Seeking Alpha

holbornnine

holbornnine
Send Message
View as an RSS Feed
View holbornnine's Comments BY TICKER:
Latest  |  Highest rated
  • Boston Beer Company - Expensive, But So Delicious [View article]
    I don't like buying options ... period. Having said that if S&P index vol keeps falling and 5% downside puts can be bought for Sep or Dec expiry at less than 10% implied volitility I would hedge the portfolio over the next 6 months but to be honest it would be an insurance premium that I think would be slowly decaying and dragging down the returns on the whole portfolio. Buying any downside options the last 6 year in most single stocks and virtually all indexes has been a complete waste of money !!
    May 25, 2015. 01:13 AM | Likes Like |Link to Comment
  • Boston Beer Company - Expensive, But So Delicious [View article]
    I trade options against my core holdings but must admit I shy away from options on stocks that trade at such huge absolute levels. SAM at $230.00 per share means that every option position has an underlying value of $23,000 so this isn't for the faint of heart unless you have a really big portfolio where $23,000 represent a small % of the total portfolio. With mine it would be about 6/7% of my portfolio so this is quite a concentration of risk.
    AAPL ( $131 ) is my largest dollar value stock I write options on and against and that is really only because they are so liquid and the spread is 1c on most strikes and they have weekly series which adds to the excitement!! ( without fail I have at least one AAPL option position expiring every 7 days ... I am short options 99% of the time rather than buying a decaying instrument ! ) . I avoid writing options on my biggest holding of 3M purely because it is a $160 stock. It is alot easier to write options on $50/$60 stocks such as JPM,DOW, WFC, SBUX, COP than $230 ones !!
    Come on SAM ... how about a 5:1 share split so us option traders can jump into your great company !!
    May 23, 2015. 10:54 PM | Likes Like |Link to Comment
  • Absent Product Revenue Growth, What Drives F5 Networks? [View article]
    Or the seller of those options .... I trade options daily and 95% of the time am a seller of volatility. This year my outperformance over my benchmark index ( S&P500 ) is a staggering 4,279 bps ( that's 43% in normal language ). Anybody who has bought options in 2015 has 95 times out of 100 been on the losing side of the trade !!!
    May 16, 2015. 03:25 AM | Likes Like |Link to Comment
  • Pioneer And The Permian Basin In The Early Innings Of The Shale Development Curve [View article]
    Would love to see a PXD-EOG merger ... that would send Einhorn running for cover very quickly and would drive down costs even further. The two premier shale plays combined would then be a tasty target for XOM or CVX or TOT or SHELL !!
    May 12, 2015. 08:35 PM | 1 Like Like |Link to Comment
  • ACE Limited Earns Its Premium, But Excess Capital Weighs On Returns [View article]
    ACE is a great company and is 60% of my insurance exposure in my balanced long term portfolio ( the remaining 40% exposure is in Chubb ). I write strangles around my core position and YTD have added $3.79/sh of option premium income to my dividends received. This helps reduce my net cost and if the stock rises or falls I will buy/sell more at attractive prices. I am currently looking for a spike in volatility to sell a $105/$110 June strangle as my short May strangle with the same strikes will highly likely expire worthless on Friday.

    I may look to add some HIG to the insurance portfolio if I can get it below $40.
    May 10, 2015. 07:25 PM | Likes Like |Link to Comment
  • In The Wake Of Tesla Announcement, SunEdison Or SolarCity? [View article]
    Pity you are so negative on SUNE Dana , I think the stock is up 25% since your last article ... I wonder if it will be up another 25% when you write your next one !!

    Disc: Long SUNE at $16.29
    May 1, 2015. 07:22 PM | 2 Likes Like |Link to Comment
  • Starbucks: Why I Bought This One And Why I'm Keeping It For A While [View article]
    I added today,although must admit not with huge conviction it was the correct move short-term ... the stock has not traded well the last two days , the day after earnings on Friday the stock closed way off its high and near the lows of the day if you included the after hours trading on Thursday. Today down over 2% and again a close very near the low of the day. Be interesting to see if it holds $50 this week. I realise we just a fraction from all time highs but just something to keep your eye on if you use SBUX as a trading stock around a core long position.

    Disc: Long 286 SBUX
    Short 2 x $49.50 P exp May 8th
    Short 1 x $48.00 P exp May 15th
    Short 2 x $49.75 P exp May 22nd
    Apr 28, 2015. 12:54 AM | Likes Like |Link to Comment
  • Morgan Stanley: 10 cheap big names, 10 expensive ones [View news story]
    How does Nike come in the "below average growth" column . NKE and PG in the same sentence when it comes to growth ???? Come on !!
    Apr 27, 2015. 09:00 PM | 2 Likes Like |Link to Comment
  • Apple Q2 2015 Earnings Preview: Another Strong Quarter Driven By iPhone In China [View article]
    Nice calm move after hours. Most of my short puts will zoom towards $0.00 tomorrow and the May1st $125/$139 strangle sold 30 seconds before close today wont be far behind them !
    Beautiful !!!!!
    Apr 27, 2015. 08:26 PM | Likes Like |Link to Comment
  • Apple Q2 2015 Earnings Preview: Another Strong Quarter Driven By iPhone In China [View article]
    I love earnings day for AAPL , the options market goes into wild frenzy , volatility spikes ( especially between 3-4pm ) and short option traders like myself have a field day ( just puts mind you - dangerous to sell naked calls on this baby ). I will be selling some $126/$127/$128's for 1st May,8th May expiries. I expect on Tuesday the volatility will collpase and they will all approach zero as fast as you can say "anyone seen my i-phone 6 ?"

    Love it !!
    Apr 26, 2015. 06:00 AM | 2 Likes Like |Link to Comment
  • Why United Technologies Will Stay In My Watchlist And Not My Portfolio [View article]
    Implied vols on UTX are reasonable if you are prepared to trade options around your core holding. So far in 2015 my UTX scorecard is as follows:

    Bgt 125 ORDS ave $117.36 ( loss $12.50 on todays price of $117.26 )
    Profit on option trades : $1939.70
    Yield from 1/1/2015 to today : 13.22% ( annualised approx 40% )

    There are ways to boost a seemingly low yield on great companies !
    Apr 24, 2015. 05:27 AM | Likes Like |Link to Comment
  • 3M: Why This Fairly Valued Company Is A Buy [View article]
    Added 20 more shares today at 159.77. 189 and counting. I will never sell these.

    Fully expect 3M to hit $100/share after a 2:1 stock split over the next 2 years.
    Apr 24, 2015. 05:19 AM | 1 Like Like |Link to Comment
  • Travelers Misses On Revenue, But Is Still A Long-Term Buy [View article]
    mgpaisan ... I dont own TRV , but may nibble tomorrow ( sell some $100 strike puts ). I do own ACE , any thoughts on their results this evening ?
    Apr 21, 2015. 08:27 PM | Likes Like |Link to Comment
  • SunEdison strikes 262MW Utah solar plant deal [View news story]
    I presume these projects will be dropped into TERP when near completion ( for a nice profit ).

    SUNE shares are just on fire at the moment , I actually took 1/4 of my position off today at $26.15 as they seem very over-bought short term. On any sell-off back under $25 I will sell some PUTS to try and buy them back ... when was the last time the shares had a decent correction?

    DISC: Now long 750 SUNE at ave. $14.12 ( with profit on sale of 250 today backed into average cost of remainder )
    Apr 9, 2015. 07:43 PM | Likes Like |Link to Comment
  • Don't Wait: Rush To Buy Starbucks [View article]
    Stock got hammered today , lowest level now for quite a few weeks. Wall St not into kale smoothies ??
    Apr 1, 2015. 10:57 PM | Likes Like |Link to Comment
COMMENTS STATS
281 Comments
142 Likes