Mer 50 Strike Leap 2010

Discussion in 'Options' started by ksonsinc, Jun 30, 2008.

  1. Hi there ]
    Can some one give me an oponion on this option i bought
    this is my 1st time trading option and i think it was a great deal but seem like my portfolio has already gone down -%50

    I bought MER 3 contract Strike 50 Leap 2010
    Bought it at $3.00 it is now trading at $1.99
    I also tried to look up at Merril Earning they are supposed to report earning this month but cant find the exact date
  2. oh boy..

    i hope you're wearing a fireproof suit because you're about to be grilled alive.
  3. What if meril give a surprise outlook at the earning
    All the short will be shorted up their ASS
  4. MTE


    Sounds like you are desperate and asking for a confirmation that it was a good trade.

    Btw, from 3 down to 1.99 is 33% not 50%!
  5. 1) Everything about this trade stinks.
    2) You bought a far-out-of-the-money, long-dated, call option in a downtrending stock. Of course it's going to be a big loser.
    3) 3 contracts does not constitute a "portfolio".
    4) Get out of it with a loss or be willing to "nurse" it for the next ~18 months. MER may stage a comeback in that time.
    5) Consider short-selling shorter-dated, $50-calls against your position as a way of collecting some premium to offset your current loss.
  6. well does any one know when is Merril Lynch Earning
    I Know it is this month but cant find exactly when
  7. Have you gone to :D
  8. Out of all the brokers out there MER is one of the worst to speculate on since not only is it in similar shape to LEH but it hasnt fallen nearly as much as Lehman has, so it has more potential for drops. However, I like you have speculated on 2010 Leaps except that I wasnt sure which companies will survive so I just got some on the XLF last monday a strike of 21. Already I lost 35%, so I am not that optimistic in the near term, (good thing I got time for something to pan out). I dont know what your portfolio is like, but my 5 calls represented less than 1% of my total long term portfolio so am comfortable with the high risk/high reward nature of the trade. I do believe that compared to this month we will see better days sometime in the next 18 months so just keep holding if you can afford a total loss.
  9. Well i do understand the situtation but i think the worst has already come
    And no one can pick a bottom or a top
    Mer on the the other hads has 500 days somehting for it before it expires
    The XLF you bought at 21$ when does the option expire
  10. Oh my options expire 2010 too same as the original poster.

    Also with MER you have to worry about a possible bankruptcy by 2010 whereas with XLF thats a way more remote possibility if it is even possible.
    #10     Jul 4, 2008