Quote:
Originally Posted by flatbutt
a reverse split? so instead of 1000 shares at $11 YOU GET 500 SHARES AT $22?  |
Yes that would be a reverse split.
But as far as I know a reverse split will do nothing to mitigate debt, unless it is a magic split?
BG I did the same thing with ford. Unfortunetly I have not held onto 100% of my position. I've been actively selling calls in it from $8 up to now, losing stock along the way
I don't think anyone can really tell you what to do though. Certainly if my crystal ball had been better I wouldn't have started selling pieces of my Ford Position at $8 and on.
You could start selling calls in it. Which would be a buy-write. And what I have been doing.
If you are scared of the downside but want the upside profit potential. You can either hold onto your stock and buy puts. Or you can sell the stock and buy calls. Both would leave you with the same risk characteristics, both also COST money. Buying a put is like insurance against a downward move in stock prices.
You could sell half your position and keep the other half. In essence playing with the houses money.
Also realize that if you sell, you will have capital gains taxes to pay.
Did you buy Ford as a long term investment initially, or as a trade? If you bought it for the long term investment and are only selling because you saw such a huge profit, do you have a better opportunity elsewhere with your cash?