Just hit $4 after hrs.
Just hit $4 after hrs.
I'm around. Midas kinda covered it. Just really busy and IMO not much noteworthy with SIRI other than the Agero thing. The $2 bil buyback continuation was expected. LMCA selling back was expected (though I did not expect SIRI to get a 1.5% discount... I was not surprised to find out that LMCA was not demanding some sort of premium...)
SA cut their pay by 50% or more for high traffic authors and shuffled that cash towards incentives for people to write about stocks people aren't particularly interested in. Something to do with a subscription service. I don't think it's a good idea... but it's not up to me And I think what I offer there has more value than the pay rate so my incentive to write vs. watch television or play video games or sit and stare at the wall has been decreased significantly Their strategy seems very backwards to me but they probably know something I don't here :P
Next 6 months look great. I fired off a bunch of tweets for near term expectations earlier. Want to see $4 break AFTER Q3 numbers are out but if macro pushes hard it could break before.
I'm currently still in my options (I bought back the short $4's and will move them to $4.50 over time here for Jan 2014). The shares I have from my "trading cash" I wrote Oct 19th 4's against this morning as I don't see a 4 break before the weekend with OI on the options so figured I'd bank a couple grand.
Next week's 4's 11 cents ask, over 2.5% for 7 days. Tells me break is expected into or post earnings.
Looking for $4.25 upper bound on pop based on where SIRI has gone over the 50 day in past. Obviously something exceptional could run it more though I (and it seems LMCA) do not think anything is coming that will drive the share price over that area in the next month or so.
Still looking for a $4.50 brush by January but not a pass hence writing the $4.50's on next pop then just letting it ride. Should pull $0.18 or so if pop is quick enough here, $0.16 if not, and so long as stock doesn't pass $4.66/8 it's a win.
And there you go!!!
Thanks Faulkner! I got 2015's & 14's, $3.50 strikes mixed in with some $4's, along with some high risk, short term contracts incase the lottery ticket hits!!! (Fuke Cramer). I'm pretty diversified, got my core in 401k for the long term, just shares. Still need to learn about writing calls (I think that's what your talking about) But you would have to own shares to back them up, if I'm correct, but unfortunately my 401k doesn't allow options trading. If I was to sell my contracts to buy shares so I could write calls I would loose too much leverage, imo. So I'm kinda stuck. Your strategy is a good one though I know, and hopefully one day I will get the chance to utilize it. Glad to hear your doing well. Miss your input, I ain't never liked SA anyway, besides what you wrote, so fuke them to. Good times are a coming my friend, GL
Last edited by Redcloud; 10-17-2013 at 06:20 PM.
How do you own calls then? I just write them vs. my long calls. It creates bull call spreads in that case. I would think if you can be long calls you can be long a call spread... same option tier.
Hummm, that's what I'm talking about, didn't know I could do that. And still not sure. I got calls, your saying I can write calls against them? I've been thinking you had to have shares in hand.
Last edited by Redcloud; 10-17-2013 at 06:38 PM.
Just a quick break in to say......HEY SF!!...what's up man. Glad you're doing well. I agree with all that RC said so you don't have to re read my version......What's up Dog/RC.....ok, I'll get out of your options chat now guys.....later
EDIT: BTW, agree with what you said too......TheDog will be lathered up soon.
Last edited by denco1; 10-17-2013 at 07:14 PM.
Yes you should be able to write calls against held calls. It's a covered position as you are long the stock at a lower price (assuming you write the higher strike and are long the lower strike).
options chat FTW