Discussion in 'Options' started by highstake, Nov 13, 2008.
OVOMZ - bid 1.8, close 1.85
is it predicting ALD going belly up ?
wow, last time I looked at ALD, it was in 20s
looked at it as dividend play of 10% back then
now, dividend yield is 72%
hate to see it and its investors having pain
That's not as high a premium as GM puts are bringing - $180 for an Jan 2010 2.5 strike!
Certainly that is a high IV just like many other stocks have right now obviously because of fears of the worst possibly scenario happening, whether it be GM, or ALD or whatever.
Honestly, I don't know anything about ALD, but with a yield like that currently based on previous dividends and current stock price, I would have to assume the dividend is at serious risk.
I did sell a few on the GM just to pump up one of my paper trade accounts on TOS, but I don't know about putting money on these guys.... nothings free is the market.
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