Thursday, September 27, 2007
Fly Buy: iiG
Disclaimer: If you buy iiG because of this post, you will die poor. And, you may lose money.
Which reminds me, whatever happened to gappingandyapping?
If you use your time machine, you will know that the Mets will make the playoffs, and your disgust and pending defection to the Evil Empire would be for naught.
I urge you to reconsider your "emotional" decision to abandon your team of three decades. Why do I make this appeal?
Because, any soul that I can prevent from going to the darkside and the Evil Empire is one less brainwashed baseball fan.
Jake is already lost and too far gone. I pity him.
By the way, TRFX is on fire. One of the few internet companies that pays a healthy dividend.
Yes, I'm in BWLD, before the move this time. Maybe things are looking up over here.
I sold Oct 35 calls on VDSI. Is there any rough guidelines on how long it takes for ITM options to get exercised?
I'm just learning and experimenting here, so take it easy.
Aside from the fact that the cars disintegrate on impact, it looks great.
99% of the time, ITM exercises will not occur prior to expiration. The options expire the third Friday of the month, but assignment actually happens on the following Saturday. If the options are still in the money on the expiration date, your stock will get called away on Saturday and the $35/share cash, less a brokerage fee, will magically appear in your account. I'm having a brain cramp on option settlement rules, but I think it is T+1.
Agree that ITM options are most often exercised at expiration. One notable exception, however, would be if a stock had a substantial dividend with an ex-dividend date not too long before option expiration. The option holder might choose to exercise early to capture the dividend.
Are you writing covered calls? I would assume, if you are just starting.
If you don't want to give up the stock, you can keep rolling your options out to a later month.
ILA is a lousy utility company trading at $4.09 as I write.
You can buy Jan 2010 $2.50 calls for $1.60. This is the same price as the Jan 2009 calls, and less than the Jan 2008 calls.
ILA has agreed to a buyout from another utility, GXP. Shareholders will vote to approve in early October. Payout is $1.80/share in cash, plus a fixed fraction of a GXP share. At the current price of GXP, the package is worth $4.28/share.
It is a case of picking up pennies, but I'm not too proud or wealthy to do just that.
Links to this post: