Delta bankruptcy claim stock

[Benjamin Dover]

I heard around 10% of Delta pilots took the stock rather than pre-selling their shares of the "new" Delta post bk stock back then. Anyone know how they are doing now at today's share price vs. those that sold at a discounted rate back then?

 

[swaflyguy]

I bought 5k shares after bankruptcy at 7.83. Still have it. Should continue a run up through January then I'll re evaluate. Thanks Delta.

 

[jonjuan]

I bought 5k shares after bankruptcy at 7.83. Still have it. Should continue a run up through January then I'll re evaluate. Thanks Delta.

Sure ya did.

 

[swaflyguy]

Your right,I was mistaken.. Actually 7.86 on 7/26/11 at 09:57:37. I do a lot of trading. Just for good measure also bought 2k 1.60 Jan 14 25$ calls the day before earnings a couple of weeks ago. 3.42 at close today.. Made 7 trades today. It's not that hard.

 

[SIG600]

Congrats, you can buy a new Audi. Enjoy retirement.

 

[Andy]

Your right,I was mistaken.. Actually 7.86 on 7/26/11 at 09:57:37. I do a lot of trading. Just for good measure also bought 2k 1.60 Jan 14 25$ calls the day before earnings a couple of weeks ago. 3.42 at close today.. Made 7 trades today. It's not that hard.

You bought 2K calls @ 1.60? That's $320K plus commissions. Gutsy.
I show $3.50Bid, $3.60Ask on them. At $3.50, that'd be $700K minus commissions. After taxes, that'd be enough to buy 2 new Audis - if they're an R8 and an A8 L W12.

 

[Benjamin Dover]

deleted

 

[jonjuan]

You bought 2K calls @ 1.60? That's $320K plus commissions. Gutsy.
I show $3.50Bid, $3.60Ask on them. At $3.50, that'd be $700K minus commissions. After taxes, that'd be enough to buy 2 new Audis - if they're an R8 and an A8 L W12.

Like I previously said, sure he did. :laugh:

 

[SWA Bubba]

You bought 2K calls @ 1.60? That's $320K plus commissions. Gutsy.
I show $3.50Bid, $3.60Ask on them. At $3.50, that'd be $700K minus commissions. After taxes, that'd be enough to buy 2 new Audis - if they're an R8 and an A8 L W12.

Like I previously said, sure he did. :laugh:

You're assuming he bought 2 thousand contracts (100 calls each), which would total $320,000 plus commission. I don't think that's what he meant. I read his statement as 2 thousand actual call options (20 contracts of 100 each), which, at $1.60 each, would total $3,200 plus commission. That's the normal terminology anyway: some amount of "calls or puts" (actual number of options), vs. some amount of "contracts" (groups of hundreds of options).

That seems a more likely (and believable) trade amount for non-institutional trader. I trade in like amounts, which still gives you a pretty good quick return, if they're really $1.90 in the money. That's the beauty of options: you can control a lot of stock for not a lot of money. However, I'm personally too chickensh!t to trade options on airline stocks--they're too volatile.

Bubba

 

[Andy]

You're assuming he bought 2 thousand contracts (100 calls each), which would total $320,000 plus commission. I don't think that's what he meant. I read his statement as 2 thousand actual call options (20 contracts of 100 each), which, at $1.60 each, would total $3,200 plus commission. That's the normal terminology anyway: some amount of "calls or puts" (actual number of options), vs. some amount of "contracts" (groups of hundreds of options).

That seems a more likely (and believable) trade amount for non-institutional trader. I trade in like amounts, which still gives you a pretty good quick return, if they're really $1.90 in the money. That's the beauty of options: you can control a lot of stock for not a lot of money. However, I'm personally too chickensh!t to trade options on airline stocks--they're too volatile.

Bubba

Bubba, I've been around trading for a long time; I've never heard anyone call a stock options contract (which is based on 100 shares of stock) as 100. It's understood that one contract controls 100 shares of stock. That would be like calling a single CL contract (oil futures contract) as 1,000 since one CL contract controls 1,000 barrels of oil.

The standard terminology when you talk about buying or selling contracts is using the actual number of contracts that you're trading. Perhaps he dumbed down his statement for the audience, but anyone who trades as frequently as he stated would be expected to use standard terminology.