Comments | the_recession: Idle Speculation... Counterparties, Derivatives, and Hedging.

ytterbius in the_recession

Idle Speculation... Counterparties, Derivatives, and Hedging.

May 13, 2009 22:58

http://americansolareconomy.blogspot.com/2009/05/idle-speculation-counterparties.htmlRead more... )

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peamasii May 14 2009, 15:20:08 UTC

it's not really crashing, just stalling after a bear rally. option buyers always get shafted one way or the other, that's what the hedgies do to protect their equity.

ytterbius May 14 2009, 16:00:11 UTC

Well, my calls crashed. :)

Thankfully I didn't have any for this month; mostly September.

cieldumort May 14 2009, 17:28:38 UTC

When the calls come tumblin down...

peamasii May 15 2009, 07:24:29 UTC

So, you're admitting to being a sucker. ;-)

ytterbius May 15 2009, 07:33:02 UTC

Well, we'll see what happens by September... ok, and a couple in June. LOL!

LDK Solar. I'm a sucker for Solar.

peamasii May 15 2009, 07:36:10 UTC

I've been crushed on LDK, doubled down on it though around 6. Also had sold married calls on it so it wasn't a complete disaster.

I've also added a lot of JASO at ~3 and sold married calls on it.

Long term you can double up on them, but I think you have to hold the common and maybe sell some options for a little hedging.

ytterbius May 22 2009, 07:13:37 UTC

Glad to hear of another LDK... victim? LOL! Actually, I love this company on a fundamental level, and honestly believe that there's a major trade war going on surrounding it, which it is going to win.

Anyway, here's my spiel on earnings: http://americansolareconomy.blogspot.com/2009/05/ldk-solar-q1-conference-call-52109.html

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