...the ask on 5.00 calls for august is .05 cents.....let me just run through this logically, because this looks a bit ridiculous. Logic says that, were I to bid on this call, it would cost me 5 dollars to purchase the right to buy 100 shares of nfi at 5.00 a share. Now, nfi closed at 6.23. What is stopping me from exercising these options today, and then selling the shares for 6.23 each? I had to write this out because it just looks impossible, arbitrage spread is too extreme.
The reason the option chain looks different is because you have options that are pre split(they have a j) and options that are post split(they have a f). Buy the options with a f, alot more bang for the buck. Pure manipulation of the tape by the mm today and all week. Watching the tape all week shows that the hedge funds have been making their exits as well as the execs of the bankrupt co. You dont have a up day on normal market order flow when you post a loss of $5.87 a share and your stock pps is 5.53!!! Unfortunately there is alot of dumb newbie herd traders that bought into this stock at $30 and above that they knew they culd bait into buying, with the hopes of a recovery. Not a chance. With only 80m in cash reserves left and margin call of 76.5m in July alone. The next margin call does them in. Conference Call monday. I wouldn't be suprised if they announcement bankruptcy at that very time.
that makes a lot of sense, sometimes you just don't know if you are seeing a ditch or an opportunity, thanks a lot man