Executions/Jabob – That's one of the things I want to work on with people. When I pick a price, it's the price I will offer for a fill. It includes my opinion that something may go up or down from where we are at the moment – not just the current bid/ask spread. In HBI's case, as it was our Stock of the Year and widely announced, it took off fast but fills were still good until 2pm at $3.40, which was certainly close enough (within 5%) to take the fill – especially as it's the put leg – so less impactful on the trade.
Of course, had you bought the calls first and waited to sell short calls – you'd have a massive bonus win. While I don't intend to discuss every trade to death, I do intend to spend more time discussing and demonstrating filling techniques.
What does it say/Baron – Can't read into anything today – just a crazy move. Retail though, was oversold – that's why we've had so many calls for them in the past month or so.
Math/Scott – LOL, that's because I was originally looking at the sale of the $11s but then decided the $12s were a much better sell but my brain was stuck on $11 when I did the math.
Suckers/Yodi – I agree 100%. If you are not going to sell when people are buying – when are you going to sell? I'd wish I were artistic – I'd draw a caricature of you astride your forest of holdings, taking an axe to the old growth to make room for new plantings!
FCX/Scott – But you'd also have a short-term gain on the short calls, which would effectively be cancelled at $0. By Tax window I mean if you bought them less than a year ago, say March, then selling them now would be a short-term gain but selling the May $12s ensures you get past your 12-month window and turn it into a long-term gain (at a lower rate) next year (at presumably lower tax rates) with relative safety.
December 4th, 2017 at 2:58 pm
Executions/Jabob – That's one of the things I want to work on with people. When I pick a price, it's the price I will offer for a fill. It includes my opinion that something may go up or down from where we are at the moment – not just the current bid/ask spread. In HBI's case, as it was our Stock of the Year and widely announced, it took off fast but fills were still good until 2pm at $3.40, which was certainly close enough (within 5%) to take the fill – especially as it's the put leg – so less impactful on the trade.
Of course, had you bought the calls first and waited to sell short calls – you'd have a massive bonus win. While I don't intend to discuss every trade to death, I do intend to spend more time discussing and demonstrating filling techniques.
What does it say/Baron – Can't read into anything today – just a crazy move. Retail though, was oversold – that's why we've had so many calls for them in the past month or so.
Math/Scott – LOL, that's because I was originally looking at the sale of the $11s but then decided the $12s were a much better sell but my brain was stuck on $11 when I did the math.
Suckers/Yodi – I agree 100%. If you are not going to sell when people are buying – when are you going to sell? I'd wish I were artistic – I'd draw a caricature of you astride your forest of holdings, taking an axe to the old growth to make room for new plantings!
FCX/Scott – But you'd also have a short-term gain on the short calls, which would effectively be cancelled at $0. By Tax window I mean if you bought them less than a year ago, say March, then selling them now would be a short-term gain but selling the May $12s ensures you get past your 12-month window and turn it into a long-term gain (at a lower rate) next year (at presumably lower tax rates) with relative safety.
OK, hitting the road now.