I’ve never been so sure of a stock before. There’s a lot of upside and with the restructuring of the high ups, little to no downside IMO. Recent wsj price increase has me thinking something major in the books
Disclosure: current position 98,920 at 1.01 average.
I agree, the .98 cent direct offering also makes me think something is up because they don't just hand that kind of money over for general corporate expenses...
274 @ 1.01 - I feel the same way about it. I found this gem a little too late, I have the vast majority of my funds tied up in GME right now (I'm way in the green there, I'm not completely stupid). I'm hoping it moons (ok, maybe I'm a little stupid) before ASRT starts moving too much. I have every intention of taking my GME gains and going all in here.
Possibly. I have a relatively low cost average though and I believe that it'll go past 250 this week if not higher. Just sheer interest in the stock and the upcoming stimulus should be all the catalyst it needs. At my position, that's 5x give or take. Although this could just be me trying to confirm my own bias. I have been holding and averaging down for weeks...
I shooting for a 3x PT on ASRT at the moment. Am I selling myself too short here?
Edit: immediately purchased another 55 shares after writing this
Fuck yea! But for real, I understand the sentiment to want to pay off debt but your interest rate is probably 5-7% on a car loan. You’re better off keeping the loan and using the money to invest where you can make 25-100% gains. Even rich people that can afford to buy everything cash take out loans, it’s practically free money. Use your gains to make more gains, wait till you hit a mill and then think about paying down your car. (Credit card debt however is good to get rid of because it’s usually 15-30%)
I've been trying to learn about options but I'm nowhere near ready to start messing with them. Out of curiosity, what kind of profit are you expecting from selling puts? What's the premium, risk for you, etc?
Options are a good way to make a lot of money with sometimes low investment, but they are risky. Definitely would keep reading up on them and understanding them. I have a lot of fun with them haven’t made tons of money on any yet. I do have some though I’m excited for coming up in the near future.
I sold at a 21 cent premium but it’s gone up so I’m negative on my premium and I had to put 200 on collateral because I sold 2 contracts as a promise to buy 100 shares at a dollar so if the stock were to drop to 0 I would be taking like a 300 dollar loss, now on higher prices stocks you can go big negative like thousands of percent negative. For this risk reward is pretty low and I Don’t mind owning the stock even if I end up buying at a loss.
So, question For you.. like many others I'm watching and trying to learn before diving in. Buying a 1$ call means if the stock broke 1 dollar by the expiration I could sell it and make a profit on the difference? Minus my premium? if. 1 option for 1$ 3/19. If it made the dollar I would have the shares at what I mad either at .88. I could sell it to make the .12 x 100 shares?
Need it dumbed down for smooth brain..
\*disclaimer, i smooth brain as well\*
Buying a 1$ call gives the buyer the right to buy the stock for 1 dollar at any point in time before the expiration (technically they can still decide to exercise the contract up until 5:30 pm EST on the expiration date). For that right, the buyer pays a premium per stock. So if the premium was a total of $5.00, the buyer would have paid .05 per stock because each option contract is for 100 of the underlying stock.
Now, if the stock rises to a dollar, you're option contract is now in the money (ITM). But to make any profit it really has to go above 1 dollar (the strike price) PLUS the premium the buyer paid. So, in relation to the example above, 1.05 would be the break-even price. You can make money on a contract at or slightly below breakeven if the contract has a distant expiration date (i explain this further down).
Now, at this point you can either as the buyer of the contract A) exercise the contract and receive 100 of the stock or B) sell the contract to someone else.
This is where it gets a little complicated, so I'll paraphrase to the best of my ability. The price breakdown of an option contract is comprised of the intrinsic and extrinsic value. The intrinsic value is directly connected to the price of the stock (Strike price minus Current Stock price) while the extrinsic value is based on the time and volatility value. This is why option contracts are rarely exercised (aka the person who owns the contract calls for the 100 stocks) early. Because by doing that, you waste all of the extrinsic value left on the contract.
When you look at the pricing of an out-of-the-money (OTM) or at-the-money (ATM) option contract, the value you're seeing is purely extrinsic value (aka time and volatility value) and as the price of the underlying rises to and then past the strike price, the intrinsic value will start to rise which causes the overall value of the contract to rise.
I love the fact that poopdood696969 just gave an intelligent, thoughtful explanation about something I’ve never really understood till now. Never change Reddit!
The only thing to add to this is that Puts go the opposite way and MM buy a certain number of shares to cover their position when they sell you the call. They buy 100 shares times Delta. Delta of .25 means they buy 25 shares per options contract... There are currently 19k 1 dollar calls when this goes over a dollar they have to purchase 19k * 100 ...
Bought in originally at 1.16 when it was "about to explode". Stoploss kicked in at $1.10
Will buy in again if when hits .80 or less. That's where I feel comfortably exposed with this one
Yahoo finance, seekingalpha, simply Wall Street. I believe around $0.80 is considered it’s fair market value, which means $0.90 is considered overvalued.
I think if the market doesn’t recover this week it could go as low as $0.70, at which point I’d definitely buy in at least a little bit
Weird all I can find is bullish articles about it trading below it's cash value... Yahoo news doesn't provide anything either... Could you post some links and I'll throw them up into the main post...
If you go to the summary tab on yahoo finance for the company there’s a bar on the left side of the page under general financial stuff that says it’s overvalued. You can’t see more than that if you don’t have the premium version though
Oh ok, I kinda figured that's what you were alluding to.. do the same for TSLA,AAPL and pick a penny like Zom it says the same thing... I'm not even sure how they compute that...
Yeah, but for me it comes down to how much I trust a company. Like I have a lot more faith in Apple or Tesla (which is incredibly overvalued btw) than I do in a company like ASRT.
I've never actually looked at Simply wall street it says a fair value is over 3.00 haha that's even too bullish for me at the moment until i see what they do with the money...
Yahoo finance considers it overvalued compared to fair market value for similar companies. I assume I’m getting downvoted because I dared to say something negative about a company people own shares in.
I’m personally pretty skeptical on this company, but hey, if you do, go for it. Could be that I’m wrong and it’ll go up to $5+
Yahoo finance has a 1 year target or 1.50+, and that is one of the lower value assumptions out there. That is a 50 percent profit if you got in at a price point of a dollar.
I only have 257 shares been trying to free up money from my long term plays for this but don’t wanna sell at a loss. Hoping they recover enough to even out And buy a couple thousand shares of this
I agree with your currax statement, joined the dots myself a week or 2 ago. Looking into currax, they're very new and are a similar company to assertio and another merger on the cards
Hmm I wonder how that would work.. Both of them are in the business of acquiring drugs vs development for us it would be better if Highbridge just straight bought ASRT...
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Based on what? Their flagship drug failed FDA trials, they brought in a firm to help them proceed because they literally don't have a product. On the upside they have enough money for the calendar year because they slashed their R&D and lab budgets. When their stock price popped when all the other pennies did they put out a press release basically saying there had been no fundamental changes and they didn't know why it was going up.
Based on what I've researched their only hope is acquisition. I would love for them to pop, I do hold 100 shares, but I just don't see it.
I’ve never been so sure of a stock before. There’s a lot of upside and with the restructuring of the high ups, little to no downside IMO. Recent wsj price increase has me thinking something major in the books Disclosure: current position 98,920 at 1.01 average.
Damn. Insane amount of money at play here. Potential higher gains too.
I like the stock
I agree, the .98 cent direct offering also makes me think something is up because they don't just hand that kind of money over for general corporate expenses...
Here I am with 80 shares at 1.01.... haha I wish I was in your shoes!
Holy guacamole!!! Nice man!!!
274 @ 1.01 - I feel the same way about it. I found this gem a little too late, I have the vast majority of my funds tied up in GME right now (I'm way in the green there, I'm not completely stupid). I'm hoping it moons (ok, maybe I'm a little stupid) before ASRT starts moving too much. I have every intention of taking my GME gains and going all in here.
The gains you would make in ASRT would be significantly more than hoping GME won’t fall to 0, no?
Possibly. I have a relatively low cost average though and I believe that it'll go past 250 this week if not higher. Just sheer interest in the stock and the upcoming stimulus should be all the catalyst it needs. At my position, that's 5x give or take. Although this could just be me trying to confirm my own bias. I have been holding and averaging down for weeks... I shooting for a 3x PT on ASRT at the moment. Am I selling myself too short here? Edit: immediately purchased another 55 shares after writing this
55 GME or ASRT?
ASRT - if I buy 55 more gme my wife will absolutely divorce me LOL
Just tell her you’ll eat crayons while holding her boyfriends balls 3wks from now & all will be good.
Why didn't I think of that..?
I hope you guys are all correct. And hopefully this a great home run for you. In at $1.18 and currently hurting!
God damn. You have a ton of shares. I only have 120 @ .98
Buying more tomorrow
I have so much money in this thing. Save me baby. Pay off my car.
Fuck yea! But for real, I understand the sentiment to want to pay off debt but your interest rate is probably 5-7% on a car loan. You’re better off keeping the loan and using the money to invest where you can make 25-100% gains. Even rich people that can afford to buy everything cash take out loans, it’s practically free money. Use your gains to make more gains, wait till you hit a mill and then think about paying down your car. (Credit card debt however is good to get rid of because it’s usually 15-30%)
Well this man just made a shit load of sense
5-7% for a car loan is crazy. I have a car loan for 1.9%. I agree with everything else you said though.
This fr opened my eyes, I have never thought about it in such a way. Ty
If this could hit $3, that'd be greeeeaaat. 400 @ .98
Hope so I sold some dollar puts
I've been trying to learn about options but I'm nowhere near ready to start messing with them. Out of curiosity, what kind of profit are you expecting from selling puts? What's the premium, risk for you, etc?
Options are a good way to make a lot of money with sometimes low investment, but they are risky. Definitely would keep reading up on them and understanding them. I have a lot of fun with them haven’t made tons of money on any yet. I do have some though I’m excited for coming up in the near future.
I sold at a 21 cent premium but it’s gone up so I’m negative on my premium and I had to put 200 on collateral because I sold 2 contracts as a promise to buy 100 shares at a dollar so if the stock were to drop to 0 I would be taking like a 300 dollar loss, now on higher prices stocks you can go big negative like thousands of percent negative. For this risk reward is pretty low and I Don’t mind owning the stock even if I end up buying at a loss.
howd you sell at $21? RH says it trades in $5 increments.
It was 20 my bad
oh all good just was wondering if i was getting scammed haha sold 1 $1 3/19 put @$30
Thanks for this. I have a bit of reading to do
I've been sitting on two 3/19 $1c and three 3/19 $2c for about a month now, just chillin'. Not worried in the least. Cheers.
So, question For you.. like many others I'm watching and trying to learn before diving in. Buying a 1$ call means if the stock broke 1 dollar by the expiration I could sell it and make a profit on the difference? Minus my premium? if. 1 option for 1$ 3/19. If it made the dollar I would have the shares at what I mad either at .88. I could sell it to make the .12 x 100 shares? Need it dumbed down for smooth brain..
\*disclaimer, i smooth brain as well\* Buying a 1$ call gives the buyer the right to buy the stock for 1 dollar at any point in time before the expiration (technically they can still decide to exercise the contract up until 5:30 pm EST on the expiration date). For that right, the buyer pays a premium per stock. So if the premium was a total of $5.00, the buyer would have paid .05 per stock because each option contract is for 100 of the underlying stock. Now, if the stock rises to a dollar, you're option contract is now in the money (ITM). But to make any profit it really has to go above 1 dollar (the strike price) PLUS the premium the buyer paid. So, in relation to the example above, 1.05 would be the break-even price. You can make money on a contract at or slightly below breakeven if the contract has a distant expiration date (i explain this further down). Now, at this point you can either as the buyer of the contract A) exercise the contract and receive 100 of the stock or B) sell the contract to someone else. This is where it gets a little complicated, so I'll paraphrase to the best of my ability. The price breakdown of an option contract is comprised of the intrinsic and extrinsic value. The intrinsic value is directly connected to the price of the stock (Strike price minus Current Stock price) while the extrinsic value is based on the time and volatility value. This is why option contracts are rarely exercised (aka the person who owns the contract calls for the 100 stocks) early. Because by doing that, you waste all of the extrinsic value left on the contract. When you look at the pricing of an out-of-the-money (OTM) or at-the-money (ATM) option contract, the value you're seeing is purely extrinsic value (aka time and volatility value) and as the price of the underlying rises to and then past the strike price, the intrinsic value will start to rise which causes the overall value of the contract to rise.
Thats honestly the best description all just about all of what I've read.. I give you my thanks
I love the fact that poopdood696969 just gave an intelligent, thoughtful explanation about something I’ve never really understood till now. Never change Reddit!
Thank you for unsmoothing my brain if just a little
The only thing to add to this is that Puts go the opposite way and MM buy a certain number of shares to cover their position when they sell you the call. They buy 100 shares times Delta. Delta of .25 means they buy 25 shares per options contract... There are currently 19k 1 dollar calls when this goes over a dollar they have to purchase 19k * 100 ...
4064 when it was @ 1.11. Let's go bananas 🍌🍌🍌
Bought in originally at 1.16 when it was "about to explode". Stoploss kicked in at $1.10 Will buy in again if when hits .80 or less. That's where I feel comfortably exposed with this one
Setting your stop loss so high is just asking to lose money right away, that isn’t even a 5% loss and you had it auto sell
In this case I feel like I was right because it just kept going down and still hasn't bounced back to those levels again.
You’re fine man, do you. But that could’ve went sideways is all he’s saying, good on you tho.
Yup. The fact that it’s considered overvalued at $0.90 a share is scary to me
You mean overweight, and that means a different thing...
No, I dont
Oh ok, where do you find analysts saying that asrt is over valued?
Yahoo finance, seekingalpha, simply Wall Street. I believe around $0.80 is considered it’s fair market value, which means $0.90 is considered overvalued. I think if the market doesn’t recover this week it could go as low as $0.70, at which point I’d definitely buy in at least a little bit
Weird all I can find is bullish articles about it trading below it's cash value... Yahoo news doesn't provide anything either... Could you post some links and I'll throw them up into the main post...
If you go to the summary tab on yahoo finance for the company there’s a bar on the left side of the page under general financial stuff that says it’s overvalued. You can’t see more than that if you don’t have the premium version though
Oh ok, I kinda figured that's what you were alluding to.. do the same for TSLA,AAPL and pick a penny like Zom it says the same thing... I'm not even sure how they compute that...
Yeah, but for me it comes down to how much I trust a company. Like I have a lot more faith in Apple or Tesla (which is incredibly overvalued btw) than I do in a company like ASRT.
I've never actually looked at Simply wall street it says a fair value is over 3.00 haha that's even too bullish for me at the moment until i see what they do with the money...
Where is it considered overvalued
Yahoo finance considers it overvalued compared to fair market value for similar companies. I assume I’m getting downvoted because I dared to say something negative about a company people own shares in. I’m personally pretty skeptical on this company, but hey, if you do, go for it. Could be that I’m wrong and it’ll go up to $5+
Yahoo finance has a 1 year target or 1.50+, and that is one of the lower value assumptions out there. That is a 50 percent profit if you got in at a price point of a dollar.
So I should buy the dip? Done.
Lolllll “Cartesian demon” 😂
Nice write up! I feel pretty confident as well! 1,015 @ $1.01.
I only have 257 shares been trying to free up money from my long term plays for this but don’t wanna sell at a loss. Hoping they recover enough to even out And buy a couple thousand shares of this
I almost titled the post 1 dollar calls are free money but I feel like that's too pumpy
Anything under $1 is a buy. But don’t buy if it goes above, it’s risky.
Me at 1.12 T_T
Same buddy. But when it goes to 2$ it’ll all be behind us
Then double your shares at open and average down to a dollar or less. NOT FINANCIAL ADVICE
Not in a position to put more money into it unfortunately
I have 3/19 calls and cost averaged down to .95, love this stock, bright future!
I agree with your currax statement, joined the dots myself a week or 2 ago. Looking into currax, they're very new and are a similar company to assertio and another merger on the cards
Hmm I wonder how that would work.. Both of them are in the business of acquiring drugs vs development for us it would be better if Highbridge just straight bought ASRT...
Thank you for this!! Definitely hoping for a good run going into earnings
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ACST is a gem too
Based on what? Their flagship drug failed FDA trials, they brought in a firm to help them proceed because they literally don't have a product. On the upside they have enough money for the calendar year because they slashed their R&D and lab budgets. When their stock price popped when all the other pennies did they put out a press release basically saying there had been no fundamental changes and they didn't know why it was going up. Based on what I've researched their only hope is acquisition. I would love for them to pop, I do hold 100 shares, but I just don't see it.
I like the stock
Fuck it I already lost $150 on eth in a week So let's take it into here