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Strategies & Market Trends : Option Strategies

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From: Jim P.	9/6/2016 6:50:16 PM
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I have never had this happen before. I tried to sell puts on ACIA today. The trades kept getting cancelled. So I bought the stock and tried to sell a covered call. No luck there also. I called my broker asking if they would place the trade. They could not do it. Apparently the exchange halted all new positions in the options of ACIA. There are more option positions out than outstanding shares according to my broker or more outstanding than the tradeable float. Most of the shares of this new issue are tied up with insiders who have a lock up and institutions and the actual float is about 2 million shares. This was posted in a seeking alpha dated August 15. Not sure of accuracy. Notable institutional holders include Matrix Partners with 12 million shares, almost 1/3rd of outstanding. They are followed by Commonwealth Capital Partners with 6 million shares, as well as a general partner of the company (Stan Reiss) with 12 million shares and a director (Peter Chung) with 2.89 million shares. The float remaining is around 2 million with around half of that short. I ended up selling the stock in a day trade for what I was willing to make on a covered call trade so I am not complaining. I ended up buying OCLR and LITE in the same industry and similar uptrends. The change in product cycle that is occuring should allow most companies to expand over the the next year or 2. ACIA claims to have a technological leap in placing product on chips compared to the competition. With that advantage products are still customized to each very large customer so even a better solution takes a while to gain market share. ACIA does not produce the lasers that are used in its products. LITE does produce those types of lasers but do not know who supplies ACIA. ACIA's has very strong profit margins which may indicate they do have a better solution in the communications area. investor presentation: ir.acacia-inc.com jim

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