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George Acs

 
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  • Turning Point [View article]
    Yeah, they really had a great quarter. At some point, and I think very soon, they will be increasing their dividend, just like Visa has done. Their payout ratio is very low among other credit card companies.
    Oct 30 12:54 PM | Likes Like |Link to Comment
  • Turning Point [View article]
    It was late in the day. I really don't like making the trades much after 3 PM EDT, but this one was at 3:30 PM, just like the F rollover.

    I don't want to make that into a habit, but there have been so few trades lately, that I will take just about anything.
    Oct 30 12:02 PM | Likes Like |Link to Comment
  • And An Empty Suit Shall Lead Them [View article]
    No, just showing that there are a combination of factors that have to go into any analysis and attempting to bypass the emotion or the bias.
    Oct 29 02:49 PM | Likes Like |Link to Comment
  • Turning Point [View article]
    Eddy Elfenbein, who writes "Crossing Wall Street" is a repository of great statistics and would be a good source for that kind of information.
    Oct 29 08:20 AM | Likes Like |Link to Comment
  • Turning Point [View article]
    I'll send the typical question this morning about early assignment. I think there's a decent chance that those who didn't get a chance to rollover may still see their shares in the account. There will definitely be some option contract holders who will see too much risk in taking ownership of shares, as there's not too much cushion after the dividend and an early morning drop in price could make exercise quickly unprofitable for them.

    I was really on the fence about the rollover, as the price was hovering at $14.12, and actually got down to about $14.07 after having been to about $14.15, with an hour to go.
    Oct 29 08:18 AM | Likes Like |Link to Comment
  • Turning Point [View article]
    I think you're right about BP being under-valued. The last time I owned it, and it was a mainstay for years, was at about $43.

    One thing that bothered me about their earnings is that they seemed to ignore what impact current low prices will have on next quarter. That probably doesn't matter now, but it may be an issue as the next earnings season approaches, especially if they end up being in a position that they may feel the need to give some altered guidance before reporting those earnings.
    Oct 28 09:32 PM | Likes Like |Link to Comment
  • Turning Point [View article]
    The last few Tuesdays before the FOMC meeting have been strong days, but for no really good reason, other than in hindsight the FOMC Statement has continued to be interpreted as being dovish.

    We'll see what tomorrow afternoon brings. I don't think there's too much margin for error or disappointment, especially with the rapidity of the market's increase in less than two weeks.
    Oct 28 05:58 PM | Likes Like |Link to Comment
  • Turning Point [View article]
    Perspective is the key to life.
    Oct 28 11:39 AM | Likes Like |Link to Comment
  • Turning Point [View article]
    That would work if you knew when those conditions actually existed and were ready to change direction. In the case of buying options you not only have to be correct in assessing the inflection, but also the timing of that turnaround.

    It's no different from saying buy low and sell high, except you never know if prices will continue heading in the same direction as its momentum has already taken it.
    Oct 28 09:00 AM | 1 Like Like |Link to Comment
  • Turning Point [View article]
    Although, let's be honest. Wouldn't you have liked to have been that person?

    I know that I would.
    Oct 28 07:39 AM | 1 Like Like |Link to Comment
  • Turning Point [View article]
    The weekly $40 had 2000 put contracts opened about 15 minutes before the decline started. Must be coincidence
    Oct 27 05:38 PM | 1 Like Like |Link to Comment
  • Turning Point [View article]
    Getting bold, there.

    Twitter sunk about $1 fairly abruptly starting at about 11:40 EDT. I was hoping to see it drop more and was eyeing the weekly $40 put sale.

    I may sell puts tomorrow morning, if it stays at this level, so we're on the same page for better or worse.
    Oct 27 04:50 PM | Likes Like |Link to Comment
  • Turning Point [View article]
    Yes, although they're not always complete listings.

    You can try TheStreet http://bit.ly/sMj5ZT

    Dividates http://bit.ly/zR4G8Z

    and Dividend . com http://bit.ly/yTbHyG allows you to set the time frame of interest.
    Oct 27 03:56 PM | Likes Like |Link to Comment
  • Turning Point [View article]
    The risk-reward proposition is always part of the equation.

    However, if you sell puts and the price sinks below the strike price, you may an alternative other than taking assignment.

    That other alternative is to roll your option forward. In other words buy back the puts you sold and sell new ones at a forward date.

    Sometimes you can even lower your strike price. The longer you can roll the position over the more time you are buying yourself for a reversal in price.

    As with any idea, it doesn't always work out that way, but it is at least a possibility. The more in the money the option happens to be the less will be the Net Credit received from doing the rollover and often the higher the bid-ask spreads on both legs.

    However, since selling puts is usually a bullish sentiment, if you are truly bullish and look like assignment is probable, even if deeply in the money, you may be able to look for an option expiration at the time of the next earnings, which may then offer some enhanced premiums, possibly even at a lower strike.

    If you click on the link contained in the Twitter discussion in the article that is an example of the gymnastics involved in managing a position when puts are sold and the position moves against you.
    Oct 27 03:40 PM | 1 Like Like |Link to Comment
  • Turning Point [View article]
    No, the suggestion was to sell options, giving an unknown buyer the right to buy the shares from you for $14, even if the price of shares went above and beyond $14 by the expiration date of the contract on Oct 31st. DOing so also has the potential to have shares assigned (taken away from you at $14/ share) in order for the option buyer to capture the dividend. That would have to occur no later than the afternoon of October 28, as the ex-dividend date is Oct 29. In such a case you would keep the option premium, but have to sell shares at $14. That would be very unlikely to occur unless shares were trading at or above $14.12 by Tuesday's close.

    In general, you sell options as a reflection of the belief that shares will not exceed the strike price, in this case $14. You buy options when you believe that shares will trade above the strike price by the specified contract expiration date.
    Oct 27 12:54 PM | 1 Like Like |Link to Comment
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