Originally Posted by dalad (Post 1352112)

Ok, any math geniuses out there? I bought 30 contracts with a 13 strike price of LCC in my DC plan for an average price of $1.53. That's like me holding 3000 shares of LCC at 14.53. In AH it went up to 14.90 but the market cap is going to go up by $700 Million by AM, I hope based on 162.47 million shares and a market cap of $2.38 billion. LCC's share is $3.080 billion. I think the opening price will be close to $19 per share?

Originally Posted by FmrFreightDog (Post 1352101)

Well, that's the point. They only need to flex reserves up in the busy months. Reserves are still going to be flying half of guarantee or less in the shoulder months. It's just the nature of the way Delta schedules flights. By allowing them to flex up in the busy months, we have negatively impacted staffing. I'm just pulling numbers out of my head here, but 15 hrs a month more per pilot in a category that has, conservatively, 70 reserves (M88B ATL) equals 1050 pilot hours per month extra that can be flown with existing staffing. Even if you cut that number in half because of 30 in 7 or other issues, you still have the existing staffing model carrying a lot of extra weight in the busy months without ever getting close to the contractual triggers that mandate an increase in staffing. In effect, we've allowed them to staff categories based on demand in the busiest months versus demand in the slow months. This is a huge giveback. The union line that this change had to do with long international trips exceeding ALV and thus being unable to be assigned to reserves is laughable. I refuse to believe the company had that much heartburn with an issue that maybe effects 1% of the schedule on any given day. Really, how many 747 or 777 guys call in sick for a 12 day trip a day, on average? I'd like to know. My bet is nowhere near enough for it to remotely effect the operation due to reserve coverage issues. After all, if an 84 hour trip goes into open time, scheduling can always split it with minimal cost to the company. ALV + 15 was never about reserve coverage of long international trips. It was, and is, about giving the company the flexibility to reduce staffing by working the crap out of domestic narrowbody reserve pilots in the summertime. I don't see how you or anybody else can see it any differently.

Originally Posted by johnso29 (Post 1352094)

Yup. Only if needed to prevent AS being aquired by someone else. There is no advantage doing so otherwise.

Originally Posted by dalad (Post 1352112)

I think the opening price will be close to $19 per share?

Originally Posted by dalad (Post 1352112)

Ok, any math geniuses out there? I bought 30 contracts with a 13 strike price of LCC in my DC plan for an average price of $1.53. That's like me holding 3000 shares of LCC at 14.53. In AH it went up to 14.90 but the market cap is going to go up by $700 Million by AM, I hope based on 162.47 million shares and a market cap of $2.38 billion. LCC's share is $3.080 billion. I think the opening price will be close to $19 per share?

Originally Posted by boog123 (Post 1352135)

merger was priced in days ago, imo

Originally Posted by Bucking Bar (Post 1352136)

Originally Posted by dalad (Post 1352112)

Ok, any math geniuses out there? I bought 30 contracts with a 13 strike price of LCC in my DC plan for an average price of $1.53. That's like me holding 3000 shares of LCC at $14.53. In AH it went up to 14.90 but the market cap is going to go up by $700 Million by AM, I hope based on 162.47 million shares and a market cap of $2.38 billion. LCC's share is $3.080 billion. I think the opening price will be close to $19 per share?

Originally Posted by Columbia (Post 1352141)

Have you ever bought/sold options before? It's NOT like you are holding 3,000 shares at 14.53. You simply have the OPTION to purchase 3,000 shares at 13. IF you exercised the option, you would then have to pony up $39,000. Of course if the price then hits $19, the account value would then be $57,000. If sold at $19, the profit would be $13,410.
Right now, you just own the options. You paid $4,590. As the Feb options close Friday, an underlying stock price of $19 would show your 13 strike with a price of around $6. If you simply closed the position (automatically closes at the end of Friday), the proceeds would be approximately $18K for a profit of $13,410.
One big difference is the tax implications. You pay short term gains on closing the contract. If exercised (you buy the underlying stock at $13), there are no tax implications until you then sell the shares.

Originally Posted by Timbo (Post 1352140)

No wonder Clamp is up all night, chainging that kids diapers!! :eek::D

And who thought it was a good idea to let kids have internet access??!:confused: