Suntech Power Holdings Co., Ltd. Prices Offering At $12.50 Per ADS-Reuters
5:25am EDT
Reuters reported that Suntech Power Holdings Co., Ltd. said its follow on public offering of 20 million American Depositary Shares (ADS) was priced at $12.50 per ADS. The Company said the net proceeds from the offering, would be used for capital expenditures, working capital and repurchase and redemptions of existing securities.
The volume was high in the last two trading days. I think it's a good signal. I have STP and still above water. Here is my trading plan. Suppose I have 500 shares.
Short 5 contracts of July call at the strike price of $15,
Short 5 contracts of July put at the strike price of $10.
Good luck!
I would understand your short of July 15 call as a covered call since you have 500 shares, but why naked put? unless you think STP is really going to hold at above 10 for couple of months time or you have a long term bullish view on it.