Form has a nice bottom tail on it. I
don't know about the out of the money calls. The delta
is only .37 I would rather just go long the stock
aroun 8.90
Posted by fixdgear on 24th of Jan 2011 at 06:49 pm
go long the stock..thats fine..for arguments sake..i like the
leverage.
1000 shares cost you $8.90=$8,900.. 10 contracts which
equals 1000 shares cost you 50 cents=$500...if the stock collaspes
that the most you can loose..$500...the stock you could loose a few
thousand....in this market id prefer to know my total risk up
front.
ok now-- if the stock goes up $2 lets say on 1000
shares u make 2k on a $8900 investment.
the option meantime will then become in the money with intrinsic
value and probably trade around $1.50...thats a 300% gain versus
22% for the stock and the stock you had to lay out $8900 whereas
the option a palsy $500...
of course time is of the essence here so that is your biggest
risk...this one stock which is a mover can turn into a nice quick
trade...
It all depends how you want the cookies cut. I
would probably do a stock substitution if it gets to the 10.00 area
and buy some puts for protection. BTW...
they have a bunch of activitity on the 7.50 puts too. I
don't know if they are long or short puts.
Matt/Steve, any thoughts here from charts standpoint? I'm
looking under the hood.
i'm no expert, but, company has done some major writeoffs to
strengthen b/s (nominal debt load). cashflow usage, well they have
~$7 in cash, so they have a few years of cushion. the key is going
to be sales (earn announcemnt 2/1). operating exp. relative to
sales is high (based on quarterly history), if incremental CGS is
minor on increased sales, then they will look good (provided sales
increase to at least 50% above 3rd q. which would exceed 2nd
quarter sales). Intel reduced business with company last year due
to economy, however INTC has said it is increasing 2011 capital
spending, so maybe FORM will get some more business. hope you folks
don't mind my insight, I realize that BPT is a tech site, but
sometimes fundamentals give a 'swing' perspective (in my mind
anyway). of course dyodd, good luck
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FORM
FORM--
Posted by zach06 on 24th of Jan 2011 at 06:37 pm
Form has a nice bottom tail on it. I don't know about the out of the money calls. The delta is only .37 I would rather just go long the stock aroun 8.90
FORM--
Posted by fixdgear on 24th of Jan 2011 at 06:49 pm
go long the stock..thats fine..for arguments sake..i like the leverage.
1000 shares cost you $8.90=$8,900.. 10 contracts which equals 1000 shares cost you 50 cents=$500...if the stock collaspes that the most you can loose..$500...the stock you could loose a few thousand....in this market id prefer to know my total risk up front.
ok now-- if the stock goes up $2 lets say on 1000 shares u make 2k on a $8900 investment.
the option meantime will then become in the money with intrinsic value and probably trade around $1.50...thats a 300% gain versus 22% for the stock and the stock you had to lay out $8900 whereas the option a palsy $500...
of course time is of the essence here so that is your biggest risk...this one stock which is a mover can turn into a nice quick trade...
yep Form
Posted by zach06 on 24th of Jan 2011 at 08:04 pm
It all depends how you want the cookies cut. I would probably do a stock substitution if it gets to the 10.00 area and buy some puts for protection. BTW... they have a bunch of activitity on the 7.50 puts too. I don't know if they are long or short puts.
FORM
Posted by hazbin1 on 24th of Jan 2011 at 08:23 pm
Matt/Steve, any thoughts here from charts standpoint? I'm looking under the hood.
i'm no expert, but, company has done some major writeoffs to strengthen b/s (nominal debt load). cashflow usage, well they have ~$7 in cash, so they have a few years of cushion. the key is going to be sales (earn announcemnt 2/1). operating exp. relative to sales is high (based on quarterly history), if incremental CGS is minor on increased sales, then they will look good (provided sales increase to at least 50% above 3rd q. which would exceed 2nd quarter sales). Intel reduced business with company last year due to economy, however INTC has said it is increasing 2011 capital spending, so maybe FORM will get some more business. hope you folks don't mind my insight, I realize that BPT is a tech site, but sometimes fundamentals give a 'swing' perspective (in my mind anyway). of course dyodd, good luck