Other than margin considerations, there's no significant difference b/t the natural and the synthetic (ignoring the obvious of slippage and commissions). ITM write (CC) gives more downside protection, less upside gain. OTM write gives more upside protection, less downside gain. Doing one of each just blends the risk profiles.
You should be dubbed the King of DRYS Strategies Beware of leverage when dealing with equities or equivalents. It's a double edged sword.
I don't understand why you'd mention the CEO's position as acting in your favour, if the value of the stock according to your own analyses is not tied to the CEO's acting but to the demand for oil. Neither you nor the CEO have any control over oil prices so the CEO's position shouldn't be a factor of consideration.
Just about every CEO has skin in the game via a high salary, preferred shares, stock options, etc. Not that my memory is that good (g) but I can't ever remember a year or so (08 to 09) when so many stocks were delisted from option trading due to bankruptcy of crashing to under $5. Every one of their CEO's lost their skin so that's no perrequisite for success.
Right. He paid I think a quarter or so for that put/call combo, so if DRYS is at 7.50 at expiration, he loses whatever he paid for the combo.
DryShips has signed an agreement with Commerzbank and West LB on waiver terms for $70M of its outstanding debt. This agreement is subject to customary documentation
I just thought DRYS is taking an unique position by moving into drill ships at the time they did. I feel GE will look like a genius is this gamble pays off.