4 thoughts on “Closed AXA Position + Account Status

  1. R Pell

    If you still like the stock as a long-term holding, is its delisting really enough of a reason to take a loss now on the position? You could still own the shares OTC (which is admittedly a bit of a pain).

    I might have considered rolling the options down and out to potentially avoid/reduce the loss and/or enter the position at an improved price – for example, by buying back the four February 22.5 puts for $1025,66 net and then selling four (or five) July 20 puts at 2.30 for about $920 (or $1150). If the stock’s above $20 at expiration, the loss is minimal (or avoided completely); if it’s below $20, you end up owning the stock at an even better cost basis ($20) than your original potential entry point ($21.75).

    (That said, I personally don’t have an opinion on AXA and whether $20 represents a good value or not.)

  2. Alex Fotopoulos Post author

    Good input R Pell. I didn’t want to own the OTC shares. I figured the shares would be traded to lightly and any OTC options wouldn’t be worth the hassle. I couldn’t roll the options out as far as July because AXA may voluntarily delist as early as next month. Those were two of the main factors for my descision, but I also decided I could use the cash better elsewhere. That’s what made me finally pull the trigger. Having ~$8k ($9k-my loss) to have in cash for piece of mind or to invest in something else next week is better for me.

  3. Alex Fotopoulos Post author

    I have some articles I’ve labled in the “Beginners” Category on the upper left sidebar. Some of those might be more of what you’re talking about for more 101 details. Also (and this goes for anyone), shoot me an email with any specific questions and I’ll try to work up a post to address it if I think I can cover it well.

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