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George Acs  

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  • The Weight Of The World Is A Big Burden [View article]
    Thanks, but we all have those kind of stocks. Yours just seem to be Minnesota based companies. I have a few that are really dead to me, but every now and then I see where they're trading and apparently they were able to survive very nicely without me.
    Mar 15, 2014. 03:30 PM | 1 Like Like |Link to Comment
  • The Weight Of The World Is A Big Burden [View article]
    He does sometimes appear to be in a state of suspended animation, but he certainly knows the business and has no problem making himself heard.

    Fun to trade? I suppose, but I'd give up some of that fun for an overdue rebound in materials sector. All that's really needed is for China to cook the numbers for two or three consecutive months. They may be growing at 3x our rate, but that's not enough to satisfy expectations.
    Mar 15, 2014. 11:00 AM | 2 Likes Like |Link to Comment
  • The Weight Of The World Is A Big Burden [View article]
    Strictly speaking, covered call writing is a bearish strategy because you place limits on the extent to which shares are allowed to rise, but the time frame does further qualify the sentiment and can certainly be modified to reflect changing attitudes towards a stock's prospects.

    You may have noticed that on Friday many of the weekly options that were set to expire were really delaying their time decay as the option market was signaling that it was looking for a significant move going into the close.

    That volatility is beginning to show itself a little going into forward weeks, but not very much.

    For me, that forward week volatility makes it easier to stagger option expirations so that they're not over stacked on a particular date, which makes you susceptible to a sudden move, such as may come from an FOMC report two days before monthly expiration
    Mar 15, 2014. 10:57 AM | 2 Likes Like |Link to Comment
  • Personal Conflict [View article]
    The last time I promised that sort of thing was also the last time she allowed me to go out with any of my friends, Now they're all dead, but you probably saw that DateLine episode
    Mar 10, 2014. 09:24 PM | Likes Like |Link to Comment
  • Personal Conflict [View article]
    That's because my momma don't dance and I don't rock and roll, so that kind of metaphor is well beyond me.

    Advisory? Oh, you mean the people toward whom I feign attentiveness?
    Mar 10, 2014. 11:25 AM | Likes Like |Link to Comment
  • Personal Conflict [View article]
    True, but that handicap is also lost when trading spreads, such as when rolling over positions
    Mar 10, 2014. 11:23 AM | Likes Like |Link to Comment
  • Personal Conflict [View article]

    I agree that rules are extremely important, especially since we tend to be prone to emotional or ad hoc decisions when left to our own resources

    The selection of strike price really depends on your macro and micro outlook. That's why in the weekly spreadsheet I include several strike prices for each position.

    However, the tone of the overall market also has an influence in selection.

    During periods of low volatility and a portfolio that is at or near peak levels I am mostly interested in generating income from my positions, so I use near the money strikes. If I'm particularly bullish on a stock I may also sell out of the money strikes or none at all on a portion of shares.

    However, in a downward moving market and one where volatility is increased, I will usually use out of the money strikes, which due to volatility will have higher premiums than when stocks are moving higher. Doing so provides the income but also provides the possibility of recovering some paper losses during a generalized downturn.
    Mar 10, 2014. 08:37 AM | 2 Likes Like |Link to Comment
  • Personal Conflict [View article]
    Thanks. What can I say, I just like seeing my name in print. I don't know what raykrv6a's excuse is, however.
    Mar 10, 2014. 08:29 AM | Likes Like |Link to Comment
  • Personal Conflict [View article]
    What so many don't understand or at least don't stop to think about is how the very best returns can come from stocks that everyone else believes to be mediocre. Like you, I love stocks that go nowhere, but have occasional moves up and down to keep those option buyers interested enough to keep the premiums attractive for sellers like you and I.
    Mar 9, 2014. 08:56 PM | 1 Like Like |Link to Comment
  • Personal Conflict [View article]

    Retail is troublesome and its less than stellar performance begs the question, "what recovery?" However, as far as the market goes, I think retail has turned a corner as expectations are now firmly negative and most everything will end up being an upside surprise.
    Mar 9, 2014. 08:53 PM | Likes Like |Link to Comment
  • Personal Conflict [View article]
    You thought correctly. The confusion stems from my response which was directed to a comment posed by one of my subscribers. In this case we made a DOH trade on existing shares of Target and then saw shares move much higher even after their earnings spurt. Those DOH contracts were rolled over and expire this week. Specifically for subscribers if additional shares of TGT are purchased this week the idea is to write a 3/22 call and if the original TGT options are assigned then designate LIFO for the assignment, thereby providing another week for TGT shares to fall to the strike price on the original shares to either allow for expiration or easy rollover.
    None of those issues are relevant for any new shares purchased.
    That Santa Anita day sounds just like what lots of us need, even if only on an irregular basis.
    Mar 9, 2014. 08:50 PM | Likes Like |Link to Comment
  • Personal Conflict [View article]
    Very nicely said considering it's only your first week as my publicist.
    Mar 9, 2014. 08:42 PM | Likes Like |Link to Comment
  • Personal Conflict [View article]
    You don't really need to identify 10 or more stocks in a week, you simply need to identify as many as are needed to replace those that were assigned the previous week, plus or minus where you want your cash reserve to be after all weekly purchases are made.

    This past week I had 5 positions assigned and am willing to add up to 8 new positions, as I'm willing to take cash reserves down beyond where last week ended.

    I don't really use any screens. I try to stick with a universe of stocks that are reasonably well known to me from having incessantly followed them over time and try to pick some that may be ready to get back on a path from the past. The Bollinger Bands warrant not much more than a momentary glance to get a quick visual.

    But with that all done I do want to know of upcoming events, such as dividends or earnings that may get in the way of a perfectly thought out thesis.
    Mar 9, 2014. 08:40 PM | 1 Like Like |Link to Comment
  • Personal Conflict [View article]
    Let's stick to business, forgetting about international politics for a while. Let others, whose pay grade covers such things, make the pro and con arguments reminiscent of the Cold War era.

    Back in those days in the early 1980s you were pretty much alone as an individual investor, if making option sales. I wish I had done so, instead fof just wondering why I hadn't so many years later. But back then there really weren't many "options."
    I suppose you're referring to having used time durations of longer than a month, although these days with weekly options available the past few years and now expanded weekly options becoming increasing available there are so many ways to approach the strategy, particularly if commission costs are a consideration. I don't really recall when LEAPS were first introduced, but I never considered implementing a covered option strategy until deep discount commissions became available.
    The costs still vary widely, even among discounters. However, even at the rate that you're getting, the economy of scale can be significant in forming what strategies you can use. For example, trading a single contract on both ends would entail a break-even of about $0.11/share. A 2 contract round-trip would have a break-even of just greater than $0.06/share. That would mean greater ability to take part in trades with very low premiums just to grab option income in instances of very low likelihood of assignment, otherwise. It also makes it easier to justify rolling over positions as contracts are expiring, so as to avoid the possibility of an adverse price movement the following week that might preclude the sale of a contract.
    Mar 9, 2014. 03:31 PM | Likes Like |Link to Comment
  • Personal Conflict [View article]
    I agree that the IB interface leaves something to be desired, but for those trading in quantity and are still able to navigate that interface, the savings can be significant.

    I have a number of subscribers that have reported being very happy with IB.

    However, for those already actively trading, especially using covered options, the transfer to another brokerage can leave you in limbo for what seems like an eternity, unless you simply wire cash and systematically make the transition.
    Mar 9, 2014. 03:14 PM | Likes Like |Link to Comment