Play money bet

[brewer12345]

I just made a short term bet with play money - calls on PPD. This is strictly a short term trading bet and I acknowledge it as such. Anyone else do this sort of thing?

 

[wildcat]

Not yet. I am making a change in the portfolio but it is boring compared to your move.

 

[brewer12345]

Rest assured, if PPD does what I think it will, I will be selling the calls and whittling down my equity position as well.

 

[wildcat]

What kind of premium did you pay on the PPD calls?

 

[brewer12345]

What kind of premium did you pay on the PPD calls?

Couple bucks and change. I bought Feb. 45s, 5 contracts. Since I already own a big slug of the stock, I don't particularly want a lot more money tied to it. But I think they are close to getting their bank deal done and will soon announce a large tender offer (could do up to ~25% of the float), a big special dividend (could do ~$8 a share), or some of each. Considering that almost half of the float is short, it could get real ugly real quick for the shorts.

 

[whitestick]

Did some crazy things like sold puts on AX for Jan 4 contracts, but split them at 2 at 65 and 2 at 60. So far I'm in the money, but theres a long timeline between here and then.