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  3. Nick, I think you can safely assume that almost everyone on this board had investments in stocks, commodities or real estate and they have all been impacted by the shutdown. i hope you can recover soon. Best
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  6. Djtux

    Put Options - Chapter 11 Bankruptcy

    I see bid ask 0.30 / 0.40. Why not just try to close at mid 0.35 and move on ?
  7. mkingsley

    Put Options - Chapter 11 Bankruptcy

    I guess I should of sold, since its now OTM again and back down to $.30 Oh well, live and learn I guess. Hopefully this helps others understand with a real world situation. If anyone has any opinions of what I should do (wait for stock to keep dropping|sell the puts), I'm all ears. Thanks in advance.
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  9. TrustyJules

    Put Options - Chapter 11 Bankruptcy

    I amused myself looking up that LFIN story last night. Apart from the options debacle the whole thing is like the South Sea Bubble all over again. What is even more incredible are the interviews with the CEO both prior to this particular venture, during the LFIN high tide and its collapse. I have rarely heard a more incoherent rambling dude than this Venkata Srinivas Meenavalli, he had another failed business venture before where he lied through his teeth about everything and then just to show how inept the rest of us are he manages to launch a company that basically has nothing in it on the stockmarket which achieves a 6B$ valuation in a few weeks or months. Here we are on SO busting our chops to net 300$ on a hedged straddle and this numpty is able to buy off prosecution and from what my count is get away with 20M$ more or less he siphoned off the poor dudes that bought his paper. As @Djtux points out even the put buyers were left with massive losses (they were unable to exercise their puts) eventhough the company went bankrupt. What a total disaster.
  10. mkingsley

    Put Options - Chapter 11 Bankruptcy

    Good Morning. Thanks to everyone for the replies. I am letting this play out because I want to see what happens over the course of this week. As mentioned, the stock did drop yesterday, not to $0, but to $.60. The put options that I bought now have a bid of $.50. My assumption was incorrect in that I thought I would get maximum profit. I'm ITM, but not as much value as I initially thought. It's interesting to note that in premarket this morning, HTZ stock is trading up 50% at $.86 a share.
  11. DrMay1987

    Forex Robot / EA suggestion

    There's a bot for 2020?
  12. Yowster

    Put Options - Chapter 11 Bankruptcy

    I see HTZ started trading again and current stock price is around $0.70, so @mkingsley Jun19 1 strike are worth $0.45 now. Rather than going through assignment, probably best to sell the puts and enjoy a nice dinner compliments of HTZ. I'm sure it won't get close to zero by Jun19 expiration, as its range was $0.40 to $1.47 today
  13. Djtux

    Put Options - Chapter 11 Bankruptcy

    If it's me, i would try to work my order to close the position slowly. It's not worth the trouble of exercising and being short a stock that might be delisted, and hence you are at the mercy of your broker being able to find stocks to borrow and you might pay exorbitant rates. You can search recently the LFIN options fiasco, but i'm sure there are other examples. https://www.barrons.com/articles/getting-caught-short-1523065469 http://archive.is/hvNTB In my opinion, mot worth the effort or the risks for just 3 contracts. Try to salvage what you can and move on (not sure which broker you use, but you need to take into account the commissions + exercice fees, and the other costs).
  14. For the 'return matrix' heatmap, it's the option A. At the entry date, the exact options are selected (the expiries and strikes). I look at the price of those options at the entry day, and recheck the prices at the exit dates. So it's not like in the RV chart where each day the strikes reset. In the heatmap, when you look at a row, it's always the same option(s). You can check that by looking at the 'individual cycles', and hovering on a cell to see the expiry and strike selected.
  15. mkingsley

    Put Options - Chapter 11 Bankruptcy

    Thanks again...Looks like its halted for now, so I can't do anything.
  16. TrustyJules

    Put Options - Chapter 11 Bankruptcy

    You will find that trading the options will be hard and the spread could be big. Hence the advice to go the route of exercising. Your other questions are either impossible to answer (could the price go lower - I mean yeah it might but usually those stocks keep trading in the nickel and dime range) - the expiry doesnt make a difference. The company will issue new shares, the options relate to the old shares.
  17. mkingsley

    Put Options - Chapter 11 Bankruptcy

    Thanks for the reply. I am still confused and still have those questions above, but I'll post back as I watch the price this morning and also post what happens to the premium price, just for some notes for anyone this may help. It's an interesting situation that I've never been a party to, so it's a learning process and hopefully it helps others.
  18. TrustyJules

    Put Options - Chapter 11 Bankruptcy

    The options exchange guarantees the delivery. You stand to make the maximum which is not 100% simply the difference between the OTC price and the 1$ strike. You will buy at 5c or 10c - exercise the option at 1$ and come out ahead whatever is left over minus your premium paid. Seems like a good deal.
  19. Thats for @Djtux to answer - the return tables for the call/put options were already in existence when I came up with my call ratio idea. I used them and he kindly integrated the substraction in the combined table. I havent thought to ask how the return of the option is arrived at before - I just used the data.
  20. Good Morning Everyone: I am relatively new to stock options, and have an interesting situation. Last week, I purchase a put option on Hertz stock. I purchase 3 contracts for .18 with a strike price of $1, expiring on 19 JUN 20. They just declared bankruptcy (chapter 11) on Friday. I am a little confused what will happen now and what I should do. I have never watched closely what happens to the stock price based upon a filing of chapter 11, but in looking at some recent examples, JCP for example, is now trading on the OTC for $.18. Am I to assume that HTZ stock will be switched over to the OTC, and not go down to $0, but trade at 10-20 cents? I had read this on another site when researching this: If you own put options on stocks of a company that has just declared or filed for bankruptcy, you are in for your maximum potential reward. Whoever sold you that right to sell shares of that company at that higher price is obliged to fulfill that obligation, so your profit is guaranteed. A few questions I have, that maybe others might find useful in getting answered for the future if they are also in this situation: How would I get the maximum profit if the stock still trades at $0.10 - $0.20 on the OTC? Is it better to trade it now, or wait until the price drops even more? I had a strong hunch that this was going to happen and be announced over this weekend....would it of been more profitable to buy options closer to expiring...29 May 20 vs the 19 JUN 20? Thanks in advance for shedding light on how Bankruptcy affects options. -Michael
  21. That's oke, sorry if I wasn't clear, but do you know the answer to my question, about what exactly does the heatmap shows ?
  22. Sorry you confused me - there is a separate screen for the long call options. Return matrix and choose long call.
  23. Then the next step would be to combine the heatmaps of the long and short option to a ratio heatmap. So if I'm understand you correctly the ratio heatmap is calculated in this way: Exit value = ( Long exit price * Long number of contract ) – ( Short exit price * Short number of contracts ) Long exit price = Long entry price + Long PL – RV decline on extrinsic value long option Short exit price = Short entry price + Short PL – RV decline on extrinsic value short option
  24. Thx @TrustyJulesfor your quick answer. This is even more than I was asking for. My intention was to build up the questioning. Above question focussen on a single long call position.I really would like to know how this is calculated (I still think the answer might be A or B). And I consider this a need to know before I can really understand the ratio heatmap. Basicly I'm asking is the heatmap a reflection of just the changing IV ( answer B ) or does it include changing IV and price movement of the underlying ( answer A )
  25. I am thinking the answer is neither. Take into account we have 4 variables that we take into account over the period Entry to Exit: price of options change in option price based on historical returns change of stock price decline of RV The ratio is composed of 2 options - a short and a long position. By convention the ratio is calculated on a zero cost basis otherwise the return calculations get too complex due to variable remainder from the division. So the historic increase of each option short and long is factored in for every entry and exit date - this should include IV changes and stock price changes. We then deduct historic RV decline on the extrinsic values to ensure that we factor this component in as it affects our position in a negative sense. Start value=0 End value =((long option price+long option price increase) - RV decline on extrinsic value of long option)-((short option price+short option price increase) - RV decline on extrinsic value of short option)
  26. Hello @Djtux , I have been reading a lot in the ratio spread threats from @TrustyJules and the posts about the VolHQ ratio spread analyser. But I didn't find the answer for this question.I might be obvious, but I thing it's really important to get this right. The 'Return Matrix' offers the PL matrix of call with a specific delta. My question is ; how is the PL calculated ? Is this A. Buy the option with the selected delta on the entry day. En sell THE SAME option after the historical stock move on the exit day B. Compare the price off the option with the selected delta on the entry day with the price of an option with the same selected delta (so this might be another strike) on the exit day.
  27. Nicholas40v

    Coronavirus and its Impact on the Markets

    because of the pandemic I lost all my investments in one business project! and did you have any investments in anything before the virus appeared?
  28. Yes, I am subscriber Bl****ker. You have answered my questions with your response thank you. I'll keep exploring...
  29. Tamas

    Welcome to Steady Momentum

    @Kim, @Jesse What do you think about the "hold the strike" concept (Reel Ken's strategy)? Maybe the drawdown is larger? Maybe only stronger bull market performs fine and in the bear market will be underperfoms the ATM put writing strategy? On the other hand we could get more upward intrinsic value and we could regain a lot of dollars in intrinsic. What is your opinion about it?
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