Robert Anders

Long/short equity, value, special situations, investment advisor
Robert Anders
Long/short equity, value, special situations, investment advisor
Contributor since: 2012
Company: Anders Holdings Group LLC
Much appreciated. I will write a follow up article describing why this CAD/CAM developer should be treated as a 3-D printing company and how its software aids in commercial/industrial manufacturing.
Appreciate it!
CSCO absolutely should've been considered a mega company.
A market leader perhaps, The market leader, absolutely not relative to Android devices made by Samsung et al. as seen by market share in countries including Mexico(48%, BGR), Brazil, and India(50%, Samsung alone, Times of India).
Thanks for writing this, I entirely disagreed with his thesis when i read his article yesterday.
Your information is for "qualified dividends" which receive a special tax rate.
The information in the article was regarding the lower tax rate this year relative to next year, qualified dividend or not.
There are many institutional firms that use Cor. I am not aware of retail brokers that use Cor. I also do not know if any other clearing firms will follow suit with Cor, but some clearing firms already require 50% margin on all holdings.
For more info on who Cor serves:
I agree, and only sell spreads
it was 550/555 c and 540/545 p, although P/L may be close, your probabilities of profit are not neither are the actual $P and $L
Its not only a matter of the individual brokers, ie TDA or Etrade, rather the clearing firms making this decision. Those retail brokers often use 3rd party clearing firms, and must comply with their restrictions as well. As seen with Knight Capitals fiasco months ago, clearing firm decisions and actions can trickle through to retail brokers.
with AAPL at exactly 540 instead of 550 when I wrote this article, subtract 10 for each strike price and the break evens. All prices and odds will be almost identical if you substitute strike $10 lower for each, since Volatility and Time did not change with any substance over the past hour.
If you hold calls your calls will increase in value, if the underlying stock increases, based on your calls' delta. Although option holders would not qualify for a dividend, you could exercise to qualify. Just as bond holders would not benefit when a firm pays a special dividend, feel free to allocate your assets accordingly. My firm only trades derivatives, mostly options.
It will be taxable at 15% this year. A higher rate next year.
Well Sid, It depends on your comfort with probabilities. The call spread would offer higher potential return, but you would have a lower probability of achieving your maximum return, while the short put spread gives you more opportunity to have a profit(as long as it remains above $520), but will earn you less return.

I did not and will not take either of these positions over the next 72 hours.
Theta on the call spread would've been just under -$6/contract/day.
I'm not sure how much your commissions are, but if your paying close to 50% of $230 per contract you are extremely ripped off and I would gladly refer you to a lower cost broker. You can contact me at andersholdingsgroup@gm...
I agree, Seeking Alpha requires contributors to post accurate information.
Earnings will be at the end of October. Do not use this strategy for October contracts.
yup, very typical of this past earnings season. much lower moves than the option market predicted across the board.
Selling a straddle is a good play, especially when it is only for one day. I limit my short straddles and short strangles because I like to have defined risk and I like to lower my capital requirement, but since it is only over one day, you're only tying it up for one day, should be good.
yes if i choose one of these strategies it would be entered thursday afternoon. Volatility should be expanding leading up until then.
I also do understand "going for the gold" and did that for years. Now my portfolios only utilize high probability for profit trades. Generally, we stick to 65% or higher probability for max profit.
My fund does not buy premium. Our portfolios only sell premium. This article was merely an illustration of where one can find premium to sell, in a marketplace of low vol. We generate our income from theta and premium decay.
not necessarily true logic.
Too little premium for SPY, hence low VIX.
The point is, traders can take advantage of option volatility in VIX, by collecting the premium. The portfolio I manage generates income from theta decay.