If you love FB, and it's a great company, sell covered calls on exuberance. when it pops, go out of the money with long calls. Premiums are high, bank the cash, and you can withstand the computerized algo drop days like this. Your money is in the bank. When the stock gets cheap, you can buy the call back, or just wait things out. Think of the premiums like paying yourselves a fat dividend which growth stocks usually don't do.
When FB hit 110, I sold August 125 calls, took in a lot of cash. I can stand the $6 drop today caused by the fast trading jerks on Wall St.
Check out Insider Transactions, lots of the directors excercised their cheap options and sold at $4-$4.15 in late 2015. There's some belief in the future. In the meantime, retail shareholders are getting that invisible "buyback cash" that Maffei was talking about.
Sirius is a perfect example as to why buybacks are a waste of time to the shareholder. About 2 years ago, Greg Maffei was on CNBC talking about how these buybacks were "returning cash to the shareholder". Price then was about where it is now. Where's all this cash I was supposed to getting?
You are correct, and the bidding company would have raised the price. Fortunately, I sold long calls on it many times and all the premiums saved me.
I'm a Republican, but when he ran for Pres, I was sure of one thing. He had no idea about Finance or the economy. He still doesn't. The only thing he ever said right back in 2008 is that "the SEC let the stock market turn into a casino". He was correct on that!!!
Recall when the stock was in the $18 range and they had that offer for $21-$22, but McCain, for security purposes vowed to stop it. What a bunch of BS, now the stock's been cut in half. Thanks John.
are the bankers, so they can borrow at .25% and lend at double that. Even these FED governors, despite what Yellen says, go all over the networks disputing her. I hope they don't raise at all. Why do you want a stronger dollar, global stocks falling, commodities falling, massive layoffs among the miners (see Anglo this morning).
Jim, Folgers, Millstone. I worked on all of them, purchased some, and sold them. It's disgusting to watch all these companies make money off of our products.
Early today, Cramer said that Nordstrom could not understand the lack of traffic at their stores. Of course, at the other end of the same mall there was no problem with traffic at Penney's. Ever heard Karen Fineman, the Fast Money lady who loves Macy's, and especially debonair Terry Lundgren, their CEO. She's been saying buy, buy, buy Macy's at 70, 60, 50, etc. Also, she dresses like she shops in K-mart.
It's what the big boys do to keep the stock down. Look at JP Morgan the other day, downgrading Rite Aid but keeping their price target at $9
If you believe this deal with WAG is going through, buy now. If it completes mid-2016, buying now at $7.60, you are making $1.40/7.60= 18% in 7 months. In this market, take it.