lol i'd be sick to my stomach. i trade around 3000 option contracts a month and 80% are nakeds. i rarely ever would touch a small stock like lend but it was just too juicy. i stick with the goog .shld's, and rimms weres there's huge premium, much more safety in if you're a little early you still win and of course tough to be bought out
Don't get crazy, Wayne. I have yet to see a tender offer at a 300% premium. If anyone would even consider touching the contaminated cesspool that is LEND, it would be after letting it fall back to $3.97 first. They're going to need a saviour.
Yeah BL you're probably right. But those big (at least to me) naked call trades scare the shiite outta me. There's some good stories LM tells in his "McMillan On Options" about short call trades that went very wrong. Doesn't happen very often. May never happen at all...
Not that it would happen but if the Feds unexpectedly dropped rates, these subprimes will go through the roof. Even temporarily, naked call sellers will suffer. I'd do a bear put spread though at these prices with about 3-6 months out.
I wish there were a millenium stock-that is a stock that is purpelled to staggering heights by a once in decade revolutionary product or breakthrough...(teleportation machine, mind control, aids cure, etc) a stock that goes from $5 to $520 in a single month and I buy at around $8 and hold on till 400 or something ..yea..dream on
Accredited Home Lenders to Sell $2.7 Billion of Loans (Update1) By Kevin Foley March 16 (Bloomberg) -- http://www.bloomberg.com/apps/news?pid=20601087&sid=aLfC9tg0qyrY&refer=home Accredited Home Lenders Holding Co., a U.S. lender to people with poor credit, agreed to sell $2.7 billion of loans to help repay creditors after mortgage delinquencies surged. The loans will be sold at a ``substantial discount'' to alleviate pressure from margin calls, the San Diego, California- based lender said in a statement distributed by Business Wire today. Accredited didn't say who was buying the loans. The company is exploring strategic options, including raising additional capital, it said. The discounted loan sale will result in a pretax charge of $150 million and Accredited will not file its annual report by today, the company said. U.S. subprime borrowers fell behind on their mortgages at the highest rate in four years during the fourth quarter, the Mortgage Bankers Association said this week, and foreclosures on all types of home loans rose to a record. Yesterday, U.S.-based Bear Stearns Cos., the biggest underwriter of mortgage-backed bonds, said it's shopping for distressed debt, including subprime home loans that have soured. Accredited has determined that changes are required to the amount of goodwill established in its acquisition of Aames Investment Corp. last year, Accredited said.
You're a trader who hates volatility? In that case you should consider a more stable career...maybe something like bomb disposal, or personal bodyguard to Osama bin Laden.
Priceless. This reminds of the Civil War commander who said "They couldn't hit an elephant from this dist..."