The move upward was too good to pass up. Will wait for a pull back, and definately re-enter. Waiting for 88-89 (or the 10SMA) for the initial re-entry.
I like today’s BID announcement. One of my grips with Management was their lack of partnering with the Banks, but that was squashed today.
The move on my part was purely technical. (Still think estimates are far too low, but most of that should be realized soon, or the next q as the new pricing and BIDs take effect.) Will look to start playing the March 08 90 Calls. (If the move happens before Nov 2nd, I will still enter so I am keeping NYX up on my portfolio.)
question I have 1000 shares of nyx I like the stock even though it may be stuck here why not sell the 80 calls and collect the 14.35 premium am I missing something???
depends on what ur objective for the 80calls. 1. sell at 94.35 or 2. trade around the shares via the call position.
your basically selling it at 94.35 (give or take depending on what the actual call value is). u have to assume the calls will be exersised selling deep in the money calls, but will give u nice protection. If ur a good trader and plan on trading this, you can close the calls when nyx experienced its pull back. potentially being fully protected and gaining the value of time decay as nyx become less volatile (as per ur thesis of it being stuck here).
if ur not a good trader or don’t look at the computer too often to observe the pullback, this stragety may be better, especially as I am a believer in the fundamentals here, and believe it is ultimately going higher. (I do not expect to see 80 in the near future.) selling the 95 nov calls, collect the premium (hoping they expire worthless, as I would like to hold on to my shares). if not, i would not mind selling at 95, on top of the income collected from selling the calls. (this will not give you potentially full protection as selling the 80s, but if ur a long-term holder making sure u still have ur shares is all that matters… the extra income is nice.)
it all depends on what u want, and what ur able to stomach.