I have bought a lot of them but use them for leverage rather than margin, if you buy them deep enough the premium or blue sky is less than the interest on margin for example what I gave you previously on buying $60 calls at 49 or break even of 109 costs you 2.60 for borrowing the 60 for 16 months which is about 3% interest on the $60. vs the 90 calls which are $7 more in interest on the $30 extra you borrowed which is 17.5% interest which is too much in my opinion. I am a numbers person and was trying to be helpful not mean the 60 calls are your friend the 90s could be your enemy because of all the juice. More numbers are it has to be above 130 for your return percentagewise on your invested money on 90 calls to equal the percentage increase on your money on 60 calls but the profit at that point is over 40% on both. I like the profit at a lower number and loss further off. But I wish you very good luck as I own 22k shares of stock in Gild and 130 will net me well over a milliony in profit. I am expecting it to hit 150 to 160 by the time your leaps expire if the market remains without a major correction.
those are barely in the money, ditm would have been $60 strike which you could have bought for $49 or a break even of 109. so for that $30 more of strike you paid $7 which is a 23% yield.
I wouild buy the 2016 leaps also but very deep in the money that way you are giving very little blue sky and the premium is just a little more than the margin interest on the stock you arent paying for. I bought jan 2015 $40 calls for $37 nine months ago and they have almost doubled in value and I only paid a 75 cent premium.which for a year on the $40 is very little interest. You have to put in limit orders and be patient or slowly move the price up to get the best deal.
in fact there are SEC rules on how much they can buy in any one day and some days are blacked out.
that is a nice thought but the key word there is "up to" meaning they dont have to buy any but they will but it may not be all that is authorized. and then they may authorize more. but there is no deadline where they have to do it by a certain date or that it will expire.
I have 42000 shares at average cost of 13.50 and trying to wittle down by trading a few shares here and there. added 10k shares at 9.65 area
he is a short and is wrong about aapl I was in aapl and run it from 80 to 700 and sold on th e down leg at 650 the reason for its sell off was plateauing earnings with no new products, that is different greatly from aapl. GILDs earnings are still skyrocketing,with more new products in the lines. When the lines run out and the drugs near patent expiration then it will beomce a PFE paying a piddly dividend and I will be out. Until then the earnings will continue to grow and PPS will continue to increase. To equate a small selloff after a 20% move in one month is ridiculous and not worthy of an educated post. HE is a short trying to scare you.
I was in aapl from 80 to 6y50 and this is not at that point yet, earnings will have to top as they did for aapl for several quarters before this flattens, earnings will greatly increase and new drugs in pipeline to continue rise, aapl run out of products for a while and still have not come out with a new blockbuster that is why they split and came out with a dividend.
This is no where near that situation
he just told you his immediate family has over 40k shares that should tell you what his feelings on prospects are, BULLISH, any other numbers would be pure guesses.
the problem I see to date is that they talk abheout it while other companies are getting it done with the FDA on their Andas and Nandas. The talk is getting cheap and long in the tooth, they need to get things done otherwise it is all BS.
wow you are doing exceedingly well on that Q investment turned into MNK. that has been a real winner for you, I wish I had not done the arbitrage at this point and just bought the Q but it was on margin and locked the profit so really dont like taking a risk with margin. I have been doing more long term leaps deep in the money it is cheaper than buying the stock on margin. With real deep in the money you are borrowing some of the stocks at about 1.5% interest on the call amount which is a very low premium. The only difficulty is getting fills on long term leaps. I also notice that when I put in a bid higher than the market the rest of market moves up simultaneously. talk abouit dark pools they are really alive. it is almost funny, I watch on level 2 and this option was bid at 17.50 and I put in an order at 18.50 and
500 contracts change on the bid with mine, so I raise it to 18.60 and it happens again so I go to 18.80 and 300 move with me so I go to 20.10 and 200 move with me, so I cancel and they hold and slowly 10 cents at a time tic back down to 18.70 now. and no fills since two days ago.
i bought 60 contracts of 1/15 $40 calls for $37 last december and now they are 68 so I am satisfied and can sit through this minor fluctuation Planning on taking delivery
good morning you old HIG pumper, it has been almost a year and this has not moved, I told you it was dead in the water, my GILD is up 50%, these HIG execs have bonused out your gain with extra stock to the tunes of billions. Time to move on unless they change the top boys here to a more shareholder friendly group
I have never invested at one time in more than 10 stocks but currently am at 5 with Gild being over 70% of my entire holdings with over 22k shares.I entered at 78 and believe it could easily doulbe that by end of next year.