Cardinal Energy Ltd (Alberta) T.CJ

700 calls

[shenty46]

I have 650 calls 6.5 strike june 24, 50 calls 6.5 strike sep 24, that is 70000 shares, playing for 13-15 dollar share price within next 6 months, most of the production is unhedged, and we may see crude srpassing earlier highs

[Pottsy]

Shenty46, show us the proof, something is not right.    P

[Quintessential1]

Shenty posts on other boards where he was vouched for by a poster that is beyond reproach so I regard his posts as genuine.  I know next to nothing about options trading so I would be interested in learning more about the contracts with regards to are those dates the experation dates in 2024 or when you bought them in 2023?  What are the premiums on the calls and the commision and at

[JayBanks]

Those 70,000 shares worth of calls likely cost less than $200,000 to acquire. The face value is is $455,000 (70,000 x 6.5) but to buy options as far as I know you need a margin capable account... so at 30% required margin (455,000 x .3 = 136,500) add in your transaction fees and the premiums likely $35-50k... also to make that move you don't need to have the full $200k or less, they were

[JayBanks]

I should have included this on my previous post. He is buying the calls for $1.20ish with the intent to sell out for $6-8ish in his 6 month expectation before they get called to sell out for about $350-400k at a cost to him of about $35-60k... If the price rises to $8.50 (or a little less) he is up money. It's not a bad game to play, you just need to have the backing, understanding and balls

[shenty46]

Where you want the proof to be sent. I never lie about my positions. 

[Pottsy]

My apologies Shenty46, Q1 my buddy has verified. Be safe.   P

[Quintessential1]

Thanks all for the info.   Do the calls have to be excercised on the expiry date or can they exercised before? Can he resell the calls? (I think JayB said he could and probably wanted to rather than exercise them) GLTA and TIA

[JayBanks]

If you own the call you can exercise at anytime... and also decline on expiry (apparently with a broker call)... I believe the main reason you would exersize your call early (rationally) is for dividend collections, it would likely have to be a significant one like a special .. or yes, maybe turning around and using your new holdings for selling call options... or a rights offering, or a

[Quintessential1]

Thanks Jay and that is good info about when you might want to excercise early. I think it is european calls that have to wait until expiry and I might have gotten confused about. I can see that if Shenty's CJ calls  went in the money in October Shenty might want to exercise them gaining 3/4% per month on his money (more than a GIC) but can I assume that as the share price goes up the

[JayBanks]

  I would assume he would hold the calls while it has continued momentum upwards, after it plateaus it would be decision time... either take possession and sell calls for premium or as you said take the profit selling into the open market be it just the options held or the shares and look for a new opportunity... (since he is playing this game with confidence I can't see him taking

[Quintessential1]

Yeah I'd like to understand more too if only for the learning experience. I know he posted about being able to buy a condo mortgage free with proceeds from Peyto calls which even in a low real estate market is not pocket change so yeah, he is playing a big game. He doesn't seem too interested in responding to us but maybe teaching isn't his thing.  That's cool too. GLTY and

[VeritasVern]

The June 24 6.5 calls have a bid of 1.27 ask 1.37 The Sept 24 6.5 calls have a bid of 1.27 ask 1.45 A relatively small premium to the current price and depends on what shenty got in at. If the price of oil rises above $100 there is potentially a lot of profit to be made. Not sure why you would have option that far out though? In the short term Oct - Dec there is the thought that demand