Comments on: “Quick Draws” and “No Money Down” Options http://www.stockgumshoe.com/2008/04/quick-draws-and-no-money-down-options.html Frustrated or intrigued by email teasers from investment newsletters and advisers? We solve them and track their performance here ... so stick around, participate and subscribe (it's free)! Sat, 21 Nov 2009 05:52:09 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: gerald http://www.stockgumshoe.com/2008/04/quick-draws-and-no-money-down-options.html/comment-page-1#comment-2400 gerald Sun, 13 Apr 2008 01:41:23 +0000 http://www.stockgumshoe.com/2008/04/quick-draws-and-no-money-down-options.html#comment-2400 Can you help with this gumshoe? Can you help with this gumshoe?

]]> By: jerry http://www.stockgumshoe.com/2008/04/quick-draws-and-no-money-down-options.html/comment-page-1#comment-2391 jerry Sat, 12 Apr 2008 19:09:23 +0000 http://www.stockgumshoe.com/2008/04/quick-draws-and-no-money-down-options.html#comment-2391 I, too, would appreciate some information upon the Dr. Heung's approvable letter scenario. He virtually guarantees a return of at least 200% on your money on his companies who are medically related. He lists many dates between now and November when various different companies are to receive approvable letters according to SEC. His first such date is April 30, 2008. Thanks, Jerry I, too, would appreciate some information upon the Dr. Heung’s approvable letter scenario. He virtually guarantees a return of at least 200% on your money on his companies who are medically related.

He lists many dates between now and November when various different companies are to receive approvable letters according to SEC. His first such date is April 30, 2008.

Thanks,

Jerry

]]> By: StockGumshoe http://www.stockgumshoe.com/2008/04/quick-draws-and-no-money-down-options.html/comment-page-1#comment-2386 StockGumshoe Sat, 12 Apr 2008 11:37:50 +0000 http://www.stockgumshoe.com/2008/04/quick-draws-and-no-money-down-options.html#comment-2386 steelgtr, that's certainly the covered call selling strategy -- the key is, of course, that you would have had to buy 500 shares of Yahoo first, so you tie up a bunch of cash, and you have to hold those shares through options expiration even if they go down dramatically. And to make that much of a premium (1,250 per call, or $12.50 per share) you would have had to sell "in the money" options that can be called at any time. I don't know what the premiums were last week, but that's probably an April or May 17.50 call, I'm guessing. Which means that most of the cash you get in that "quick draw" is just a return of your capital, only about $2 is profit, or about $600. This assumes that you bought the shares at $28, then sold the $17.50 call for $12.50 a share, which means you're essentially selling your shares at $30. You do get that $600 profit, before short term capital gains taxes, but only about 10% of that much-more-impressive-sounding $6,750 is actually your profit. As long as the shares stay above $28 until the expiration date, you keep that profit on your books, so it is a nice way to get a small 4% profit in a short time period (you initially put up $14,000 to buy the shares, remember), but it's a strategy for using capital to generate short term yields, not a strategy for getting rich quickly. You're not likely to lose much money, since the call is so deep in the money, but if Microsoft raises the offer to $35 in a surprise move next week, you'll get none of that gain -- you essentially already bought at $28 and have no potential "upside" above $30. steelgtr, that’s certainly the covered call selling strategy — the key is, of course, that you would have had to buy 500 shares of Yahoo first, so you tie up a bunch of cash, and you have to hold those shares through options expiration even if they go down dramatically. And to make that much of a premium (1,250 per call, or $12.50 per share) you would have had to sell “in the money” options that can be called at any time. I don’t know what the premiums were last week, but that’s probably an April or May 17.50 call, I’m guessing. Which means that most of the cash you get in that “quick draw” is just a return of your capital, only about $2 is profit, or about $600. This assumes that you bought the shares at $28, then sold the $17.50 call for $12.50 a share, which means you’re essentially selling your shares at $30. You do get that $600 profit, before short term capital gains taxes, but only about 10% of that much-more-impressive-sounding $6,750 is actually your profit. As long as the shares stay above $28 until the expiration date, you keep that profit on your books, so it is a nice way to get a small 4% profit in a short time period (you initially put up $14,000 to buy the shares, remember), but it’s a strategy for using capital to generate short term yields, not a strategy for getting rich quickly. You’re not likely to lose much money, since the call is so deep in the money, but if Microsoft raises the offer to $35 in a surprise move next week, you’ll get none of that gain — you essentially already bought at $28 and have no potential “upside” above $30.

]]> By: steelgtr http://www.stockgumshoe.com/2008/04/quick-draws-and-no-money-down-options.html/comment-page-1#comment-2384 steelgtr Sat, 12 Apr 2008 05:26:07 +0000 http://www.stockgumshoe.com/2008/04/quick-draws-and-no-money-down-options.html#comment-2384 "On Monday April 7, this California-based Internet firm made "Quick Draws" available to any shareholders who wanted them. If you owned just 500 shares of Yahoo!, you could have pocketed $6,725 less than 24 hours after requesting it..." "First, "Quick Draws" are only available on about one third of the publicly traded companies in the market." "The third reason you've probably never heard of this investment before is because for years, "Quick Draws" were basically off-limits to individuals like you and me – available only to wealthy money managers." “On Monday April 7, this California-based Internet firm made “Quick Draws” available to any shareholders who wanted them. If you owned just 500 shares of Yahoo!, you could have pocketed $6,725 less than 24 hours after requesting it…”

“First, “Quick Draws” are only available on about one third of the publicly traded companies in the market.”

“The third reason you’ve probably never heard of this investment before is because for years, “Quick Draws” were basically off-limits to individuals like you and me – available only to wealthy money managers.”

]]> By: jim duross http://www.stockgumshoe.com/2008/04/quick-draws-and-no-money-down-options.html/comment-page-1#comment-2383 jim duross Sat, 12 Apr 2008 00:46:16 +0000 http://www.stockgumshoe.com/2008/04/quick-draws-and-no-money-down-options.html#comment-2383 I am trying to find info about Gryphon Financial; they have some pretty wild claims - Hedge Fund Trader, Genome Trader that produce some huge gains etc, but I can't find too much online; I did find a copyright infringement dogfight with Taipan but that's all. They say thet are unbeatable, can anybody say Yay or Nay, er, No? Jim I am trying to find info about Gryphon Financial; they have some pretty wild claims – Hedge Fund Trader, Genome Trader that produce some huge gains etc, but I can’t find too much online; I did find a copyright infringement dogfight with Taipan but that’s all. They say thet are unbeatable, can anybody say Yay or Nay, er, No?
Jim

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