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George Acs

 
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  • This Time I Really Mean It [View article]
    Don't know how those could have slipped in. I will try to filter those out in any subsequent articles.

    I was actually going to refer to the hero of this past week as "Mao-rio" Draghi, but thought that was too sophomoric

    I'm still full of glee that someone noticed the "back peddled" reference
    Nov 23, 2014. 12:09 PM | Likes Like |Link to Comment
  • This Time I Really Mean It [View article]
    Thank you.

    There was an article from a couple of years ago that discusses the concept. It is definitely a much more efficient strategy as volatility increases

    http://seekingalpha.co...
    Nov 23, 2014. 11:18 AM | Likes Like |Link to Comment
  • This Time I Really Mean It [View article]
    Finally, someone who got it. But still, it depends on what what really meant.

    Peddling if you're trying to sell something. I think Bullard was definitely trying to sell something and was trying to walk it back.
    Nov 23, 2014. 11:15 AM | Likes Like |Link to Comment
  • This Time I Really Mean It [View article]
    Thanks, but the Washington DC NBC studio, where Meet the Press originates, has a restraining order against me.

    I don't currently have any non-dividend paying oil stocks on my radar, although Anadarko and Apache are close.

    Many stocks offer option premiums during the ex-dividend week that underwrite some of the stock's price reduction as a result of going ex-dividend.

    That's especially true for those that are near the money or in the money. That underwriting is less when volatility is very low, especially for the in the money strikes.

    As a general rule I look for in the money option premiums that if exercised would offer a 1% ROI for the week. However, very often with dividend paying stocks during the ex-dividend week you'll see that the premium plus the dividend (if not assigned early) will be in excess of 1% or at least in excess of the historical weekly premium relative to the strike price. Those are the ones that get my attention.

    In the event of an early assignment your ROI is lower, but if early in the week you can then take the proceeds of the assignment and re-invest in another stock with its own premium and perhaps, dividend, as well to make up for the lower return due to not retaining the dividend.

    As another general rule, your ex-dividend position won't be assigned early if the shares are in the money by less than the dividend amount. Or if in the money by more than that amount the longer the time until expiration the less likely to see early assignment.
    Nov 23, 2014. 10:23 AM | Likes Like |Link to Comment
  • This Time I Really Mean It [View article]
    There's not much wrong with taking profits. Besides, very few stocks go only in single direction or do so for very long. There is almost always an opportunity to find the same trade at some other time in the future.

    Just look back to comments made regarding the suggestion that profits should have been taken in Apple shares a couple of years ago. Not too dissimilar from your own, except that you are polite about the suggestion.
    The politeness alone, though, gives it much more credibility from my perspective.
    Nov 23, 2014. 09:57 AM | 1 Like Like |Link to Comment
  • This Time I Really Mean It [View article]
    We need to see a little movement again from Holly Frontier and Transocean, but those dividends do help sustain the patience.
    Nov 23, 2014. 08:21 AM | Likes Like |Link to Comment
  • This Time I Really Mean It [View article]
    One of the things that I enjoy most about the comments section is how readers interact with one another and typically in a very positive and constructive way. It's always nice to share a good idea and insight
    Nov 23, 2014. 08:19 AM | 3 Likes Like |Link to Comment
  • This Time I Really Mean It [View article]
    Thanks.

    Back peddling is certainly good cardio.

    As far as oil goes, when just about everyone called for $75 and then came calls for $50/barrel, I think the time came to think that perhaps a floor had been set. It's so rare for everyone to be right.

    Can geo-politics still send it lower? Absolutely, but that becomes the time to buy again. I was happy to pick up shares of BP at what I thought was finally a reasonable price. Apache or Anadarko may be next.
    Nov 23, 2014. 08:18 AM | Likes Like |Link to Comment
  • This Time I Really Mean It [View article]
    I can't bear to think about how much profit was lost because of thinking about the tax considerations.

    Just like with your work related earnings, the more you pay is just a reflection of having earned more. Which would you rather have, less paid in taxes or more net after having paid taxes?"

    Stocks like BP often offer the opportunity to exploit them right before the ex-dividend date, capturing dividend and option premium over and over again. And when the money is not invested in BP, it is often invested in another company about to go ex-dividend.

    One thing you'll see is that those who practice a serial kind of purchase strategy and use covered options often achieve a dividend yield well in excess of the S&P 500 yield and without relying on stocks with unsustainablly high dividends.

    Do you pay short term taxes? Absolutely, but crunch the numbers and taxes are worth it, especially if it means having realized profits,m rather than having seen them evaporate.
    Nov 23, 2014. 08:14 AM | 2 Likes Like |Link to Comment
  • A JOLT To The System, But The Good Kind [View article]
    We just like the chocolate bananas on Balboa
    Nov 23, 2014. 08:06 AM | Likes Like |Link to Comment
  • This Time I Really Mean It [View article]
    BP, like so many others in the energy sector, has just been brutalized and is back in the price range that it has again become appealing. I've had shares for about 3 weeks, but am using $42.40 as a strike. The premiums are still very low, as there's not too much expectation for the sector to bounce back.

    I just did the same with a small position in Marathon Oil, which was assigned this Friday, but not before a quick dividend and premium.

    I like GM at this price and already have shares. As long as that dividend is there it can weather this unending stream of bad news. The fact that it hasn't dropped so much more, I think is a good sign. It too has very low option premiums right now, so I've been reluctant to sell any calls, not wanting to risk losing the dividend. Ordinarily, with volatility higher, you could get the best of both worlds, but it's a little tougher now, as my experience with Lorillard demonstrates.
    Nov 22, 2014. 05:15 PM | Likes Like |Link to Comment
  • This Time I Really Mean It [View article]
    Don't know what prompted it, but it has truth and sounds like an old saying. I would trademark it.

    Of course, if you do indulge caution, it would take less than a genius to stand out from the crowd and take advantage of what is there for the taking.
    Nov 22, 2014. 05:07 PM | 1 Like Like |Link to Comment
  • A JOLT To The System, But The Good Kind [View article]
    Good advice, though.

    She did love her Berkeley years, but if moving back to CA, I think we'll ultimately agree that weather trumps all, plus family in Newport makes the decision skew in that direction.
    Nov 22, 2014. 05:04 PM | Likes Like |Link to Comment
  • This Time I Really Mean It [View article]
    It's true that our economies aren't all the same and the demographic differences are really striking. But if you have a hammer, as the central banks do, everything looks like a nail, especially since it looks as if QE may have achieved its objectives in the US.
    Nov 22, 2014. 03:58 PM | 1 Like Like |Link to Comment
  • A JOLT To The System, But The Good Kind [View article]
    No, my wife hates San Diego, although to me it seems idyllic. She's the native Californian exiled on the east coast, but is split between Newport Beach - Laguna corridor and Berkeley. A little on different ends of the scale, but I think year round warm weather wins out over college memories.
    Nov 22, 2014. 03:55 PM | Likes Like |Link to Comment
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