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SensiBull 🐂02/20/2021 22:09

$Globalstar If you are looking to get into call options here, I highly suggest you go far out in the chain. December 2021, January 2022 and 2023 LEAPs. buy in the money (ITM) or as close as possible to at the money (ATM). March expiration has 3 problems: 1. theta decay 2. Earnings reports expected around 3/5. ( Globalstar is not an earnings play and if there is a miss on expectations, there will likely be a minor selloff due to undue fear from weak hands). 3. the MM (market maker) wants all calls to expire worthless to collect the premiums so they will do their best to not have to ensure coverage at a particular strike price. barring any unknown future events that may drive the underlying security price to rocket to 3.50 or above prior to the March expiration date, I do believe bullish investor sentiment in the underlying security in the past weeks led to "lotto buys" on the March 3.50 strike calls. that said, the March 3.50 calls of course will spike to some degree with an uptrend, if any, on the underlying security. however, with time as your enemy in calls, to what extent can an uptrend / downtrend be predicted? furthermore, your % returns could be limited to double or low triple digits. all of this is based on your risk/ reward trading parameters. therefore, with the aforementioned, I recommend going further out in the option chain to account for any positive or adverse swings. let time work with you and try to at least buy 2 or more on long calls(allows you to recapture initial investment and leave the rest as free runners or house money) . as always GLTA 😎👍

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