Hi Tony
Don't think we've talked directly before, although I do remember your posts. It's funny how you end up feeling like you know someone from reading their posts without actually having exchanged a word with them. You were heavily into margin at one point? Anyway, pleased to meet you.
I tend to sell one strike further out than most people around here (or people who used to be around here). I sold the April 52.50 four times for between .80 and .90 in the recent past and was also able to buy it back within a day all four times. I would have sold it again yesterday except that I noticed that strange pricing and held off. Over the years QCOM has been my single biggest option money maker, but recently (the last 6 months) I've been holding back. While I'm not so wildly optimistic as to expect a 100 pt. pop, I wouldn't at all be surprised by a 10-15 point run sometime this year.
To put it all in context, I retired and now have access to a tax deferred account that previously was mostly invested in fixed income securities. Now I need to take some profits from the taxable account, move that into t-bills and corporates and municipals, and then start up the trading in the tax deferred account. As such, I'm motivated to sell some of everything, including QCOM, and should be selling more aggressively. I've had no problem doing this with SNDK, NTAP, OVTI, RMBS, and CREE, but still the QCOM gives me pause. It may be because I've given myself 1 year to complete this transition and all of the others are being called away quickly, at better prices than I would have settled for, so that I don't feel any pressure. It may also be that some little bird I can't quite hear is whispering in my ear.
While it's kind of daunting to do this shuffle (I'm having to learn new tricks), it's one of those high class problems I never really expected to have.
Still am puzzled by the QCOM option prices.
Regards
ARS |
