It appears BB&T should put in positive performance thru Wed at least. So $25 or more would not seem unthinkable by Wed. It should give part of that back By Fri Apr 34.
Here is the chart with annotations and comments.
Definite more upward "mo" thursday and Friday than I anticipated. Got it right the first 3 days of the week, thought it would pull back some the last 2 days and it didn't.
Looks like we may have a new trading channel $19-24. I'll take a closer look later this weekend.
That is a decision you'll have to make. I think BB&T has some downside from here. Maybe under $18. You have to decide your course of action... Sell and take the loss? Sell the $22.50 calls an hope to buy 'em back real cheap? Average down? Ride it out?
I will be looking to pick up some shares to trade if it gets $18.25 or lower. Have to watch it tomorrow and decide exactly how low I try to buy.
Here is a chart for tomorrow. if you decide to sell it might help pick a time frame.
why am i so much better at this game than you
i love making money, i made another fortune today -- adding shorts was too easy
one day you will grow up and realize your piddling around with little crap instead of getting on the big ship -- moldspore is the dingy
Idea - part 2
The fact that you are getting 8.625% at full strike price of $25 (You can do the math and figure your dividend reward at $4 a share) means the reward for holding it while it goes up makes it attractive to hold for the longer term but if you did not want to do that just pull up the charts and apply the knowledge you were taught in the previous chapters and see how well you could have done swing trading it over the same period as an SKF or UYG.. The fact that Obama said no Bankruptcy for the to large to fail banks made these preferred stocks gold mines. The worst that can happen is a conversion to common and while if you paid 25 you might not be happy with the say the 90% to strike price they value them at using C as model if you paid $4 that $20 a share is like hitting the numbers. The loser as always is the common share holder as these new shares dilute theirs that is the reason that people like Warren Buffet and Sheik Whaleed buy senior investment vehicles.
It is open to all. You just need to do the home work as most brokers have no desire to put you in a buy and hold stock that they only make money on the initial buy. If you hold till they call them they pay off in cash and no commission is generated on the deal and the same for the huge dividend plays. The dividend is great but it does carry high tax consequence and since this is for traders just lets just look at it from the traders view. The action was so great that while we have not been looking at day trading it certainly had moves that any day trader would love to play. Pull up the charts apply what you have learned and file it in the back of your mind.
So the idea is - looked at the preferred shares of some of the banks that are not as strong as BB&T and if you get it at a huge discount to "call" and a huge dividend (based on your purchase price). If the bank is alrge enough you have an implicit guarantee byt the government they will not fail!!!
Here is an idea - Part 1
The Financials are much the same. Yes, the toxic assets are still there but if they are allowed to sit on the side and not count against them till they are no longer toxic are they a death sentence? Credit Card debt is the next shoe. Yes, it is an issue but lets look at it if the Fed can buy its own T-Bills to prop the price up what makes you think they can not use the same muscle they have applied to attack all the other issues of this crisis. Not only can they do it like it or not they are doing it. Back to the point I was trying to make. Once the patient has been cleared that he will live but the final outcome not clear he might be stuck with some disabilities that prevent him from playing Pro Ball again but he can coach. While not making 20 Million a year he can make 10 Million if you bet on the part that says he will live and I get paid on his just being alive you are a winner. If you bet he would win another MVP you lost.
The preferred stocks in the banks are a perfect example. They have a structure not found in other investments. The fact that they have a set strike price means you know the final price to be paid and the dividend is set at that price so you can determine the risk reward for your money while you wait for it to go up. How does that equate to swing traders well in a normal world it should not but when an instrument that has a guaranteed survival and is put a head of all others in the pecking order of pay out you look at the price to strike and the current market price and invest in it. The fact that say a preferred like BMLPRQ (The symbols for preferred stocks vary from trade station to trade station the BMLPRQ is the Fidelity symbol for what is Bank of America series Q that was formerly the Merrill Q) was as low as $4 as recently as two months ago at the close on 4/16/09.
RL, there are always better ops, if only we could ID them ahead of time.
I am watching Intel (INTC) for a pullback under $14.50 as their guidance was almost non-existing and what there was was not great. Still they seem to think PC sales are picking up and they as the supplier of choice for CPUs to put in them are in a position to know.
Which makes one think DELL.
Corning (GLW) seems to be doing better as glass sales for flat screen TVs is picking up. Would like to pick GLW up about $1 lower than here.
Pick up in flat screen TVs makes one think Best Buy.
I have not checked out DELL or Best Buy, just reporting signs they may do OK. Just free thinking as I type, thowing out ideas.
Boats--I'm a former Naval officer--I do like your posts--re the dividend,Kelly seems rather pashionate about the div.and will not want to reduce unless situation deteriorates--the financial health of BBT is foremost and he will do what is best for the company.Keep up the good work