From the Record, Followup.
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.
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;