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Exactly lol and with 300 million ZN shares outstanding and counting. Its basic math and % profit. If an immediate 35% profit selling 10 cent covered $1 calls with a buy basis of 27 cents doesn't appeal to you I don't know what hole you are waiting on to tap. Remember its a $1.00 covered call you are selling and that 400% away! Love it. The only way I buy ZN is when I turn around and sell a $1 covered call to reduce my cost basis by 30%+.
Agree. Best way to take profits is by selling covered Jan 2021 calls at 10 cents for 35% profit on ZN at 25-27 cents- then just forget about them and let them expire worthless and the profit is all yours to keep. If ZN should go over $1.00 just count your blessing on making a 400% gain :)
Making 35% profit friends. Buying ZN at 25-27 cents and sell Jan 2021 covered calls for 10 cents. If the March 2021 calls start selling for 15 cents, I'll sell them instead :)
Did the vote to issue 200 million new shares pass?
Unbelievalbe action on Dec options this morning @15 cents! Wowsers :) Happy trading
I hope so Tothe but remember ZN then has to pay for shipping the rig, transportation and setup and then they have to pay for an entire crew - all by issuing additional new dilutive ZN shares... We are talking about 100-200 million additional ZN shares to get ZN a drilling. I hope for a pop in ZN price but not likely. Another 100-200 million more shares of ZN diluting the base - "at best" ZN price stabilizes at 30 cents. Remember last time when ZN announced they were buying the rig and the price spiked to 30 cents and then the MM's immediately squeezed the price back down to 20 cents? Yeah the MM's are likely setting up another "sell the news" to doing more of the same. Remember its likely a 100% ZN dilution of new shares is on the horizon. Necessary but pps is going to take a hit.
I'm happy selling calls at a 36% profit this morning and letting them ride to expire worthless or ZN goes to $1.00 a win win!
Make 36% profit on ZN open by selling covered Dec 2020 or 2021 Jan calls at 10-13 cents on the ask! If you are long on ZN (as I am), just let them ride out to expiration and they either expire worthless with you keeping all the profit and can resell additional covered calls later on or ZN actually gets lucky and hits $1.00 or more then YOU keep all the profit from today's price of 28 cents all the way up to $1.00! LOL this is the easiest way to buy ZN today and immediately make back a return of 36% which you can re-invest in ZN or another stock of your choice!
Happy trading friends!
Right now make 40% profit today all day long! Dec 2020 Option on the bid at 10 cents and ask 15 cents. Make 40% profit selling covered calls 6 months out all day long and the profit to $1.00 is all yours to keep (should we get to $1.00 - if not, you get to keep your original shares of ZN free and clear and just made 40% profit free and clear!)
40% profit today all day long! Dec 2020 Option on the bid at 10 cents and ask 15 cents. Make 40% profit selling covered calls 6 months out all day long and the profit to $1.00 is all yours to keep (should we get to $1.00 - if not, you get to keep your original shares of ZN free and clear and just made 40% profit free and clear!)
Thanks Tothe. Hard to get excited when we all know another 100-200 million more shares are about to dilute ZN as they have to pay for the rig transportation, mobilization and crew maintenance. We are looking at about 20 million in expense this year alone with little hope of drilling in 2020 - and then comes the drilling time crew expenses 6-8 months timeframe lucky to commence in spring 2021... Options just tanked Friday on the news.
I think ZN is heading down unfortunately. Podcast can only do so much for a little while - without 3D news, talk is just talk for now.
Did your charts give any warnings on today's actions Tothe? Insight appreciated.
Looks like the MM's are factoring in the pending approval of issuing another 200 million shares from proxy vote.
Sept calls selling at 15 cents this morning! 50% profit.
Happy trading all
Looking great lately. What are your charts telling you in next couple of days? Due for a pull back and consolidation at 30 cents?
Today has been fun. Sept and Jan covered calls selling all day at 15 cents! 50% profit all day long. It's a shame I missed the Sept calls that sold for 20 cents lol! I know, I know it's crazy right :)
Happy trading all
If this pump wasn't a pump & dump, the June calls would be flying and they are not. Currently, June calls at 1 cent. Seems MMs are pumping up stock for the upcoming June ZN annual meeting. We might see 50 cents by then as anticipation builds.
Buy ZN today at 34 cents and sell Sept covered calls at 15 cents! Make return of 45% with cost basis of 19 cents. Let them ride and all profit from 34 cents to $1.00 is yours to keep.
ZN ppps of 30 cents puts ZN cap value = 60 million with 200 million shares outstanding. ZN pps of 50 cents = 100 million and ZN at $1.00 = 200 million. Will ZN have to issue another 100-200 million shares to fund the upcoming drilling operations? If I recall last time they spent 10-15 million alone just on crew & rig setup expense.
great call Tothe. Thanks for the heads up before the price action. Keep it up we need your insight :)
Nice price action. Getting ready to sell Sept 2020 calls for 10 cents and Jan 2021 calls for 15 cents.
Make 46% today selling Jan 2021 covered calls at 12 cents selling into the ask at 10 cents! All day long and all profit up to $1.00 remains yours. What is not to love?
On the bright side of ZN back to 22 cents is that you can still sell covered Jan 2021 calls for 10 cents = 46% profit or Sept 2020 calls for 5 cents = 23% all day long. Make your ZN investment work for you with an immediate returns by selling covered calls. Its a win win scenario. If they expire worthless at date of expiration you just made free & clear 100% call selling profit of 23-46% and should ZN pop over $1.00 just let your covered calls ride and take your share at $1.00 even while you enjoy your 800% gain from 22 cents all the way to $1.00! All day long right Bear gift horse? Maybe even get lucky and sell those Jan 2021 calls for $.14 cents
Good trading all
Tothe you were a day late and now all we have is the dump after the pump. Too bad you couldn't give us a heads up what was brewing Thursday or Friday morning.
So Tothe if the buy trigger was Thursday followed by the spike to 28 cents on Friday providing confirmation with high volume, what does the near future hold? Pump & dump complete and now back to 20 cents?
Tothe, I think you are using a very outdated Israeli tax & royalty rate levied on natural resources. Didn't Israel increase the royalty tax on gas & oil to 50-60% after NBL's huge Leviathan discovery? If true, this would dramatically affect your calculations.
Anybody know the actual most current Israeli royalty tax rates? (unfortunately no grandfather clause either as they changed them immediately after the fact post NBL Leviathan discovery)
Today ZN is trading at cap value of over 40 million with 160 million stated shares. The real count is likely over 200 million.
When ZN is trading at $1.00 pps, ZN cap will be 200 million+
Don't forget the 14 cent buyers, 100 contracts 60% gain on stock selling at 25 cents. Ridiculous right lol? yet its TRUE!
I'm not lying Bear. Computer algo's all the time jump ahead of the bid & ask to deny retail their fill (normally they block my ask but this time it worked in favor bigly).
lol wrong again Bear. I sold into the 10 cent bid 50 contracts of Jan 2021 calls and the computer algo blessed me with a fill price of 14 cents! I just made 60% net profit on my 23 cents shares purchased today. Went back to sell more and the Algo backed away and only filled at 10 cents. Sadly only a 43% gainer on that trade.
Have a good trading day all!
"who would buy calls" - a lot of call buys are simply computer trades on spikes and dips. Algo's bear
Hey Bear, again today 50% :)
80 contracts at 10 cents is $800 profit. With ZN patience has become a virtue right. Lol bear
Lol Bear, I understand making 50% immediate profit TODAY selling 10 cent calls with all the upside to $1.00 (850% return) and downside risk limited to 15 cents. I'll take these odds ANYDAY :)
Lol bear, don't you understand the profit from a potential ZN pps covered call run up from 20 cents to 1.00 belongs to the writer of the covered call (only lose out on potential profit loss over 1.00)
You really don't realize this? Who cares if call price rises to 25 cents or 30 cents as I don't have to buy to close and can simply let my covered ZN call be transferred to original call buyer as I'm happy to collect my 80 cent gain on my 20 cents ZN cost basis stock.
With ZN printing shares likely over 300 million by Sept 2020 or Jan 2021 do you really think you will miss out on much upside over $1.00?
Bear, I am only "forced" to give up my 5 cent sold covered call if ZN is in the money over $1.00 ZN pps at time of expiration and then my covered ZN share is simply given up nothing else (I don't have to buy back anything)- REMEMBER all the profit from 20 cents to $1.00 is mine to keep along with the original 5 or 10 cents profit from selling calls - I'll gladly take the 25%-50% immediate profit now and be happy if my ZN share is taken away over $1.00 pps. That means I will have made profit over 850%.
Bear you are incorrect regarding selling calls. Sept call volume yesterday was 80 "contracts"- that is 8000 shares @5 cents as 1 contract is 100 shares = so profit of $400 at 5 cents each.
IF THE PRICE OF ZN goes over 1.00 at the time of expiration YOU GET TO KEEP THE PROFIT ALL THE WAY UP TO $1.00 - at today's price ZN cost basis at 20 cents that would be 80 cents plus your initial 5 cents earned from selling the call (85 cents total profit Bear). The only potential loss you may incur is the gain OVER 1.00 at time of expiration.
BUT BUT BUT !!! YOU DO NOT HAVE TO BUY BACK YOUR COVERED CALLS should the pps make it to $1.00 - just let them ride out and the conversion will be done automatically by your brokerage firm. I'll gladly take a 850% win on selling covered Sept calls. Heck I even got 10 contracts filled at $10 cents on the spike of the day lol! (Bear that would be $100 again as 10 contrats = 1000 shares)
Read up on it Bear.
go for it buddy and flip'em. June calls all day long at 5 cents. Who would be buying $1 calls 80 cents out of the money for a 25% to 50% premium at 5 and 10 cents? Especially when ZN has just added 100 million more shares with more to come once they start drilling? Big cash burn about to happen once they start drilling which will offset the excitement. Another 7-15 million just to get rig transported in and crew on-site for a year. More reasons to sell calls for profit now.
lol so much more the reason to sell covered calls. Are you starting to get woke?
Do the math. A 10 cent profit on a 20 cent ZN share IS your 50% immediate profit and then simply buy more free and clear ZN shares with your 10 cent (50% profit in your pocket now) and flip those later. Trying to help you understand is hard.
Think. If worried about missing out on a pop in price lol realize you JUST made either 25% or 50% right now. Or you could simply buy more ZN with the 25-50% immediate free and clear profit and use this as your trading/flip stock. Also, the time value of covered calls works in your favor as the price drops the closer you get to expiration so you may be able to buy and close for a profit (or at least break even if in a hurry to close out your covered call position). I recommend just letting it ride. If one is a long term ZN holder, selling ZN $1 covered calls (800-900% + gain) is a great way to make money over and over. Wash rinse repeat if they expire worthless (or best case they get called if ZN pps over $1 and you still just made 900% profit). Continue to build and lower your ZN costs basis. Its almost unbelievable calls are selling at the ask for 25% and 50% premium as ZN continues to issue 100's of million of new shares. LOL.
Free advise, you are welcome!