I'm rolling some but will hold the rest and see what happens around 62-62.5
I did. Sold all Jan 60s and waiting to pick up the March 65s on any dips.OutlawAG04 said:
Net free on GILD. Is everyone exiting and rolling all of them out to feb or March or letting some of the Jan calls ride? Sorry I'm on a client tour so doing everything from my phone
I bought it at $20 in December and was able to sell $35 January calls. I guess I would be ok getting called out at 75% increase in 3 weeks???Mr President Elect said:
Apparently SKLZ only goes up in rocket-ships and doesn't know how to slowly climb. Kind of an anxiety inducing stock for my covered calls.
So on the daily, the daily mean, 100 day EMA, 100 day SMA, and upper bolly band are all between 61.69 and 62.43. This could present a difficult time during the day, but if you're gifted a gap up on the overnight over these you may see a run to 64.20 or so?AgEng06 said:And now?McInnis 03 said:
GILD pop, I see room to 61.20
When an acquisition is announced, the market adjusts to a risk-adjusted price that takes into account things that might go wrong before the deal is completed. Examples of things that can blow up an acquisitionAndy07 said:
If CHNG is getting bought out by UNH for $25.75, and is currently at $23.95. Does that mean we're highly likely to move up to that $25.75 range?
My cost basis is at $10.86 so I'm debating going net free or waiting a while
I bleed maroon said:When an acquisition is announced, the market adjusts to a risk-adjusted price that takes into account things that might go wrong before the deal is completed. Examples of things that can blow up an acquisitionAndy07 said:
If CHNG is getting bought out by UNH for $25.75, and is currently at $23.95. Does that mean we're highly likely to move up to that $25.75 range?
My cost basis is at $10.86 so I'm debating going net free or waiting a while
- Inability to obtain regulatory approval
- Inability to obtain shareholder approval (usually on the target side)
- Inability to obtain financing, if debt is utilized
- Overall significant change in market conditions (up or down)
- Competing offers may come in, giving target shareholders another alternative
- Buyer cold feet (there may be a breakup fee for the target, if they bail)
That's just a sampling, but are some of the reasons there is almost always a difference between the offer price and the current price. It's usually lower by a few percent, but if a bidding war is expected, it can actually be higher. Arbitrageurs play this price difference, and you can make (or lose) quite a bit on playing these spreads.
I actually held stock in CHNG (thanks for the tip, OA) and sold this morning at $24.10, because it's close enough to the indicated offer price for me to take the gains and reinvest elsewhere, given the factors that could potentially blow up the deal. I also generally like to sell the news, and I don't really want to hold UNH shares longer term. I will say that it appears the market believes this deal will go through, as today's price rose near the offer price.
I would take some time and read through this thread if you are new to it.AG 2000' said:
I'm just jumping into this thread, but it seems like it's mostly focused on day or short term trading, no?
I realize the covered calls/puts piece may be looking out a little longer, but just trying to get a feel for the thread without reading 2700 pages.
AG 2000' said:
I'm just jumping into this thread, but it seems like it's mostly focused on day or short term trading, no?
I realize the covered calls/puts piece may be looking out a little longer, but just trying to get a feel for the thread without reading 2700 pages.
This is definitely for more active traders. There is also a thread for long term holds. It isn't as active so it falls down the page sometimes.AG 2000' said:
I'm just jumping into this thread, but it seems like it's mostly focused on day or short term trading, no?
I realize the covered calls/puts piece may be looking out a little longer, but just trying to get a feel for the thread without reading 2700 pages.
IMO as follows:AG 2000' said:
I'm just jumping into this thread, but it seems like it's mostly focused on day or short term trading, no?
I realize the covered calls/puts piece may be looking out a little longer, but just trying to get a feel for the thread without reading 2700 pages.
Anyone do anything here? I'm seeing some sweeps on $45c for FebMcInnis 03 said:
$STM
Been watching this one for about a week. It finally went into the gap.....if it can hold this area on the opening, and stay above $38.....it has room to $40.21 eventually if not even more on a full gap fill.
I've had it on my watch and charts but missed an entry yesterday and it was only set for the day. Would have filled at the open on the flash down. Yep....user error.McInnis 03 said:Anyone do anything here? I'm seeing some sweeps on $45c for FebMcInnis 03 said:
$STM
Been watching this one for about a week. It finally went into the gap.....if it can hold this area on the opening, and stay above $38.....it has room to $40.21 eventually if not even more on a full gap fill.
FJ43 said:
$GILD with some volume making a new HOD.
Yup. I show it will have resistance right here in the $61.70 range. If it can push through that then $65.10ish or bust.Mostly Foggy Recollection said:FJ43 said:
$GILD with some volume making a new HOD.
Those March calls already doing the thing
Coming into the supply area.McInnis 03 said:So on the daily, the daily mean, 100 day EMA, 100 day SMA, and upper bolly band are all between 61.69 and 62.43. This could present a difficult time during the day, but if you're gifted a gap up on the overnight over these you may see a run to 64.20 or so?AgEng06 said:And now?McInnis 03 said:
GILD pop, I see room to 61.20