Comments on: Closed AXA Position + Account Status http://mytradersjournal.com/stock-options/2010/02/05/closed-axa-position-account-status/ Investing in Stocks Through Options Sun, 20 May 2012 05:09:47 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Alex Fotopoulos http://mytradersjournal.com/stock-options/2010/02/05/closed-axa-position-account-status/#comment-6534 Alex Fotopoulos Sun, 07 Feb 2010 22:15:16 +0000 http://mytradersjournal.com/stock-options/?p=4063#comment-6534 I have some articles I've labled in the "<a href="http://mytradersjournal.com/stock-options/category/finance/beginners/" rel="nofollow">Beginners</a>" 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. 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.

]]> By: Doctor Stock http://mytradersjournal.com/stock-options/2010/02/05/closed-axa-position-account-status/#comment-6531 Doctor Stock Sun, 07 Feb 2010 06:33:52 +0000 http://mytradersjournal.com/stock-options/?p=4063#comment-6531 Every time I read here, I become more an interested in trading options... how about some 101 lessons? particularly examples, Every time I read here, I become more an interested in trading options… how about some 101 lessons? particularly examples,

]]> By: Alex Fotopoulos http://mytradersjournal.com/stock-options/2010/02/05/closed-axa-position-account-status/#comment-6530 Alex Fotopoulos Sun, 07 Feb 2010 04:21:13 +0000 http://mytradersjournal.com/stock-options/?p=4063#comment-6530 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. 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.

]]> By: R Pell http://mytradersjournal.com/stock-options/2010/02/05/closed-axa-position-account-status/#comment-6526 R Pell Sat, 06 Feb 2010 15:55:48 +0000 http://mytradersjournal.com/stock-options/?p=4063#comment-6526 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.) 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.)

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