DNDN still limping but slowly upward
Trades:
- None.
- Order of Sell-to-Close 5x Covered Call DNDN did not go through at limit price 0.01 since the stock has not free-fallen to a super-low price. Order has expired based on date and I didn't renew it. Strike 14.00 Covered Call bid has been holding at a price of 0.10.
Gut Check:
- DNDN is still low, but slowly inching up. An article on Seeking Alpha talks about how everyone's wrong about Dendron, and that it's partially management's fault for not setting up expectations correctly. This is both the frustrating part and potentially profitable part of the stock market -- facts don't count as much as herd mentality. When price swings up or down, there's profit to be made.
- Price has swung down, so I will make money this month and hold onto my stock. That's like renting the stock instead of selling it at a good price. Good news, right? But I'm now holding onto stock that's fallen about 3 dollars. Bad news? Maybe I can rent it out again (write another Covered Call) at a good Strike Price next month? So far ROI for next month looks like maybe 3% at Strike 14.00. Urgh. Better than nothing and definitely better than confirming a loss.
- Is there hope that DNDN will at least go up to 12.00? There are still two weeks left before options expiration and another four before April expiration. Lots of time for it to recover and for me to write a decent Covered Call for more money. Not the fantastic ~10% returns in the near past, but better than the other investments out there that I know of.
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