BBV come sweat the stock market with me

[MastermindT]

I like your option combo and wonder how much you make / loose but the trend seems to be stabilizing prize and lower volumes last 3 days so it might as well "stay horizontal" for a while (very well possible after ur option expiry date)

Good luck though

[octaveshift]

As you know Ahnuld, I got into ETFC near the bottom on Monday, and am staying long. I'm up ~60%+.

Holla.

The CEO was on CNBC today, and said bankruptcy was not likely. Here's a rough summary of what he had to say:

Q - Citigroup report? Thoughts?
A - Fundamentally, analyst can do what he wants. But our view is bankruptcy is unlikely; absolutely irresponsible of that analyst to make that comment.

Q - Write down is not enough. How much more is to come?
A - We do not know the answer; market changes; market is volatile; we are well-capitalized; ability to sustain $1 billion in writedowns; calls and inquiries about concerns have slowed.

Q - Can you rule out bankrupsy?
A - We can categorically rule out bankrupsy given what we know now.

Q - Vulnerable for takeover?
A - Not more or less vulnerable for a takeout but this positions us for finding the right partner. We can absolutely turn this around. We need to separate success in the core franchise from the problems in the balance sheet. Core numbers have never been stronger in growth in numbers, assets, margins, etc.

Q - But the Market sees it differently?
A - I understand but we are correcting our balance sheet problems. We should not have owned certain assets. My job is to continue to strengthen the franchise. We hired a very well known third party consultant to value mortgages and we are comfortable with their guidance.

Q - Layoffs, writedown, reductions?
A - No, we need to reposition the balance sheet. Reduce liabilities. Balance will shrink but get better.

Q - How much longer will cycle last?
A - I remain bearish for 18-20 months.

[octaveshift]

[ QUOTE ]
lower volumes last 3 days

[/ QUOTE ]

O RLY? Lower volume???

1.25x the float turned over Monday - Tuesday.

[dknightx]

can someone explain, in layman terms, how you would set something like this up? I'm new to trading and all i know how to do is buy/sell/short stock

[octaveshift]

[ QUOTE ]
can someone explain, in layman terms, how you would set something like this up? I'm new to trading and all i know how to do is buy/sell/short stock

[/ QUOTE ]

You generally need to apply for the ability to trade options. You'll also want a margin upgrade.

Who is your brokerage? They can help set you up. If it's Etrade, you can complete the apps online.

[ahnuld]

yeah I didnt state it in this thread but I got in on the bottom on monday too and made 1500$ on a 1000$ investment, so im considering this a freeroll for fun. Most likely it will close somewhere near 6$ and ill lose a small amount.

[dchz]

how much more would it cost you to have a longer duration on the option?

i think it's ironic we are electronically sweating electronic trade company, and we care about the stocks of a stock trading company

[dchz]

[x] knows what OP is talking about
[x] corporate finance & investment analysis paid off
[ ] thinks this is a smart play
[ ] knows what i'm talking about

[octaveshift]

[ QUOTE ]
yeah I didnt state it in this thread but I got in on the bottom on monday too and made 1500$ on a 1000$ investment, so im considering this a freeroll for fun. Most likely it will close somewhere near 6$ and ill lose a small amount.

[/ QUOTE ]

nh, sir.

[dchz]

[ QUOTE ]
can someone explain, in layman terms, how you would set something like this up? I'm new to trading and all i know how to do is buy/sell/short stock

[/ QUOTE ]

this is something different, you are buying put and call options that gives you the right to sell/buy the stock at strike price however, this usually expires with a certain period, so if the stock goes up 1 day after OP bought it, but the options expired, then OP is SOL

i think that basically explains it