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Re: Koufax post# 25

Friday, 05/06/2011 12:22:33 PM

Friday, May 06, 2011 12:22:33 PM

Post# of 1073
SCEI/Shorting RTO's

If a stock is optionable you should consider selling in the money calls, its nearly the same as shorting. For stocks like SCEI (which you expect to become halted) near dated in the moneys are a great choice. Because even if the stock gets halted above your strike price, its unlikely someone will actually exercise, and therefore your basically getting free money once the stock becomes halted. (after all who exercised their CCME 10 calls? not really anyone because they realize it will open much lower than the 11 close)

Disclosure: I've been selling SCEI calls the last week or so.

And yes never give away hard to find shares if possible, its best to hedge you position if your worried about short term catalysts.

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