Got it now..its a two sided transaction I shouldn't forget with the seller having some advantages and different objective. You explained this really well. Going to watch the volume on these. As always Thank You.
Depends on how smart the options buyer is. Generally it is a contrarian indicator. The SELLER of the option is generally the richer (and hence the smarter) party in the transaction. He also has the capital to defend it by selling the stock against the rally towards $7.
My guess is that if it stays at this level, it will NOT make $7. When it becomes more certain, the SELLER will close out the options and it will become a healthier level.
I was looking at this ratio as more of a bullish sentiment for the stock in July? Have I got this wrong? I do understand that they mostly expire worthless. I'm not looking to do anything other than buy more if it dips well below $6.
Most options expire worthless. There will be a lot of selling pressure to defend the $7 call.
If your question was how to profit from this, I would say write the $6 July puts.
July is a big month: Spanish bank audit, Greek election results, Spanish bank recapitalization. All will be played out in this coming month.
I see the S&P being over their 200 Dma as a huge positive. This soft patch is temporary. Prices move higher; we'll all die one day, just not in July.
Yeah I read that, but the ETF he is referring to I believe is for US financials not global. That is why I commented as such. No biggie about the stars either, I could really care less how someone rates me haha
He did post that he had 20K shares in STD alone previously though..not sure if you saw that.
Btw l3l I am sorry I pushed 2 stars on your post by accident..I don't even rate posts..tiny screen on phone vs thumbs
DP, I agree that financials are way overdue for a large rebound but I think you are much better off playing individual stocks rather than an ETF. Stocks like BAC a couple of months ago was mid 6's...C pre split would be sitting at $2.8 a share are so undervalued that you could see a 100% ROI within a year however it might not be as big for the entire sector
Just my .02 though
Agreed and almost finished my earlier post with who am I kiddin? Saved a bit aside for pullback in case. Yes this is Yummy especially on an up day. Is that symbol you referred to a mutual fund of banks only. Forgive me I am very new to independant investing. Once again thank you for your insight. Best of. Luck
If you acknowledge that this is a steal at these prices... Then you have your answer.
There may be a pullback. However, this stock, at this entry point is one that I actually feel very comfortable with. In the event of a significant pullback, I would not hesitate to buy more. I unfortunately had tapped my excess reserves to buy XLF.
Yummy, I like stocks like Santander and especially at these prices. Despite Kramers kiss of death, I am not afraid. If the policy makers don't kill the recovery entirely, I see my position becoming a triple or more within 5 years.