RE:RE:RE:RE:RE:RE:RE:RE:RE:Get out before it all comes crashing downWhat ? You got this wrong friend. The current premium for the Aug19 puts with a strike at $17.50 is a $1.55. If you own 1,000 shares, it would cost you $1,555.00$+fees for your 10 contracts ( 1,000 options ) which is quite cheap compared to your BV on the shares of ( I suppose ) anywhere between 25,000$ to 50,000$. That would amount to 3%-6% of your share cost, in the range you suggested. I don't know where you get your numbers and you shouldn't say the shares won't drop $8 because everybody has been saying that for the last months and look what your shares are worth now. And yes, if the results are good, your puts's value erodes quickly, which is why you either resell them asap or just let them expire. It's a safeguard and it can definitely end up saving you some losses. But hey, might as well take that 1,555.00$ and buy more shares and average down to 0. Go figure. I'm just saying, anyone who used them before has made money while you lost it.
cavinsin wrote: Yeah right, go hedge your long position with puts, $ 6-8G's for 1k shares, ( 6-8,000 for 10 puts, that is ridiculously expensive, You should newer pay more than 5% of the share price for calls or puts, you are better off either selling your shares or hold and hope for the best, Even in the worse case scenario shares will not drop $8. and if there is turnaround you will, loose your puts value. If you are not sure of what to do, ask someone who can explain to you risk/reward scenario.
I do know few fund managers that are not bailing out, before August 12th. This will turn around and will be explosive, very explosive