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George Acs

 
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  • In Like A Lamb And Out Like A Lion [View article]
    Thanks, but sorry, it wasn't me. I even had to look up the ticker and don't ever recall having heard of the company before. It trades a little too thinly, especially in the options end of things to get my attention, although I saw that there was a significant volume spike a few weeks ago, maybe 15 times the average volume.

    Also noticed that the Chairman sold 100,000 shares on the open market this past week
    Apr 6 02:26 PM | Likes Like |Link to Comment
  • In Like A Lamb And Out Like A Lion [View article]
    Having now owned Coach (or sold puts) 18 times in the past 20 months, with an average price about $2 more than the current price, I've netted about a 65% profit from minimal share gains, dividends and predominantly option premiums. As long as it keeps going in this price range, helped by all those who talk its prospects down, it's only a matter of time before ownership cycle #19 begins.

    Coach may have lost some of its luster but it still has cache around the world.
    Apr 6 07:36 AM | Likes Like |Link to Comment
  • In Like A Lamb And Out Like A Lion [View article]
    Thanks as always for the kind words, especially in public.

    Don't forget that YUM goes ex-dividend this week. That price drop isn't necessarily reflected in the premium and you could be partially subsidizing that and taking on the risk of assignment as there is a guaranteed $0.37 price drop.

    If it falls some prior to 4/9, it's on my secondary list for the week.
    Apr 5 04:24 PM | Likes Like |Link to Comment
  • In Like A Lamb And Out Like A Lion [View article]
    You may not know until tomorrow about its assignment. I'm still seeing my $39.50, as well, but not all of the positions that I know will be assigned have showed up yet.
    Apr 5 02:52 PM | Likes Like |Link to Comment
  • In Like A Lamb And Out Like A Lion [View article]
    Ultimately it depends on whether the option holder can make more money by trading his options when compared to grabbing dividend and any profit from immediately selling shares and subtracting their option cost from that amount. Of course, that also places the potential option holder at risk of shares going down beyond the dividend related drop when trading opens.

    I own VZ with a 4/11 expiration and am currently on the cusp. If I had the 4/25 it would be much less likely to have it assigned early, although even with the weekly option the earlier in the week the better off you, as the seller are.

    Some shares with large dividends and low volatility are also subject to dividend arbitrage and have essentially no added time value in their premiums when they are in the money and are more likely to be exercised early, such as Altria.

    This week my upcoming dividends are MA, VZ, WFM, FCX, GPS and DRI. The 4/11 GPS is well in the money and may be assigned early, as Monday is it's ex-div date and there was little additional premium in contracts.
    Apr 5 02:39 PM | Likes Like |Link to Comment
  • Don't Give Up On Momentum [View article]
    I think this was quite a surprise. They were scheduled to be in court tomorrow.

    The gap between the government and APC was about $24 billion, I believe, but more importantly was the issue of being able to run away from responsibility on the basis of a corporate bankruptcy. I think that perhaps the government didn't want to take that issue on at this time.

    It will be interesting to see if there is any selling on the news, just as there was rampant buying on the rumor.
    Apr 3 03:27 PM | Likes Like |Link to Comment
  • Don't Give Up On Momentum [View article]
    BMY?

    Since I listed it here as a trade for the week, I'm not in that camp, however, my time frame is usually for a week or two.

    In this case, I now own two lots of BMY, with short calls expiring on Apr 11, 2014, having rolled the Apr 4 shares on one lot forward to make more likely the chance of capturing the dividend on shares.

    That apparently worked, despite the calls being at $50.50 on one lot and shares closing at $51.87.
    Where shares go after 4/11 is only of concern to me if my $52 contracts aren't assigned, but I think at the current price level BMY is a continued short term opportunity.
    Apr 2 09:19 AM | Likes Like |Link to Comment
  • Margin Accounts For The Conservative Investor [View article]
    I think that most online trading platforms give you a warning when you are trading with unsettled funds and refer to the potential for a regulatory violation if the securities are subsequently sold prior to funds settling. Anything that might protect you from a free-riding violation would be a good thing if using a covered option strategy.
    Mar 31 03:39 PM | Likes Like |Link to Comment
  • Margin Accounts For The Conservative Investor [View article]
    It appears, from having done a quick search, that the reference to a "margin IRA" is actually just an account that allows you to trade with unsettled funds. There is no loan liability involved, as that is specifically not allowed in a traditional IRA.
    Mar 31 02:41 PM | Likes Like |Link to Comment
  • Margin Accounts For The Conservative Investor [View article]
    I'm not too concerned about tracking balances, per se. The issue may be one of ensuring that balances neither increase nor decrease on the basis of the addition or subtraction of funds that may be related to some kind of margin loan and/or repayment, due to potential tax consequences in a tax deferred account. But I'm certain they have all of that figured out. As long as the onus to reconcile the account and the potential tax liabilities isn't left to the account owner.
    Mar 31 01:38 PM | Likes Like |Link to Comment
  • Margin Accounts For The Conservative Investor [View article]
    That sounds like an interesting product. I haven't heard of it before, but can imagine that the bookkeeping on someone's end may be something of a nightmare, especially if a traditional IRA. However, it would especially be nice for the dividend plays, particularly since those are really best suited in a tax deferred account for most people.
    Mar 31 01:07 PM | Likes Like |Link to Comment
  • Don't Give Up On Momentum [View article]
    Generally it is buying back the puts at either a gain or a loss and then selling new puts to accrue an additional premium, the net result of which must be a gain. Otherwise, you should consider taking assignment.

    You can easily select the parameters that form the basis for the new premium by manipulating the strike price and/or time frame.

    I want to at least use the same strike price, if not lower and go out one week in the hope of closing the position, but am prepared to go out further or on a recurring basis, as was demonstrated in an article last week (Margin Accounts for the Conservative Investor, using CREE as an example http://seekingalpha.co... )

    I make these trades as a spread, rather than attempting to execute two separate trades, especially when there is a large gap between bid and ask prices on both legs of the trade. I generally will pick the mid-point on each and specify a "Net Credit" and then possibly fine tune that Net Credit offer as I'm getting more motivated to see the trade get executed. Additionally, I do not select "All or None" as my trading choice.
    Mar 31 12:37 PM | Likes Like |Link to Comment
  • Don't Give Up On Momentum [View article]
    When they work those momentum stocks are great, but they do carry some peril.

    Where possible, and if you sold the Twitter $47 puts, rolling over can be a much better way to manage position than taking assignment. Unless a stock is irreparably broken rolling over generates the income while biding time for a price recovery and eventual expiration of puts contracts that were sold.

    Doesn't always work that way, but when it does, it's a really nice thing to behold.
    Mar 31 09:30 AM | Likes Like |Link to Comment
  • Don't Give Up On Momentum [View article]
    As far as seasonality is a synonym for patterns, I'm historically all in.
    Mar 30 08:37 AM | Likes Like |Link to Comment
  • Margin Accounts For The Conservative Investor [View article]
    No doubt that the use of options makes investing in the market a much more forgiving experience and makes it less necessary to feel humbled, even when a thesis proves momentarily incorrect.
    Mar 30 08:31 AM | Likes Like |Link to Comment
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