Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Option Strategies -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (2478)	4/8/2023 10:54:49 AM
From: FIFO_kid2	Read Replies (1) \| Respond to of 2591

Saw your comment on the Value board RE: the banking sector. As for buying stocks I know of no name currently trading below marked to market book value. So I would also avoid the sector as a stock holding. I have a strong feeling quite a few companies currently sporting a negative book value and are insolvent if they were using marked to market accounting. I certainly take a different approach to the market which I started to employ after than most as I discovered after the Y2K sell off event. My job as an investor is to wait for an ideal time to commit a large amount of capital to "most of the universe" equities when you see a black swan event providing a totally absurd valuations coupled with it highly probable expecting an accommodative money printing Federal Reserve to counter this event. With regard to selling options in the banking sector its really hard to ignore it as it has been very tempting to sell puts when there has been a massive increase in implied volatility. For instance MCB April 21 2 1/2s were trading at 45/50 cents bid ask at the top on the date when it was speculated by a short seller as the next SBNY given its cryptocurrency ties while the stock dropped about $12 to $22 and a week later it is trading $29 with that particular put option at 0/5 cents bid ask. I think the decision making with regard to the financial sector is related to how transparent the bank is with the public like the recent news with WAL that revealed a $16.80 marked to market book value indirectly in a press release which created a great volatility event on Wednesday and for those who aren't you must be very informed on avoiding holding the options during any key reporting dates to expose this potential adverse risk.