Bankrupt and Distressed (BAD) Research and Due Diligence

[pinkyringcapital]

GGP option play update -

If anyone followed Madclown's GGP option play it's getting close to the OCT option expiration. Here was Madclown's original post:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=48827415

Today those OCT 15 strike options Madclown sold for 2.63 back in April are now going for about 88 cents on the ask. They expire in two weeks and you could just let them expire and sell your stock at 15 if you wish. Would be almost a 13% gain for the 6 1/2 month hold.

One option to consider would be to roll those OCT 15s out to JAN 15s. You buy back the OCT 15 calls and simultaneously sell the JAN 15 calls. This should result in a net credit of 60 to 75 cents depending on the execution. Lets be conservative and just use the 60 cents. At your current basis of $13.29 per share an addional 60 cents works out to about 4.5% for an additional 3 month hold. Your new effective basis drops to $12.69 and you are obligated to sell your shares at 15 in January.

Then we will revisit the position again the first week of January to see what we want to do.