Longterm Investing
A place to put my posts
正文
希望这等待的煎熬尽快结束。希望在这两周中不再有前几天那样的暴跌来考验我的意志。
I am in the process of converting ATPG shares bought on margin to very very deep in the money puts. I believe deep in the money put is the same as holding shares, the difference is no capital outlay at the beginning, no more margin interest! Instead, I get cash just like insurance company do. If I am smart enough, I can invest the cash and make some returns on it before the option expires. My intention is to buy back some puts after ATPG\'s well come into production in two weeks and lock some profit. My hope is that another two catalysts will be realized before Jan 22 2011: GOM drilling moratorium expires (scheduled to expire on Nov 30 2010) and Titan monetization realized. Actually, moratorium expiration is more of a symbolic meaning, What actually matters is to obtain re-entry permits for ATPG\'s next two wells. (This two additional two wells has already being drilled to certain depth). There is a slight chance that ATPG may be over $30 by the time the option expires. People can be lunatic and over shoot in both ways.
This is my plan:
1. Sell ATPG Jan 22 2011 $30 Put (Sold already). ATPG droped nearly a dollar in the last three days from the peak of 12.71 to yesterday\'s low at 11.89. It is really depressing to watch, since my exposure on ATPG is increased already. One of good benefits of selling puts is: you seldom get assigned shares even if current share price is below strike price. The holder of puts will lose time premium if he/she chose to exercise the put. What is more likely to happen is puts get sold to another person to lock the profit for put holders.
2. Sell equivalent number of shares of ATPG: sold some, will continue to sell.
3. Park part of my anticipated future profits in some high yield instruments. Bought some IVR at 22.7, a reit, current yield 17%, with recent insider buys between 20-23 during 2010. I will get my first dividend on Oct 27 2010. Let the ball rolling!
Right now, both atpg and general market are in recovery, I am following the trend and pushing my luck! SGY is up 8% today, very comforting! SGY has nearly identical chart as ATPG for the last 6 months.
I am in the process of converting ATPG shares bought on margin to very very deep in the money puts. I believe deep in the money put is the same as holding shares, the difference is no capital outlay at the beginning, no more margin interest! Instead, I get cash just like insurance company do. If I am smart enough, I can invest the cash and make some returns on it before the option expires. My intention is to buy back some puts after ATPG\'s well come into production in two weeks and lock some profit. My hope is that another two catalysts will be realized before Jan 22 2011: GOM drilling moratorium expires (scheduled to expire on Nov 30 2010) and Titan monetization realized. Actually, moratorium expiration is more of a symbolic meaning, What actually matters is to obtain re-entry permits for ATPG\'s next two wells. (This two additional two wells has already being drilled to certain depth). There is a slight chance that ATPG may be over $30 by the time the option expires. People can be lunatic and over shoot in both ways.
This is my plan:
1. Sell ATPG Jan 22 2011 $30 Put (Sold already). ATPG droped nearly a dollar in the last three days from the peak of 12.71 to yesterday\'s low at 11.89. It is really depressing to watch, since my exposure on ATPG is increased already. One of good benefits of selling puts is: you seldom get assigned shares even if current share price is below strike price. The holder of puts will lose time premium if he/she chose to exercise the put. What is more likely to happen is puts get sold to another person to lock the profit for put holders.
2. Sell equivalent number of shares of ATPG: sold some, will continue to sell.
3. Park part of my anticipated future profits in some high yield instruments. Bought some IVR at 22.7, a reit, current yield 17%, with recent insider buys between 20-23 during 2010. I will get my first dividend on Oct 27 2010. Let the ball rolling!
Right now, both atpg and general market are in recovery, I am following the trend and pushing my luck! SGY is up 8% today, very comforting! SGY has nearly identical chart as ATPG for the last 6 months.
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