3SOF

Quote from: rudynostalgia on February 16, 2007, 04:36:05 PM
I brought the CPNE issue up with David a few days ago and he pretty much said the same things I've  heard  today on the board. He also encouraged me to post my thoughts here as he felt that the point of this forum was to exchange ideas. 

Its good hearing the other side on a situation. On these boards most of us are biased and blinded by profit in our trading accounts on the bullish case for CPNE. Its a fact of Fear and Greed, when your sitting on a profit you are more confident then if you are underwater. I do have concerns but as long as im up on profit and the stock is moving up, the fundamental situation stays the same or continues I will hold a position in CPNE.

Quote from: rudynostalgia on February 16, 2007, 04:36:58 PM
Before we close down for the day, I'd like to say that I've mixed it up on a lot of boards...having to do with both investing and my are of expertise  (collectibles, especially movie memorabilia) and the 3SOF group is the best informed and best behaved I've run across. The idea is to exchange ideas and information and keep personalities out of it and that's exactly what's happening here. I've learned a lot in the short time that I've been on the site and I've also picked up a nice piece of change. Maybe it's all due to David's polite and supercool manner. Who would want to disappoint such a nice guy.

That got an applaud from me Rudy, thanks for providing a contrarian view also, we probably need that.  

I will keep an open mind to what you are saying given your experience with other web companies (Id be interested in what you did if you can share it, just PM me).

Quote from: Quasi on February 16, 2007, 04:15:28 PM

Quote from: TraderStar on February 16, 2007, 03:56:44 PM
Um ... not sure what you mean here.  A call option gives you the right but not the obligation to buy a stock.  If it expires, you lose your premium, that's all.  You do not have to buy the stock unless you decide to exercise the option prior to expiration ...

Be careful, check with your broker they have different policies.  I use BMO here in Canada and their policy is as follows, unless you inform them otherwise.  I guess it's probably just their way of reducing the phone traffic on expiry day, as you only have to call if you're in the money and would rather let the profit expire as maybe it is too small and you feel bearish on the stock or something.

"Industry wide policy change on Option pricing
Effective October 2006, both Canadian & U.S. Equity Options automatic exercise threshold price for in-the-money options has changed from $0.25 to $0.05  ....."

Quasi

well ... I have never heard of that.  With my broker, Interactive Brokers, clients almost never call them for any reason .. questions are answered through online chat and all trading is online.  I will check into this .. but it is definitely news to me!  I am a member of Options University, will email them & ask about this.  What I learned was that when you BUY options you NEVER have to exercise them .. period.  Selling is different.

Quote from: rudynostalgia on February 16, 2007, 04:36:58 PM
Before we close down for the day, I'd like to say that I've mixed it up on a lot of boards...having to do with both investing and my are of expertise  (collectibles, especially movie memorabilia) and the 3SOF group is the best informed and best behaved I've run across. The idea is to exchange ideas and information and keep personalities out of it and that's exactly what's happening here. I've learned a lot in the short time that I've been on the site and I've also picked up a nice piece of change. Maybe it's all due to David's polite and supercool manner. Who would want to disappoint such a nice guy.

Well said, rudy 

RE Options Expiry,

Just check the options exchange here in Canada and find that back last year they made it the default for all of their customers.  Not sure how the CBOE works it in the US, will check their site on the weekend.


"From the Canadian Montreal Options Exhange, Sept. 2006
Automatic exercise for stock options
that are 5 cents in-the-money    


On October 5, the CDCC informed its members of a change in the automatic exercise rule for stock options. Beginning with the October expiry, CDCC will automatically exercise any stock option that is 5 cents in-the-money.

Automatic exercise is only triggered at expiration time according to the following rules:

    * An option that is $0.05 in-the-money will automatically be exercised. The option buyer/holder can advise his broker to notify CDCC not to auto-exercise an option. So, if you are the holder of such option, you have the alternative to override the automatic exercise process.
    * If an option is less than $0.05 at-the-money or in-the-money, it will not automatically be exercised by CDCC. The holder/buyer of such option must notify his broker to exercise it.
    * Conversely, if you are the seller/writer of a $0.05 in-the-money option, you will automatically be assigned (in this case, there is no override alternative).
    * If the option sold is less than $0.05 in-the-money, the writer may or may not be assigned. Upon receipt of an exercise notice, CDCC will assign to a randomly selected firm (or clearing member) that has declared a short position. The firm then re-assigns the exercise notice to a customer (usually on a first-in, first-out basis)."


Quasi

I just woke up and was glad to see the 3 Stocks on Fire Portfolio closing up 3.9% and the Main Portfolio up 2.76%, but what is really amazing is that you wrote 7 pages of messages on the board today

It will be nice to read them throughout the weekend, thanks for your participation, have a terrific weekend