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George Acs

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  • Finally Feeling Bullish [View article]
    Thank you (on behalf of those commenting, as well)
    Apr 22 01:41 PM | Likes Like |Link to Comment
  • Finally Feeling Bullish [View article]
    I think options are great, but I've always been reluctant to be on the buying side, unless closing out a position.

    I'll leave it to others to take advantage of leverage and accept risk.

    There are lots of great educational resources to get a better understanding. I try to keep things very simple and tend to get a headache when thinking about more complex option strategies.
    Apr 22 08:16 AM | Likes Like |Link to Comment
  • Finally Feeling Bullish [View article]
    Thanks. As much as I hate to admit it, cardiac rehab actually made me realize that I had been operating somewhat below par for quite a while, without knowing it.

    If you do sell options there's actually nothing better than treading water. I love it when I can either hold the same stock and continually sell options over time at the same price or buy back shares that have been assigned at the same or lower price.
    Apr 22 08:13 AM | Likes Like |Link to Comment
  • Finally Feeling Bullish [View article]
    It is, but it has proven to be very resilient to bad news concerning China itself.

    Over the past year YUM Brands has had immediate reaction to adverse news out of China and has shown very quick recovery in share price. It has also weathered its own negative guidance as well as some food safety related scares.

    Unless China goes into a free-fall or provides a stream of consistently negative data (as it frequently alternates between data suggesting slow down with data suggesting continued growth), YUM should continue to withstand the economic foibles of business as usual in China
    Apr 22 08:10 AM | Likes Like |Link to Comment
  • Finally Feeling Bullish [View article]
    It doesn't really matter. See the article that explains the strategy http://seekingalpha.co...

    The point is to select an ROI that has appeal to you, that accrues from selling either a deep in the money call option or an out of the money put. The individual investor has to select a strike price that provides that ROI at an acceptable risk, which is represented by the strike price.

    I typically look at a strike price that represents a 1% ROI for a weekly option and am most attracted by those that do so with strike prices at least 10% from the current price.

    It is the fact that certain stocks have large moves in either direction that creates option premiums that are enhanced by those earnings related moves.
    Apr 22 08:06 AM | Likes Like |Link to Comment
  • Finally Feeling Bullish [View article]
    If the past can be a guide, YUM has done very well bouncing back from a wide range of issues, including fears of Chinese slow downs, altered and reduced guidance, rumors of food safety and earnings.

    The kind of resilience it has shown when faced with a stream of potential price deflators has been impressive. For me, anywhere in the $62.50-65 zone looks appealing for a covered call strategy.
    Apr 21 06:52 PM | Likes Like |Link to Comment
  • Finally Feeling Bullish [View article]
    When Apple was riding the top of the wave, judging by the many derisive comments that I received it appeared that many had difficulty in separating the stock from the product, as well as how one could possibly be in awe of the products, but believe that the stock was something less than awesome.

    If Netflix can recover, then Apple certainly can, but it is just another in the long list of stocks that so many believed could only keep going higher and higher. The difference is that Apple can still reclaim its supremacy in product offerings and can appreciate in value, as well.
    Apr 21 03:45 PM | Likes Like |Link to Comment
  • Finally Feeling Bullish [View article]
    Thanks. No, I pulled last week's article and published it for subscribers only, as it didn't look as if it would get published in SA prior to the market's open on Monday. I thought the same would occur this week, as both were initially submitted while away for a couple of weeks and a few time zones down the road.

    With YUM, I would wait until after earnings to decide whether to pick up shares. I am not considering it as an earnings related trade.
    Apr 21 02:15 PM | Likes Like |Link to Comment
  • Finally Feeling Bullish [View article]
    There's really no need for the stock to go up upon earnings for the "PEE" strategy to work. The idea is that option premiums are often significantly enhanced for positions that have the capacity t have large moves in either direction upon releasing earnings.

    Apple is one of those shares.

    I usually look for a 1% ROI threshold for a weekly position. In this case, for example, based upon Apple's close on Friday, selling a $360 put would return 1.1% and only be exercised if Apple's shares went about 7.5% lower.
    Apr 21 10:56 AM | Likes Like |Link to Comment
  • Shifting Away From Defense [View article]
    As long as the direct consumer of PSX services has the option of changing refiners then you would have to think that PSX wouldn't be engaging in practices that would drive customers to their competition. Unless of course everyone practices in the same manner.

    Why did you wait to change?
    Apr 8 08:13 AM | Likes Like |Link to Comment
  • Shifting Away From Defense [View article]
    Thanks.

    No, I keep a very simple approach to things and don't use spreads. I certainly understand their utility and the potential advantages. Sometimes in hindsight I wish I had done so, but it requires far too much thought for me. Vertical, horizontal, diagonal? Too many vectors.
    Apr 8 08:07 AM | Likes Like |Link to Comment
  • Shifting Away From Defense [View article]
    I wasn't familiar with CLMT, but it does have a nice chart, option premiums and certainly an attractive dividend.

    Thanks for pointing that one out
    Apr 6 12:30 PM | Likes Like |Link to Comment
  • Shifting Away From Defense [View article]
    Thank you.

    On the other hand, Apple advocates last year were especially quick to point out that Apple was cheap, based on its P/E, believing that it warranted more Google-like multiples. Of course, that kind of reasoning was already disproved by the market and responsible for their denial of reality as price started eroding and then sliding.

    Based upon past history, one might believe that shares with a higher multiple would be more swift in the descents. If Google is indeed a reflection of the market, much as APple was through 2012, that wouldn't portend well for the market in the event that the multiple did accelerate any potential fall in share price.

    The reality is that as nice as metrics and standardized measures are, there is still no better measure than looking at relative price changes and then looking at the internal price history of a specific stock.

    By those measures both Google and Apple are very comparable in their ascendant paths.
    Apr 6 10:05 AM | Likes Like |Link to Comment
  • Shifting Away From Defense [View article]
    It's always about the trade. I have no interest in holding through more than an option cycle or two.

    In 2012 my average holding period for closed positions was 27 days. Thus far, it's 11 days for 2013. The last time I owned WNR it was for 23 days.

    Very often when I think about adding Momentum stocks that have only monthly contracts available, I'm more likely to do so in the latter phases of that contract period. such as now, with just 2 weeks remaining
    Apr 6 09:58 AM | Likes Like |Link to Comment
  • Shifting Away From Defense [View article]
    Maybe that's another reason to like refiners as an investment.

    Monopolies, unfair labor practices, worker safety violations and other acts may be antithetical to society, but as they help ensure profits makes them invaluable to investors.
    Apr 6 05:57 AM | Likes Like |Link to Comment
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