Well, I don't want to say that the bottom fell
out, that would be foolish even though I've been
negative on KO. If you say the range bottom may be 55
anywhere around there is within range. And the dow is also
down 100 or so, so that may be
However MA's crossed negatively a couple of days ago and
the tops have consistently trended down since then (
I'm using exp.9/18). Add this to an overvalued
situation and there was the short/sell entry. I'm not
trying to be a short butt, just trying to get some
discussion of technicals going. ThoughtS?
Mikiesmokey: I used to agree with you until I
learned how to do option trading buying premium. So I
don't agree that as a rule, option buying is a losing
game. But you are 100% right that most people that are
buying options as independent trades, are losing money.
I specialize in options trading, and my bias is
heavily towards selling premium. About 80% of my trades
are net sellers of premium. However sometimes,
oftrightentimes, selling premium is not the way to play the game.
When you are trading options on KO for example, you
will lose your edge if you do your option trading by
selling premium, simply b/c of the low implied
volatility, hence the low low premiums. Buy low premiums sell
Also, one can't compare the
valuations of KO and INTC. I do think KO is overvalued here,
but the industry's have different factors affecting
valuation. Compare KO and PEP maybe, but not KO and INTC.
And also, even if they were competitors, you can't
compare two stocks which are at the same per share price
unless they have the same amount of shares outstanding.
Ivory: While I think buying premium is the right way to
go in KO, you have no edge in your options and they
are a gamble. Are you aware of this? If they go in
the money you'll make a very fat % return though.
ANyways, love to hear more talk about options. Thoughts
I think that KO will maybe rally more, perhaps to
fill the gap from two days ago between 57 7/16 and 57
7/8. This is only a technical standpoint. Gap down on
friday on big volume, 9/18 day MA's just crossed
negatively, potential slowdown in fundamentals too along with
a hefty valuation.
MY best guess why GENE is much much lower, or why the others are much mch higher, is that GENE does not have the fancy firms pumping it. It'll have to do it on its own. I think it will.
HI, I'm a new long in this one. Looks great. Just
a question about the trading. Does anyone have any
ideas why there is such a large amount of stock
available on and above the offer. A little spooky. THere
is/was today between 20-35 thousand shares at 4 7/8 +-.?
I saw this today by CBS MarketWatch.
James Analyst referring to TRVL($12):
value play, we think there's tremendous intrinsic value
in Travel Services (TRVL: news, msgs). We put the
break-up value of the company north of $30 a share. The
stock, because of dramatic disappointment in the first
quarter, went from mid-30's to as low as $6 a share --
rebounded to 12...
There have been some very
positive management changes, and the guys who are in place
now are really committed to realization of value. The
source of the disappointment in the first quarter was
their cruise distribution business. We're already
getting the sense that that business is turning, so we
think the bias is to the upside with respect to the
estimates. We think that the risk-reward there is very
attractive given the break-up value and the fact that we
think we've seen the bottom in terms of the
fundamentals of the business."
Like takeoverman pointed out the 200-day is
closing in. Also, i'd like to point out that it has lost
much of its verticality. In laymans terms: its
downward ccurve has lost much and it is beginning to
straighten out. It was even flat for a bit lately. Hmmm. If
the stock makes a run for it, it might cross
200-day-ma and that would be awesome. Truly. How long could
the stock stay this low? There have been plenty of
undervalued stocks that have not returned but this one
demonstrated its prowess when it made that run back in
november/december. And b/c its market has just begun to take off
rather that be just over.