Here is a stock that has significant premiums, IMO, and is getting
whipped up in the market right now. I'm just returning to this
company after owning in my, now defunct, club some years ago. We
made money on this company and it has added to a family members
coffers by a factor of 300%. So...
Stratasys Inc. (SSYS) - they produce 3d printing machines.
Basically plastic and metal modeling machines that "print" a 3d
model using fluids, powders and lasers to build up the model.
Other than being totally cool to use, it has been a rocket over
the last few years and is heading into "the correction zone".
I haven't done much investigation into the company or into the
technicals on the stock recently, but I glanced at the premiums
for puts and calls and dang near dropped my gum. Family member
has trouble selling winners and tends to ride them down, so I was
explaining the COOL Club tools and options for exiting a position
with... wait for it... options!
There. A nice little stock for hump day. I don't know how to
work it or how it will work or nothing. Just crazy that a January
OTM put is going for 3.50 a contract for a 65 strike... and a
March 70 Call is going for $6.85! (sell the put, get put, sell
the call, drink green beer)...
Again, haven't done more than glance, but if SYY isn't your cup of
option tea, maybe SSYS will go down well. Worth a look.
Malcolm
PS I own shares in SYY, I do not own shares in SSYS, I'll do my
math AND research before initiating a position... you should too,
but I'll share if you do!
Malcolm Myles on
Happy Holidays Everyone,
I didn't have any takers on my offer to collaborate on SSYS,
however, I took some rather profitable positions during December
in the stock.
Stratasys is in the nose bleed area for PEs and is hitting on
everyone's favorite stock in the blogosphere... nice to brag about
horses already in turn four and lengths ahead of the pack, but
that is the nature of the business.
I don't think I would really want a position in SSYS given
the fiscal cliff debacle but the only way to pull some money out
of Mr. Market's hands with SSYS was to write CSP on the stock and
see where it went.
I liked the trades for two reasons: 1) the puts for December were
in $5 increments (the stock would have to move a lot to be put to
prematurely) and 2) the time premiums were very nice.
I want to be in cash, but I want return for that cash while I wait
for the shake out that is happening in the market (DOW down 5 days
and just starting its reaction to Congress IMHO). I wrote the
options OTM and then sat back to watch the stock work... ie, keep
on getting stroked by Cramer et al.
Here is the tally for the record - real money, tax sheltered
accounts:
6DEC12 STO 1x SSYS 12/22/12 65.00 P @ $1.10, APR 33%, $101.05
This was my worst feeling position. Stock was trading near 65
and I just didn't feel comfortable that it wouldn't be put to in
16 days. However, the stock started to rally just after this and
really didn't look back too much before 21DEC12 when it expired
worthless. $6,500 made a tidy $101.05 "interest" in 16 days.
6DEC12 STO 1x SSYS 12/22/12 70.00 P @ 2.75, APR 86% $266.05
Okay, this was admittadely a bit more risky, but the stock had
shown strength in the day, my broker's research services had given
strong technical bull signals and I was feeling a bit full of
myself. I guess, after the fact, I sort of expected to be put to
on this position and I developed a plan to "work" the options if I
was put to. January Calls have great premiums in the 70 and above
options. Same story, option expired worthless on 21DEC12 and my
$7,000 risk earned me $266.05 in 16 days.
SSYS closed on 12/21/12 at 79.5 and a PE of 91.76 (can't breath,
oxygen too thin), well outside my strike prices.
I'm fairly comfortable sitting back and watch this stock, and the
market, go for a bit and stay in cash. I think that we are in for
at least 3 weeks, maybe more, of bloodshed while Congress
continues to massage their egos and fiddle while the economy
burns.
So, I kept my first rule: Don't loose money. And I kept my
second rule: Obey rule #1. I'm good with my risk and had fun
putting them on and watching the roller coaster. Looking forward
for opportunities in this stock in future.
Hope everyone had a great Christmas and Holiday Season, looking
forward to continue learning the Cool Club Way in 2013!
Malcolm
On 12/5/2012 3:18 PM, Malcolm Myles
wrote:
Hi All,
Here is a stock that has significant premiums, IMO, and is
getting whipped up in the market right now. I'm just returning
to this company after owning in my, now defunct, club some years
ago. We made money on this company and it has added to a family
members coffers by a factor of 300%. So...
Stratasys Inc. (SSYS) - they produce 3d printing machines.
Basically plastic and metal modeling machines that "print" a 3d
model using fluids, powders and lasers to build up the model.
Other than being totally cool to use, it has been a rocket over
the last few years and is heading into "the correction zone".
I haven't done much investigation into the company or into the
technicals on the stock recently, but I glanced at the premiums
for puts and calls and dang near dropped my gum. Family member
has trouble selling winners and tends to ride them down, so I
was explaining the COOL Club tools and options for exiting a
position with... wait for it... options!
There. A nice little stock for hump day. I don't know how to
work it or how it will work or nothing. Just crazy that a
January OTM put is going for 3.50 a contract for a 65 strike...
and a March 70 Call is going for $6.85! (sell the put, get put,
sell the call, drink green beer)...
Again, haven't done more than glance, but if SYY isn't your cup
of option tea, maybe SSYS will go down well. Worth a look.
Malcolm
PS I own shares in SYY, I do not own shares in SSYS, I'll do my
math AND research before initiating a position... you should
too, but I'll share if you do!
Sunil Shah on
I will be on Vacation from 2/19/11. For urgent work please contact Vijay Patel at 310-349-2212. Thanks
Susan Tanoe on
Malcolm,
Congratulations. I have a question. I do not necessarily follow SSYS but I am interested in understanding what indicators provided you with some analysis that a reversal was imminent on the stock price and it would be of strong momemtum.
Thanks.
On Sat, Dec 29, 2012 at 6:33 PM, Malcolm Myles <malcolm@mmyles.com> wrote:
Happy Holidays Everyone,
I didn't have any takers on my offer to collaborate on SSYS,
however, I took some rather profitable positions during December
in the stock.
Stratasys is in the nose bleed area for PEs and is hitting on
everyone's favorite stock in the blogosphere... nice to brag about
horses already in turn four and lengths ahead of the pack, but
that is the nature of the business.
I don't think I would really want a position in SSYS given
the fiscal cliff debacle but the only way to pull some money out
of Mr. Market's hands with SSYS was to write CSP on the stock and
see where it went.
I liked the trades for two reasons: 1) the puts for December were
in $5 increments (the stock would have to move a lot to be put to
prematurely) and 2) the time premiums were very nice.
I want to be in cash, but I want return for that cash while I wait
for the shake out that is happening in the market (DOW down 5 days
and just starting its reaction to Congress IMHO). I wrote the
options OTM and then sat back to watch the stock work... ie, keep
on getting stroked by Cramer et al.
Here is the tally for the record - real money, tax sheltered
accounts:
6DEC12 STO 1x SSYS 12/22/12 65.00 P @ $1.10, APR 33%, $101.05
This was my worst feeling position. Stock was trading near 65
and I just didn't feel comfortable that it wouldn't be put to in
16 days. However, the stock started to rally just after this and
really didn't look back too much before 21DEC12 when it expired
worthless. $6,500 made a tidy $101.05 "interest" in 16 days.
6DEC12 STO 1x SSYS 12/22/12 70.00 P @ 2.75, APR 86% $266.05
Okay, this was admittadely a bit more risky, but the stock had
shown strength in the day, my broker's research services had given
strong technical bull signals and I was feeling a bit full of
myself. I guess, after the fact, I sort of expected to be put to
on this position and I developed a plan to "work" the options if I
was put to. January Calls have great premiums in the 70 and above
options. Same story, option expired worthless on 21DEC12 and my
$7,000 risk earned me $266.05 in 16 days.
SSYS closed on 12/21/12 at 79.5 and a PE of 91.76 (can't breath,
oxygen too thin), well outside my strike prices.
I'm fairly comfortable sitting back and watch this stock, and the
market, go for a bit and stay in cash. I think that we are in for
at least 3 weeks, maybe more, of bloodshed while Congress
continues to massage their egos and fiddle while the economy
burns.
So, I kept my first rule: Don't loose money. And I kept my
second rule: Obey rule #1. I'm good with my risk and had fun
putting them on and watching the roller coaster. Looking forward
for opportunities in this stock in future.
Hope everyone had a great Christmas and Holiday Season, looking
forward to continue learning the Cool Club Way in 2013!
Malcolm
On 12/5/2012 3:18 PM, Malcolm Myles
wrote:
Hi All,
Here is a stock that has significant premiums, IMO, and is
getting whipped up in the market right now. I'm just returning
to this company after owning in my, now defunct, club some years
ago. We made money on this company and it has added to a family
members coffers by a factor of 300%. So...
Stratasys Inc. (SSYS) - they produce 3d printing machines.
Basically plastic and metal modeling machines that "print" a 3d
model using fluids, powders and lasers to build up the model.
Other than being totally cool to use, it has been a rocket over
the last few years and is heading into "the correction zone".
I haven't done much investigation into the company or into the
technicals on the stock recently, but I glanced at the premiums
for puts and calls and dang near dropped my gum. Family member
has trouble selling winners and tends to ride them down, so I
was explaining the COOL Club tools and options for exiting a
position with... wait for it... options!
There. A nice little stock for hump day. I don't know how to
work it or how it will work or nothing. Just crazy that a
January OTM put is going for 3.50 a contract for a 65 strike...
and a March 70 Call is going for $6.85! (sell the put, get put,
sell the call, drink green beer)...
Again, haven't done more than glance, but if SYY isn't your cup
of option tea, maybe SSYS will go down well. Worth a look.
Malcolm
PS I own shares in SYY, I do not own shares in SSYS, I'll do my
math AND research before initiating a position... you should
too, but I'll share if you do!
Malcolm Myles on
Hi Susan,
First and foremost - my investor gut. Do a quick search for news
on SSYS and it hits a lot of really swell articles about how 3D
printing is HOT, all the rage that SSYS is the better
"play" to get in on this huge trend of the FUTURE. I am
always suspicious of stocks with a PE in the 90s that are touted
as the best way to do anything. But go with the flow... flow say
up, for now.
I use Schwab as my trading platform. I have access to "Market
Edge" and to a "trading technical insight program" called
"Recognia"... made up word if I ever saw one.
Market Edge was bullish. I can't pull up the analysis I used as
it was renewed yesterday. But the current recommendation is LONG
hold - do not initiate a new position, but not a short candidate;
relative strength bullish, MACD bullish, and 50 and 200 day moving
averages bullish. I'm attempting learn Point & Figure
Charting and M.E. says that SSYS broke a Double Top last week. I
guess I caught the upswing of the second top. This was a similar
condition when I put on the trades and I looked at these
indicators graphically for myself.
Recognia shows you short-term, intermediate-term and long-term
technical events. Short term bullish events include: Outside Bar,
Short-term KST, Commodity Channel Index, Triple-Moving Average
Crossover, MACD, Price Crossing Moving Average (21-day). And one
bearish event: Commodity Channel Index. Mind you, these are
current to the last few weeks and weren't necessarily the same
when I put on the trades. Mind you too, I haven't a clue what
most of that is, what it means, or how it affects a stocks
movement, why one indicator would matter more or less with
another, what combinations are bad, good, or great. I just took 6
up and 1 down (similar when I put on trade) and figured that the
Nassim Taleb's would see the same and the stock had a better
chance of going up in the 14 day trade time than down.
Bollinger Bands... SSYS had "ridden the lower line" down, broken
out, up and sideways. On the 6th it gapped up. I thought it was
heading to a new high... turns out it was a false high, but by
then I was in the trade and let it ride out.
I put my trust in Mr. Market Pundits to do their rah-rah, the
weight of the trading research tools and I went with "SSYS has a
better chance of up than down"... which is the best anyone can
do when guessing which direction a stock will move in the short
term. My FAST trade was predicated on the same analysis
sources saying the stock would NOT go above 44 at the most... and
it is at 46. Doh! These were riskier trades. I wouldn't call them Conservative
trades. I was ready if I were put to the stock to write covered
calls ITM or near OTM to maximize and liquify again (I want to be
in cash over January). They worked out to my benefit.
Full disclosure: I have nickels worth of Technical Expertise. It
may be an Buffalo Nickel, but still a nickel.
Thanks for the congrats... it was a fun couple of trades, learned
a lot (I do know more about technical analysis), and made some
money. Hope to do it again.
Malcolm
ps... remember another Malcolmism... If it can be explained by
blind luck, you're right.
On 12/29/2012 4:08 PM, Susan Tanoe
wrote:
Malcolm,
Congratulations. I have a question. I do not necessarily
follow SSYS but I am interested in understanding what indicators
provided you with some analysis that a reversal was imminent on
the stock price and it would be of strong momemtum.
Thanks.
On Sat, Dec 29, 2012 at 6:33 PM,
Malcolm Myles <malcolm@mmyles.com>
wrote:
Happy
Holidays Everyone,
I didn't have any takers on my offer to collaborate on
SSYS, however, I took some rather profitable positions
during December in the stock.
Stratasys is in the nose bleed area for PEs and is
hitting on everyone's favorite stock in the
blogosphere... nice to brag about horses already in turn
four and lengths ahead of the pack, but that is the
nature of the business.
I don't think I would really want a position in
SSYS given the fiscal cliff debacle but the only way to
pull some money out of Mr. Market's hands with SSYS was
to write CSP on the stock and see where it went.
I liked the trades for two reasons: 1) the puts for
December were in $5 increments (the stock would have to
move a lot to be put to prematurely) and 2) the time
premiums were very nice.
I want to be in cash, but I want return for that cash
while I wait for the shake out that is happening in the
market (DOW down 5 days and just starting its reaction
to Congress IMHO). I wrote the options OTM and then sat
back to watch the stock work... ie, keep on getting
stroked by Cramer et al.
Here is the tally for the record - real money, tax
sheltered accounts:
6DEC12 STO 1x SSYS 12/22/12 65.00 P @ $1.10, APR 33%,
$101.05
This was my worst feeling position. Stock was
trading near 65 and I just didn't feel comfortable that
it wouldn't be put to in 16 days. However, the stock
started to rally just after this and really didn't look
back too much before 21DEC12 when it expired worthless.
$6,500 made a tidy $101.05 "interest" in 16 days.
6DEC12 STO 1x SSYS 12/22/12 70.00 P @ 2.75, APR 86%
$266.05
Okay, this was admittadely a bit more risky, but the
stock had shown strength in the day, my broker's
research services had given strong technical bull
signals and I was feeling a bit full of myself. I
guess, after the fact, I sort of expected to be put to
on this position and I developed a plan to "work" the
options if I was put to. January Calls have great
premiums in the 70 and above options. Same story,
option expired worthless on 21DEC12 and my $7,000 risk
earned me $266.05 in 16 days.
SSYS closed on 12/21/12 at 79.5 and a PE of 91.76 (can't
breath, oxygen too thin), well outside my strike prices.
I'm fairly comfortable sitting back and watch this
stock, and the market, go for a bit and stay in cash. I
think that we are in for at least 3 weeks, maybe more,
of bloodshed while Congress continues to massage their
egos and fiddle while the economy burns.
So, I kept my first rule: Don't loose money. And I
kept my second rule: Obey rule #1. I'm good with my
risk and had fun putting them on and watching the roller
coaster. Looking forward for opportunities in this
stock in future.
Hope everyone had a great Christmas and Holiday Season,
looking forward to continue learning the Cool Club Way
in 2013!
Malcolm
On 12/5/2012 3:18 PM, Malcolm Myles wrote:
Hi All,
Here is a stock that has significant premiums,
IMO, and is getting whipped up in the market right
now. I'm just returning to this company after
owning in my, now defunct, club some years ago.
We made money on this company and it has added to
a family members coffers by a factor of 300%.
So...
Stratasys Inc. (SSYS) - they produce 3d printing
machines. Basically plastic and metal modeling
machines that "print" a 3d model using fluids,
powders and lasers to build up the model. Other
than being totally cool to use, it has been a
rocket over the last few years and is heading into
"the correction zone".
I haven't done much investigation into the company
or into the technicals on the stock recently, but
I glanced at the premiums for puts and calls and
dang near dropped my gum. Family member has
trouble selling winners and tends to ride them
down, so I was explaining the COOL Club tools and
options for exiting a position with... wait for
it... options!
There. A nice little stock for hump day. I don't
know how to work it or how it will work or
nothing. Just crazy that a January OTM put is
going for 3.50 a contract for a 65 strike... and a
March 70 Call is going for $6.85! (sell the put,
get put, sell the call, drink green beer)...
Again, haven't done more than glance, but if SYY
isn't your cup of option tea, maybe SSYS will go
down well. Worth a look.
Malcolm
PS I own shares in SYY, I do not own shares in
SSYS, I'll do my math AND research before
initiating a position... you should too, but I'll
share if you do!