IBKR opens @ 50 or so.

this is a minor bump in the road if you are a longer term investor as I am in IBKR.

if the stock will be at 50+ in 9 months, it doesnt really matter if it goes from 27 to 24 right now.This is just a chance for us longer-term holders to pick up some shares at a discount.

long and strong IBKR

blackguard

 

No No!, just short the call option, keep the shares youre entire life!
You will be very Rich!
Whatever the price gone
under 10$ sold all , change stock

I hope will help

 

I'm not trying to flame you or mean any disrespect but what do you base a price of 50 on?

Is it an arbitrary number or have you done an analysis and believe fundamentally it is worth it.

Just curious.

 

he said "IF" chances are not.

 

Yeah right. Uh, look at Mastercard, they sure did sell that at the top .

Look at GS. Wow, they really put one over there.

Lol, urban legends.

 

Not sure what your point is, but maybe take some rest over the weekend and clear your head.

 

Here is scenario in action in case if stock declines.
1) Assume there is $82,500 on account.
2) Bought 3300 shares at $25, and paid $82,500 (excluding commissions). Acct liquid. value (cash + stock) = $82,500.
3) Sold 33 Dec contracts at $2.68 and collected $8,844. Acct liquid. value is $91,344.
4) Assume stock will steadily decline to $20 towards Dec. The acct liquid. value will reduce by 3300*$(5.00)=$(16,500)to $74,844
5) Assume buying 33 Dec contracts back for half price at $1.34 for 33*100*$1.34=$4,422, so acct liquid. value will be $70,422.
6) The result is loss $(12,078) or about 15% of starting capital. Stock itself declined 20%, so this scenario saved about 5% of starting capital.

Let see what happens if stock advances.
1) Assume there is $82,500 on account.
2) Bought 3300 shares at $25, and paid $82,500 (excluding commissions). Acct value (cash + stock) = $82,500.
3) Sold 33 Dec contracts at $2.68 and collected $8,844. Acct value is $91,344.
4) Assume stock will steady advance to $30 towards Dec and broker will not call this stock because he is dummy. The acct value will increase by 3300*$5.00=$16,500 to $107,844.
5) Assume buying 33 Dec contracts back for double price at $5.36 for 33*100*$5.36=$17688, so acct value will be $90,156.
6) The result is gain of $7,656 or about 9% of starting capital. Stock itself advanced 20%. This scenario gained 9% of starting capital, and did not realize about 11% of gains.
7) In reality this account most likely will get a call to deliver 3,300 shares at 25 as promised. As a result the acct value will be reduced by $(16,500) to $73,656, and no need to buy contracts back.
8) The loss is $82,500 - $73,656 = $8,844 or about 11% of starting capital, and 31% of unrealized gains.

Please explain what I'm missing.

 

I will now explain what you are missing.

I have compiled a video together demonstrating what I would do rather then hold the Interactive Broker common stock. In this video, a man is juggling live grenades. Therefore, I believe its better to juggle live grenades then to hold the common stock.

This is a key point in this discussion. Next I will compile a video of what I would rather do then hold the common stock of Blackstone.

<embed src="http://www.liveleak.com/player.swf" width="450" height="370" type="application/x-shockwave-flash" pluginspage="http://www.macromedia.com/go/getflashplayer" flashvars="autostart=false&token=70e_1183676668" scale="showall" name="index"></embed>

 

I just busted out laughing on this one.. LOL!!

 

http://www.forbes.com/2007/07/06/op...allst-cx_lm_0706options.html?partner=yahootix

They say some MMs lost at May 4th from being on wrong side... Must be Mr. Livermore II is operating from German bucket shop. :eek:

I wonder if anyone would complain in case of being on right side, and is it really such an unusual case? I guess, not for many...