Search This Blog

Sunday, October 31, 2010

EDMC trade 3 weeks left

The trade with Education Management Corporation is going well. The call bid time value has fallen over 50% since the call was sold. The company will be announcing their earnings this week. This should create some volatility in the stock. The account noticed that the November $12.50 call has a value of $1.00. This is a bullish sign as the contract will end in three weeks and this strike price is still out of the money.

The stock closed at $12.00. The stock will have to fall 16% from this price to get below the strike price of $10.00.

- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.

- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!

- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.

No comments:

Post a Comment