RE:RE:RE:RE:RE:RE:RE:RE:700 callsYeah 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 all
JayBanks wrote:
Quintessential1 wrote: 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 calls trading value also rises and may be worth more selling on the open market?
GLTY and all
JayBanks wrote: 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 significant vote like a M&A...
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 possession to stay long and just collect the dividend like many of us would)
I'm fairly new to options, so hopefully he can tell us the actual game plan, I would like to understand more myself if I'm missing something... everything I'm talking about is from studying/reading basic ideas and strategies... if he's playing that big of a game he's got more experiance and likely a more sophisticated plan.