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Post by nkmho on Sept 17, 2012 12:44:26 GMT -8
I have a question for the board members re: vertical spreads. Let's say I have 10 Apr '13 600/650 BCSes where the long leg cost 98.46/share and I received 70.01/share for the short leg, for a total cost of 28.45/share. If the buyer of the short leg decides to exercise the call and I must sell 1000 shares @ $650, but don't have 1000 common shares, would my brokerage automatically sell the long $600 calls in order to cover the assignment? (I use E*Trade and Fidelity). Or, would I be left holding a margin debt, up to $650,000 if I had $0 cash (worst case scenario), which I could then clear by exercising my remaining $600 call options (the long leg)? I'm still relatively new to the whole vertical spread strategies. The few I've done, so far, I've closed out prior to expiration or any pre-mature exercise hit me. These are all "American-style" options, so pre-mature exercise is possible. I'm a little concerned about possibly getting nonexistent shares called away prior to expiration, which might happen prior to the next ex-dividend date. Thanks for your help. I think the best thing to do is contact your brokers regarding this to find out how their process works and how you will be notified of an assignment. I think with most brokers, they don't automatically exercise your long calls.
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Post by mbeauch on Sept 17, 2012 12:47:42 GMT -8
When the small ones just don't do it justice.
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Post by Tetrachloride on Sept 17, 2012 13:02:10 GMT -8
A fine day and a good year ahead. I feel like buying all the Farside Books.
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Post by archibaldtuttle on Sept 17, 2012 13:05:09 GMT -8
Hi all - I was a long-time lurker in the other board, been trading AAPL since 1999. I thought, hey, this move to the new board might be a good time to say hello and introduce myself. I actually tried to register for an account on the other board a few days ago but it thought I was a spammer for some reason Cheers, Archie
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Post by Tetrachloride on Sept 17, 2012 13:11:36 GMT -8
With a name that good, I thought you were already registered in old board. Glad to have you, Archie.
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Post by Rupert on Sept 17, 2012 13:15:47 GMT -8
Arthur Hill from Stockcharts.com says;
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Post by greedynoob on Sept 17, 2012 13:21:17 GMT -8
$700 is a pretty good run since the announcement; I'm thinking this week the EO call writers win and we pin at $700 on Friday.
If there's a distinct dip tomorrow and/or Wed, I may jump into some Sep 28 calls on Thu, hoping to catch another leg up Monday helped by announcement of 1st weekend results. Or if not, *maybe* I'll trade back into some Oct OTMs.
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Post by jeffi on Sept 17, 2012 13:27:21 GMT -8
Just want to say Hi and thanks! It appears this is my new home. Bizarre series of events at the TMO. Jeff
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Post by archibaldtuttle on Sept 17, 2012 13:27:32 GMT -8
I'm thinking we will pop up over 700 this week but fall back down to that level by Friday. So I might be looking at a very small play of 710/700 weekly Bear Put Spreads if I can get them for cheap enough.
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Post by Tetrachloride on Sept 17, 2012 13:37:28 GMT -8
700.40 to 701.55 in after-hours. Now at 701.15 Forbes writer Panos Mourdoukoutas notes that Apple Forward PE is still less than Google and Nasdaq. ForbesAside: there's been a lot of clickbait from Motley Fool recently. Forbes and Wall Street CheatSheet also have posted some lame stuff once in a while. Day by day, I have less respect for Motley Fool. Welcome Jeffi and H2H
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Post by highway2heel on Sept 17, 2012 13:39:17 GMT -8
Hi all - I was a long-time lurker in the other board, been trading AAPL since 1999. I thought, hey, this move to the new board might be a good time to say hello and introduce myself. I actually tried to register for an account on the other board a few days ago but it thought I was a spammer for some reason Cheers, Archie Same here...figured it was time to stop lurking and weigh in with my $0.02...with the hope that some of you cats can help me turn that $0.02 into 7 shares of AAPL and a coke... Been a pleasure reading all these years....I use proboards for a sports forum and it works really well...good choice...
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Post by jeffi on Sept 17, 2012 13:46:46 GMT -8
Can someone explain what the Braeburn group Forum is about? I understand it was formed by the much loved and respected Robert Leitao (former site administrator at the AFB). I also know that he and others publish quarterly earnings forecasts. Are the forum discussions limited to this topic? Why is the forum closed? Is anyone here a member that can shed light on this and recommend it? Thx
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Post by Tetrachloride on Sept 17, 2012 13:53:11 GMT -8
Braeburn is approval-only membership. We send in an email or whatever the method is and Robert will check. The reasons for this include 1) spam prevention 2) private discussion 3) private discussion prior to releasing a report such as AAPL EPS estimates and target prices. 4) and the goal of not having an overwhelming number of members.
Braeburn has many topics set up for long-term discussion. A goodly number of us are in both forums. The threads of the forums have some overlap in topic.
Braeburn opened for business in late March. AFB 2 opened last week.
Mav adds an important point on the next page.
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Post by hellojapan on Sept 17, 2012 13:53:41 GMT -8
Hi. I am also a lurker and I wanted to express my thanks for the people who made the AFB such an invaluable resource. I hope there is an effort underway to reach out to the AFB posters who have not yet signed up here.
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Mav
Member
[img style="max-width:100%;" alt=" " src="http://www.forumup.it/images/smiles/simo.gif"]
Posts: 10,784
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Post by Mav on Sept 17, 2012 13:59:23 GMT -8
I think we're mostly good. I mean, there's already 135 members (presuming one account per person).
I don't see any problems with folks finding their way here.
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Post by shorter on Sept 17, 2012 13:59:43 GMT -8
Happy to have followed the crowd here. Bought a few common with the dividend cash. The day the dividend cheque arrived I was harvesting the apple crop( well ..from one apple tree). Two apple harvests in a day was a pretty nice feeling. Thanks again for setting this up Mark
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Mav
Member
[img style="max-width:100%;" alt=" " src="http://www.forumup.it/images/smiles/simo.gif"]
Posts: 10,784
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Post by Mav on Sept 17, 2012 14:00:20 GMT -8
Braeburn is approval-only membership. We send in an email or whatever the method is and Robert will check. The reasons for this include 1) spam prevention 2) private discussion 3) private discussion prior to releasing a report such as AAPL EPS estimates and target prices. 4) and the goal of not having an overwhelming number of members. Braeburn has many topics set up for long-term discussion. A goodly number of us are in both forums. The threads of the forums have some overlap in topic. Braeburn opened for business in late March. AFB 2 opened last week. I would add Robert must know who you are (real name) before he'll let you join. Not everyone is big on that level of information sharing - and IIRC, everyone else at Braeburn will know who you are once you join. (Hey, we can all have respectful differences of opinion, right?) His goal is to cater to "professional" types, which is laudable.
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Post by greedynoob on Sept 17, 2012 14:07:19 GMT -8
I'm thinking we will pop up over 700 this week but fall back down to that level by Friday. So I might be looking at a very small play of 710/700 weekly Bear Put Spreads if I can get them for cheap enough. Interesting thought about going short mid-week; I hadn't thought of that. Agree that we may pop up $705-$710 before opex manipulation drags us back.
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Post by BillH on Sept 17, 2012 14:07:52 GMT -8
Braeburn is approval-only membership. We send in an email or whatever the method is and Robert will check. The reasons for this include 1) spam prevention 2) private discussion 3) private discussion prior to releasing a report such as AAPL EPS estimates and target prices. 4) and the goal of not having an overwhelming number of members. Braeburn has many topics set up for long-term discussion. A goodly number of us are in both forums. The threads of the forums have some overlap in topic. Braeburn opened for business in late March. AFB 2 opened last week. I would add Robert must know who you are (real name) before he'll let you join. Not everyone is big on that level of information sharing - and IIRC, everyone else at Braeburn will know who you are once you join. (Hey, we can all have respectful differences of opinion, right?) His goal is to cater to "professional" types, which is laudable. DT doesn't seem to mind catering to us "unprofessional" types who like to lurk more than post in hopes of furthering our limited knowledge. Just sayin.
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Mav
Member
[img style="max-width:100%;" alt=" " src="http://www.forumup.it/images/smiles/simo.gif"]
Posts: 10,784
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Post by Mav on Sept 17, 2012 14:12:37 GMT -8
Well, Bill, he does know you from a while back, and you provided your name. My creepy experience with Prodigy Online checkers when I was an impressionable, younger lad sticks with me. I will of course take up MB's kind offer of food and shelter should I ever find myself lost in his neck of the woods. (/post references from a ways back)
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brddd
New Poster
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Post by brddd on Sept 17, 2012 14:15:32 GMT -8
I'll stop lurking as well to say hello. Hello, gang. Proboards are great, especially with the iOS app. I'm a Canadian typically buying leaps in my registered accounts with inspiration from Snipus (yes, that's how long I've been lurking). I'm no where near as successful, but am trying and learned a lot from horrible mistakes over the years! 2012 has been the most profitable so far, as I got lucky with redeploying some leaps in early Jan. I'm holding a core position of Jan 2014 600 calls. (previously they were 500s) and will consider rolling to 2015s around April. Now I'm also doing spreads in an optionsXpress account. Too bad we can't do spreads in registered accounts, but I think it is because it requires margin which registered accounts don't allow. Thanks to everyone here for all of the valuable info over the years. ...and yes I did my part by buying an unlocked iPhone 5 64GB.
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Post by BillH on Sept 17, 2012 14:19:20 GMT -8
Well, Bill, he does know you from a while back, and you provided your name. My creepy experience with Prodigy Online checkers when I was an impressionable, younger lad sticks with me. I will of course take up MB's kind offer of food and shelter should I ever find myself lost in his neck of the woods. And don't forget I'm #1 in Karma. ;D I'm still looking forward to irritating our southern friend in person but keep missing the Vegas shindigs. I recall thinking how seemingly normal he looked when someone posted the group shot a couple of years back. Who knew?
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Post by sponge on Sept 17, 2012 14:23:29 GMT -8
Well, Bill, he does know you from a while back, and you provided your name. My creepy experience with Prodigy Online checkers when I was an impressionable, younger lad sticks with me. I will of course take up MB's kind offer of food and shelter should I ever find myself lost in his neck of the woods. And don't forget I'm #1 in Karma. ;D I'm still looking forward to irritating our southern friend in person but keep missing the Vegas shindigs. I recall thinking how seemingly normal he looked when someone posted the group shot a couple of years back. Who knew? LOL Mav one of these days we will get you out of your bunker. We may consider another get together at Braeburn group, but it will be here in Southern CA. Join and you can meet the Star Apple Investors who will make your rich with their knowledge of the company and stock. . If you all want to plan a Vegas AFB2 get together, I will go once again. Everytime we meet we are all a little richer. ;D Had a great time both times. I was hoping for $700 back in July.
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Post by phoebear611 on Sept 17, 2012 14:24:22 GMT -8
I think it's terrific that so many moved and that so many so called "lurkers" have converted to known friends. Welcome all - great stuff - on a great day.
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Post by chasmac on Sept 17, 2012 14:27:12 GMT -8
Well, Bill, he does know you from a while back, and you provided your name. My creepy experience with Prodigy Online checkers when I was an impressionable, younger lad sticks with me. I will of course take up MB's kind offer of food and shelter should I ever find myself lost in his neck of the woods. (/post references from a ways back) Checkers? What are you, 85? :-) bailed on a few bear spreads I had for a teeny tiny loss. Rolled some deep ITM Jan13 verticals into Aprs. $700 will get people's attention. We didn't sit at $600 too long. MB, glad to see you back. Time for some bubbly tonight!
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Post by lovemyipad on Sept 17, 2012 14:33:33 GMT -8
I think it's terrific that so many moved and that so many so called "lurkers" have converted to known friends. Welcome all - great stuff - on a great day. DITTO!!!
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Post by johng on Sept 17, 2012 14:33:45 GMT -8
I am in the camp that we won't see an iPad Mini If Apple does release an ipad mini will you crush you 'crystal ball' cheers to the longs JohnG
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Post by goodwine on Sept 17, 2012 14:44:21 GMT -8
Any thoughts on when the first influential reviews will appear? Do Mossberg/Pogue and maybe some technically oriented reviewers like AnandTech have it now for weekend publication?
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Post by artman1033 on Sept 17, 2012 14:47:14 GMT -8
I am in the camp that we won't see an iPad Mini If Apple does release an ipad mini will you crush you 'crystal ball' cheers to the longs JohnG FWIW: I also believe Apple will not release an iPad mini. Apple has announced 12 different iPod touch products (6 different colors including RED) X (2 different sizes 16GB & 32GB) at $299 and $399. The cheapest iPad is $499. What will be the selling points and price points of a iPad mini?
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Post by johng on Sept 17, 2012 14:51:38 GMT -8
FWIW: I also believe Apple will not release an iPad mini. Apple has announced 12 different iPod touch products (6 different colors including RED) X (2 different sizes 16GB & 32GB) at $299 and $399. The cheapest iPad is $499. What will be the selling points and price points of a iPad mini? Most think the base pice would be $300. Due to the size it doesn't directly compete with the ipod lineup. I'm in the 'we better get that mini' or else camp! hahaha cheers to the longs JohnG
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