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Staples, Inc. Message Board

xquestor 462 posts  |  Last Activity: 2 hours 40 minutes ago Member since: Feb 19, 2008
  • Reply to

    MU Max pain 4/25 question

    by arge000 Apr 13, 2014 9:34 PM
    xquestor xquestor Apr 14, 2014 9:52 AM Flag

    Arge;
    Not quite sure what you did? Bought MU on margin? or sold MU short?

    XQ

    Sentiment: Hold

  • Reply to

    XQ thanks for your inputs

    by coldrunner Apr 11, 2014 4:23 PM
    xquestor xquestor Apr 14, 2014 9:15 AM Flag

    mutra;

    It will until!

    XQ

    Sentiment: Hold

  • Reply to

    XQ thanks for your inputs

    by coldrunner Apr 11, 2014 4:23 PM
    xquestor xquestor Apr 14, 2014 1:26 AM Flag

    mutra;

    It is there. Most investors would miss that. It could be very important or it could be useless. In most cases it will play some sort of a role in the stock.

    XQ

    Sentiment: Hold

  • Reply to

    MU Max pain 4/25 question

    by arge000 Apr 13, 2014 9:34 PM
    xquestor xquestor Apr 14, 2014 1:22 AM Flag

    ange;

    So, I am assuming you bought calls at $ ???? price. You can call the stock at any price even if it does not reach the strike price. You have to call your broker to do that. If the call price goes up above the purchase price you can sell those calls and make a profit.

    XQ

    Sentiment: Hold

  • Reply to

    XQ thanks for your inputs

    by coldrunner Apr 11, 2014 4:23 PM
    xquestor xquestor Apr 14, 2014 1:15 AM Flag

    mutra;

    Stockcharts may not be accounting for stock splits with such short graphing. Yahoo historical prices reflect my numbers.

    XQ

    Sentiment: Hold

  • This is how a government can pay down debt and never raise taxes.
    We are currently in a low interest rate environment, with the 30 year paying 3.5%. Now lets say that you purchase this 30 year $1000 bond paying 3.5% and the effective interest rate moves up 1% to 4.5%. The bond that you bought for $1000 has now dropped by 10% in value to $900. If the effective rate move to 5.5% your $900 bond drops another 10% to $810. And so forth. The FED controls the interest rate and will at some point in time accommodate the government as they did in the Carter / Reagan era. When the bonds become so devalued the government steps in and buys those bonds and notes back at large discounts and the national debt drops at the expense of the note holders. It is a game that is played over and over.

    XQ

    Sentiment: Hold

  • Reply to

    MU Max pain 4/25 question

    by arge000 Apr 13, 2014 9:34 PM
    xquestor xquestor Apr 14, 2014 12:42 AM Flag

    arge;

    The MM's are always going to be the big winner or those that are smart enough to know how the game is played. You have to know what to do and when and have a escape plan formulated. Most option players are only playing a particular option for a particular strike. MM's and big money will play options over many strikes and over many expiration's. You have to figure what the probabilities are of different moves. You cannot throw a dart at a dartboard and hit the mark without skill and practice. When you play the options market; you are playing against the pros.

    XQ

    Sentiment: Hold

  • Reply to

    XQ thanks for your inputs

    by coldrunner Apr 11, 2014 4:23 PM
    xquestor xquestor Apr 14, 2014 12:31 AM Flag

    info;

    She is going to have to maintain a status quo position. She has really no choice unless she wants to put the US and the world into financial pain.

    XQ

    Sentiment: Hold

  • Reply to

    XQ thanks for your inputs

    by coldrunner Apr 11, 2014 4:23 PM
    xquestor xquestor Apr 14, 2014 12:22 AM Flag

    mutra;

    WFC is the symbol for the stock chart at Scottrade and the numbers are correct on the 18 year monthly chart.

    XQ

    Sentiment: Hold

  • Reply to

    MU Max pain 4/25 question

    by arge000 Apr 13, 2014 9:34 PM
    xquestor xquestor Apr 13, 2014 11:11 PM Flag

    confident;

    It is not the number of contracts or open interest; it is the dollar value of the call contracts versus the dollar value of the put contracts that exist at all strikes. OP is the price at which call and put option BUYERS lose the most amount of money and call and put option SELLERS make the most amount of money. 90% of call and put option buyers lose money.

    Search max pain and go to that web site for a better explanation of how and why it works.

    XQ

    Sentiment: Hold

  • xquestor xquestor Apr 13, 2014 10:21 PM Flag

    NO

    XQ

    Sentiment: Hold

  • Reply to

    MU Max pain 4/25 question

    by arge000 Apr 13, 2014 9:34 PM
    xquestor xquestor Apr 13, 2014 10:19 PM Flag

    arge;

    The imbalance is large and the number of calls outnumber puts. That would suggest a close under the OP price of $21. Bear in mind that the OP price is not static and can move up or down and trap option players in positions they do not want to be in. Never sell calls when a stock is oversold; only in a confirmed overbought condition. Never sell puts in an over bought condition; only in a confirmed oversold condition.

    XQ

    Sentiment: Hold

  • xquestor by xquestor Apr 13, 2014 10:11 PM Flag

    I am looking at the option tree for 4-19-2014 and it is very symmetrical and nicely balanced. The OP number is sitting at $22 and has been fairly steady. I am of the opinion that MU will rise to the $22.70 area this week and then pull back to the $21.90 area by Friday. This can change as option contracts are bought and sold. JMHO

    XQ

    Sentiment: Hold

  • Reply to

    XQ thanks for your inputs

    by coldrunner Apr 11, 2014 4:23 PM
    xquestor xquestor Apr 13, 2014 9:49 PM Flag

    coldrunner;

    I believe that Yellen will be kept in a box. In other words, she may try to raise interest rates only to find that the banking system, which has been making low interest loans, will have a serious decline and so will their stocks. One has to understand that the U.S. treasury has been selling BILLIONS of dollars of securities. These securities are imbedded in bank holdings, investor accounts, mutual funds and governments around the world. This is a no win situation for Yellen.

    This is how a bond works. For every 1% rise in the effective yield / rate on a bond, the value of the bond declines 10%!!!!!! So Janet Yellen and her Elfs will not want to go down in history as the great destroyers of the world economy.

    XQ

    Sentiment: Hold

  • Reply to

    XQ: Question about MU implied volality

    by arge000 Apr 13, 2014 5:22 PM
    xquestor xquestor Apr 13, 2014 7:09 PM Flag

    arge;

    Call NASA!

    XQ

    Sentiment: Hold

  • Reply to

    XQ thanks for your inputs

    by coldrunner Apr 11, 2014 4:23 PM
    xquestor xquestor Apr 13, 2014 5:17 PM Flag

    coldrunner;

    My response did not bump your post up for some reason.

    XQ

    Sentiment: Hold

  • xquestor xquestor Apr 13, 2014 5:09 PM Flag

    mutra;

    Yes I did. In essence, he is saying that they raised money selling convertible bonds that were exercisable at some price. Most of the bondholders shorted the stock and are also collecting a certain rate of return on the bonds. I believe that MU should not buy back the inflated bonds but should offer common stockholders the right to convert shares of the common stock into a new class of preferred stock that pays a dividend. The conversion rate should be say 2 for1. The common share traded in could be kept in the company treasury and used to fulfill the bond conversions.

    XQ

    Sentiment: Hold

  • Reply to

    If you own MU and intend to keep it do this!

    by xquestor Apr 11, 2014 11:32 PM
    xquestor xquestor Apr 13, 2014 4:51 AM Flag

    sagit1;

    NO.

    XQ

    Sentiment: Hold

  • Reply to

    XQ thanks for your inputs

    by coldrunner Apr 11, 2014 4:23 PM
    xquestor xquestor Apr 13, 2014 4:36 AM Flag

    coldrunner;

    I have always believed that the future stock price direction is always reflected by the sentiment and expectations of investors by the options that are traded for that stock. The OP price tends to represent those investor sentiments. So here are the current OP numbers for WFC.

    4-11 $49, 4-19 $45, 4-25 $49, 5-2 $50.50, 5-9 $49, 5-17 $48, 5-23 $48, 6-21 $48, 7-19 $46
    10-18 $46, 1-17 $42,

    As you can see the OP numbers are all trending down although that can change over time. Looking at a one year daily chart WFC has had a very nice run up to $50.49 with a pullback within the last week. But looking at a 18 year monthly chart, there is a chart pattern that should be looked at with caution. It appears that a long term head and shoulders formation could be developing. Left shoulder NOVEMBER 1998 at $48.40, Head FEBRUARY 2005 at $56.28 and now a possible Right shoulder developing at APRIL 4, 2014 at $50.49. With this and a declining OP number and current news articles about declining (Fewer mortgages, less trading and more regulations hurt bank earnings: Chris Whalen) and JP Morgan missing earnings, I would be very cautious and hesitant to invest in WFC. JMHO

    XQ

  • Reply to

    Thank you XQ.

    by f40forever Apr 11, 2014 6:10 PM
    xquestor xquestor Apr 11, 2014 11:44 PM Flag

    f40;

    I like the Star Wars series. Even though there was one battle scene in space where some fighter ships would occupy the same spot at the same time. I actually ran it frame by frame and sure enough they would fly through the same spot with no impact or explosion. But there again the human brain can only process 36 frames per second and I guess they figured it would never be noticed.

    XQ

    Sentiment: Hold

SPLS
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