your option before it expires. People that trade Options very seldom exercise them. They sell them that way if there is any time premium left they get that on top of the share price increase or decrease.
lets say I buy 10 million share of NWBO for 50 cents $5,000,000 dollars worth I'm a 10 % owner so I have to file form 4.
Let's say it runs to $5.00 a share but looks like it has stalled. I could sell for 10 times my money.
But I'm afraid it my go to $10 dollars. so instead I look at the put options to lock in my investment.
Not only do I buy Put options with some of my profit. I buy double the amount of puts, That way for every dollar it drops I get an extra dollar. How do we not know that is not exactly what Woodford did?
So If that was the case he would of welcomed the fall sell the option's and not exercise them that way no difference in his original shares to file on form 4.
He could also buy $1call Options now 15 cents for the April $1 Call And sell them when we hit $5 or $10 and not have to file them as shares unless he exercises them..
Volume:
Day Range:
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Last Trade Time:
Total Trades:
  • 1D
  • 1M
  • 3M
  • 6M
  • 1Y
  • 5Y
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