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George Acs

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  • Your Portfolio Is Your Presidential Cabinet [View article]
    Yes, I've had COF on the radar screen since about $55, but haven't been smart enough to recommend shares. It reports earnings after Thursday's close. I'd be interested again at $57.50, but because it only has monthly options I would probably wait until latter half of an option cycle to initiate an opening position.
    Jan 12 10:33 AM | Likes Like |Link to Comment
  • Your Portfolio Is Your Presidential Cabinet [View article]
    What amazes me is how long these questionable business models can keep going and going.

    More than 30 years ago I learned that my parents were smarter than me. They convinced me that the deal being offered by this wonderfully cheery couple to sign up to be an Amway distributor was far too good to be true.

    And yet, Amway is still going about its business, just as Herbalife, Nu-Skin and others somehow have been able to continually suck in those who are very desperate to find a path in life.
    Jan 12 10:09 AM | Likes Like |Link to Comment
  • Smug Is Better [View article]
    I never did the "hard labor" part, maybe that's why the transition was so easy. Besides, I should have retired long ago. WHo knew that all that was really necessary were discount brokerages and the internet?

    Although I was spared the physical ailments that come from hard labor, they're starting to creep in now, as my keyboarding and texting fingers are aching and non-stop staring at monitors is making me see everything in shades of green and red.

    I suppose there are worse things.
    Jan 9 11:32 AM | Likes Like |Link to Comment
  • Smug Is Better [View article]

    This has been an interesting week. So far, through Wednesday morning, of the 10 stocks that I had as potential plays, I've sent out Trading Alerts to subscribers on only three (AET, CHK and PBR). The only other one that I may still add is ABT, if its shares get closer to $33. Of course, each purchase was paired with a covered call sale.

    Instead, since there were lots of assignments the prior week, the money was there to establish new positions and the following were added (and calls sold). BIDU, GPS, AIG, LTD, YUM, EMC, GE, CLF and WLT, in addition to put sales on SHLD and AGQ.
    Jan 9 11:07 AM | Likes Like |Link to Comment
  • Smug Is Better [View article]
    That would mean that new positions have been opened, either before the exit date of a closed position or afterward.

    Positions that are uncovered are indicated by color coding, using the light green color

    By the way, as subscriber, you can either email or text questions, comments, greetings etc...
    Jan 8 08:45 AM | Likes Like |Link to Comment
  • Smug Is Better [View article]
    I would only recommend rolling down when the contract is imminently expiring and unlikely to get assigned, in an effort to squeeze out some additional premium.

    In this case the option doesn't expire until 1/19/13, so there is plenty of time for the shares to approach or surpass $65 (I'm assuming that was your entry and where you sold calls).

    On the other hand, if share price plunged with a large amount of time still remaining in the contract, you might consider "milking" shares, and buying back options to take profits, while awaiting new opportunity to sell calls. But in that case, the goal is to sell new calls at the same or even higher strike price.
    Jan 7 07:08 PM | Likes Like |Link to Comment
  • Smug Is Better [View article]
    YUM very frequently has Chuna related hiccoughs. Reportedly these were specifically related to the chicken safety issu of last month. If that's truly the reason for the decreased sales than this will be a quick blip

    Since there's still 9 trading days until expiration I don't expect the 65 to go down too much relative to the premium originally received, unless you picked up shares and sold calls well within the money.

    Also, don't forget that shares go ex-dividend 1/9/13 for $0.34
    Jan 7 06:08 PM | Likes Like |Link to Comment
  • Smug Is Better [View article]
    Bathrobe? I can just tear the curtains off the rods if necessary.
    Jan 7 11:27 AM | Likes Like |Link to Comment
  • Smug Is Better [View article]
    Shares can be assigned at any time prior to contract expiration.

    If your shares finish in the money at the end of the expiration contract by $0.01 you should be prepared for their automatic assignment, but it may not always occur.

    Specifically, in the case of Halliburton if you had sold calls with a January 4, 2013 expiration, any strike $36.50 or below should have been assigned, since Halliburton closed on 1/4/13 at $36.65 and no adverse price moves occured in the after hours (options may be exercised after the market closes).
    Jan 7 11:26 AM | Likes Like |Link to Comment
  • Smug Is Better [View article]
    The active selling of options will definitely keep you busy, so I'm not certain that I would call it retirement.

    My wife hates it when I refer to myself as "retired" and she points out that I no longer maintain control of my own schedule having become a prisoner of markets. A far cry from retirement although I can dress down Friday any time I like.
    Jan 7 09:12 AM | Likes Like |Link to Comment
  • Smug Is Better [View article]
    I was hoping that it was the party theory.

    Halliburton just assigned. Always one of my favorites. Hope they are as good an employer as they are an actively managed investment.
    Jan 7 09:08 AM | Likes Like |Link to Comment
  • Smug Is Better [View article]
    Yes and no.

    Firstly, the IRS considers the sale of some puts to be a violation of the Wash Sales Rule. Specifically, the sale of deep in the money puts is interpreted as "intent" to purchase. What's not clear until you are audited is where "deep in the money" begins.

    But even if selling an out of the money put you have to be aware of assignment that would result in your purchase of shares.
    Jan 6 04:33 PM | Likes Like |Link to Comment
  • Smug Is Better [View article]

    The hard part is knowing whether there is a transition about to begin, in which case instead of favoring near the money and in the money options, it's time to start out of the money strikes. Ultimately the bottom line is increasing your bottom line more than the index. The past few years it was on premiums alone. Maybe the next few years will be like 2009-10 and premiums will enhance returns, but not be the major component of those returns.

    Depending on how you use the income determines the impact. I use a fixed part of the income as my salary and reinvest the rest. The more that's used as "income" the greater the adverse impact of reduced volatility.
    Jan 6 08:16 AM | Likes Like |Link to Comment
  • Smug Is Better [View article]
    Saw it this morning. I hope your on the West Coast, or had a really great night on the east coast, because 3:48 AM is awfully early/late.

    By now you should have gotten login instructions, reading recommendations and a pdf copy of the book.

    Hopefully there will be some bargains to be had this coming week and the market regains a bit of rational behavior.
    Jan 6 08:10 AM | Likes Like |Link to Comment
  • Smug Is Better [View article]
    I've long said "gumata" is a word that just doesn't appear enough in the financial literature. That's evidenced by the fact that the spellchecker doesn't recognize it. Even the Simpsons had an episode centered around the concept.
    Jan 6 08:07 AM | 1 Like Like |Link to Comment