RE: AVGO
Im not angry, sorry, it is sad. it is apparent that you have no experience trading. we both made a mistake.. the spy trades were the results of a rank amatuer.. you took a postion on the direction of the market. ok. you decided to play it extra short time and short. why? becaue the options are cheaper.? knowing full well that time premium was running. first silly move.. I allowed as promised to give you authority. you set a target.. it hit the traget, you moved in back. based on media reporting on trump visit? you didnt act. the market dipped and you panicked. AMATEUR. wrong options wrong timing, no discipline and as a percentaage of investment. a one day dip fof 25%. wanting to buy the highter strike, is ok. but why the same month? why the same moment. why the same index. sorry. I have taught this for many years. and your grade is an F. not one good move in many. re broadcom. the crack happend in the morning. options were higher. no alternative presented. no analysis. this is no way to manage money. I have lost a great deal of money hoping you would be able to do as you promised you could. would.. Had you told me, jeffrey I d like to try a new job as a manager lets start slow I can learn. i would be less annoyed. you told me you had great confidence knew the risks and truly believed you would be able to raise money .do well and prosper. . If it were not you, this would have ended months ago.. we should work on a solution. not sure yet what shape it takes.
Jeffrey
I understand your frustrations and appreciate your willingness to figure out a solution. I have some ideas which I will send you over the weekend if that is OK.
Re Broadcom: the stock is up $1.20 at $211.50. After the initial shock reaction of yesterday, there has been a lot of focus on the cost synergies etc. but very little conviction in revenue opportunities. However until we hear from management as to the overall intentions of the deal, uncertainty will linger.
This morning the pricing is as follows:
Aug 200 Puts cost $4.10
Sept 200 Puts cost $7.90
Earning are on 08/30. So worst case is the uncertainty lingers until then which would argue to buy the Sept puts. However I still prefer buying the Aug puts as I would fully expect more clarity from management before August expiry.
Paul
Paul Barrett
Alpha Group Capital LLC
142 W 57th Street, 11th Floor, New York, NY 10019
Any thoughts on the AVGO Aug puts? Stock trading at 204.50.
Aug puts now $6.50
Paul Barrett
Alpha Group Capital LLC
142 W 57th Street, 11th Floor, New York, NY 10019
Ive had enough!!!! Which puts ???
My initial recommendation this morning was to buy the $200 Aug puts. I still think that is the best idea. The stock is now down 16% on a deal that no one fully understands. The CEO has a good track record regarding mergers. So I think it makes sense to keep the stock and own protection for the next 35 days until we hopefully get more clarity from management.
Paul Barrett
Again?? How many puts ? What are the alternatives. The fact tgat you iwn thd stock at a higher price is affecting your decision. Sorry. This is judt ridiculous!!! Would you buy the stock here. ???? If you would would you also buy puts ??? My patience is at its end
Importance: High
We own 8000 shares on the thesis that their growing exposure to data center capex spend would be a big positive for the stock.
Recommendation: Keep the stock and buy Aug $200 puts on the 8000 shares costing $6.50 or $52,000. Nothing has changed regarding their core business. Data center spending is not going to change based off this M&A transaction. However if I am wrong and the market further penalizes the stock at least our losses are contained. The stock has dropped $40 and I think we could easily recoup our premium if the market buys into the CEO's reason for the merger.
If I never had a position I would absolutely buy the stock using options. I would be selling October $185 puts and buying Oct $220 calls costing 50c/share.
Paul
Paul Barrett
Alpha Group Capital LLC
142 W 57th Street, 11th Floor, New York, NY 10019