Note very knowledgable about options. But I’m thinking these babies are going back to .01, so if its possible to short these calls, I’d look into it. At $0.95 at time of this posting, bumped up over $2.00 after being around $0.01 for a few months yesterday after they announced they’re going to make a crypto currency. All hype, nothing real to back it up. Certainly not before the expiration date which I think is either August or Sept depending on which option.
Aside from that, here’s the main other side of the trade. Guy thinks it can go back up to ~$50. I don’t see that really playing out.
Awe dude, what!!! Kodak Crypto? I’d throw a milli at it for how it sounds alone…lol Shorting a call leaves you naked if you don’t enter in other positions but I’d suggest you do it now opposed to later. Decay will eat into your returns. Are you sure there is enough liquidity for you to enter a sizeable position also?
As I mentioned, I’m not very knowledgable about options trading, but based on avg volume and shit, I’d say its likely you could put in a few grand or a couple tens of k if you wanted, though I’m not sure what it’s like to actually go looking for shorts.
If you really want to do this, you should consider selling a call spread, rather than just a call option. This way, you can only lose the call spread width minus the initial premium, rather than an unlimited upside loss. The stock went up 70% on that one day - you don’t know what else it might do in 8 months.
0.70 and falling fast as people become disillusioned with the idea of some kodak coin, or whatever that crap is, propping up a fundamentally weak and failing business
That said, I have a high conviction that this baby is going into the ground. If anyone wants to buy puts or short calls or whatever I think you’d do well doing it.
Question. If someone had shorted $100 of these calls on jan 11, when they were at 0.95 (now at 0.20), wouldnt they have made (75/95) % profit? Or would it be greater if they shorted the stock, which went from 8.40 to 5.50 today? I don’t really know much about options, they’re my worst part on the exams.
so with $100, you have either 1 call option contract (if everything was divisible, you would have 105 options)or 11 shares or (if divisible, 11.9 shares)
you made .95-.2 = .75 per option. or 105. so you made ~78.75 bucks
had you shorted the shares. you would make 8.4-5.5 or $2.9/share. multiplied by 11.9 so you made roughly ~$35.
We did it reddit. Excuse me, analystforum. $0.06. That’s good enough for me, it’ll probably go to 0.01 or expire worthless, but I think this shows the trade to have been justified. 94% upside over the course of 4 months with minimal pressure to the downside and easily understood reasoning for the trade.