PQ is on the Small Cap list. PQ is trading right at $2. My trading platform shows the IV 30 at ~108 - a huge number. FWIW one can sell $2 puts for $.05 (2.5%) expiration this Friday. If it drops one would own PQ at $1.95. One can then either hold and bet on Dan or sell the July $2 calls. Of course once one is long the stock - the risks are in the share price as always.
I like to do stuff like this with stuff Dan follows as I have confidence that I am betting on a horse that someone I know is following closely.
Bob
PQ Short Put Opportunity
Re: PQ Short Put Opportunity
Selling Puts on companies that are grossly oversold is a good strategy. Just don't get too carried away with it (from the voice of experience).
I only sell Puts on stocks I really want to buy anyway. Selling "in the money" Puts is a good way to buy stocks cheaper.
I only sell Puts on stocks I really want to buy anyway. Selling "in the money" Puts is a good way to buy stocks cheaper.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
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prince_jake_33
- Posts: 242
- Joined: Mon Apr 26, 2010 2:21 pm
Re: PQ Short Put Opportunity
I like selling puts
BEARCATBOB Are there any other puts that you like?
BEARCATBOB Are there any other puts that you like?
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bearcatbob
Re: PQ Short Put Opportunity
I have recently sold June $5 puts on Triangle, TPLM, when it was trading near $5. I also did Oasis $16s when it was down.
AREX and SN at times offer good opportunities. As each is now just below a strike price I would be inclined to buy the shares and sell the OTM calls.
Watch the stocks in Dan' s portfolios and look for opportunities.
If the price for NG and oil strengthen as Dan indicates while these strategies generate cash - nothing beats being long a strongly rising share.
Bob
AREX and SN at times offer good opportunities. As each is now just below a strike price I would be inclined to buy the shares and sell the OTM calls.
Watch the stocks in Dan' s portfolios and look for opportunities.
If the price for NG and oil strengthen as Dan indicates while these strategies generate cash - nothing beats being long a strongly rising share.
Bob
Re: PQ Short Put Opportunity
I have been selling deep in the money puts on several of the Sweet 16 with expiration dates in January 2016 and 2017. There is a small risk of having the stock put to me because of the premium on the Puts. When they get within a few months of the strike date I roll them forward.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
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bearcatbob
Re: PQ Short Put Opportunity
Well gentlemen it looks like something is going on with PQ. My system shows the 90 day volume at ~720,000 shares per day. It shows the last 10 day volume at ~1,075,000 shares per day. This afternoon PQ spiked late in the day and traded ~1,830,000 shares.
My Puts expired worthless for a nice very short term payoff.
Bob
My Puts expired worthless for a nice very short term payoff.
Bob