If you are familiar with options, that is an easy way to own it
at a lower and get paid for it, along the way. And that way,
you don't get caught with a short hurting you, should it continue
to rally. You can sell it naked, say, at 46. Then the
stock will get put to you at that level if it is below there on
expiration. But you will have gotten paid for it, by the put
premium. The broker will hold margin equal to owning
the stock, but since your intention is to own it, anyway, that may
not be a big deal. Alternately, if you don't want all that
margin held, then sell a put credit spread. You get a lot
less premium for that, but it's a lot less margin.
For what it's worth I am short 1/2 position from 53.40 area
yesterday and closed half of trade also yesterday. Another run up
above 53 would be an excellent short IMO.
TWTR
Posted by morton13 on 12th of Dec 2013 at 09:07 am
daily, anybody think this is a good place to short here? I want to eventually own it but not here, all opinions welcome, thanks.
TWTR discussion
Posted by mbeierle on 12th of Dec 2013 at 09:53 am
If you are familiar with options, that is an easy way to own it at a lower and get paid for it, along the way. And that way, you don't get caught with a short hurting you, should it continue to rally. You can sell it naked, say, at 46. Then the stock will get put to you at that level if it is below there on expiration. But you will have gotten paid for it, by the put premium. The broker will hold margin equal to owning the stock, but since your intention is to own it, anyway, that may not be a big deal. Alternately, if you don't want all that margin held, then sell a put credit spread. You get a lot less premium for that, but it's a lot less margin.
thanks for the info!
Posted by morton13 on 12th of Dec 2013 at 10:12 am
i will look into it, thanks.
For what it's worth I
Posted by rbreese on 12th of Dec 2013 at 09:30 am
For what it's worth I am short 1/2 position from 53.40 area yesterday and closed half of trade also yesterday. Another run up above 53 would be an excellent short IMO.
great, thanks,
Posted by morton13 on 12th of Dec 2013 at 09:31 am
Closed out rest of short
Posted by rbreese on 12th of Dec 2013 at 09:43 am
Closed out rest of short with stock around 51.30. It dropped over 2.00 since I started short.
nice call!
Posted by morton13 on 12th of Dec 2013 at 09:44 am