Sirius stock price vs Call Options

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11-22-2008, 03:26 AM
sxminvestor

Sirius stock price vs Call Options

Can Sirius presently trading at .14 drop as far as their call options of .05 ?

I remember I was thinking at .50 cents, it might be less risky to buy Jan '10 - .05 call options.

So buying Sirius near .10 cents would be like buying call options that only expire if they go bankrupt. Maybe worth a shot on 100,000 shares at .09 cents.

I think I'll put a bid in there - just another 5K they I might risk, but if it holds off bankruptcy and ever hits $1 again - 100K back in my pocket.

Not sure if I have the balls or want anymore pain with this stock though.
11-22-2008, 01:35 PM
Siriusowner

If you buy 100000 shares you will risk $14,000 USD. If the price of the stock goes up 5 cents you make $5000 if it goes down 5 cents you loose $5000.

If you buy 1000 call contracts controlling 100000 shares you risk the premium which is $1000*.05 = $50. If the call option goes up 5 cents, how much did you just make ? NO, not $50, nor $500 BUT $5000 USD !!! If the call expires worthless then you loose... $50 USD !!! only.

So, what would you rather do ?
11-22-2008, 01:50 PM
winagain35

1000 Call contracts at .05 would cost you $5,000... not $50.
Each contract costs $5 bucks. Not to mention most brokerage firms charge .75 per contract which is another 750 bucks in commissions.
11-22-2008, 03:17 PM
sxminvestor

My math was wrong - obviously 100,000 shares at .09 is 9k.

Basically Sirius has become a call option that will only expire if it expires.
11-23-2008, 12:01 PM
Siriusowner

Quote:

Originally Posted by sxminvestor

My math was wrong - obviously 100,000 shares at .09 is 9k.

Basically Sirius has become a call option that will only expire if it expires.

You were right. My math was wrong too. 1000 contracts = 100000 shares * .05 = 5000 and not 50. BUT either way you risk 5000 or 14000 and either prospect is not good.
11-24-2008, 01:17 PM
Demian

Quote:

Originally Posted by Siriusowner

You were right. My math was wrong too. 1000 contracts = 100000 shares * .05 = 5000 and not 50. BUT either way you risk 5000 or 14000 and either prospect is not good.

People will have to make up their own minds if the prospect is good or not. Just because Siriusowner says that the prospect is "not good", doesn't make it so.....
11-24-2008, 03:27 PM
Siriusowner

Quote:

Originally Posted by Demian

People will have to make up their own minds if the prospect is good or not. Just because Siriusowner says that the prospect is "not good", doesn't make it so.....

...And now we will have a NEW definition of a good investment.
11-24-2008, 04:05 PM
Demian

Quote:

Originally Posted by Siriusowner

...And now we will have a NEW definition of a good investment.

What you are talking about?

Past performance is not indicative of future performance....

The definition of "unknown" is "not known"......
11-24-2008, 05:03 PM
Siriusowner

Quote:

Originally Posted by Demian

What you are talking about?

Past performance is not indicative of future performance....

The definition of "unknown" is "not known"......

You got me lost there... So are you saying you do not know ?

Ok. Here it is then:

The most basic rule to follow when making an investment is that a good investment makes you more money than you had when you started and doesn't take up more time than you're willing to put into the endeavor.

Has Sirius made money to anybody ?
11-24-2008, 05:46 PM
Demian

Quote:

Originally Posted by Siriusowner

You got me lost there... So are you saying you do not know ?

Ok. Here it is then:

The most basic rule to follow when making an investment is that a good investment makes you more money than you had when you started and doesn't take up more time than you're willing to put into the endeavor.

Has Sirius made money to anybody ?

Past performance is not indicative of future performance......

un⋅known [uhn-nohn]
–adjective
1. not known; not within the range of one's knowledge, experience, or understanding; strange; unfamiliar.
2. not discovered, explored, identified, or ascertained: the unknown parts of Antarctica.
3. not widely known; not famous; obscure: an unknown writer.
–noun
4. a thing, influence, area, factor, or person that is unknown: the many unknowns in modern medicine; The director cast an unknown in the leading role.
5. Mathematics. a symbol representing an unknown quantity: in algebra, analysis, etc., frequently represented by a letter from the last part of the alphabet, as x, y, or z.

http://dictionary.reference.com/browse/unknown
11-24-2008, 06:25 PM
Siriusowner

Quote:

Originally Posted by Demian

Past performance is not indicative of future performance......

un⋅known [uhn-nohn]
�adjective
1. not known; not within the range of one's knowledge, experience, or understanding; strange; unfamiliar.
2. not discovered, explored, identified, or ascertained: the unknown parts of Antarctica.
3. not widely known; not famous; obscure: an unknown writer.
�noun
4. a thing, influence, area, factor, or person that is unknown: the many unknowns in modern medicine; The director cast an unknown in the leading role.
5. Mathematics. a symbol representing an unknown quantity: in algebra, analysis, etc., frequently represented by a letter from the last part of the alphabet, as x, y, or z.

http://dictionary.reference.com/browse/unknown

This has nothing to do with my question above.

Has Sirius made money to anybody ?
11-24-2008, 06:43 PM
Demian

I gave you the definition of "unknown" and you said you were "lost" so I gave you a more expanded definition...

Quote:

Originally Posted by Demian
The definition of "unknown" is "not known"......

Quote:

Originally Posted by Siriusowner
You got me lost there... So are you saying you do not know ?

You never answered my original question....

Quote:

Originally Posted by Siriusowner
...And now we will have a NEW definition of a good investment.

Quote:

Originally Posted by Demian
What you are talking about?
11-24-2008, 06:46 PM
Demian

Quote:

Originally Posted by Siriusowner

Has Sirius made money to anybody ?

It was probably an illusion, because it is a scientific impossibility to turn money into a human being or a human being into money...

If you are asking if the stock has made anyone any money, I guess people that bought SIRI @ .14 on friday are now up over 14%......
11-24-2008, 07:17 PM
Siriusowner

Quote:

Originally Posted by Demian

It was probably an illusion, because it is a scientific impossibility to turn money into a human being or a human being into money...

If you are asking if the stock has made anyone any money, I guess people that bought SIRI @ .14 on friday are now up over 14%......

This does not need my answer...
11-24-2008, 07:24 PM
Demian

Quote:

Originally Posted by Siriusowner

...And now we will have a NEW definition of a good investment.

Quote:

Originally Posted by Demian
What you are talking about?

What about this question?

I would say being up 14% in one day would be a good investment so far.....
11-24-2008, 09:15 PM
Siriusowner

Quote:

Originally Posted by Demian

What about this question?

I would say being up 14% in one day would be a good investment so far.....

Point taken.