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AUGUR OF ARIZONA
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I have been an equities enthusiast for over two decades. I have read tens of thousands of pages on investing in the stock market and continue to read about investing on a regular basis. Daily, I watch the stock market and study individual companies. I am a former military officer. I am a... More
  • EBAY: Liquidated It All 0 comments
    Jan 26, 2014 10:50 PM | about stocks: EBAY

    Positions Update: All Cash, now. eBay reported after the bell on 23 JAN. Earnings @ .81 beat by a penny, with 4.53 bil in rev. v. 4.55 est.. eBay pegged its Q1 forecast at .65 - 67/4.15 - 4.25 v. .72/4.3 est. and pegged 2014 forecast at 2.97 - 3/18 - 18.5 v. 3.12/18.5 est. The 2014 forecast was well below expectations and within a second of the press release the stock dropped in AH to 52.79; however, the release also revealed that 1) Carl Icahn had taken a stake in eBAY and was pushing for a PayPal spin-off and 2) eBay had authorized a $5 billion share buyback. Thus in AH the stock traded up briefly to about 60. It opened the next day @ 55.72 and quickly sold off to apx 54 and then closed up @ 54.94. I was disappointed by eBay's forecast; thus, I sold all positions. I think the Icahn news kept the shares from tumbling, and I used that opportunity to liquidate. I am still watching eBay like a hawk, but I'm content to do so from the sidelines, for now.

    Account I (apx .50 Weight):

    NOV 7. Bought EBAY @ 53.14. Sold 53.5 NOV calls @ .56. 1% return from premium. (also have a small position with no calls)

    NOV 15. Shares not called away.

    NOV 18. Sold 55 DEC calls @ .53. 1% return from premium. (also have small position with no calls)

    DEC 11. Added shares @ 51.36.

    DEC 21. Shares not called away.

    DEC 31. Sold 18 JAN 55 calls against most of the position for 1.09. 2.1% return on premium.

    JAN 18. Shares not called away.

    JAN 21. Sold 31 JAN 56.5 Calls for .73 against most shares.

    JAN 22. Sold all "naked" longs (small position) for 54.24. Avg cost basis of 51.88, so 4.6% gain over apx 2.5 months

    JAN 23. Bought to cover all 56.5 Calls for .26, so .47 premium kept for .9% 2 day return. Sold all related EBAY shares @ 54.42 for 1.38 gain: 2.6% over 2.5 months. Now 100% Cash.

    Account II (apx .17 Weight):

    NOV 07. Bought EBAY @ 52.32. Sold DEC 52.5 Calls @ 1.72. 3.3% return from premium.

    DEC 21. Shares called away. Total return: 3.6%. Now 100% Cash.

    JAN 02. Sold 31 JAN 52 EBAY cash secured puts @1.19. 2.3% return on cash security.

    JAN 23. Bought to close 52 Puts @ .2, so .99 premium kept for 1.9% return in 3 weeks. Now 100% Cash.

    ACCOUNT III: (apx .17 Weight):

    NOV 08. Bought EBAY @ 52.87. Sold 55 DEC Calls @ .89. Return from the premium of 1.7%

    DEC 21. Shares not called away.

    DEC 31. Sold 18 JAN 55 calls against all of the position for 1.05. 2% return on premium.

    JAN 18. Shares not called away.

    JAN 21. Sold 31 JAN 55 Calls at 1.2

    JAN 23. Bought to cover 55 Calls @ .94, so .26 premium kept for .5% 2 day gain. Sold all related shares @ 54.95 for 2.08 gain: 3.9% over 2.5 months. 100% Cash now.

    Account IV: (apx .17 Weight):

    NOV 21. Bought EBAY @ 52.79.

    JAN 22. Sold all shares @ 54.28: 2.8% gain over 2 months.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: EBAY
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