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Stephen Faulkner  

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  • Sirius XM: With $4 In Sight, Price Has Gone Parabolic [View article]
    I only lost the 50k. Since then I have done well. I consider it a kick in the behind :) 2 week short term Feb / Mar 2.50 - 3.50 was worth nearly 70k. Exited them last Thursday. That cash is in shares as of open today. My larger IRA position just drags along in *slightly* more conservative positioning.

    You'll learn not to buy any out of the money options unless you are confident in a sharp / quick move that you will sell into.

    Out of the money are for writing against current positions... spreads, etc.

    I lost the 50k on at the money options. Those are not much better to play with long term. Short term they can do quite well but OTM and ATM are never ever "hold until expiration" type things. If you are going to hold them pick your target, short against them at the target to lock it, and let them expire.
    Feb 17, 2015. 09:16 PM | Likes Like |Link to Comment
  • Sirius XM: With $4 In Sight, Price Has Gone Parabolic [View article]
    Sorry I missed this. I am self taught... I am sure that I do not approach them in text book fashion or anything, and what I do is relatively high risk.

    When I first started with options I lost $50k very quickly... cost me more than a book :P
    Feb 17, 2015. 06:33 PM | 1 Like Like |Link to Comment
  • Sirius XM: With $4 In Sight, Price Has Gone Parabolic [View article]
    Wanna try a quick flip 3.83 to 4.03 this week? ;) You know you wanna... Still has one more leg up to resistance in my opinion...

    But it might not... ;)
    Feb 16, 2015. 10:50 PM | Likes Like |Link to Comment
  • Sirius XM: With $4 In Sight, Price Has Gone Parabolic [View article]
    Buying under the 50 day keeps one in check. It's not particularly suitable for the trader who wants to chase a run up and empty out at the top or something but it works well for stocks that oscillate around a linear long term trend. SIRI is a linear stock even if in shorter time periods it is not, so buying below the oscillator (50 DAY) against the linear trend on the weekly or monthly prevents one from buying / chasing blow off tops and steep run ups in price that often find the share price retracing to or below that 50 day MA soon after. Buying under the 100 can also work but if you test back it works out very similar to buying under the 50.
    Feb 16, 2015. 04:25 PM | Likes Like |Link to Comment
  • Sirius XM: With $4 In Sight, Price Has Gone Parabolic [View article]
    That comment was to one Bluejay posted that he seems to have deleted or it was removed or something. Wasn't directed at you.
    Feb 15, 2015. 08:43 PM | Likes Like |Link to Comment
  • Sirius XM: With $4 In Sight, Price Has Gone Parabolic [View article]
    Depends on the package you get. They have one for 9.99... mostly music package.

    http://bit.ly/1zgW9O0

    I just go with the All Access even though I don't use the internet portion. They only seem to charge me for the select price of $164.89 for some reason... at least that was my latest renewal price.

    Negotiating lower prices can be difficult. Will depend on who you talk to, your history, and your ability to negotiate vs. the person on the other end of the phone and their ability to negotiate.

    Did you cancel when you were told "no"? If not, then they 'negotitated' correctly :)
    Feb 15, 2015. 03:30 PM | Likes Like |Link to Comment
  • Sirius XM: With $4 In Sight, Price Has Gone Parabolic [View article]
    It didn't go up every day all day :( Break out the tissues! :(

    And blame someones shoes... lol

    Or you could take a reasonable approach and... eh... oh nevermind :)
    Feb 14, 2015. 10:30 PM | 2 Likes Like |Link to Comment
  • Sirius XM: With $4 In Sight, Price Has Gone Parabolic [View article]
    Yes it's so crazy it must be! ;)
    Feb 14, 2015. 10:23 PM | Likes Like |Link to Comment
  • Sirius XM: With $4 In Sight, Price Has Gone Parabolic [View article]
    Annoyingly insensitive or slow to understand!

    Hmmm... what does that mean? I don't care! ;)
    Feb 14, 2015. 10:23 PM | 1 Like Like |Link to Comment
  • Sirius XM: With $4 In Sight, Price Has Gone Parabolic [View article]
    Obtuse isn't an insult. I'm often obtuse on purpose :)

    The generality is applicable to the target of the generality. The individual said he did not sell because of tax issues. Wrong choice, clearly.

    Tax issues should not keep someone from selling when and if a share price reaches their target. They shouldn't. He could also have locked his gains by selling longer dated deep in the money calls against the position and allowed it to close out later. There are options (pun intended). There's no reason to hold ST to LT once it reaches target unless you are willing to accept the risk that it just might not stay at your target for 8 months straight or at the very least make a round trip right back to your target in 8 months. Hell... 8 months? 6%? Buy a flat dividend paying stock and write covered calls against it 2 steps in the money.

    But then again I'm just a generator salesman ;) Take the smart route and hold that stock from $4.18 down to $2.98 and then complain that "SIRI SUCKS!" and seek to exit 2 years later because it has to reach your magic price point again... lol

    Anyways what I said to Green Stocks was right, and he's free to research it or consider it in the context of his attempted trade.

    Good luck :) No stress! Take Tylenol for any headaches. Midol for any cramps!
    Feb 14, 2015. 06:17 PM | 4 Likes Like |Link to Comment
  • Sirius XM: With $4 In Sight, Price Has Gone Parabolic [View article]
    I'm calm. Busy with all this weather (I swear... been blessed with storms year after year and business has been better and better and better.... and better... it's wonderful :) )

    I know what you are attempting to say here. You're trying to paint a guy with a purchase on a stock and a target exit as akin to Malone / Maffei making long term strategic business decisions based around taxes... I get it...

    But this guy isn't John Malone or Greg Maffei and he's not making business decisions. He bought a stock, set a price target, it hit that price target, and he held simply because he needed to wait an additional 8 months to save 6%? Horrible move. Who waits 8 months for 6% anyways on a volatile stock that has ALREADY reached one's sell point? Madness...

    Of course I am citing the specific example. My comment was to him and was a direct response to his example. :) Don't go obtuse because you are upset I laid into you in another article for your stupidity there.
    Feb 14, 2015. 05:08 PM | 2 Likes Like |Link to Comment
  • Sirius XM: With $4 In Sight, Price Has Gone Parabolic [View article]
    There is nothing magic about any price.... it's not like $4 means anything specific other than what it means for market cap and what the stock is trading for at the time and what that does to ratios.

    There should be resistance there based on the chart but that has nothing to do with the company.

    It's below mid range fair value... that has something to do with the company.

    Always upside and downside. You need to determine what the company is worth and use that to guide long term buy / sell areas. Could pull back from $4... could break and go to $5... it's all within the range (my range). Your range may be different.

    What *is* your range and why?
    Feb 14, 2015. 12:47 PM | 1 Like Like |Link to Comment
  • Sirius XM: With $4 In Sight, Price Has Gone Parabolic [View article]
    So you would hold an equity which is at stretched valuations that you have made a large percentage on in order to float it for several months / through another couple earnings reports to attempt to save a few percent on CG tax?

    Let's assume he was at the max 20% LT and 39.6% ST CGR (we'll even go with 40% for simplicity sake). He bought at 3.15 if he has a 22% gain at 3.85 so at 4.13 (let's assume he would not have pulled a top) he had a gain of 31%.

    ST tax portion 12.4%
    LT tax portion 6.2 %

    Since decreases in gains decrease tax you have to use a somewhat complicated formula to figure at what price "waiting" costs you due to differences in tax but it's only about 10-12 cents.

    Thus a 3.X% move in the stock COMPLETELY eliminates the benefit of "waiting" for ST to convert to LT.

    You never, ever, ever let the switch from short term to long term tax rates drive your point of sale. It should NOT "always" be taken into account to the point it REQUIRES you to hold at any stock price.

    What if SIRI ramped to $6 in 2013 on an overblow? Should he have held out to avoid the difference in tax?

    Your comment, Bluejay7751, is patently stupid here as well because the discussion surrounds an example where holding due to "taxes" has caused the owner to hold for another 14 months and he is STILL worse off than if he had just sold near the highs like he should have and paid the higher ST CGR!

    Most investors should NOT let a significant short term gain sit and ride along if they have reached their sell point months before it approaches LT status. If he bought 3.15 and timed his buy properly he bought late June 2013. June to October gain like that? Reach your target?

    Well gosh... I dunno ;) I work in emergency power... maybe it's a good idea to instead hold for another 8 months and hope the share price stays where it is... !

    He's worse off 14 months later with that money locked up the entire time.

    It bears repeating :

    Never let taxes guide your decisions... I see them mentioned all the time. Those few percentage points can really F up your targets, opinions of value, and charts.

    SIRI's valuation is completely independent of ST / LT CG of the holder.

    "But I've got certain standards I hope to meet before cashing out of any stock"

    That is a recipe for DISASTER too... stock doesn't care about your standards. Let the company / stock dictate your standards... your standards have no effect on the stock.
    Feb 14, 2015. 10:43 AM | 1 Like Like |Link to Comment
  • Sirius XM: With $4 In Sight, Price Has Gone Parabolic [View article]
    "They need to reduce share count, though or give something back to shareholders before too long."

    How does an investor in SIRI not know about the buyback program?????????
    Feb 14, 2015. 09:45 AM | 5 Likes Like |Link to Comment
  • Sirius XM: With $4 In Sight, Price Has Gone Parabolic [View article]
    It's getting bought out at a good price... retail holders have been selling into this buyback near bottom end valuations to great extent. ;)

    I know that's not your question but it's part of the answer :P
    Feb 14, 2015. 09:05 AM | 2 Likes Like |Link to Comment
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