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4 points   posted on 03/24/07
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Picconnor
75%
+8.89%
 risk: aggressive

SPIL is making its move while ONNN takes a break!!! What should I do?


What do I do with my options for SPIL? I have 118 contracts for April at the 10 Strike price. This is my first options play. If I exercise the and buy the stock do I need all that money to cover the purchase? Should I just sell the option instead? I need a strategy...

Updated:
i am out at .80!!! Today spil opened up pretty big. 118 contracts at .36 originally. Wow options are nerve racking but profitable...

  Related to:  
SPIL Siliconware Precision Industries Company Ltd.


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Cas   85%     2 points   commented 975 days ago reply

There are many different approaches you can take. With the stock making new highs you probably have a profit and want to hang on to it. The stock continues to trend up which is good but the option is currently 0.40x0.50 with only 0.06 of intrinsic value so the majority of the value you have now is time premium which will fade to zero over the next 4 weeks if the SPIL price doesn't rise. If you can afford it, you can exercise your calls and take delivery of 11,800 shares of SPIL but you lose the premium you have and take a huge concentrated stock position (unless your portfolio is millions of $). Another option is to swap the Apr 10s for something further out in time and deep in the money as an alternative to taking possession of the stock (like a Jun 5). I would not recommend holding the Apr 10s but that's just me and my desire to avoid extreme risk. Since you bought these way out of the money, your risk appetite may be quite different. GL.


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