Author Topic: What are you buying today?  (Read 2198064 times)

gary17

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Re: What are you buying today?
« Reply #450 on: March 10, 2014, 07:51:40 AM »
Today I bought $120 strike 2016 IWM puts.  Maybe that will help me calm down.

Hi Eric - how does this work in terms of sizing the hedge - do you look at your overall portfolio value; pick a percentage that you want to hedge - and buy enough puts where the value = the % of the portfolio that you want to hedge?     Thanks    Gary

I'm having a freakout at the moment.  There is no grand formula.  Just panic decision making.

just calm down....    if everybody thinks a correction is just about to happen - chances are it won't happen.   that's just how it works.       Gary


Lance

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Re: What are you buying today?
« Reply #451 on: March 10, 2014, 12:36:45 PM »
$38 strike 2016 EEM puts.

Thanks,
Lance

wachtwoord

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Re: What are you buying today?
« Reply #452 on: March 10, 2014, 01:00:18 PM »
Sold out of NVS after holding a little over 2 years and replaced it with PKX <$64.
"Beware of he who would deny you access to information, for in his heart he dreams himself your master"

gokou3

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Re: What are you buying today?
« Reply #453 on: March 10, 2014, 01:05:44 PM »
Added to my Jan 2016 KMI $30 strike calls.  2014 dividend is expected to be $1.72 per year.  If it rises 8% a year for the next 2 years and the yield remains at 5%, we get a $40 stock and the $30 calls will go up 160% at expiry.  If the yield increases to 6%, I will still almost break even.

As a poster on the KMI thread mentioned, KMI has authorized another $100M of common/warrant repurchases:
https://www.bamsec.com/filing/150630714000014?cik=1506307

However, per the 10K release last week, the company used the last $94M of the $250M authorization to buy back the commons.  Thus, perhaps the company signals the share price will not rise quickly.  There are 348M warrants outstanding @$1.80, or $626M market value for these warrants.


Btw, it's interesting to see a few posters entering market puts.  I am keeping a lot of dry powder too, hoping for an opportunity to buy hands-over-fist soon.

Shawn

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Re: What are you buying today?
« Reply #454 on: March 10, 2014, 04:45:37 PM »
Mostly the U.S. Bank TARP warrants.

In particular Bank of America Class A and the Wells Fargo ones.

I'd like to build a position in Rainmaker Entertainment though. I'm still in the phase of researching the company.

CorpRaider

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Re: What are you buying today?
« Reply #455 on: March 10, 2014, 05:36:33 PM »
PLUG weekly calls...just kidding!  It is getting crazy.

stahleyp

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Re: What are you buying today?
« Reply #456 on: March 10, 2014, 05:47:47 PM »
PLUG weekly calls...just kidding!  It is getting crazy.

Dude, I was looking at PLUG here recently since it was on a "most actives" list. I remember the dot com days that it was a high flyer and it brought some back some memories. haha.

It's up over 400% this year, over 4,600% (not a typo) over the past year. Craziness.

Paul

ZenaidaMacroura

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Re: What are you buying today?
« Reply #457 on: March 10, 2014, 05:48:24 PM »
Added to my Jan 2016 KMI $30 strike calls.  2014 dividend is expected to be $1.72 per year.  If it rises 8% a year for the next 2 years and the yield remains at 5%, we get a $40 stock and the $30 calls will go up 160% at expiry.  If the yield increases to 6%, I will still almost break even.

As a poster on the KMI thread mentioned, KMI has authorized another $100M of common/warrant repurchases:
https://www.bamsec.com/filing/150630714000014?cik=1506307

However, per the 10K release last week, the company used the last $94M of the $250M authorization to buy back the commons.  Thus, perhaps the company signals the share price will not rise quickly.  There are 348M warrants outstanding @$1.80, or $626M market value for these warrants.


Btw, it's interesting to see a few posters entering market puts.  I am keeping a lot of dry powder too, hoping for an opportunity to buy hands-over-fist soon.
Wait they backward adjust the calls for dividends?

stahleyp

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Re: What are you buying today?
« Reply #458 on: March 10, 2014, 06:38:04 PM »

Wait they backward adjust the calls for dividends?

Nah,

Dividend $1.72 and compound that at 8% over 2 year is about $2 per share. If the yield of the stock is stays consistent at 5% (like it is now), that equates to a $40 per share stock price.

The Jan 2016 $30 calls are about $3.84. If the stock trades at $40, they'll be worth $10 (or more depending on time). That's about 160% return.
Paul

gokou3

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Re: What are you buying today?
« Reply #459 on: March 10, 2014, 09:29:35 PM »

Wait they backward adjust the calls for dividends?

Nah,

Dividend $1.72 and compound that at 8% over 2 year is about $2 per share. If the yield of the stock is stays consistent at 5% (like it is now), that equates to a $40 per share stock price.

The Jan 2016 $30 calls are about $3.84. If the stock trades at $40, they'll be worth $10 (or more depending on time). That's about 160% return.

Thanks for clarifying for me. :)