Investing In NOK By Trading Its Option Implied Volatility [View instapost]
We bought back the February 4.00 calls today for .03 to avoid the potential for a spike up in price tomorrow. The additional .52 cent premium effectively reduces our basis in the shares to 1.24.
We are reluctant to sell more puts here as volatility is relatively low. However, if the share price tails off somewhat we will become aggressive with put sales, perhaps at the 4.00 - 5.00 strikes.
For Nokia, Microsoft Is Dead Weight [View article]
This article isn't financial analysis........it's an editorial.
Let's do a quick rundown of this author's agenda and trading/investing record.
On April 23, 2012 he has “no position” in AAPL; although he “predicts” that “the Apple iPanel is set for Q4 2012 release - in perfect time for Holiday shopping.“
Since the price range for AAPL shares between April 23, 2012 and April 30, 2012 is $555 - $618, he must have purchased his shares within that price range.
Over the course of the next 8+ months, he is long AAPL and repeatedly bashes the competition in numerous articles. He is still “long” AAPL as of January 10, 2013.
Since the price range for AAPL shares between January 10, 2013 and January 15, 2013 is $515 - $485, this “adviser” took a healthy haircut on his AAPL purchase between $555 - $618 in late April 2012.
Meanwhile, NOK (which he never tires of bashing) nearly triples between July 2012 and January 2013.
Lumia Lifts Nokia Back To The Black [View article]
Disagree with the comment about "ugly" technicals. The candle chart is making higher lows and higher highs on increased volume since July. It has also broken its down trend line; and we call that an up trend.
On a point and figure chart (the best immediate indicator of the supply and demand picture for a stock), NOK is outperforming the general market and outperforming its peers.
Long NOK from 1.76 and accumulating. (We've also covered the position with February 4.00 calls at 55 cents.) We call that trading to invest..... short term, long term....... we don't care; and we don't limit ourselves with meaningless labels that only tend to stifle imagination and stunt profitable outcomes.
Investing In NOK By Trading Its Option Implied Volatility [View instapost]
On 1/18/13 we sold NOK February 4.00 calls to cover for .55. While this trade was riskier than we like on a numbers crunching basis, from a charting standpoint, it looked like it could work out.
If the calls expire, our effective basis will be 1.21.
We think that a good year is ahead for NOK; but even if it isn't, we continue to lower our risk and improve profitability with options.
"It is just too soon to talk about Nokia's revival. The company is nowhere near the home stretch and still has a lot of difficulties to tackle, the biggest of which is an increasingly competitive marketplace. Investors should wait at least one more quarter before investing in this stock......"
What nonsense! Even if the stock price is at 3.65 in mid-February we'll have TRIPLED our investment in NOK since August.
Despite A Bumpy Ride I Am Staying On The AAPL Cart [View instapost]
Your limit order will probably be filled; but be careful what you hope for. Apple stock will probably not work as well as an iPad for some time. Meanwhile, the idea behind trading and investing is making money.
For example, since August we've accumulated shares in NOK and our basis in the stock is 1.76. We do not own Nokia phones, but we've more than doubled our money in less than 6 months (and we're not doing it just by watching as the price goes up). Apple isn't going to double anytime soon; so if you want to retire to that villa in Italia, you may want to reconsider where you invest your next $400.
How to Protect Your Stock Position in Apple [View article]
Hi dpk,
I'm sorry, but I'm not sure I'm following what you are asking.
You want me to assume that you are not holding the stock, but have a long position with 330 calls; and you want to know how to protect the position? Are you holding January 2014 call options? If so, the price of 330 calls will respond just like the stock since they are so deep in the money. You could purchase puts to protect the position, but that should probably have been done several months ago.
Investing In NOK By Trading Its Option Implied Volatility [View instapost]
We are reluctant to sell more puts here as volatility is relatively low. However, if the share price tails off somewhat we will become aggressive with put sales, perhaps at the 4.00 - 5.00 strikes.
For Nokia, Microsoft Is Dead Weight [View article]
Let's do a quick rundown of this author's agenda and trading/investing record.
On April 23, 2012 he has “no position” in AAPL; although he “predicts” that “the Apple iPanel is set for Q4 2012 release - in perfect time for Holiday shopping.“
http://seekingalpha.co...
One week later (April 30, 2012) the author is “long” AAPL, crowing about a price target of $815.
http://seekingalpha.co...
Since the price range for AAPL shares between April 23, 2012 and April 30, 2012 is $555 - $618, he must have purchased his shares within that price range.
Over the course of the next 8+ months, he is long AAPL and repeatedly bashes the competition in numerous articles. He is still “long” AAPL as of January 10, 2013.
http://seekingalpha.co...
Quietly (meaning that he didn't write an article about it), he is suddenly flat with “no position” in AAPL as of January 15, 2013.
http://seekingalpha.co...
Since the price range for AAPL shares between January 10, 2013 and January 15, 2013 is $515 - $485, this “adviser” took a healthy haircut on his AAPL purchase between $555 - $618 in late April 2012.
Meanwhile, NOK (which he never tires of bashing) nearly triples between July 2012 and January 2013.
…....the author gets no more of my pennies.
We are long NOK from 1.76.
Why Asia Is Interested In Undervalued U.S. Junior Miners [View article]
When GMO drops into the 3.00 - 3.25 range look to sell the March 3.00 put for .30 or better.
As we said above, at a 52 week high GMO was clearly overbought and recent price action has confirmed it.
If you can sell the puts for .30, you'll either own the stock at 2.70 or pocket an annualized return of over 100 per cent in 30 days.
Buy low, sell high.
Constantine Metal Resources, Ltd. – Overlooked By The Street, But Not By Major Hard Asset Players [View instapost]
http://bit.ly/UIrs68
Bullfrog: This Junior Gold Company Poised To Leapfrog Peers [View article]
True statement. We think this is a better investment.
http://bit.ly/14H4M6T
Nokia: Is This A Revival? [View article]
Lumia Lifts Nokia Back To The Black [View article]
On a point and figure chart (the best immediate indicator of the supply and demand picture for a stock), NOK is outperforming the general market and outperforming its peers.
Long NOK from 1.76 and accumulating. (We've also covered the position with February 4.00 calls at 55 cents.) We call that trading to invest..... short term, long term....... we don't care; and we don't limit ourselves with meaningless labels that only tend to stifle imagination and stunt profitable outcomes.
Investing In NOK By Trading Its Option Implied Volatility [View instapost]
If the calls expire, our effective basis will be 1.21.
We think that a good year is ahead for NOK; but even if it isn't, we continue to lower our risk and improve profitability with options.
Nokia: Is This A Revival? [View article]
What nonsense! Even if the stock price is at 3.65 in mid-February we'll have TRIPLED our investment in NOK since August.
http://seekingalpha.co...
"He who hesitates is lost."
Apple Is Now Cheaper Than Dell, Hewlett-Packard [View article]
Long NOK from 1.76 (and no, we don't own a Nokia phone....lol).
Apple Is Now Cheaper Than Dell, Hewlett-Packard [View article]
Silver: Are We Heading Back Down To $26? [View article]
Best wishes for your presentation next month.
Despite A Bumpy Ride I Am Staying On The AAPL Cart [View instapost]
For example, since August we've accumulated shares in NOK and our basis in the stock is 1.76. We do not own Nokia phones, but we've more than doubled our money in less than 6 months (and we're not doing it just by watching as the price goes up). Apple isn't going to double anytime soon; so if you want to retire to that villa in Italia, you may want to reconsider where you invest your next $400.
12 Rules For Buying Dividend Stocks [View article]
How to Protect Your Stock Position in Apple [View article]
I'm sorry, but I'm not sure I'm following what you are asking.
You want me to assume that you are not holding the stock, but have a long position with 330 calls; and you want to know how to protect the position? Are you holding January 2014 call options? If so, the price of 330 calls will respond just like the stock since they are so deep in the money. You could purchase puts to protect the position, but that should probably have been done several months ago.
If I'm not understanding you, let me know.