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Talking stocks, trading, and investing in general - Page 655

post #9811 of 11190
Quote:
Originally Posted by Piobaire View Post

Okay, need the SF pros to 'splain this one to me.

Someone is telling me they sold some covered calls that were in the money at the time they sold them. If the premium was less than the strike price vs. spot the buyer could exercise immediately and profit, no? And the seller would lose.


If they were American calls then yes they could exercise them immediately and make a profit. If however they were European calls like most call options are then no they could not as European calls can only be exercised at a specific date in the future. This doesn't mean that the call wasn't mispriced as a call should always be worth more then the price of the underlying minus the strike price.

In your scenario S-K>C so S>C+K where S is the price of the underlying, C is the call price and K is the strike price. In this situation you could short your stock, buy a call and loan out the present value of K. At expiration you would collect K from your loan, use your call to buy the share for K and then close your short position with the share making a risk free profit. Therefore a call should always be worth more then S-K. Bit more complicated then just exercising the option, but yes there is an arbitrage opportunity if S-K>C
post #9812 of 11190
It just turned Monday here; time to break out the old HeadofStateFingerPointing® vodka for the upcoming week.
post #9813 of 11190
Quote:
Originally Posted by idfnl View Post

Ok bought some CS and some MS.

Let me see what other bones I can pick thru...

 

You going to buy down on that CS position?  Good thing you didn't buy BCS.

 

EDIT:  I put in a small buy today on the Vanguard International Fund.  It was down 7% Friday and is looking to be down today.  International stocks have been junkers compared to the S&P for the last 3-5 years but it is hard to ignore a discount on an already beaten down sector.

 

Also Friday put a 3.2% dent in our portfolio.


Edited by jbarwick - 6/27/16 at 6:54am
post #9814 of 11190
Quote:
Originally Posted by jbarwick View Post

You going to buy down on that CS position?  Good thing you didn't buy BCS.

Yeah, I'm probably going to buy more this afternoon. It's down another 8%. Eventually Britain will make a deal not unlike the one Switzerland or Norway has, than the market will settle on that reality.
post #9815 of 11190
Airlines... wow, going down hard. Good thing I'm not, oh wait, I am holding a shitload. Damn.

Also, stocks like AAPL, DIS, GILD, etc all look like decent buys. Good companies in bad markets. I wasn't going to include NFLX on that list but I've added more to my position.

Any of you guys know about BKD? The seem to have come down a LOT recently and I don't know why. I keep moving my alert lower and it keeps going off anyway.
post #9816 of 11190
Okay, the Brexit fallout is even bothering my usual unshakable long term outlook.
post #9817 of 11190
I didn't think we'd be down another 2% on the S&P today.

Sucks.

I'm getting slaughtered. VRX will go down in history as my worst stock pick ever. It's the one that will come to mind front and center when people ask me about shitty investments.

Bought in at around $100 after a 50% drop from 200. It dropped 70% from there so I bought more at 35. Lo and behold, it's down another 50% from there.

😂😂😂

Edit: all the uneducated, bigoted, narrow minded, stupid old xenophobic racist British farts can burn in hell.
post #9818 of 11190
I think the biggest risk if the EU actually falls apart with france and the dutch calling their own referendums and then uncertainty remains for another 3 years+
post #9819 of 11190
Quote:
Originally Posted by AriGold View Post

I think the biggest risk if the EU actually falls apart with france and the dutch calling their own referendums and then uncertainty remains for another 3 years+

It's unlikely to happen. Continental EUR is more united than the UK. England was always a hesitant bedfellow. Even Scotland and Ireland want to stay.

The more likely scenario is that SCO and IRE vote to leave the UK and stay in the EU. In that scenario, England really eats shit.

________________

I may buy a few AMZN shares today, its down to 684.
post #9820 of 11190
Quote:
Originally Posted by idfnl View Post


The more likely scenario is that SCO and IRE vote to leave the UK and stay in the EU. In that scenario

That would be very interesting

post #9821 of 11190
Quote:
Originally Posted by venividivicibj View Post

That would be very interesting

There was an independence referendum just a couple of years ago which SCO narrowly voted to stay in the UK. Now, I think it's a likely outcome that they leave unless England cuts a sick deal.
post #9822 of 11190

post #9823 of 11190
Quote:
Originally Posted by jbarwick View Post



LOL, Italy, the country that manages finances like a rich widow, wants a referendum. What was the Lira before the EU single currency? Like 2000 to 1 dollar. Go right ahead.

In that graphic, nobody would win a leave vote, but support is tepid.
post #9824 of 11190
I can't be the only one who thinks other EU members will hold referendums to leave. This can't be an isolated case.
post #9825 of 11190
Quote:
Originally Posted by idfnl View Post


The more likely scenario is that SCO and IRE vote to leave the UK and stay in the EU. In that scenario, England really eats shit.

please be very sure to denote northern ireland there in future, or i will have to fight ya.
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