CLSN $5 August Call Options

Discussion in 'Options' started by badbyzdmx, Aug 16, 2011.

  1. badbyzdmx

    badbyzdmx Guest


    im currently holding 225 CLSN $5 August call options purchased at 25-35cents a contract, with this performance the past 3 weeks needless to say i am a bit worried about my position. I am new to the options side and i had a question regarding my position

    what are my options at this point, with the option expiring at the end of the week, im not sure what to do. Should i try and sell the options currently valued at approximately $580 from $5500 or hope for it to increase in the next day or two to lessen the damage? or is it too late with the expiration being only 4days away, noone will buy this position from me at this point?

    any advise on the best point of action would be appreciated

  2. Gustaf


    I think you should sell them now. What is the price you can get now? I dont see "bid" for it, only ask 5 cent.

    Br Gustaf
  3. Pray the company gets bought out. But otherwise write it off as a total loss. It happens with options.
  4. I guess you could throw them out there at .05 and see what happens. My guess would be it is going to be a max loss sort of a deal for you tho.
  5. Someone must be promoting the $5.00 calls through a newsletter.

    Low Volume, Share Price and Market Cap - Could be considered a penny stock
    1 Year Trading Range - $2.00 to $4.00
    High Open Interest on the $5.00 Calls
  6. What were thinking when you placed this trade? Its 52 week high was only 4.37. Was there chatter of a buyout or something?
  7. Some quick math: The open interest on the Aug-Jan $5.00 calls is 49,188. Now lets say the average buyer is like the OP and paid $0.30 for them, that works out to $1,475,640 - over one year close to $3,000,000.

    So how does that work? Is someone placing a limit order (good til cancelled) to sell 1000's of $5.00 contracts at $n and then creating a market by promoting the same contracts at $n to unload them?