Items Tagged With Options

Had to Sell Something, So I Sold Intel (INTC)
Written By: David Neubert
2007-05-24 07:35:09
I've been trying to sell at least something every day this week.

Add Comment (0)

IM Conversation with Felix Salmon: Why Bear Stearns is Trading Above the Deal Price
Written By: David Neubert
2008-03-18 11:45:28

This is an actual conversation I had with the most prolific blogger I know, Felix Salmon. He has been churning out material about the JPMorgan takeover of Bear Stearns. He helped me better explain why Bear Stearns was trading over the JPM buyout price of $2.00 a share. He used our discussion to produce a well thought out explanation of how Bear Stearns equity might function as a CDS proxy .

My position disclosure at the time of this writing is at the bottom of my blog entry.

neubert (11:41:39 AM): fun day yesterday.
felix (11:42:01 AM): hoo yeah
felix (11:42:09 AM): do you still have your BSC @ $7?
felix (11:42:19 AM): I hope you didn't take my advice to sell @ $4!
neubert (11:42:31 AM): sold calls on at struck at $10 for $2.25.
felix (11:43:04 AM): when?
neuber (11:43:25 AM): just now
felix (11:44:04 AM): expiry?
neubert (11:44:12 AM): oct and april

Add Comment (0)

Markets Falling, Volatilities Expanding: Time to Sell Puts
Written By: David Neubert
2007-06-07 16:22:27
With the market falling and volatilities expanding, I was selling puts today on stocks/securities. Yes, I am a contrarian! I sold puts on my safety securities that I wish would fall enough so that I could buy them. These are not speculations, I sold a series of puts on things that have real value and little chance of falling apart. The one thing all three of these instruments have in common is that they are basically pools of fixed income assets.

Add Comment (1)

Retail Pessimism Overdone: My Favorite Picks Target (TGT) and Nordstrom (JWN)
Written By: David Neubert
2007-12-18 00:04:40

Photo:J.reed, Creative Commons, Flickr

With reports of retail spending up this year, even in the face of so much bad news about housing and mortgages, my inner contrarian awakens. I'm terrible at picking specific retail trends in terms of what brands are in fashion. I do not trust myself to pick the next American Apparel (APP - $14.90) or Abercrombie and Fitch (ANF $81.25) so I narrowed my search to broad based retailers and then looked for the ones trading with the cheapest valuations. I also looked for retailers with a history of growth that are trading on the low end of their historical p/e ratios.

I came up with two retailers, one at each end of the spectrum: High end department store Nordstroms (JWN - $35.12) and box retailer Target (TGT - $51.85). I bought them both but did so at less than half of a full position.

Add Comment (0)

Rethinking Merrill Lynch and Thain After Yesterday's Announcement
Written By: David Neubert
2007-11-16 15:05:50
On Wednesday, I was positive on John Thain as the new CEO at Merrill Lynch (MER - $56.11). I was also a buyer - so I bought a little. But now I'm holding off a bit.

I still think the fact that John Thain got to look at the firm's books and still wanted the job means that there is probably no huge surprise write down coming. Remember, this guy grew up at Goldman as a mortgage trader and knows all the trader tricks for hiding losses in a mortgage/CDO trading book.

However the market is still pricing in more negative surprises, so that means MER cheap here. I've decided it will likely get cheaper so I'll be greedy. After putting my toe in the water and buying the first part of building a position on his announcement I've decided to hold off on adding more.

Why hold off?

Add Comment (3)

There are 16 items tagged with Options. You can view all our tags in the Tag Cloud

<< Start < Previous 1 2 3 4 Next > End >>

Page 2 Of 4

Climate

Women

Neubert's Trades

Social Culture

Technology

Items Tagged With Options

Finance

Culture

Financial Bloggers

RSS Feed Manager

Members