Hello Guys,
I am going to write a Put or two on CALL today and wanted the opinion of anyone who cares to share, what they think CALL’s price will be in September. I am picking Sept in order to give their marketing plan a time to percolate, viz., 10,000 new outlets to keep churn of the device down (or perhaps improve sales) and, their rollout of the new and improved device as well as a modified app and new marketing plan to upsell international call plans to free app subscribers.
September premiums are pretty good (3.6% return per month…did I say pretty good?) but this hinges on what we think the price will be in September. Since Black Scholes probably knows more than me, I thought I would reality check my plan with some stock pros.
ONLY THREE SCENARIOS:
If it goes higher than $22.50, I’ll have lowered my cost basis by $4.50 per share and I will profit on the shares I already own.
If it stays the same or sags lower, I can either buy more depending upon the integrity of the thesis between now and September, or, roll my put out, up or down, etc.
So best guesses are valuable here, but NOT to offload my responsibility for a decision but to help your buddy crystallize his plan.
Any body?
Mykie
PS not necessarily looking for option advice here but rather, best guesses on CALL’s marketing plan rollout and hence, the price in September.