Preferred sotck

Discussion in 'Strategy Development' started by kravamax, Jan 9, 2012.

  1. kravamax

    kravamax

    Hi. Tell me, who trades preferred stock? What resources do you use? What strategies have you know? :) Can you prompt or at least a hint in which direction to "dig"
    You can write in PM if you do not want to disclose your secret on the forum.
    Thanks in advance for your reply.
     
  2. rmorse

    rmorse ET Sponsor

    Check out:http://quantumonline.com/
    Enter a stock symbol
    Click on "Find all related securities for..."
    Then you can look for pairs to trade with related preferred.
    If you back test, remember that many preferred stocks are hard to borrow and might require a locate.

    good luck,

    Bob
     
  3. Bob111

    Bob111

    one great source of such info just died. called Quote Plus. with their data base with couple clicks i was able to pull all preferreds info. not anymore..RIP QP2..

    but..if you capable of using goog -you should be able to find the lists-

    http://online.wsj.com/mdc/public/page/2_3024-Preferreds.html

    took me about 1 min. if this is too hard or too complicated-then it's probably better for you to stay away from any trading.
    good luck
     
  4. kravamax

    kravamax

    ok :) Many thanks for your input. I searched in Google, I know these sites. But I'm still interested in how someone is trading preferred stock? What are the intraday strategy? I am interested in speculative strategy, not an investment.
    I understand that I probably will not find people who share some operating time, ideas ... I have some ideas, but I would like to talk and discuss it with people who also have ideas on trade preferred stock.
     
  5. rickf

    rickf

    I wouldn't say one "trades" preferred stock but generally buys and holds it to reap the dividend and appreciation to-and-above-par for the long haul. At least that's what I do until I determine otherwise. :)

    Strategy-wise? I generaly look for a good, safe company that fits my needs, with the preferred trading *under* its issue/call price (par) -- ie you don't want to buy a preferred at $28 with a par value of $25 only to see it called away in 3 years when it's' trading at $26 ... you'd take a $2 hit on the position basis (not including dividends, of course.) Translation: I won't buy a preferred stock that's priced more than one dividend away from par to the upside.

    But yes QuantunOnline is the go-to place for info on available issues, as the ther poster said.
     
  6. Bob111

    Bob111

    intraday strategy? what's the point? what's the difference besides huge spreads between bid and ask and low liquidity? in order for trader to make the money -price gotta move(in case, if you don't know it).
    it's like asking-can i day trade corporate bonds? sure,you can. not sure how much money you can make off it. or you seriously believe that you can buy at bid and sell at ask all day long? cause that's the only "strategy" that might work intraday on those securities(assuming you have enough buyers and sellers) and superior execution to all other market participants.
     
  7. kravamax

    kravamax


    Strategies exist. The idea they have. I'll trade the intraday preferred stock. If you do not know what and how, it does not mean that it makes no sense.