devoish (98.78)

From the Record, Followup.

March 11, 2009 – Comments (1) | RELATED TICKERS: SKF

A few days ago I wrote this post showing the four day results of SKF which had risen 41% against the S&P since an overwhelming majority of Allstars said not to greenthumb it.

http://caps.fool.com/Blogs/ViewPost.aspx?bpid=158192&t=01007615714290218050 

I agreed with them in CAPS life and red thumbed it on 3/2/09 at $194. From the post above you can see that in the next  four days it climbed 36% to $265.31 on 3/6 while the S&P dropped 5%. total lost points 41.

This morning 3/11/09 I closed it out at $171.99 for a CAPS gain of 13.73 points.

That is two swings in excess of 30% in the space of nine days. Congratulations! Everybody wins.

So I have a question. What is the strategy behind people buying March 20 call options with strike prices over $250.00?

I can almost see the sense of the thousands of March 20 calls from $190 -250 being bought for prices that will cost you at least $200. But those other people? Some of them are paying good money, even if it is not a lot, expecting this ultra to double in nine days.

Unless they know C or someone is going under this weekend, what are they thinking?

Note to player Adventure818;

Hi Sis.