IPLY Q1 "earnings" and FOOL
- Thread starter Odin
- Start date
Capelworth
First time out of the vault
I know. I just edited my post to be more clear that I was talking about the FOOL plan and its creator, not about Exitium. 
Capelworth
First time out of the vault
I should also clarify that bit about the long and short hedge.
If you can buy calls, they must be dirt cheap right now. If you are able to sell short and let your broker float the shares until Interplay either sinks or swims, you could continue to hold your original long position, sell short, and pick up calls at nearly no cost. That way, if Interplay goes under, you throw away your calls and send your worthless shares back to the broker, walking away with a couple of cents per share. If Interplay manages to obtain funding that will allow them to exist for at least a while longer, the price will shoot up and you can exercise your calls to send shares back to your broker at a profit as well as dump your original shares at the new, higher price.
You would need a margin account with your broker and be able to find calls at between maybe $.03 and $.06 a couple of months out. The fees involved would also make it unattractive unless you have a substantial investment, but it might be worth a look.
If you can buy calls, they must be dirt cheap right now. If you are able to sell short and let your broker float the shares until Interplay either sinks or swims, you could continue to hold your original long position, sell short, and pick up calls at nearly no cost. That way, if Interplay goes under, you throw away your calls and send your worthless shares back to the broker, walking away with a couple of cents per share. If Interplay manages to obtain funding that will allow them to exist for at least a while longer, the price will shoot up and you can exercise your calls to send shares back to your broker at a profit as well as dump your original shares at the new, higher price.
You would need a margin account with your broker and be able to find calls at between maybe $.03 and $.06 a couple of months out. The fees involved would also make it unattractive unless you have a substantial investment, but it might be worth a look.
orionquest
First time out of the vault
Capelworth, No company that is not listed on the big boards and is not clear above 2 dollars can trade options.
AMR still traded their $2.5 options when they sank to $1 but if they'd stayed there then the $2.5 options are gonners since they already existed before the company sank.
If you had a $3 Nasdaq stock, then most likely it would have options if it were a big cap. Small caps can forget it.
$2.5 is the lowest that an option has been priced at. Since IPLY is 2.5 cents, buying the stock outright is like buying options for 1%
the price. Unfortunately, with a FOOL running the ship, you're most likely sinking your money.
AMR still traded their $2.5 options when they sank to $1 but if they'd stayed there then the $2.5 options are gonners since they already existed before the company sank.
If you had a $3 Nasdaq stock, then most likely it would have options if it were a big cap. Small caps can forget it.
$2.5 is the lowest that an option has been priced at. Since IPLY is 2.5 cents, buying the stock outright is like buying options for 1%
the price. Unfortunately, with a FOOL running the ship, you're most likely sinking your money.
Briosafreak
Lived Through the Heat Death
Orion please tell Frymunchan that Exalted was put to rest over a month ago, Herve "forgot" to tell the investors that, as usual.
Briosafreak said:
I think it was implied by the whole "all the developers resigned" thingamajig
Briosafreak
Lived Through the Heat Death
I know that, we know that, but this still may come as news to Fry, so he better hear about it this way, as "it was suspended over a month ago", wich is actually true. Both Exalted and FOBOS2 were put to rest by that time, in order to make Dark Alliance, wich of course is now "suspended" too. Good grief, what a mess.