Savvy Trades and Investments

[John Bates]

Wade, What about the GV 2.5 options? Last I checked, the November went for 5 cents and the December 10. If GV were to put on a mini run, the price probably wouldn't change much. You could sell stock and keep option lottery tickets "just in case".

I don't know about right now though. The downside for a GV losing quarter "with excuses" might be about a 30-40 cent drop. Selling 10000 shares would protect $3-4000, but buying say 100 December calls would mean another 1K loss. If the stock went to 3, the Dec options would gain $5K+, although you would miss out on the stock gains of up to $12,500, depending on where you took profits. Maybe it doesn't work out now, but at 2.0 the numbers might make more sense.