ALL of those who wanted to keep their ASML shares but wrote covered calls against their shares are "whacked today" too. Those covered call shareholders just lost all that upside to those who owned the calls they wrote.
One of the people who owned their covered calls was the options market maker who was SHORT the equivalent number of shares so he could have a neutral position.
One guy short (the OMM), owned calls to neutralize his short position.
"[Well, if the big boys can trade without the danger of ever losing then the markets are truly rigged. I don't believe it."
If you would like to understand it. I will be glad to explain it if you want.
The may or may not be "rigged", but you can't use what I said to support OR invalidate that theory.
Your belief is not required for it to be real.
The hedge fund losses were capped because they just bought put options. They lost their premium and any intrinsic value if they bought in-the-money. The option market maker was the "short" but he had a neutral position because he had a supply of shares from conservative investors who sold covered calls. It is unlikely there were any big losers.
Any idea why ASML is up 10% today?
The bears are suggesting that much of he gains came from inventory build up.
The market climbs a "wall of worry" as investors who "did not believe" become believers in a bright future and commit money .... with the final capitulation being the small, negative investors.
I like some bad news. It means their is more "worry to climb". 8-)
It looks like the market moved Intel past the $34.28 gravity point into the next higher obit ($34.50).
I doubt that GS has much at risk and Covello will probably come out unscathed. The biggest holders of Intel short vehicles that I could see were the hedge funds who were PUT option holders. The biggest true short was likely the option market maker who was 100% hedged with covered calls. The other source of shorts was likely the convertible bond holders.
IMO, shorts ... no big deal.
Thanks for pointing this out. I visit the IR page. It does not seem like they have these tied into their alerts.
"... market top ..."
In the general market sense, your technical analysis is followed by a number of people and becomes a self-fulfilling prophecy. Each stock operates in their own "microclimate" where news and events cause the stock to resist or accelerate movement with the market (relative strength.
IMO, Intel is a target of arbitragers who trade on the dividend using options and generate small, guaranteed arbitrage profits from their trades. I am not talking about HFT. Arbitraging is different and they are likely very conservative large investors. If true, then the UPSIDE and DOWNSIDE movements of Intel related to the market (BETA) will be smaller than the market.
My theory is that the 3 Intel price points of STRIKE, PLUS DIVIDEND and MINUS DIVIDEND have strong magnetic pull.
I will like the die reduction that 14nm will bring. This 22nm Haswell die will (like you say) will be mucho fun.
The article was counting the rectangles on the chip and referring to them as "cores" and I just used that terminology and did not point out the extra hyperthreads. I always have to stop and think.
One of Intel's descriptions ....
Intel® Hyper-Threading Technology: Your Questions Answered
Shannon Cepeda, Tue, Jun 2, 2009
What is it?
Intel® Hyper-Threading Technology is a performance feature on our new Intel® Core™ i7 processor and the Xeon® 5500 series processors. Put simply, it allows one core on the processor to appear like 2 cores to the operating system. This doubles the execution resources available to the O/S, which potentially increases the performance of your overall system.
It depends on your investment goal and risk tolerance. I don't do well buying options and tend to sell them more effectively.
CBOE, Option clearinghouse, all the option houses, you tube, ... all have free online courses.
One trade that I might suggest is to:
1. get qualified by your broker for advanced option trading
2. SELL the 2016 $35 PUT options for $4.50
3. use some/all of the put write proceeds to fund your call purchase.
SELL 1 contract 2016 $35 PUTS @ $4.50 (I just roll out puts when premium drops to dividend even if I bet wrong)
BUY CALL contracts with the proceeds to match your tolerance.
The higher option level determines how much money your broker will put a hold on for the trade. I have Schwab Level 3 and put a hold on the INTRINSIC value PLUS when you write an option, they put a hold on the value of buying the shares at margin.
Intel goes ex-dividend next Thursday and I would expect it to trade at a very low BETA until then. I doubt it has anything to do with bashing or pumping. There should be some interesting volumes in deep, low premium calls and puts as the arbitrager kicks into high gear.
Look for STRIKE PLUS/MINUS DIVIDEND prices to have strong gravity. The stock closed the last two days at ..... STRIKE ($34.00) PLUS DIVIDEND.
Declared Date Record Date Payable Date Amount Type
07/24/14 08/07/14 09/01/2014 0.2250 Regular Cash
A REIT has to pay 95% of their profits as dividends and the profits are taxed at the investor rate, rather than the corporate rate. Think retirees looking for investment income.
CTL non-growth, fixed assets (land) can be spun off at a higher price because income investors and tax laws make them move valuable as a REIT. The tax law ruling makes them move valuable.
The i7-5960x has 8 active cores but the die shows a 12-core layout. The special alloy solder will help keep those 8 cores cool.
July 29th, 2014 at 12:02 am - Author Anton Shilov
a clip ....
"OCDrift web-site has posted a picture of a “Haswell-E” processor with removed heat-spreader. While the removal clearly damaged the chip, it helped to make two important discoveries. Firstly, the Core i7-5960X processor uses a special alloy to solder the die to the heat-spreader, which is good for overclocking potential of the chip. Secondly, the die itself contains 12 cores with only eight activated."
"Yer buddy marco saw it coming, ..."
.... also known as a variation of the "perfect prediction scam".
Intel was down 2 cents.
Is "2 cents" huge for you?
If you think 2 cents is huge, that will go a long way to understanding your postings.
INTC unchanged from yesterday's close at $34.00 strike + dividend.
Put/call ratio finished today at 0.70 which is slightly elevated from the traditional 0.50 "normal" range.
It sure looks like dividend arbitraging influences the stock trading quite a bit. I just wish I had better visibility into the "how". Low option volume and no 10k+ strike trades.
Smith option exercise and sold. No programmed trade.
Kilroy is recovering from cancer and has just returned to a "staff" position. .
James and Holt were SEC Rule 10b5-1(c) programmed sells.
Yoffie donated shares to Harvard.
I bet they wished they had not sold the shares in January at $27.
Stacy Smith appeared to exercise options and sell his 614,432 shares. He still has 186,320 shares plus any other options.
Thomas Kilroy has cancer and appears to be exercising all his options, sold 349,595 shares.
Renee James was an automatic sell SEC Rule 10b5-1(c).program set up in January 2014.
William Holt same as James. SEC Rule 10b5-1(c).program set up in April 25, 2013.
David Yoffie is a Director and donated 20,000 shares to to Harvard Business School.
"You have only seven posts and your ID was created yesterday."
OT ..... The ID creation date is tough to determine. Yahoo sets the created since date for these message boards to the oldest message you have posted. You can test this by REMOVING your oldest message and watching your MEMBER SINCE date change. If you remove ALL your messages, you are not created yet .... 8-)