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George Acs

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  • Margin Accounts For The Conservative Investor [View article]
    I like your summary. Too bad I didn't think of it. I could have fit it and then some, into a Tweet and then used the extra time to figure out what Cree did.
    Mar 24 08:52 PM | 1 Like Like |Link to Comment
  • A Case Of 'He Said, She Said' [View article]
    My first thought was "how do I not know that ticker?" It sounded so familiar but didn't register with me. Well, at least that part of me still works.
    Mar 24 09:51 AM | Likes Like |Link to Comment
  • A Case Of 'He Said, She Said' [View article]
    Isn't it nice when everything seems to be working out. Just hold onto some of that cash for when you can really appreciate its value
    Mar 24 09:49 AM | Likes Like |Link to Comment
  • A Case Of 'He Said, She Said' [View article]
    It's that kind of movement that makes those premiums look attractive. It's always nice finding a stock that roams far but keeps coming home.
    Mar 24 09:46 AM | Likes Like |Link to Comment
  • A Case Of 'He Said, She Said' [View article]
    If you're co-registered on the new site on the top navigation bar is a pull-down for "Articles," that may serve as some reference.
    Mar 24 09:45 AM | Likes Like |Link to Comment
  • A Case Of 'He Said, She Said' [View article]
    Is BMG a typo for BMY?

    I do like WDC, especially since it has been range bound YTD, but in the sector I like STX better, although it tends to be more volatile. I generally like selling puts on it after a large drop or going long in advance of ex-div date, as long as it's not at or near its near term highs, as WDC is right now
    Mar 23 04:47 PM | Likes Like |Link to Comment
  • A Case Of 'He Said, She Said' [View article]
    I neither follow BIIB nor AMGN nor look for long term opportunities, so don't really have a basis for an opinion. Over the long term good companies always do well and I think you have three good companies.
    Mar 23 04:41 PM | Likes Like |Link to Comment
  • A Case Of 'He Said, She Said' [View article]
    Nice.

    The sale of calls on half the TMUS shares was what is a good thing to do when you are bullish on shares, as you may have seen in the web site article "Matching Your Sentiment to Your Strategy" http://bit.ly/1dDZigq

    The one thing to be wary of when having a large portion of your portfolio assigned (or puts expired) at one time is to resist re-investing it all at once. That puts you at risk of potentially investing it all at a market top. I'd rather miss some of a move higher by not being fully invested than catch all of the drop lower.
    Mar 23 01:40 PM | Likes Like |Link to Comment
  • A Case Of 'He Said, She Said' [View article]
    These abrupt sector "corrections" usually seem to be very short lived. Insofar as Bristol Myers is increasingly considered to be a biotech it was dragged along with Gilead and others.

    Your comparison to the drillers may be very apt, though. I know that you like SeaDrill and I have liked Transocean. They are both down about 18% YTD, but I think have finally bottomed. They fell to the double whammy of over-supply and high cap-ex on the face of declining revenues. Their correction hasn't been short lived, at least not from my perspective, which focuses on a week at a time.

    In the case of the pharmaceutical industry, it's not too likely that Congressional hearings will lead to anything substantive, other than sound bites for the home town audience, who is increasingly getting some form of drug coverage through the ACA and as a result will be less interested in the issue, as a whole.

    Could it be too early for a BMY position? Sure, but without some real adversity on the horizon I'm willing to consider discounting the comparison to the deep sea drillers, for now.
    Mar 23 09:06 AM | Likes Like |Link to Comment
  • The Weight Of The World Is A Big Burden [View article]
    I had to pick Harvard out of a sense of obligation. Back in the 90s, a high school classmate of mine was head coach at Villanova and took them a few times to the NCAAs. I think I had more interest back then.

    Since my youngest went to University of Maryland I won't let him see your comment about Duke. My other kid has his alma mater, American University somehow making it again for the second time in about 5 years, so I'm certain he's back in party mode with the old gang while it lasts.
    Mar 20 07:05 PM | Likes Like |Link to Comment
  • The Weight Of The World Is A Big Burden [View article]
    Those holes are much easier to get out of when volatility is higher. While it may sound strange there was a lot to be said for 2008 when you could get a good premium even if using a strike price that was 10% or more out of the money.
    Mar 19 08:09 PM | Likes Like |Link to Comment
  • The Weight Of The World Is A Big Burden [View article]
    As a rule I try to stay away from selling options on stocks which will expire right before earnings, especially if I'm sitting on a paper loss. The reason is well reflected in CAG, because the premium to buy back shares is very high relative to the premium you would get if rolling over to the next month. That's because once earnings are announced the catalysts for potential volatility is gone and it's volatility that primes the premium.

    The choices are limited and none is really better than the next. Rolling over to the April contract at the same strike would net you about $0.30 on a $30 stock and encumber you for another month, with a strike that's still about $3.65 below your entry.

    Rolling to a higher strike will incur a net debit.

    I think the best path is to sit and let earnings be announced and then re-evaluate in the minutes prior to expiration on Friday to decide whether it makes sense to either allow the contract to expire, or rollover to avoid assignment, or allow assignment and accept tax loss.
    Mar 19 02:34 PM | 1 Like Like |Link to Comment
  • The Weight Of The World Is A Big Burden [View article]
    That's related to the observation and my comment made to the previous question.

    Friday did see a very delayed deterioration of prices for expiring options and the large spreads that you noticed. I think that reflects nervousness and the anticipation that anything could have happened in the closing trades to end the week.

    Some traders may simply have remembered the previous week when there was a sudden turnaround in the final hour of trading when news on a potential problem in Crimea first broke and maybe didn't want to be caught on the wrong side for a second week in a row, waiting until the last minutes to make their trades.

    But one other thing that is making spreads wider than in the past is the fracturing of option contracts into many more strike levels and many more available combinations of time and strike.

    Just think back to a few years ago. If you wanted to trade an option you had the choice of a monthly or a LEAP, often at strike levels $5 or if you were lucky $2.50 apart.

    Now you have weeklies. You have expanded weeklies and you have so many stocks with strikes just $0.50 apart. Unless there was a concomitant explosion in trading volume the liquidity has to dry up as there will be far fewer bids and asks to drive a convergence of price necessary to have trades get executed.
    Mar 16 03:44 PM | 1 Like Like |Link to Comment
  • The Weight Of The World Is A Big Burden [View article]
    I just use the past as a guide, expecting, as you mentioned a rapid deterioration of time value as expiration approaches.

    However, on Friday I noticed a number of positions that were retaining premiums that were far more expensive than they had been in previous weeks under similar price conditions relative to their strike prices.

    For example, with barely an hour remaining until expiration the premium on a $47 expiring put on LULU that was at the time out of the money, still had a premium that would have been expected if it was in the money. The premium was far higher than it should have been unless there was some expectation of a significant move prior to the close of trading. The premium had no intrinsic value and should have had quickly eroding time value. MolyCorp was the same
    Mar 16 03:38 PM | 1 Like Like |Link to Comment
  • The Weight Of The World Is A Big Burden [View article]
    Thanks.

    Lately Intel has been a good covered call play if its entry price is within pennies of the strike. At Friday's $24.50 close I would be much more likely to add to my position and sell new calls than if it went to $24.76, since the premium would be very low for both the $25 and $24.50 strikes (unless volatility picks up)and $25 has been a resistance level
    Mar 16 12:12 PM | Likes Like |Link to Comment
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