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Napanee, Ontario | Made Close to $130k buying calls on company called CCME. Had stars in my eyes and head was as big as a beach ball..... so of course i couldn't see the danger that was right in front of me.
About 2 or 3 months later, Deloitte and Touche dropped them as a client, and wouldn't sign off on their 2010 numbers. DT also released a statement saying their last three years' audit opinions were compromised and couldn't be relied upon.
After cashing out the calls, I Had sold about 12k work of puts on the company in time leading up before hand - premiums were massive, and seemed like a 'sure bet'. Guess i found out why. About 5 minutes after the news broke those 12k in puts ballooned into a 140k black hole.That was when the broker's credit department called me and gave me 1 mintue to liquidate or they were doing it for me - stayed on the phone with me to ensure it happened. Luckily they did. Company went dark after that, and trading was halted for two months. It opened up on the pink sheets @ $4 and I would have been out 600k. yea... yikes. So even though I ended up losing it all and then some, I Guess I was 'lucky' hahaha
Turned out that the company was a total sham. The options market had incredible volume and open interest for a company that was only 700 million in market cap.... like i said, found out why. The options, as well as the huge run in the underlying, was a major con job by some connected insiders and Russian mafia related hedge fund outfits. Law suits are still going on I beleive, but most people are just S/t outa Luck. I doubt we'll ever find out the whole story. Just another hard knock lesson.
It was an experience i'll never forget. Quickly learned how much risk there is in selling options naked. Sometimes learning the hard way is the only way to learn. I'll never forget that huge knot feeling that rose up in my gut, the moment when i heard the news about Deloitte. I almost puked in my office garbage can. People talk about that feeling... but until you experience it, it's only then that you relaize it's something you never want to feel again in your life. Six flags had nothing on that ride.
Edited by OldMcdonald 7/28/2014 15:18
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sold a call today-what is the most money you have made on options
