Welcome To The Mannkind HUB On AGORACOM

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Message: New tack

With this nice little smash, I've begun selling naked puts. Sold the Feb 2014, $5 strike and got .81. With a margin account, you should be able to put up about 50% cash collateral. For example, if you do 20 contracts, that's 2000 x $5 x 50%, which means you need to have $5,000 of cash set aside as collateral (at least initially, that could change, especially if the stock comes down further, but it will never be more than $10,000).

So, you get $1,600 or so on the sale, and you're only coming out of pocket $3,400 to get to the $5,000. A nice return through Feb, and $5 should be RELATIVELY safe through Feb unless we have issues filing, or potential partners bad mouth us (just kidding).

I really think you have to try to take what the market offers. I believe there was media manipulation on the way up, into the results, and now it's time for the shorts to get out with minimal losses or even profits. That's the game we've all signed up for, knowingly or not.

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