LOL, up 10% after hours....
You sure have to wonder about my company picking ability when so many investors love the stock better when the boss quits!All my puts are out of the money now (I've had 17,18,19 & 20 lately).Hope this isn't the start of a big rally. As a put writer I love a firm that keeps worrying people year in and year out while the stock goes nowhere.USG was my fave for that for a long time, but unfortunately it has rallied.I loved it at $8-10, even $14-15, but I'm a whole lot less keen at $30.Glad to be out.Jim
He never looked good in a hardhat.http://www.bizjournals.com/columbus/morning_call/2013/01/che...sw
Jim,How far out are you writing these puts? What ARR are you targeting?I tried a similar strategy with CHK's little brother SD, hoping for a similar outcome that you are now gleefully experiencing (i.e. ouster of Chief Executive Money-Pocket-Liner). Unfortunately my puts turned into shares now I'm now in a glass case of emotion watching the roller coaster of optimism/terror. Alas, my lack of oracle-vision is what limits me from mungofitch status.MjH
McClendon will join his protege at SD (let's start that rumor). Bob
McClendon was "thrilled" with early progress in the Utica shale play.I found this quote to be rather funny. They have sure been pretty tight lipped about results that he supposedly was thrilled with.Just guessing but I'm thinking every time they got a new well result he said something more like this.##%##@@@*##** more fricking (not fracing) ng. :<)B
Just heard on CNBC45 Million exit package, for termination "without cause".Great job if you can lose it. :<)B
45 Million exit package, for termination "without cause".are you saying there was no cause?Dave
are you saying there was no cause?Just reporting what I heard.My theory is the Board dumped him "cause" they got tired of having to wear bags over their heads when they attended meetings. :<)B (Got out of CHK be-cause of Aubrey, no plans to rush back in.)
How far out are you writing these puts? What ARR are you targeting?I have been doing fairly short term ones repeatedly, slightly OTM.The price moves around a lot, so by sticking fairly short time frameI don't end up with options way in or way out of the money.When done repeatedly the rate of return is pretty good.I don't target a particular rate, other than never doing puts withouta time-premium-only rate of return of at least 15%/year annualized.The CHK ones have been so juicy that the rates have been much higher than that.The stock has risen 4.9% in the 7 months I've been doing them and my IRR to date on these is 24%/year.At the moment I have strikes 18,19 and 20 having just closed my 17s yesterday as there wasn't much left to be made on them.Expirations Feb-April.Usually I like to go for 6-12 months out on most stocks. More margin of safety.I find a good rule of thumb is the lowest strike and longest term that still gives me at least my 15%/year time premium, but higher strikes for the stocks that I really want to keep positions in longer term.The main thing of course is choosing the underlying security.I wouldn't do a put on CHK or anything else at any price unless I thought the firm was going to stick around long term and worth more than current market price.Frequently I'm wrong, but I have to at least believe that based on some evidence.With premiums generally so low lately I have only a tiny number ofsecurities that I like so much I still consider puts worthwhile.Next time the VIX is over 25 there will be better hunting.Jim
Founders of iconic companies should be "cut some slack." in my Professional Opinion. Here is a novel idea, if Aubrey or any other Founder wants "some slack" they can just keep their company private.On the other hand, when you want my money...B (Thinks enablers are part of the problem.)
Thanks Jim - appreciate it.
Founders of iconic companies should be "cut some slack."aubrey has been cut way too much slack already.... founder well program not enough? how about personally owned restaurants getting CHK catering contacts? anyone have an antique map collection for sale?he owns less than half a percent of CHK shares...this news would have made my week, but i already had other good news...
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