Originally Posted by
Siriusowner
I agree. Buying just because this issue is cheap is not being analytical.
But hey, anyone can do whatever. I just lost $150.00 USD on this deal because I got assigned ten Jan 2010 $2.5 put contracts. If I had bought the shares at $2.50, I would have lost $2,500, instead I sold the contracts @ $2.35 and made $2,350. Now I am the proud owner of 1000 shares of SIRI with a cost of $2.50-$2.35 = $0.15 cents plus comissions!. I honestly though at the begining of the year this issue was going to do better and I was bullish on it but evidently I was wrong, like y'all BUT I did not risk $2,500 on it!!!. I could have made $2,350.00 though...and still can, my $150.00 loss is basically a paper loss because I have the shares...unless they declare BK.... And you know what ? At the end of the year I can declare the $2,500 loss if I need to. My "profit" was in the contract and that is treated differently by the IRS than capital gains from stock.
That was a bad analysis on my part but do you see the difference between a calculated risk and reckless optimism ?