You're right. I don't belong to Mensa. You bragging about such says a lot about you. You are so smart nobody understands you and you don't get along particularly well with others either on or off the job if you have one.
If you want a short position buy April puts. You could probably get the 15's for 1.65 of which 1.25 is intrinsic value and .40 is time premium. If you believe this to be overbought 0.40 for approximately 6 weeks given todays jump doesn't seem like a bad deal.
I don't know what's going on with Mexican economics but the market is down about 8.5% for the year. MXF hit a low in June of last year selling for 26.40. The premium over NAV at the time was about 5%. Premium now is about 3% with the Mexican market looking like it may recover some. I think there is some confusion about the distribution future which is causing downward pressure on this thinly traded fund.
I play options much the same way. I sold June 20's last month for about $1.20 and am well pleased. I get the premium, the dividend, and probably get to keep the stock. If the stock holds between 17 and 18, I will buy back the 20's and sell the calls at the next price above 17.50. Selling options makes me feel like the house in a gambling casino.
I think a buy order is a good idea with NMM. I do not believe we will see a close under 17 again. The closer we get to ex date, the more likely we wil see a PPS increase. NMM will probably follow the market direction in a modified way with increased downside resistance because of the dividend and upside resistance as it is not a stock with a great possibility of appreciation at this point.
I am on almost full agreement. Where we differ is in the use of the word "investors". An investor ooks to long term prospects. These are speculators who are either fearful of what may be an error (retail quick money people) or momentum playors (fund managers who want to look good and buy winners high and sell losers quickly). Meanwhile, I would like to buy more KMP at 75.
Look at potential income from the pipeline. Look at potential energy demand. Look at the PE and yield. Consider your investment objectives. Mine are income first and preservation of capital second. Are yours long term or making a fast buck? If your objectives are like mine, this may be a great opportunity to average down your cost basis.
Please relate your comment to AGNC. Are your remarks seem totally irrellevant or am I missing something? You are certainly missing the point of insurance. Before Obama care if a person were to develop a serious chronic disease, they were virtually in a situation of involuntary servitude with relation to their jobs. As a person of conservative leanings, I feel this whole affordable care act was terribly executed full of strange provisions and dumb political deals, however, it has its good points.
I do not think companies with PE's under 20 and with great growth possibilities are at all over valued. What do you think a PE for a reasonable mid to long term nvestment should be?
Kind of a silly post as this is an anecdotal incident probably caused by a computer program. The evidence of how things are going with Lilly is best judged by the stock performance and dividend.
Maybe there's Zoloft in the water. Nothing to kid about I know but suicides tend to be epidemic. When a classmate, neighbor or fellow worker sucumbs others of the same group start thinking about it.
You must be on the wrong message board. You really think CocaCola is going to go bankrupt? Of course, "eventually" is a very long time. You might point to PanAmerican, General Motors etc.
This seems to be a very bad idea as doing such makes the person shorting responsible for the dividend on ex-dividend date. Consider IVR which has a range between 14.5 and 16.5. A person shorting this has a $0.50 loss if held through ex-dividend. As these stocks tend to drop right after dividend and regain their loss throughout the next 3 months, shorting, all else equal (which it never is) builds in a loss. his leads me to believe most negative posters no longer have skin in the game and would just like to see justification for their beliefs. Buying puts on the otherhand has the purchaser "losing" the premium which becomes obvious if the stock stays relatively the same.
Considering the dividend policy, this CEF should be trading at a small premium to NAV. The NAV is basically what the fund is worth if all assets were sold at current market price. It is sort of a flawed number as liquidation would have its cost and the market price of assets would probaably decline if sold. That being said, NAV is a rough indicator of the value of the business. The discount is due to general pesimism about gold prices.
It seems to make little sense to short a $10 stock following a good earnings report. This stock has a PE of about 21 which doesn't seem outrageous for a tech company. Incidentally, I did not see where CNBC was pumping it. (see electrowing post)