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Hot Topic Inc. Message Board

  • MBCaul MBCaul Nov 16, 2003 12:53 PM Flag

    Packed store

    Went into local Hot Topic on Sat 3:00. Packed! Never seen so many people, register busy, couldn't get out because I got blocked by a stroller. Looking forward to Christmas numbers.

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    • > Can you explain this concept in a bit
      > more detail? It sounds something like
      > selling naked puts, which even the MF
      > recommends in many cases.

      Here is the way a covered call usually works:

      You buy HOTT for $21. It has a run and is now selling for $23. But, you can sell the right to buy the stock at $25 (good for three months) for $1.50. That would be a covered call. It's a Call because someone gets the right to buy a stock, and it's covered because it's your stock that that's going to be bought.

      The buyer of the covered call makes out if the stock goes to a price higher than 26.50 before three months is over. The seller of the stock gets 1.50 a share, plus $2 a share if the call is exercised. The only "dangers" are if the stock falls in price (same danger as staying long only you get a 1.50 bonus) or if the stock skyrockets (and you get paid twice).

      On the other hand, the buyer of the call (90% of the time) sees his option expire worthless (the stock doesn't get to 25 in three months). So all the risk is on the buyer's side. The seller makes a tidy profit no matter what (unles the underlining stock crashes).

      So, covered calls, safe & dependable, kind of a hedge because you're betting against your stock skyrocketing. Covered calls can also be sold at the lowest level of proficiency (according to e*trade) because you can't screw yourself up too badly.

      Craig

    • Mr. O! Hadn't seen your moniker in so long I feared you'd gone to that great recycle bin in the sky! My, not a very optimistic thought. I hope all is well with you.

      Larry and Craig are toying around. Their legacy is secure. Spunkie's, too, for that matter.

      For as well as my DKS has performed, I would have been ahead by holding onto my entire HOTT position, but the race ain't over. I'm "patiently" waiting for the inevitable pull-back to increase my long position, in HOTT. I marvel at this business and management team.

      Mawchek

    • I got in at $6.41, split-adjusted, USD. I still shop at HOTT all the time (I'm 23), and the staff love working there, which is something you don't see at ANF, the GAP, etc.

      I agree about the valuation. While HOTT is no longer a bargain like it was a few years ago, it should still outperform the market over the next several years. That's all I ever shoot for.

      If you fine folk like HOTT, you'd probably be interested in URBN (Urban Outfitters) as well - another great retailer, fairly valued but growing quickly, still very hip with my g-g-g-g-generation.

      - Mike

    • $6.41 post or pre-split?

      My entry point is $10.67 post-split. Not bad but my performance is not as good as it looks when translated in CDN dollars. Well, who am I to complain?

      HOTT is a great stock. Right now I agree that it's getting more and more in the "priced for perfection" category, but there are stocks which have been trading in this category for years (SBUX and the likes).

    • Can you explain this concept in a bit more detail? It sounds something like selling naked puts, which even the MF recommends in many cases. My e-mail is mamessner@yahoo.com.

      Congratulations to all the longs - I got in on HOTT at 6.41 and have held ever since!

    • Thought the two of you were holding your own and didn't need me. Have sold the 27.50 calls expiring Friday. Looks like I may lose the stock - big deal - I buy back (usually lower) and do it again over and over and over. I love this stock (and selling covered calls)!

      Mr. O.

    • > I think he is a waste of time --
      > We better give up --

      You're absolutely correct. I have kill
      filed him.

    • By the way, that's a cute little smiley face you put on your screeds. What a pompous, preposterous jackass. Have fun spending your life on Yahoo message boards loser.

    • You're not long "on" anything moron. You are "long" HOTT. Why do imbeciles always insist on putting that "on" in there?

    • I think he is a waste of time --
      We better give up --
      Mr. O --- why haven't we heard from the greatest covered call trader of HOTT in history of the whole world/universe????

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