Gary; There is limit on exposure so you have to take in return rate....many shorter contracts stack up rolling expiration give you better rate of return....today 200 contracts expired so I will replace with 200 contracts more for JUL 15th to refill stacks.....try calculate $ return per day....shorter the contract period will yield better return... fee rate per day drop sharply when contract period exceed 4or 5 month ..after 6 month,rate really drop off so you make more money by go deep and shorter contracts
When you set buy target price too low, $60 may be $63 still low I think ..... your chance of missing owning completely is high....good long term stock like MO with generous dividend, I recommend buy price little higher or sell naked PUT option like strike price $64,.64.50; or $65....My target for Monday put sell for Jul 15th & jul 22nd is $65.50 or $66.00 strike....you will collect nice option fees if you don't get push ...when you get push, cost will be discounted by fee amount ...never buy just offering bid price... if you do this weekly with naked PUTs, every Friday you can make good money on expiration day...Only negative is all short term capital gains tax.. today I closed by expiration on $63 & $64.50 strikes. total profit of $11,500 this Friday ; next Friday I will win$12,000 with 100 contract $64.50 strike..I have sold Jul 8th $64.50 Puts on Monday for $.50... So my coming Monday plan is start position for JUL.15th & 22nd. Do this strategy and buy longs for core holding ; You will make close to 75-100 % on money since loosing money with MO is low probability....This technique works reliably only with MO...for 4 years.. good luck investing with MO.
How can you say "THIS WEEK"" those are pending subjects but nothing sign of news this week in my screen
meaning 955,000 shares total amount can be made up of several trades or single lot trade , specialist record after market close ....if single lot trade ,nothing to get excited ; one institution handing sale lot to other institution wanting to buy ....can not tell which side is right. many private transaction getting recorded after hour or at close...i personally think meaningless......this is different from strong AH buy side trades
I agree ,summer months is not that bad for biotech...this year biotech got hit early from Hillary effect so might be extra good...Also ACAD has drug on market for first time ..I expected June will be manipulated trade by some knowledgeable people and institutions...We are sitting on some interesting time ,it pays to stay on board or add on pullback...I just cashed Naked all June 36 PUTs made $153K so even on flat market there is good trading opportunity with ACAD..while holding core longs.....July naked PUTs ,I will hold off until june 23rd after Brexit....Normally I take option position before monthly expiration date. It's dangerous to trade out longs when several potential bullish issues pending
You are miss leading readers; ACAD board on Friday approved additional 3 million shares ...only authorized to issue when appropriate...it may come at much higher price or use to make beneficial deal ,it can be use to benefit current stock holders .. You give wrong idea leaning toward 3 million shares coming to sell order. that is not true at all...3 MILLION SHARES ARE NOT COMING !!!! CORRECT TITLE..
AGN is seriously negotiating to acquire ACAD...you can let go your shares but I will not sell at $40+ when within few month $70+ is very probable....unless you have place to use funds, why cash out now ,doesn't make good business like trade....it's really good time to hold all longs or add if pullback ...you have no loose situation with this stock.. scarcely nervous person will never make enough to retire early and become independently wealthy...Not saying take unwise gamble...taking profit is always good but use good judgement when risk reward is so heavily in favor toward hugh gains.
To ALL bulls; this stock is worth buying all way up to near $50 when you have buying power since it has all necessary proven drivers to succeed...not very common with developmental biotech...we were very lucky that this company gave several early stage all go signs ....I personally went deep when FDA gave waver early for phase 3..and approved NDA...many good entry signals all along except few unfortunate shake up with delays but I used extreme pullback to add more shares because of drug safety & efficacy data that was already available....Again this stock is unusual offering in many factors for biotech investing opportunity..Risk reward is heavily in favor for big gain!
don't worry minute by minute movement...sellers will empty soon , deal making is probably still continuing and business is still in up trending...unnecessary worrying is not productive for future gains . buy more on dips
I am in stocks for 50 yrs ..made good living ..took early retirement from PFE at 55 yr old ..when one see stock price in dollar & cents , it's handicapped...I see all numbers as tool of trade not as money until cashed out at end of game...with ACAD it's beginning may be 3rd inning ? Good Lk
This stock at current situation shouldn't be sold...ACAD is entering safest phase of development to own for biotech...I just being accumulating for 3 yrs few time doing last year I sold some due to margin call but I readjusted after big Clinton drop off.and continued accumulation using naked put strategy every few month. Some worry about potential drop off when no M&A take place but that should not change your position or scare you off since ACAD is going to sell sell sell newly approved drug...holding longs you will be rewarded handsomely with time ...hard to find other better situation biotech stock and you should take advantage of it when cycle is at beginning of growth with very high probable billion $ drug in starting gate. Don't sell when you have winning stock with tailwind blowing...
Answer to: 1) Usually will jump to few cents below Buy offer price but other offer might drive price above.initial offer P....In case of ACAD BO, should be no problem w Gov. so will get near offer P. best wait few days to see other offers 2) if you hold and accept shares of buyer, it will save from tax situations if shares are offered in BO ...I always prefer to accept shares of buying co. and control tax situation with my timing ...several factors to consider if shares are offered....if buying co is like MRK,JNJ, PFE, AMGN...I will definitely take shares and hold...3) if you hold till buy out is complete; you may get all cash, cash + buying co shares, or in some case all shares exchange for your ACAD shares at BO agreed exchange ratio.
I am definitely want quality big pharma shares for exchange at $85+ rate...want all share exchange
someone got this morning ACAD media announcement plan on last Friday after close...lots of guessing announcement but adding fuel to nervous shorts.