Tuesday, January 26, 2010
Genco Shipping (GNK) Update
Twelve-days ago I suggested for those using covered calls to rollup & out on the GNK call trade. link
Genco Shipping (GNK) On this covered call the Jan $25 GNK-AE sold on Oct 21 for $1.70, suggest BUYING it back to close position for $0.50 and rolling up and out to the [SELL] April $28 Call ticker GNK-DV for $1.65 bid. The original cost for GNK was $22.90 - $1.70 + $0.50 - $1.65= $20.05
With GNK trading down under $22, the April $28 call is @ $0.35 ask, suggest buying back to close; open position.That would place the GNK cost basis at $20.40. Looking to resell a call as GNK trends to higher levels.