Daniel Jones

http://www.optionsnotions.com

40 Comments

    • American Capital Strategies: Ride the Recovery [view article]
      biz.yahoo.com/prnews/0...

      The link above is the reference to the $0.31 per share dividend, and yes, the total annual dividend is $4+ on a trailing twelve month basis. Much of that income is characterized as gains though, not a normal cash dividend. 19% dividends don't come along every day.

      The option strategy call spread is solid - selling that $30 call is up to you whether or not you do it. Yes, it's a small premium but it is 10% of the purchase price of the lower strike call.

      The dividend is important information to report correctly. Thank you for pointing it out and correcting my error. When errors like this come along, I always try to publish either a correction or a link to the correct information. I appreciate the notes.

      Daniel Jones - editor, OptionsNotions       Jul 09 07:15 AM
    • Valero Energy Call Spread Idea [view article]
      Thanks for that compliment. I'm chuckling out loud - sorry you had to sift through the others to find me. I'd refer you back to my website for a subscription if you really wanted a regular good read. Jul 02 02:02 PM
    • Recommending GM: No, I'm Not Kidding [view article]
      I agree with the first two posters who kind of took me to the woodshed for trading on hope. Honestly, it is a wing and prayer type of a long call play, but I do believe that underneath the zombie exterior here is a car company that can be profitable. Seeker2012 has some unique insight that I'm glad he shared, and this company will turn around. Sometimes the contrarian play is the right one. We also did a put spread in Mid-May on UPS and FDX. Those stocks actually went UP the day after FDX warned on earnings. Today after releasing earnings, the stock is down big - down a total of 15% since mid May and those puts are flying. It's a business of going against the grain sometimes - that's where we are with GM.

      Onward,
      Daniel       Jun 18 10:51 AM
    • Get to NYMEX - Before CME Does [view article]
      Yeah, that was a nice little double digit return in a very short time. Hey, if you liked that one, and you made some coin, you should subscribe to our newsletter and get the picks ahead mailed directly to you rather than waiting a few days for SA to publish. We always give our subscribers a few days pre view before publishing here, FWIW. Pretty reasonable cost too...only $250 if you subscribe before July 1.

      Cheers,
      DJ       Jun 17 08:23 PM
    • PDL BioPharma: Take the LEAPS [view article]
      Hi Coach - sorry to be late in answering this question.

      These options would convert to equivalent number of acquiring company's shares - just like any other takeover. Plus the $425..

      HOpe this helps. New picks coming all the time on the website - the FDX and UPS put spreads have been nice hedges in the latest downturn. Gotta toot the horn on those...see my list of historical picks.       Jun 17 08:19 PM
    • PDL BioPharma: Take the LEAPS [view article]
      Here is that link to the contract adjustments:

      search.cboe.com/cgi-bi...


      Please read that memo under the section "Contract adjustment for the special cash dividend" - it makes the statement that each contract will require the "receipt or delivery of 100 shares of PDLI Common Stock, plus $425 cash".

      That's the dividend, and it IS INCLUDED in the YOJAB options that I recommended. On settlement date, you will enjoy the ability to get 100 shares of PDLI at $10, plus $425 cash. There is a series of options under the label of "YAV" that do not include that cash payment. Those options have a difference in price of the NPV of that $425 cash payment.


      Hope this helps clear things up.
      Best regards,
      Daniel




      Jun 05 01:20 PM
    • PDL BioPharma: Take the LEAPS [view article]
      The CBOE website "Contract Adjustments" page has an update back in early May for the PDLI contracts that includes this $425 special dividend....so as the article said, you get the right to buy 100 shares at $10, (for the $10 strike) and also receive that $425 dividend as a cash payment. It's included and kind of a "special wrinkle" to this trade. Jun 03 02:56 PM
    • PDL BioPharma: Take the LEAPS [view article]
      The final sentence looks like it got cut off: it should read "We would look to hold this trade to expiration - as PDLI's various spin-offs occur, holders of these LEAPS will benefit, and the value represented by the $425 special dividend, although not paid until expiration, gives us a comfort level on the current value at $5.00.
      Jun 03 11:02 AM
    • Should the Fed Lend to Investment Banks? [view article]
      I for one have an opinion that the TSLF was a tremendous opening of a spigot to reliquidate the entire balance sheet of the I-Bank industry to the tune of $300 billion. Footing the bill, the US Taxpayer. Enjoy your economic stimulus checks of $1,200 or whatever - Wall Street got one for $3 bills courtesy of HP at the Treasury. May 29 10:09 AM
    • E*Trade Covered Call Idea [view article]
      Glad you two liked the article - $5 by January may be conservative, but it's the base hits like this (17.5% yield either way, or a 42% total return if called) in a portfolio that will drive good investment returns over time.

      There are some other good covered call ideas up on my bio page that include Delta Airlines, which is still a good idea out there, and even some put spreads on a couple of the overnight transport groups.

      Good trading,
      Daniel       May 28 10:13 AM
    • Capitalizing on Morgan Stanley's Level 3 Assets [view article]
      User - your point is well taken. I would clarify and not sell that June 60 call for a nickel. I would still buy the June 50's and wait to sell the 60's at a later date, after the stock has run up. You are correct that a $2.20 breakeven is not materially any different than a $2.15 point.

      May 01 08:52 AM
    • Expecting Apple to Continue Its Upside Surprises [view article]
      I hope everyone who got into this trade is ready to exit - the call spread is rapidly approaching full value today (April 30) and with today's +$3 move you could probably exit at a $17 or $18 value to the call spread. Not a bad idea to have a sell target order in with your broker, in this analyst's opinion. Hate to have anyone miss out on taking a solid profit.

      Thank you all for your constructive comments on AAPL's intrinsic business. I am certainly learning as well.       Apr 30 11:06 AM
    • Goldman Options Trading Strategy [view article]
      In my newsletter, from which this was excerpted, the comment that "Options investments have the potential to lose all of their value" and the usual disclaimers are present. Seeking Alpha edits the posting down to what they can use. Your comment is accurate. Options are wasting assets. The use of spreads, collars and writing options like buy/write strategies are some of the things investors can do to take advantage of that. It's why we use spreads vs. just going long calls or puts. Good trading to you.

      Daniel Jones       Apr 22 09:58 AM
    • Global Industries, Transocean Offshore Trade Idea [view article]
      Hi - actually this report was written by me, Daniel Jones at optionsnotions.com I hope you'll stop by and visit the site. We have a free subscription offer through May 26th of this year so you can test out our service for free. Apr 10 11:45 AM
    • GSEs: The Tail Wagging the Credit Market Dog? [view article]
      What's the worst-case scenario if the book values continue to erode? JP Morgan can't come in and buy FRE or FNM for $10 a share...these two will have to access the capital markets and pay up for that capital. That usually means a dilutive event for present shareholders. Does the present market price reflect this potential?

      I like your analysis of the historical price / book. Are there other, smaller regional players in the banking sector that represent compelling price / book opportunities?
      Apr 09 09:27 AM
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