My OPTION TRADES..... part 2

Discussion in 'Options' started by Put_Master, Aug 20, 2012.

  1. LMAO.

    Anyway, copied from the links you provided:

    "But while consumers are excited about the new game, investors have been shunning Activision shares."

    "But the excitement is doing little for Activision's stock, which has flat-lined for three years. Activision shares are down 10% in 2012"

    "Investor sentiment for the video game sector is down ahead of the upcoming console upgrade cycle. The video game software group ranks No. 192 out of 197 industry groups tracked by IBD."

    "it has a winning portfolio of top shelf games, but shares have been stuck in neutral. "
     
    #571     Nov 15, 2012
  2. TRANSLATION......
    That's why I am potentially buying at a BE price of $9.82, vs the teens.
    The issue is price.... value.... and tech support.
    Not story.
    Going out. Read you later.
     
    #572     Nov 15, 2012
  3. Don't get me wrong here PM. I sincerely hope you win.

    You see, I have some personal history with ATVI. Going back awhile and from recollection...bought 100 shares at $12.50. The stock goes down. Buy 100 more shares at $11.50. The stock goes down and I get out without it ever seeing $11.50 again.
     
    #573     Nov 15, 2012
  4. Looking at the 1 - 2 year chart, I can see the rationale for buying at $11.5,... but 12.5 -13 was clearly at upper resistance.
    I'm guessing you bought it there based on reading some story, an analyst upgrading it, or someone on CNBC recommending it.
    It certainly wasn't for "technical" reasons.
    I sold puts at $11 myself in the past.

    I'll only know in hindsite if the trade was a mistake.
    It has "issues". All the stocks in that sector have "issues".
    But I'm betting that it's positives outweigh the negative.... based on my price and time frame of 5 weeks.

    However, for every stock i invest in, i can also make an arguement as to why it may not be a good investment.
    I try to keep an open mind so I can remain flexible, if i need to be.
    So i appreciate your input.
    Honestly, I prefer criticism of my investments over agreement.
    I learn nothing when everyone agrees. I only benefit when others question why i picked a stock, or why i picked that price, time frame, or % return.
    Now.... go shopping and buy their games!
     
    #574     Nov 15, 2012
  5. #575     Nov 16, 2012
  6. Sold puts on $60 OIS for Dec.
    Credit $1.05
    Annualized % return 18%
    BE price $58.95

    Financially healthy company with reasonable debt levels, and reasonably valued at my BE price of $58.95.
    Company has a few issues of potential concern. But I believe my strike price selection, and the stocks tech support addresses those concerns for this 5 week trade.

    Very reasonable L-T tech support in the $60 area per the 2 year chart below
    http://finance.yahoo.com/q/bc?s=OIS&t=2y&l=on&z=l&q=b&c=
     
    #576     Nov 16, 2012
  7. BBY:

    http://finance.yahoo.com/news/earnings-preview-best-buy-third-231259997.html

    http://www.thestreet.com/story/1177...w-52-week-low-bby.html?puc=yahoo&cm_ven=YAHOO

    http://www.forbes.com/sites/narrati...earnings-preview-best-buy-5/?partner=yahootix

    http://finance.yahoo.com/q/bc?s=BBY&t=6m&l=on&z=l&q=l&c=

    Trade:
    Dec 17/20 bear call spread for a net credit of $28
    Yield = 28/272 = 10.3% in 32 days or 117% annualized
    Statistical prob of being called before expiration = 19%

    My wife and I went to BBY on Sat. We didn't buy anything. Too many choices, too many salesmen, lack of focus. We went to Staples and bought the same thing for the same price without the hassle.

    http://www.bloomberg.com/video/89204357-is-best-buy-amazon-s-showroom.html

    (copied from elsewhere)
     
    #577     Nov 19, 2012
  8. Is the posted BBY trade an actual trade from last week, or a potential trade under consideration for this week?
     
    #578     Nov 19, 2012
  9. Sold puts on $12 IGT for Dec.
    Credit $0.27
    Annualized % return..... 25%

    I'm waiting (hoping) to see if IGT drops a bit more this week, so I can sell an $11 strike on the stock for Jan.
    I need stock to drop a bit more, to get the credit I desire for Jan.
    If so, I'll then have a $12 for Dec and an $11 for Jan.
     
    #579     Nov 19, 2012
  10. #580     Nov 20, 2012