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The Fox

The Fox
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  • Vera Bradley - Appealing After Shares Have Seen A 65% Discount Over Past 2 Years [View article]
    I knew what you meant. Good article BTW...
    Sep 14 08:57 PM | Likes Like |Link to Comment
  • Vera Bradley - Appealing After Shares Have Seen A 65% Discount Over Past 2 Years [View article]
    I think it is more then just investor class. Tesla is "disruptive technology". It is a game changer. Anyone who has ever been in one knows this. Consumer reports gave it the only perfect score (at least that I am aware of). VRA makes nice things, but it isn't even in the same universe as Tesla. Elon Musk is a genius and VRA is still looking for a CEO. Too many differences.
    Sep 14 05:20 AM | Likes Like |Link to Comment
  • Vera Bradley - Appealing After Shares Have Seen A 65% Discount Over Past 2 Years [View article]
    I think the stock CAN make it to $23 in a very short time frame if they announce the addition of a respected CEO with a good track record. The short interest is so high that it won't take much for this thing to be up 10-15% in short order. Any good news will set this in motion. I am not that confident in VRA's ability to compete with the Coach's or Kors of the world. I just don't think that have the mass appeal that the others do. For instance, my wife and Mom think their designs are atrocious, but my niece loves them.

    Anyway, what I like about VRA is that they do have a product folks want (some at least) and it is on sale in a market where not a lot is on the bargain rack. The debt situation is good. Any number of catalysts will send this higher....reduction in inventory at reasonable margins, new CEO, beat estimates, upgrades, etc. Being short here looks very risky to me.

    Disclaimer- I am long VRA
    Sep 13 07:37 AM | 1 Like Like |Link to Comment
  • Dividend Growth Investing Needs Some Loving Too! [View article]
    What you fall to account for is that the premiums I am using might have been from the sale of a stock that was a big winner, so I am using gains just like a long term holder of a stock. It is a futile argument. By the way, you never addressed the issue of me bad mouthing DG investing. I am assuming you made up the accusation? You lost credibility with that one. Please try and state facts when you post. Thanks.
    Sep 5 10:11 PM | Likes Like |Link to Comment
  • Dividend Growth Investing Needs Some Loving Too! [View article]
    A few things...

    First....show me ONE post where I said anything negative about DG investing. I happen to have a lot of respect for the process. Because I like to use options doesn't mean I don't respect (and admire) the success of a lot of the DGI crowd. I do wish they weren't such a cantankerous bunch sometimes, but I'm not a barrel of laughs all the time either. Second...you are assuming that my strike price is right at the current market value and that I would absorb all the downside. Third, who commits all their capital to ANY strategy. Ridiculous notion. The fact is that I would be down close to the 20% just like EVERYONE else holding those equities. Comparing the cost basis between me and the rest of the crowd is a waste of time. Are you telling me that everyone on this board has been holding every stock for decades? Give me a break. People would be hurt to varying degrees using cost basis as the bench mark. Everyone would be done 20% though.

    Bro...this isn't my first rodeo. You make a lot of assumptions in your post that are very convenient, but I know how it would play out. Again...please show me a post where I criticized the DG approach. I would like to read it and apologize if true. Lastly, your stream roller approach applies more to bonds then it does it options selling. That is "picking up pennies in front of a steam roller".
    Sep 5 10:15 AM | Likes Like |Link to Comment
  • Dividend Growth Investing Needs Some Loving Too! [View article]
    ThetaDecay,

    I think it is safe to say that everyone gets pummeled in a 20% market crash...even DGI folks. If you are selling puts in MCD, PEP, BA, etc. then you are going to end up owning them all. Is that so bad? How are you in any different shape then most of the posters on this board? You would end up owning some of their favorites. I guess the purchase price could / would be different, but that wouldn't be unique to acquiring shares through put selling. If you are selling puts in DGI favorites then I don't see a whole lot of downside to the strategy.
    Sep 4 09:27 PM | 1 Like Like |Link to Comment
  • Dividend Growth Investing Needs Some Loving Too! [View article]
    No problem...you identified the easy part which was that it was overvalued at $700 (hindsight always being 20/20). I was just helping you out with the hard part.
    Sep 4 08:58 PM | Likes Like |Link to Comment
  • Dividend Growth Investing Needs Some Loving Too! [View article]
    In Apple at $446. I didn't do that well but am still up 13% in 4 months. Not great, but you aren't going to hit them all out of the park. The real trade was below $400.
    Aug 26 09:40 PM | 2 Likes Like |Link to Comment
  • Dividend Growth Investing Needs Some Loving Too! [View article]
    Mr. Crosetti,

    I know all about value my friend which is why I increase the value of my purchase by selling a put. It lowers the price and creates an even better value:)
    Aug 26 09:37 PM | 1 Like Like |Link to Comment
  • Dividend Growth Investing Needs Some Loving Too! [View article]
    Yes...and had it been put to you then you would have looked like a genius. Your "lesson learned" only holds water some of the time.
    Aug 25 09:00 PM | Likes Like |Link to Comment
  • Dividend Growth Investing Needs Some Loving Too! [View article]
    Rebel,

    While I agree that what you stated could happen I think that could happen outside of options selling as well. How many folks on this board have ever set a limit order in the AM, went to work, went golfing, etc. and then come home to an executed order that occurred on bad news? I know it would be rare, but it happens. I know a few people that had limit orders in POT and they all got executed. Sometimes nothing can save you....options or otherwise.
    Aug 25 08:56 PM | Likes Like |Link to Comment
  • Dividend Growth Investing Needs Some Loving Too! [View article]
    Mr. Fish...

    Not so. I use options in an IRA all the time...conservatively, of course (selling them only).
    Aug 25 08:52 PM | Likes Like |Link to Comment
  • Dividend Growth Investing Needs Some Loving Too! [View article]
    Dave,

    I respectfully disagree. You are not "playing the market"...you are entering a position at a lower price. It is investing at a higher level then simply putting in a limit order. The only downside to the scenario you described would be not getting put the stock in which case you would keep the premium. I am going under the assumption that you absolutely want to own the stock anyway, so having it put to you is the desired outcome. I don't see how that could be bad....a lower cost basis in a stock you want to own.
    Aug 25 08:46 PM | 1 Like Like |Link to Comment
  • Dividend Growth Investing Needs Some Loving Too! [View article]
    Yes...that is the "risk". You would still be paid for the put, so it wouldn't be unsuccessful from a money making stand point. It is a tool like anything else. If I felt like there was a "must have" stock right NOW then I might just buy it outright. To use an earlier example, I think MCD likes good here, but I don't consider it a fantastic price. I think adding makes sense, but it is far from bargain basement. That is when selling a put makes sense. If it gets put to you then you lowered your basis by $1.50 per share. I like it a lot better at $93.50 than $95. To each his own, I guess.
    Aug 24 10:10 PM | Likes Like |Link to Comment
  • Dividend Growth Investing Needs Some Loving Too! [View article]
    Oops. Missed that. I see what you are saying now.
    Aug 24 06:32 PM | Likes Like |Link to Comment
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