I do the same thing when I actually hold something for a while...I buy them back cheap and sell different strike or expiration. As a stock nears in the money premium really starts to get pulled so I take advantage of another strike/expiration to gain even more premium. When stocks are moving, I've bought back and resold options 3-4 tines in the same week even to maximize premium.
Let's hope the charts are wrong this time moc and MU breaks out big. That could happen with all the semi's after Apple announces on Sept 9.
There's no "gamble" in mike's move codi. The only way he can lose if if the stock is "put" to him and MU drops below $32.65. Even with that though we all believe MU will be higher soon don't we? If that's true, mike has just made a great move with minimal downside if any. That's the way to make money!!
You don't have to get called out codi. The Aug 29 $34 is .36/.38 right now. The Sept 5 $34.50 is .36/.40. The Sept 12 $34 is .70/.74 and the Sept 12 $34.50 is .50/.56.
If it looks like there is a chance you could be called out with those Aug 29 $34's, you could always buy them back before expiration and sell any one of the others I've listed above. If you do the $34.50's you would be bringing in more Net premium and while moving your sell strike up from $34 to $34.50. Whenever you're about to be called out, consider selling a higher strike further out for more Net premium, it always works!!
While they overlap in products, they are totally different companies in many ways. Sandisk is fabless and gets chips from toshiba partnership. Sandisk has been and is currently executing better than Mu. Look at margins in Flash. I don't know them off hand but Sandisk is better. So it is not surprising that Sandisk gets a better valuation. Mu has a good nand part but they are not executing in the end product market like sandisk. Sad but true. Hopefully Mu is going to close the gap going forward but until they do, expect the valuation gap to continue. Now Mu has dram upside but they are behind there as well and playing catchup. Good demand/pricing kind of masks the gap but they are behind. Doesn't matter a ton right now but will matter a lot going forward. Hopefully they get their act together. Sad that they are having to waste money on buying back convertables instead of investing in the business.
there in nothing wrong with making money; even a small amount is worth it. When you get greedy you get slaughtered. I sell puts just below what I sell calls at. Sometimes right on top of each other. This week I have both 35.5 puts and calls. One of them has to come in. If I loose the stock I'll sell 33.5 puts three weeks out. The same is true if I get assigned I'll sell the 34 calls three weeks out. I already have the first two weeks covered. I'm not making big bucks but I'm making money each week. The capital gains don't hurt because I'm still writing off massive INTEL losses from the late 90's when I got greedy and SLAUGHTERED. Good luck and I do love this stock. As you saw last week it moves for no reason and if your not on top of it you can get hurt. Just have faith and conviction in what you do.
for someone who uses so many it's a wonder you don't post a position for the next 3 weeks without 9 maybes 6 disclaimers and 14 support level prices
I got no problem with your move and it is working out nicely. I just don't have those kind of stones. You have that short term gamble bug in you and seem to do well. I am still maintaining the illusion that I am "investing" for the longer term. Truth is that I am just sticking with the same gamble longer than you. Hats off, good call today. Tomorrow is another day. See how this plays out. I just have a very good hunch that I get called on my 34 for the 29th.
i didn't say anything about stochastics suggesting a turn - i just wrote that it is an indicator i use - along with macd histo- in order to tell me when a turn is coming. stoch isn't that high right now- it "can" climb higher. doesn't mean that mu cannot pull back from here to go back down to $32 - it only means that there is no indication right now from the macd histo or stochastics that a turn is coming.
and going down to $32 wouldn't mean a turn is coming - i'm not saying that - as a stock can of course pull back in price but still not be ready to do a change in trend price.