I will sell calls if pps hits around 58$. Likely sell 60$ May. Of course pps may not hit 58$ or even 56. I am betting that oil will sell off which will result in pps gains and also may get further gains from SP addition. Hope to sell calls before DAL reports March numbers
Sorry to yap about something fundamental but Handies and bdi up the last couple days and Handies actually have held up better than other dry bulkers. Think that may have something to do with the bounce on Friday and may be a reason to buy?
I've been trying to understand this also, pps should have skyrocketed. Uncle had best explanation that funds/hedgies bought up shares ahead of time with goal of selling yesterday...either for profit or as some type of arrangement.
bears, selling calls can adversely affect the holding period as I mentioned in my previous post. However, if shares are already long term(held for a year) my understanding is the LT status on those shares cannot be lost by selling even less than 30 day expiry calls. I have sold calls in my IRA, not sure if can do in 401k but would think so. One benefit in retirement accounts is that any ST gains from selling calls are tax free and if you let the shares get called away it is tax free gains . Of course always risk of losing upside gains when sell calls, best not to sell on all your shares.
I think selling calls when you feel pps is toppy and/or to hedge a position can be a good strategy. I prefer to sell shorter dated calls but of course I have to go with lower strike price to get a decent premium . I am looking at selling May 15 57.50 or 60.00 calls this week or next if pps hits 57$...remember you can always "rollover" the calls if pps rises above strike price and you do not want your shares called away. Also, remember technically for tax purposes the holding period on the underlying shares that you sell calls on is suspended during the period you have the calls and the holding period resets if sell calls with less than 30 days until expiration.
Yup and I am looking at protecting my gains just like before 1q earnings. The May 57.50 calls I sold right before 1q report expired worthless today so made out there but I did not sell any trading shares which hurt bad on way down to 46$. I'll be looking to sell more trading shares next week since did not sell much today due to the poor end of day/after market trading. If dollar weak/oil up like today we could see a significant pullback in aal after the big runup this week.
Will not be at 14% for 1q imo...no idea what eps will be other than that Parker et al have not missed on estimates for couple years I believe. Usually beat by few cents but 1q tricky with poor prasm other issues...
That is true but market at this time is more focused on dollar's affect on oil..weak dollar imo will not be able to override massive oil surplus especially if we get a tentative Iran deal next week which I expect.
I would bet oil will be down next week especially if dollar stabilizes..next big news will be dal's march numbers than aal's. Will aal's margin guidance increase or stay at 12-14% with recent drop in fuel price? Probably no change for 1q...
Hoped to see big end of day/after hours pop to unload the trading shares I bought at 47$. Sold some during the day. No idea what to expect on Monday, hard to see big increase in pps with all the buying late today unless oil sells off, dollar weakness did us in today.
That's what I figured, entertaining yourself.. I still work so I'll keep hitting Ignore which have been doing a lot lately. It is weird they way they come out of the woodwork like a swarm of ants..
Makes sense, otherwise we should be up 5% imo...have been trying to wrap my head around how this would play out all week with expected end of day/after hours purchases and pps pop. Obviously we got huge buys but no pop at all ... unacceptable!!!
Very surprised pps not up more with the record closing and after hours volume. Was expecting 3-4% pop, hard to understand how can be such extraordinary volume without pps rising.. DAL rose 4% after hours the day added..its an enigma, wrapped in a riddle trapped in a cockpit