Tuesday, August 26, 2014

Trina So Low

On amtrak headed to the big apple. Listening to to some 50s and 60s jazz. Oscar Peterson right now, " Georgia on My Mind".

Had another very solid day, up about sixty basis points, largely due to GTAT.  I did get earnings from TSL today, and they were not so good. The stock sold off 8% to 12.30. I have sold call options on tsl, that expire in September at $13. It now seems likely I will not be called out. Not sure whether to continue to hold and sell some more calls after that, guess I will decide when I decide.

I did have a bit of a shock today when I actually looked at the commissions on my options. Unlike buying and selling stock, where it is so small I can almost ignore it. Here it can be material, maybe 2 to 3% of the position when you consider the buy and sell. Fidelity charges 7.95 plus 75 cents per contract. So 10 contracts would be $15.45. And ten contracts, assuming say $1.00 price, would be $1,000.  So $15 per $1,000 to buy and then another $15 should I sell. That is 3%.

I am glad I have tried options a bit. I think there is a place for them. But every investor has is or her own approach and I want to be more investor and less trader. Options can still have a place in that approach, but I will need to pick my spots (like I am very satisfied with my GNW purchase of calls for January 2016 - I expect to be telling this blog about a very nice profit there).


Lian Bao said...

Hello Marshall,
TLM dropped 4.4% ah on the following news. Repsol, Talisman talks over a potential deal have stalled, WSJ reports. Are you still going to hold?


Marsh_Gerda said...

Lynn - I had not seen that press release. I will do some research, but yes, I will likely sell my positions if that is the case.