Comments on: USEG files its 10-K http://shadowstocks.com/194-useg-files-its-10-k Investing, with a focus on small stocks Wed, 15 Feb 2012 07:50:37 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Dave Pinsen http://shadowstocks.com/194-useg-files-its-10-k/comment-page-1#comment-54 Dave Pinsen Wed, 17 Mar 2010 06:56:50 +0000 http://shadowstocks.com/?p=194#comment-54 Thanks for sharing the idea, Paul. Thanks for sharing the idea, Paul.

]]> By: Stockdoc9999 http://shadowstocks.com/194-useg-files-its-10-k/comment-page-1#comment-53 Stockdoc9999 Tue, 16 Mar 2010 18:43:04 +0000 http://shadowstocks.com/?p=194#comment-53 Dave, <br><br>Since you like USEG and think the options are pricey...<br><br>Consider buying shares at this morning's $6.24 and selling the Aug. $7.5 calls for $0.60 /share and the Aug. $5 puts for $0.50 /share.<br><br>The net out-of-pocket cost will be $5.14 /share (+ commissions) and the static return would be a gain of $1.10 /share (less commissions) or > 20% for just over 5 months on a stock that did not need to move up.<br><br>If USEG reaches $7.50 by Aug. 20th you would sell for $7.50 - the $5.14 net cost = $2.36 /share profit on a cash outlay of $5.14 = > 45% .<br><br>In a worst case (where you would be put on more shares) you'd get more shares at $4.50 or $1.74 below this morning's opening price. You'd also have offset fifty cents of the loss from the shares you're holding via the call premium received. Dave,

Since you like USEG and think the options are pricey…

Consider buying shares at this morning's $6.24 and selling the Aug. $7.5 calls for $0.60 /share and the Aug. $5 puts for $0.50 /share.

The net out-of-pocket cost will be $5.14 /share (+ commissions) and the static return would be a gain of $1.10 /share (less commissions) or > 20% for just over 5 months on a stock that did not need to move up.

If USEG reaches $7.50 by Aug. 20th you would sell for $7.50 – the $5.14 net cost = $2.36 /share profit on a cash outlay of $5.14 = > 45% .

In a worst case (where you would be put on more shares) you'd get more shares at $4.50 or $1.74 below this morning's opening price. You'd also have offset fifty cents of the loss from the shares you're holding via the call premium received.

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