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Joe,
Are the FNM preferreds paying a dividend or accruing but not paying?
Dave S
I just sold my position in PFX at 8. I had a 125% profit that I wanted to lock in. I may be sorry to miss the dividend.
Cool. Picked up some CNB-B at a reduced price.
A lot of these securities are so thinly traded that it can be very difficult to get any kind of decent fill.
I agree. After the div, you can decide how much you like the security.
Also, according to Quantum Online, AFC has a rating of Ba2/BBB-, not terrible for the yield.
Picked up some ABN-G for later this week.
Added some AFC for x-div later this week.
Thanks
Picked up some CFC-PA for the 401 K to harvest the upcoming dividend.
I that conversion from the $25 par price to $3.25 per share?
Which look like they have the highest rating?
Citigroup conversion of preferred and Trust Preferred to common stock.
http://finance.yahoo.com/news/Citi-Files-Registration-bw-14686537.html
AHRpD crashing this morning. Nice sell.
Doesn't look positive for AHR.
http://finance.yahoo.com/news/Anthracite-Capital-Postpones-bw-14660221.html
Anthracite Capital Postpones Fourth Quarter 2008 Earnings Report to March 18
Tuesday March 17, 2009, 6:30 am EDT
Buzz up! Print Related:Anthracite Capital, Inc., BlackRock, Inc.
NEW YORK--(BUSINESS WIRE)--Anthracite Capital, Inc. (NYSE:AHR - News) (“Anthracite” or the “Company”) announced that it will postpone its conference call for the fourth quarter of 2008 from Tuesday, March 17, 2009 to Wednesday, March 18, 2009. The rescheduled teleconference call for investors and analysts will be held at 9:00 a.m. (eastern time). The Company has postponed the call in order to continue its previously disclosed discussions with its secured credit facility lenders and to permit the Company to focus on completion and filing of its Annual Report on Form 10-K for the year ended December 31, 2008 (the “Form 10-K”). The Company expects to file its Form 10-K with the SEC on Tuesday, March 17 and will report its earnings the following morning. Christopher A. Milner, Chief Executive Officer, Richard M. Shea, President and Chief Operating Officer, and James J. Lillis, Chief Financial Officer and Treasurer, will host the call. Anthracite’s fourth quarter earnings release will be available on the Company’s website, www.anthracitecapital.com, prior to the beginning of the teleconference call.
Yep, it looks like the Obama administration has learned how to orchestrate a government driven short squeeze.
Joe,
Do you often sell the preferreds once they go ex-div or hold
them for a longer term?
Dave S
How will AHRpD do if AHR files Ch 11? Is there any possibility of capital to pay to preferred holders?
Citigroup trust preferreds down today. Possible buying opp.
Joe,
Are all of the exchange traded debt issues that you listed in a trust preferred position, in terms of debt seniority?
Thanks,
Dave
Made my first foray into trust Preferreds with FTBpC at 9.40.
Which would be your favorite(s) for defereed accounts?
Joe,
Thanks, they seem like a perfect vehicle for IRA and other tax deferred accounts.
Dave
What is the symbol for the C trust preferred?
The objective is to start to track Option activity which is not reported to the IRS right now more than to generate transaction fees.
I looks like wierd wally is making up for last month with a vengeance.
Do you have any opinion on FMT?
NWACQ has been flying lately based on the orchestrated action of several hedge funds, particularly Owl Creek Asset Management, including Jeff Altman as principal.
http://www.marketwatch.com/tools/quotes/secarticle.asp?&sid=10016&symb=NWACQ&siteid=mktw...
NWACQ has requested that the bankruptcy court approve Evercore, an M&A specialist, chaired by Roger Altman help in strategic alternatives.
http://biz.yahoo.com/ap/061208/northwest_evercore.html?.v=1
The company has publically stated for the record on numerous occasions that the stock will be cancelled upon exit from Chapter 11.
http://ir.nwa.com/phoenix.zhtml?c=111021&p=irol-faq
All indications are that NWACQ stock is worthless, with net asset value of negative 8.5 billion. However, playing this may be difficult.
A drop to 1348 NDX is a significant reduction in the slope of the decline. A lot of opportunity for bounces.
What do you see happening to VIX under this scenario?
At the risk of being a pest, can you provide some indication of the duration of the bottom, several days, several weeks, etc?
thanks,
Dave
===
October 18, 2005
BY DAVID ROEDER Business Reporter
How honest is the stock-options market? Newly published research from academics at the University of Illinois said there are times big trading firms manipulate the market to their advantage.
The manipulation, which is illegal, takes place in the final days before options expire within a given month, said the study published in the October issue of the Journal of Financial Economics.
The study is the work of finance professor Neil Pearson, associate professor Allen Poteshman and Ph.D. student Sophie Xiaoyan Ni. They based their findings on a mathematical analysis of data from the Chicago Board Options Exchange that covered trading from 1996 through 2002.
They said big investment banks that trade for both themselves and customer accounts often steer the markets by selling options on specific stocks a few days before expiration. Then, they trade the stock itself so the price finishes "out of the money'' at expiration, meaning the options they sold won't be exercised, the researchers concluded.
That allows the firms to keep the premiums they collected, which represent the cost of the options they sold.
"This is an extremely profitable business'' for the investment banks, Pearson said. He said the practice hurts some individual traders, but that more likely victims are market making firms that work the CBOE floor.
A CBOE spokesman had no immediate comment. It was the leading market for stock options during the years the study covered.
The researchers also cited benign factors that contributed to stock-market disruptions on option expiration days. Options, which are contracts to buy or sell a stock at a given price, expire on the third Friday of each month, and traders have long noted that the day brings heavy volatility.
Overall, the value of stocks that have options attached to them changes an average of $9.1 billion on expiration day, the report said.
The researchers could not say which investment banks engaged in manipulation because the data they saw included only general coding about the sources of the trades. But their information has been sent to the Securities and Exchange Commission, which could follow up with more scrutiny.
Pearson and Poteshman said nothing in their work indicates options trading is inherently corrupt. But they said they found strong evidence that options trading influences stock prices, an issue that's been a long-term SEC concern.
Although both professors specialize in options research, they said they don't trade the contracts.
"Independent of this study, I don't think it makes much sense for retail investors to trade options,'' Pearson said, acknowledging that his view would earn him enemies on La Salle Street.
Poteshman said options could be useful, but commented, "I would probably think twice before buying an option that expires in a few days.''
http://www.suntimes.com/output/business/cst-fin-cboe18.html
===
I believe the problem with LTCM at the end was the correlation in their trades in differnet markets brought about by them being in the trades in size. As well as the 100 to 1 leverage.
It appears that rising rates are starting to get some traction and slowing housing sales. Eventually prices should feel the affect.
Hello,
I have found your board interesting.
Can you help me decipher the shorthand of your trades?
Also, can you provide the primary premise of your trading, dispersion spread trading? I agree that Natenberg is a great resource. It was required reading for floor traders on the Philly exchange.
Thanks in Advance.
Dave
An interview with Congressman Ron Paul
http://www.lewrockwell.com/orig3/johnston6.html
An interview with Congressman Ron Paul
http://www.lewrockwell.com/orig3/johnston6.html
What is the symbol of the Dow 65 Composite?
TIA,
Dave
Regarding use of implied volatility for equity trades.
Perhaps. However, I expect that the drivers for IV spikes are well known in the market (e.g. earnings anouncement or new drug announcement is imminent).
I am finishing a very interesting book:
"When Genius Failed: The Rise and Fall of Long-Term Capital Management" by Roger Lowenstein
You may find it enjoyable and also show where the Black-Scholes model can fall apart catastrophically. For the theoretical treatment of Deep OTM options and their price variation from Black-Scholes, two good references are:
"Option Volatility & Pricing: Advanced Trading Strategies & Techniques" By Sheldon Natenberg
and
"Black Scholes and Beyond: Option Pricing Models" by Neil A. Chriss