Entering into a collar is fine, but I really don't see the point. Fundamentally, nothing has really improved in the casino-sector. You can defer the gains into 2010 and lock-in a sell here at 14.40 by trading a Jan 2010 synthetic short. That's my recommendation. My guess is that 14.40 will seem to be a gift in 6 months.
help a ETer out
- Thread starter itcanbedone
- Start date
That can be taken in two ways.
6 months from now LVS could be at $20.00 and 14.40 was a gift to buy.
OR
6 months from now LVS could be at 7.00 and 14.40 was a gift to sell.
in particular to this stock (LVS)
there is the following potential good news that will all help in an increase to the eps
1] the completion of the IPO listing
2] better financing for longterm debt
3] completion of the singapore casino (of which they have tact monopoly for a bit)
4]do well in macau over time
5]sector rotation of funds into these higher betas
so those are the pros for this to even go >20
the negative are all the corollary of the items i've listed below
also, sudden shocks, or dramatic rise in oil prices, death of ceo. scandal etc.
what if i place a fixed stop--again it would be to be somewhat arbitrary
and then buy puts of Jan10? strike prices from 10-15 area
calls spread out in strikes from 17 to 28 area upto march 10 and 11 leaps?
the idea for the options came to me--cause when the stock will rally or collapse; it will do it fast and will assist in exiting those options.
but if this sucka stagnates, the time decay will kill my profit.
there is the following potential good news that will all help in an increase to the eps
1] the completion of the IPO listing
2] better financing for longterm debt
3] completion of the singapore casino (of which they have tact monopoly for a bit)
4]do well in macau over time
5]sector rotation of funds into these higher betas
so those are the pros for this to even go >20
the negative are all the corollary of the items i've listed below
also, sudden shocks, or dramatic rise in oil prices, death of ceo. scandal etc.
what if i place a fixed stop--again it would be to be somewhat arbitrary
and then buy puts of Jan10? strike prices from 10-15 area
calls spread out in strikes from 17 to 28 area upto march 10 and 11 leaps?
the idea for the options came to me--cause when the stock will rally or collapse; it will do it fast and will assist in exiting those options.
but if this sucka stagnates, the time decay will kill my profit.
Well at least you partly see the error of your ways. My response was a little blunt because i was supposed to be trading instead of on ET.
Im not sure why you would get into LVS in the first place, no one in America has money to spend at the casino (just watch the video with David Goldman in it which has been going around today), this stock will not go back to where is was pre-crisis for a long time imo. The only thing holding them up is their exposure to China.
But as for trade management, I think you should close half of the position and set a trailing stop. I wouldnt be betting on the equity market to repeat its run up from March lows from here (but this is more likely then breaking March lows).
You really should have had every scenario thought out before you entered the trade and planed what you would do in each event. If you don't have this you are just another sucker walking through a minefield.
To the people who are calling him a pig for wanting to maximize his trading profits, GTFO!
Simple answer to a simple question. If you want to decrease your exposure and lock in gains, why don't you sell a portion of your position? 1/2, 1/3, 1/4...whatever you like. This is the best and simplest way to decrease exposure, while letting the rest run if the stock continues to strive.
ARE YOU INSANE?
Not only is this the wrong way, but you're suggesting selling an option for 0.5.
I am 100% with atticus here, you're totally bonkers.
+1
I think we might have a winner here
.