If that is true then good.... But with that being such a contentious part of this, why not come out and explicitly state that in the press release? I am skeptical about accepting anything said over the phone and not in writing as true.
Thanks for sharing! I had a similar experience ... Got a letter via FedEx from company called Okapi Partners who had been engaged by TICC asking me to call about voting my shares. I actually had not decided which way I wanted to vote at the time and called just to understand what the options were. The person on the other end of the line was doing such a hard sell on the BSP offer and not sharing any objective perspective on the other options that it just completely turned me off. That plus a little more research on my end, has now got me leaning towards Nextpoint though I haven't actually voted yet.
Reading through various threads, doesn't seem to be a lot of support for current management's recommendation. Anyone out there think management proposal is a good one? Reading what is out there, can't seem to find a good objective assessment of the three options.
Check out TICC if you want a dividend play ... Trading at discount to book, recent buy back announcement, has to pay divi as a BDC, and recent pullback can give you good entry point and allow you to feel better about selling SAN at a loss.
I have a big chunk of my portfolio in both names ... Debating selling SAN and doubling down on TICC on this news.
.... Anyone aware of what might be causing the pressure the stock is seeing? Don't see any reason why the stock has been as weak as it has lately.
Can someone explain implications in layman's terms? I haven't looked at this in awhile since it has lost so much value ... I had 12K shares .... Seeing comments about "1:501 reverse split", and "automatic cash out at $0.50 " ... Wondering where this leaves me.
Also, where are you all getting this info? I can't seem to find any news on AOBI anymore
You would have to bring over $40K to the table to buy the equity versus $6.6K with this trade.
Selling a call without having an equivalent long is called being naked and extremely risky. If the stock were to spike, to $750 for example, you would have to buy at $750 and sell at $450 to fulfill the obligation on the call you sold.
The reason for choosing a deep in the money call is to minimize the time premium you pay. You could buy the equity itself and pay no time premium ... But if you want the leverage of options, then higher the strike you choose the more time premium you pay. Time remember is a wasting asset so as a rule of thumb, the less you pay for time the better.
With this strategy, your profit is capped at $450 ... Above that, any profit on the call you are long is offset by the call you are short.
You are right about the point at which you start losing money ... I was thinking about it wrong. Thanks for highlighting!
On the question of which strike price ... No disagreement with the facts you point out, but the purpose of this post was to promote as conservative a strategy as possible ( which is achieved in this strategy by collecting as much time value as possible without compromising principal ... i. e. selling calls at or near the money ).
In my particular case, I already have a significant portion of my portfolio with exposure to AAPL with higher entry costs. I don't want to miss out on this price correction, but am nervous about how much more exposure I take on ... The call I am short gives some downside protection if prices continue to correct.
Thanks ... The only thing I am wrestling with ( which I guess everyone else is as well ) is whether AAPL has another leg down from here in the short term which would create a better entry point. Did one contract on Fri just so I don't miss the boat, but debating whether to do more ... Maybe will wait and see how Mon opens.
Here is a conservative option strategy for those bullish on AAPL and wanting to play the recent price action.
Buy long dated deep in the money call ( e.g. oct $350) and sell an at or just out of the money call with same expiry (e.g. Oct $450) ... At Fri closing price, this would have cost you ~$6600 and if AAPL can get above $450 by Oct expiration, your positions would be worth $10K for a gain of ~$3400 or 50% .... Plus if you already own shares of AAPL, the money you collect from selling the $450 call (~$3400) can help be a hedge against any further short term fall in AAPL stock.
This trade won't lose money unless AAPL falls below $405 ... ($439 close price - $34 from sale of call = $405)
No one can tell you when it will go up. The question you should ask is whether you think the company is fundamentally sound and worth owning ... Personally, I think it is and used the pull back today to buy more. Regarding your positions, here is my view (assuming you share same bullish view I do) ... Hang on to the shares, sooner or later it will rebound from these depressed valuations. As for the call options ... Time is now your enemy. You can ride your luck and hope for a quick rebound unless that $1.75 per contract is important to you (in which case sell and recognize the loss). If stock doesn't rebound by Feb, you could roll these calls forward by buying deep in the money calls which have a low time premium. It would mean bringing more equity to the table but it also keeps you in the game longer in anticipation of an eventual rebound.
Last point ... Regardless of price going up or down, remember that the shares give you ownership in a company that makes extraordinary profit and generates enormous amounts of cash. The stock just happens to be on sale right now (based on pretty much any fundamental valuation metric) ... When things go on sale at the mall, it's usually a time to buy ... Shouldn't the same be true for stocks?
Good luck ... And please don't kill yourself! You will regret it when you look down from heaven and see the stock trading at $700+ :)
Generally favorable reactions... Definitely not as bad as after hours action suggests ... Stock should bounce back some after people digest the earnings report and outlook and realize it is not the end of the world.
See article below ... Most analysts don't seem to think earnings are as bad as after hours reaction ... Hang tight ... http://tech.fortune.cnn.com/2013/01/23/apple-analysts-q1-2013-earnings/?source=yahoo_quote
The current selling is driven by anxiety created by the trading halt and not reflective of underlying company value. That's understandable as many people don't want to own a company trading on the pink sheets ... however, this means you are selling at a deep discount to real value. If you have the stomach to hold on, I think the stock will get back to a more realistic valuation once the weak hands sell out. If you willing to take a speculative bet, this may actually be a good time to add to your position and lower your cost base. I am currently a "Hold" but leaning towards "Buy".
Making a statement like that and saying "no offense" doesn't sound too intelligent either ... I won't judge Doron's intelligence, but I will say he sounds passionate and motivated to try and do something / anything to help those who lost money get some back. If you are Long HEAT, don't you think it's better to have someone like that in your corner?
As shareholders, we all got screwed ... If you got any constructive ideas, please share ... But trying to dismiss someone else's efforts without offering up anything productive of your own is not very helpful.
Don't listen to these guys Doron ... Stand up for your rights ... Even if you don't end up getting anything, you can feel proud that you didn't just bend over like these weaklings are suggesting you do.