Where is the downside? I mean everyone knows I am playing the long RSH lotto ticket? Why am I playing long and not short? Options rather than shares?
Well it goes like this. There is only .37ish cents left to gain on the short side. There are potentially $1s that could be made on the long side should someone decide to BUY OUT this what in my opinion is still a valuable RSH infrastructure with very notable revs. A short could potentially get their arse handed to them in a big way losing dollars on a .37ish cent share bet. A long could potentially hit that lotto and move on with more cash like I did before with 300% and 450% gains.
Why options instead of shares? Because it's a seriously risky lotto play. There is very much potential for RSH to restructure the common shares if they have to in order to stay afloat. 2016 .50 call options have traded around a nickel recently and I am in at .07. So it's much cheaper to play and either way it goes I think it will go hard. Like dollars or zero for the current longs. I mean you could also play puts but, they are considerably more expensive. A true option player knows what it feels like to have options expire worthless. But, considering your lotto investment they pay off big time every once in a while.
Yet if I wanted to be short, I would play the puts.
Why would I play RSH puts rather than be short shares? Because at least if you are in the puts and this thing takes off like a rocket, you are protected from losing anything more than your options investment expiring worthless. On the other hand, your .37ish short could potentially cost you more dollars, like busy your whole account and then some. Potentially leaving you indebted should it be halted or announced overnight. And it will if it happens. Margin calls do not happen unless the stock is trading, so BAM!
The RSH lotto long side is the conservative play here. Shorts should be playing overvalued stocks in the 100s. Not a little ole .37ish cent stock.
Think about it. If you're a player get you some. #STUDY Kapeesh?
Just my opinion and best of luck.
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