Since we're guessing, how about he thought he could get more? If Txn came back, it's safe to assume they will pay up in a consolidating industry
I'm up 300 percent, why would I care about cherrypicking what the stock does over your defined time range
Can you tell me how adi will do in the next 6 months?
I think you meant NYB. Ive had it for 12 years. For me it's a mistake to sell calls in NYCB. I just hold it, collect the div and add more when it's low. I get the covered calls strategy but Now youre in a position where I assume youre down almost a buck and probably wont buy it untll it goes back to at least 17. You probably wont get your dividend for at least a few quarters and the stock could continue going up in which case you might not get back in for a long time.
I'm not saying youre wrong, just I look at it differently. I consider it a core holding.
It's going up with other financials on the expectation that interest rates are going to rise translating into a much more profitable climate for lenders.
I wouldnt sell as long as higher interest rates are out there in front of us. Just collect your $1 dividend as long as that looks like it;s in the future.
were you a gold bug also?
You arent seriously buying this for a potential debt crisis in the fall and a Presidential election next year? They are buying options with one month expiration and youre looking out a year.
Youre going to get killed if you do.
In my opinion Greece is nothing. It certainly isnt a secret to the market as it goes up. Neither are potential interest rate hikes later this year. We are due for a correction, but I dont think any of the events you commented on will do anything.
An experienced investor has no business telling you to invest in this. At best it's a leveraged short term hedge on the rest of your portfolio. You shouldnt have more than 5% of your stock market money in this. It's very high risk.
Number 1, dont take anyones advice if you dont know whats in it. Most experienced investors dont know squat
The reason it's going down is becasue it invests in short term options. Short term. The market has been going up with no fear in sight.
VXX will go up when people begin to fear losing moeny and the market goes down in big chunks. The Dow and SPX are at all tieme record highs, the Nasdaq nearly at one.
The market isnt afraid of the FED, the Middle East is a mess but it doesnt matter becasue oil prices are still very low.
We are due for a bounce, but it could keep going. How much pain can you take?
The only way youre going to make money on this is if the market really makes a big swing down. If it goes up big, is flat, drifts up or drifts down youre going to lose money because of the time degradation of the options.
The sweet spot for this is for people to think about dumping and we havent been anywhere close to that since last fall.