WSJ: Coach nearing $600M purchase of Stuart Weitzman • 6:47 PM
What's anyone know about this? And can anyone comment on the retailer Stuart Weitzman? This is not where a guy like me shops.
I have been "selling off" TTPH during the rise by writing covered calls with exercise dates that put me in the long term capital gains range. Covered calls aren't to everyone's taste but I find them to be an excellent way of taking some profits, especially with appreciating biotechs (has worked well with PCYC, BLUE, ACHN, RGLS, and for a while SPRT). For example, you could have easily gotten $3-4 extra over $25 by writing calls with May or August 2015 exercise dates.
Here's how I handled a 2700 share position in a taxable account (have done similarly in a non-taxable account)
8 contacts to sell at $22.5 (strike price) on 15 May for which I received $2.63 after commission (09/24). Thinking that TTPH now has a "safe floor" of $25, I will try to "roll" this position to August 25 calls or later (when available) November 25 calls for a modest net credit of a few cents (I don't do "rolls" when it costs me, i.e. a debit).
This first trade essentially recoups my total investment, leaving the rest (below, but keep in mind still unexecuted) as profit.
8 contracts to sell at $30 on 15 May for which I received $2.53 (10/02). I may or may not try to roll these.
5 contracts to sell at $35 on 15 May for which I received $3.09 (10/30).
Finally, I have an order to sell 6 contracts (covering the rest of my position in the taxable account) to sell at $50 on 21 August at $5.10 (current bid/ask $4.60/$5.10). The increased premium relative the others reflects the takeover speculation. I'm betting any takeout price will be less than $55, obviously there will be others on this board who feel differently. Under favorable circumstances, I can roll the calls to get a higher sales price ($57.50, $60.00) but without any significant option writing premium.
Anyway, this might give you some additional ideas for how to sell a portion of your position for a little more $. It also hedges against a $3-$4 or more backtrack in the stock price (as I have experienced with SPRT). Good luck!
I will be a buyer if it QIWI drops to 17.50. But of course I won't be able to prop up the price if there is great selling pressure.
I always call my broker (Fidelity) when I notice something like this; usually they are quite happy to research the situation. And 1 time or so out of 10 you can get ....
I own SNOW and think it is a somewhat better play than SKIS (better resort properties for one). One can also write options on SNOW.
Thanks -- I try to hold a diversified portfolio and I am not as much as an expert in insurance / reinsurance as I would like (I hold JRVR, BCRH, AIG, MET, MFC)
Although not on a major exchange, CTIX deserves mention on a thorough list of anitbiotic plays. Their board is horrible, but it has been a good week for this equity.
bearofbleecker, we meet occasionally on some of the other boards (PCYC, RGLS, TTPH, CTIX, ACHN, CLDX, SUPN, perhaps some others) where I am long.
I haven't been following BLUE at all but it seems you have. I watched the option premiums explode yesterday, and am considering a trade like I made when ACHN popped up to 7.5 in mid June.
Namely, I could probably do a buy-write tomorrow with a May 85 strike price for about $63. If the price holds (and target prices got moved up today) that would give me a gain of 33% over 6 months. If the price drops but holds above $63 I'll still come out ahead. If the price goes back to the 50's I'll lose, but can continue to write calls, probably for a reasonable premium.
I can't read your sentiment so well from your posts (seems like the community missed an obvious read from the recent abstract literature), just wonder what you think of this trade. I'm stuck over in Adelaide at a conference, so NY trading hours correspond pretty much to when I am asleep.
(my similar ACHN trade worked out very well, and I added to my RGLS position in this manner also)
Wackos are not beginning to appear on this board; wackos have been a fundamental pillar of this board for at least a year now (go back and read various rants about Leo, football game discussions, etc). That being said, I'm long for about a year and very happy about it this week.
You can find SPHS in several Fidelity portfolios. I went long around 4.5 (too soon) and have averaged down somewhat. Everything is in a IRA, I'm hoping like all longs for a good pop in the coming weeks.