Anyone out there like this stock.thinking of buying some.everyone tells me its ok. I been thinking of buying some.any thoughts and suggestions are welcome... Info only.
if you will look at their business model you will like what you see.all their ships they own are all on long term leases,some for 15 years. same is tru with offshore drilling rigs and service boats. i got in when they bought the drill ships and jack up drilling rigs. nice return on all this.same chairman of the board for all these co,s. good luck,tool
Stop loss order is where you would like to see a order filled. The price indicated if touched puts your shares on the floor and next in line to be bought at market price.
The market when falling can blow thru your reguest and the order filled way below your order. The Flash Crash just recently a classic case.
Stop loss orders are like fish waiting to be harvested in any melt down.
Maybe someone could expand on the subject who knows more.
Thanks in advance.
..."Can't you see that the $1.15 option premium on selling the put is more money than you will receive from SFL during the same time frame."..
My time frame is 2-3 years out. You're doing nothing but pure gambling because time is against you in options regardless of how lucky you are getting in at the right time. Tell us about all your other variations of risky options trading where you lost your butt i.e., Qmar/Exm merger where you played options based on the fact that the merger would never be consumated but like I told you then it would and I made big bucks on it by doing good due diligence and holding it over a year. Read my post defining naked option both covered and naked, and selling or buying. It clearly states this is very high risk trading.
..."I am the one who is chicken and playing it conservatively and if you are holding this stock without the benefit of selling covered calls you are the bigger risk taker, not me!!"...
What happens to your position if we have a war with Iran? You could easily see the strike price drop to 10, but I'm holding the goods and have all the time in the world to come back. You dearie, are dead in the water come the expiration date.
..."This is basic arithmetic...I am only on the hook for $15 per share and I get $1.15 right now...you are holding at $17.50 and will get about 70 or maybe 75 cents for the two divvies before Feb...."
No matter how you sugar coat it, it's still very risky trading as pointed out above. The last 2 qtrs. I got my dividend with 2 increases. What did you get??
..."don't see you as a chicken at all....but would call it illogical thinking to say someone who is willing to acquire this stock at my strike price is taking a bigger risk that you holders here are."...
You're the one thinking like a riverboat gambler. I've made a ton of money buying stock and holding for appreciation and dividends in good times and bad. Pray tell, what's you tally on you risky options trading. If it's based on your performance on the Qmar/Exm merger then you're lucky just to be breaking even. Yuk Yuk
<<Can't you see that the $1.15 option premium on selling the put is more money than you will receive from SFL during the same time frame.>>
Depends on your perspective. If I buy SFL for 17.5 and it goes to 20 between now and March, I can book $2.50 cap gains + $0.70 div = $3.20. If I sell puts, the greatest possible gain is $1.15. In a sense, going with the put could be considered a loss of $2. Could be considered a loss for any SFL price greater than $18.
With 3rd quarter rates (both wet and dry) the way they are, I suspect the whole shipping sector will languish for a while, so selling far-out-of-money puts looks like the safer path, assuming you are actually willing to own SFL at $14. Just because you end up with cash in your pocket doesn't necessarily mean it was the best trade.
These two things - the missed opportunity for gain, and the potential of paying $15-1=14 for shares that end up only worth (say) $12 are what get options their 'risky' label. Risky like an insurance policy.
Board members...Poor Jack, he asked a couple of simple questions and almost "started a war"...! Jack asked for "information only"...! I think that Jack is gone and I don't think he will be back...I think that we scared that investor away from this message board real fast...! That said, is there any other investors out there that are brave enough to ask for some opinions on investing in SFL...???
I appreciate civil discussions and insightful information on message boards. Like Jack, I'm in need of some simple and basic facts. Options, puts, calls . . . naked or covered . . . baffle me and appear to be outside of my area of opportunity. So, I only utilize the standard buy and hold approach. Given that this has not been generally profitable for the past few years, solid dividends have grown to be more and more important to me.
When I reviewed your suggestion that "having both SFL (yield 7.6%) and VLCCF (yield 11.3%)....18.9% (SFL & VLCCF) vs 22.8% (ARR)...Jack can own one stock (ARR) and get 3.9% more yield than having two different stocks (with the same amount of money).." I was a bit confused by your math logic.
I realize that 7.6 + 11.3=18.9 but believe that if one were to hold each stock (SFL & VLCCF) "with the same amount of money" one wouldn't collect the sum of their respective yields but would rather collect the average of their yields, or 18.9%/2=9.45%. The difference between this average and the 22.8% you mentioned for ARR is then 13.35% not the 3.9% that you indicated.
I consider myself lucky to own some fine shipping stocks at relatively low costs and some REITs as well. As an old egg rancher, I try to avoid piling my eggs too high in any one basket as I collect them.
Best always, 1k
Steve...On 8/5/10, ARR's taxable second quarter earnings were $979,000.00....the second quarter dividend payout was $921,622.00 and their remaining capital was not fully invested until 7/22/10...! Please remember, that they do not pay any taxes if they return 90% of their earnings to the shareholders...! If the shareholders do not get the money (dividends)...the U.S government does...!
if you buy, then sell some covered calls for Feb $20 for about 90 cents...
This will pull back again after ex-div by more than the amount of the 35 cent distribution....
Take a look at vlccf...pays a higher distribution and you can sell the $17.50 puts for about $2.20 right now....keep that premium and let them assign those shares to you at the strike price...and if not the $2.20 is yours to keep either way...much more $$$ than you will make buying this stock at this level...imho.
Disclosure have long positions in both stocks via sale of puts
Susan...Maybe Jack should just buy ARR (yield 22.8%)...that way he will get more dividend than having both SFL (yield 7.6%) and VLCCF (yield 11.3%)....18.9% (SFL & VLCCF) vs 22.8% (ARR)...Jack can own one stock (ARR) and get 3.9% more yield than having two different stocks (with the same amount of money)...! That would make more sense that buying options that he may not understand...! Disclosure...history has showed that I am right better than 70% of the time...!
Jack...SFL is a great long term holding for growth and a nice dividend (it has been very sweet to me)...however, I don't think investors should buy any stock until the end of October...history has showed that September and October are the worst months for the markets...! I suggest that you wait and then dollar cost average into SFL on strong dips...!
I've owned SFL since 2008 and plan to hold longer unless something goes terribly wrong. My average cost is just over $11. plus I have been collecting a very nice dividend for the past seven quarters.