how can you be a customer if you do not pay for access to this board__do u expect us 2 believe u access the ad links?
Yahoo does not use human moderators__they incorporate a system that screens against a reverse data mining database. The only time a human initiates any action__is when we human posting readers flag a post.
This has been explained at last years shareholder meeting.
I bought a A/V receiver at Best Buy to replace a low quality RCA #$%$ out) that I used for surround sound in my bedroom. Due to the age of some of my bdrm equipment__my replacement was hampered by the lack of legacy connectors new A/V rcvrs offered. To make it all work would require some unique cabling and adapters.
My needs could not be met by Best Buy or any other such stores in my area. One stop at a RSH with my plan hand in and 45 minutes later I was on my way home to connect everything up.
Sure I could of found everything online__going back and forth to different sites__setting up accounts to be able to purchase__pay shipping__then get drummed by Emails from the online retailers. Nope_one stop shopping and I was watching "Gravity" last night!
I do not own the equity but I am in the black on bonds.
The preferred trading above par 2day. My buy price is 19.78__+26.6% paper gain while collecting 12.63% annun paid monthly. Not often can that be accomplished with a pref.
What you posted in the first three sentences Is almost verbatim what I have been saying since we first sent troops. Your last sentence "Ka-ching"
Gosh u r truly stupid. Can u not read ur own posts. When u started this string with one of ur 100s of IDs 'thee_zohan'__the 2nd sentence contains the mention.
Lying must be inherent 2 ur DNA. Whenever you post 'crud crew'__you are mentioning doc and his option trading zingbats!
Then why have the bonds been trending up lately__for example the 2019s have moved from 0.358 to 0.42
That seals it. Mentioning ‘negativity convexity’. You HXH, the flame, Dr Chumps and all you pariah IDs are all the same manic-depressive.
You do not understand how convexity works when applied across a portfolio allocation. Go back in history and read my brain spanking post that I spanked chumps with for a concise, accurate lesson on portfolio influence and how to apply the concept.
By the way when are you going to stop whining about doc reits and those option trading fools’. Post something useful for a change__instead of all your rear view mirror rants.
Oh excuse me; I forgot to whom I was replying__you never had anything meaningful to offer.
That truly is an amateur strategy. If you have that view it would be far more efficient to use the futures market to implement an index spread between the two countries. That way the spread just has to move in your favor (China outperforming the US( less efficient but (still better than yours) would be an option spread on ETFs IVV btwn and FXI.
Personally I favor spreading Japan and Australia. As China emphasizes less commodity pull infrastructure build out while recovering export levels__that is relatively bearish demand pull for Australia and benefitting Japan.
Hey it is lunch time where I am currently at__and they had 'Stella Artios" drafts at 1/2 price. Kinda like a distressed debt sale.
A structured product has nothing to do with a 'restructure' KTP is a structured product that owns JcPenney debt.
I had bought for example LUTHP was TRUP that solely owned Lucent Technologies debt after Lucent merged with Alcatel (ALU)
LUTHP owned 7.75% debt. I bought it at 554.50 per security__that was approx 12% yield. The underlying bonds were called in about 2.5 years later. They actually traded above par ($1000) for awhile. So I collect 77.50 per annum for each security for 2.5 years and was redeemed (without any commission cost) at $1000 per security.
That is how you can $$ in distressed issues with less ultimate risk than the equity. Structured products, such as KTP, or a TRUP (Trust Preffered) like LUTHP offers an opportunity to play on a Buffet type level in debt financing. Since these type of offerings take research and above average understanding they tend to go ignored by retail amatuers; hence, providing prices opps without the volitivity and idiocy surrounding distressed equities like RSH!
Either way; if they cannot come to an agreement with the lenders allowing RSH to close underperforming/hi lease rate locations__the equity is going to get wiped in BK or diluted thru secondary offerings and or rights offering(s) to the lenders.
I took a gamble recently on the 2019 bond issue at 0.3925 ($392.50 per bond). If they last to issue maturity I collect approx 30% yield and RSH has to redeem at $1000 per bond. If BK I may get $200+ back per bond.
Does anyone know if there is a structured product issue; such as, a TRUP that owns debt or credit aggreements??
GRH-PC hit par value at $25 today. My purchase price is 19.78. Decision time__do I stick around and continue to collect the 10% on a non-call scheduled perpetual? Or sell and run? With a 10% yield at $25 it could trade above par. I would have to sell for sure.
Anything that would cause more underlying equity buyers than sellers.
The un-winding (needing to deliver the equity) of a derivaitve position would be a possibility. Since we are talking RSH equity the only derivative position that would require the need to purchase to cover would be a naked selling position. But by your phrasing '600k option bet' it would a buy or sell (to open a position). The aforementioned unwinding of a naked position__would require underlying equity purchase (to deliver shares for settlement date) but would not result in a an option trade. The option contract itself would just expire. So the two events are not correlated. Also, I do not believe last week__first week of June_would be even close to any settlement date.
Just like futures__with options__you cannot buy something that does not yet exist. Someone has to offer to sell (open the contract) for it to even be available to be purchased. That cannot affect underlying prices. Options and futures contracts are zero-sum. The contract is between two parties__one gains__then the other loses__or both remain flat.
Derivatives can be confusing
Like I posted at the start__anything that would cause more buyers than sellers. Since you call it a spike__it would seem purchase orders had to overrun available sell offer-volume.
Maybe executive purchases, filling of employee stock option (ESOP), or executive warrant/rights exercise?? Without a download of the order book data__I have no idea how anyone would know. Anything else would just be speculation.
I would not touch a long equity position unless the RSH board/executives can come to an agreement with the creditors that would allow them to move forward with aggressive store closings. An option spread could be a good bet on that long shot hope. The problem is when that might happen (if at all).
Either way I believe at this point the equity will be wiped out in a restructuring (aka. Kmart) or diluted thru rights offerings to the creditors and or secondary offerings.
My thinking is the way to gamble on an possible agreement and maybe ultimate survival or take over is with a debt security, such as, CUSIP 750438AE3, 6.75% 5/15/2019 maturity. At approx. $0.42 the semi-annual yield is 29% and if RSH survives till that maturity__receive $1000 for every $420 plus the interest income. If they file BK__maybe receive 0.20s back for each bond.
I feel this is a better gamble than the equity__but still a gamble.
I do not know if it is still available in the AGNC msg board data base__under my ID. to settle a long standing posting of misinformation on that board. I posted a string of postings (essentially the material used in our 4th class) illustrating step by step how a derivative contract moves into cash settlement. Eliciting for all to read__how misinformed the often stated (even on CNBC) idea is that forward derivatives drive underlying pricing.