Stocks and Trading Thread - Channeling your inner Mono

[Ed Anger]

Dang.  I was expecting a big jump in Wallie World because of the USC decison decertifying the class action suit, but it's only up 25 cents.

Wally World has bigger problems than a bunch of uppity women.

[Admiral Yi]

Wally World has bigger problems than a bunch of uppity women.

IIRC they were looking at paying something like $4K to every single woman that had every worked for them.

[MadImmortalMan]

My options experiment is nearing the end of the second month. The June calls expire on the 18th (this Sunday). I sold my June AA calls at .54 for a total take of 378 in time premiums. AA is worth..15.40 right now. I bought at just about 17, so I'm down 1200 in value there. I've made a little over 600 in time premiums over the two months while losing 1200 in stock value. I also received a $72 dividend payment on the AA stock on 5/25.


So, I'm down 525 or so. I suppose it could be worse. I could be down the whole 1200 for this shitty month. 

Today's looking up, at least.

Woohoo.

AA now trading at...14.67. So my open June 16 calls are expiring. I buy them back for a penny. I sell to open new July calls at a 13 strike price for 1.78. In the money but not much. This nets me $1246 in cash. The stock value is down $1624 from my original purchase price.


So, for May, June and July I've banked $1800 or so in time premiums while losing $1624 in stock value. Hopefully the market will rebound and I'll get my losses wiped out, but if the in the money calls I just sold get exercised during the next four weeks, I'll have made some money.

Getting deeper in the money as AA is hitting about 15.50 today, up several percentage points total from the strike of 13. Making my losses in stock value $1049. And my gains from the calls still $1800. Nothing's been exercised, and there are no record dates coming. Nice that I'm getting a bit of a rebound. I may close it up so I don't get called.

[DGuller]

Dang.  I was expecting a big jump in Wallie World because of the USC decison decertifying the class action suit, but it's only up 25 cents.

Wasn't the decision already priced in?  It's not like investors didn't know long before the announcement that a 5 to 4 decision in their favor was coming.

[Admiral Yi]

Wasn't the decision already priced in?  It's not like investors didn't know long before the announcement that a 5 to 4 decision in their favor was coming.

Generally a person gets more credit for predicting an event before it takes place.

[MadImmortalMan]

Alcoa up to 16.23 today. Frankly, I don't understand why my open options aren't getting called  for a nearly 20% gain. I sure as hell would exercise that shit. If this keeps up, I'm gonna have my cake and eat it too.

[DGuller]

Wasn't the decision already priced in?  It's not like investors didn't know long before the announcement that a 5 to 4 decision in their favor was coming.

Generally a person gets more credit for predicting an event before it takes place.

What does it have to do with anything?  The point is that investors don't ignore court battles until the decision comes in.  They already price in the odds, and given the extreme pro-business slant of the current make-up, the odds were probably so good that most of the decision was reflected in the price already.

[MadImmortalMan]

Used a pile of sideline cash today on this dip to pick up some things. T and CSX. I'm hoping some good budget news will come out and bump us back up.

[MadImmortalMan]

Obviously didn't get the bump. Alcoa reported a decent earnings number after the close today and nearly wiped out a nearly three percent decline that had happened during the session. Oddly, that makes me more nervous my shares will get called away, not less. Italy's fault this time. 45 basis point rise in their 10 year bonds.



Yeowch.


Also this:

[Ed Anger]

I'm entering a phase of retrenchment. Other than my long-term holdings, I have converted everything to cash/shiny gold.

[mongers]

Time to get out ?

Total Eurozone sovereign debt - 7.8 trillion euros.

Ireland, Greece and Portugal had 8.5% of that total.

Italy has 23.5% of it, and is looking for 500 bn euros in borrowings into 2014.

[Ed Anger]

My reasoning was that the chance of a debt ceiling deal is lessened, and I am clearing the decks just in case.

[mongers]

My reasoning was that the chance of a debt ceiling deal is lessened, and I am clearing the decks just in case.

You've inverted the possibilities, previously people were talking about the chance of a debt default, is the probability now that the reps push the USA off a cliff, though there's still a small chance the situation could be rescued ?

[Ed Anger]

My reasoning was that the chance of a debt ceiling deal is lessened, and I am clearing the decks just in case.

You've inverted the possibilities, previously people were talking about the chance of a debt default, is the probability now that the reps push the USA off a cliff, thought there's still a small chance the situation could be rescued ?

I'm going on my gut. My gut doesn't fail me much in bidness.

[MadImmortalMan]

Metals hitting the roof thanks to the bernank. Silver more than gold though. Doing well, and probably will until the next Eurozone country throws us under the bus. Maybe I'll start a pool to guess which one it will be.