Ignored Beta and got bit

[william the wie]

ODP was and is at the bottom of its 52 week range, div yield was good and we're near the tax return bump for stocks. But the buyer panicked over the swings and exercised instead of selling. It happens but I find that posting my errors is a good way to avoid making the same mistake again.

 

[Toddsterpatriot]

What did they exercise on you?

 

[william the wie]

Office Depot.

 

[Toddsterpatriot]

Which option?

 

[william the wie]

A put. OPT was at the bottom of its range.

 

[Toddsterpatriot]

A put. OPT was at the bottom of its range.

What month? What strike?
How long ago did you write it?

 

[william the wie]

A put. OPT was at the bottom of its range.

What month? What strike?
How long ago did you write it?

A put. OPT was at the bottom of its range.

Earlier this week. I pay little attention to past strike prices win or lose I just see if I did something stupid or is it part of the random walk of the stock market? I decided it was a stupid stunt on my part and found out tonight checking my watch list that I might have blamed myself in error. My Beta screen was for less than 1 and when I checked NAT on the stock summary I saw a 1.9 beta. So, I will be watching agreement between my screening and issue data on the purchase screen from here on out. I also use separate screening services, Dividend Aristocrats and Dividend Champions. With more than 90%, 96% if memory serves, of increase in value since 1929 a result of invested dividends and 80% of puts expiring worthless and 75% of calls doing likewise reinvested net premiums are usually a major source of appreciation as well.

 

[Toddsterpatriot]

A put. OPT was at the bottom of its range.

What month? What strike?
How long ago did you write it?

A put. OPT was at the bottom of its range.

Earlier this week. I pay little attention to past strike prices win or lose I just see if I did something stupid or is it part of the random walk of the stock market? I decided it was a stupid stunt on my part and found out tonight checking my watch list that I might have blamed myself in error. My Beta screen was for less than 1 and when I checked NAT on the stock summary I saw a 1.9 beta. So, I will be watching agreement between my screening and issue data on the purchase screen from here on out. I also use separate screening services, Dividend Aristocrats and Dividend Champions. With more than 90%, 96% if memory serves, of increase in value since 1929 a result of invested dividends and 80% of puts expiring worthless and 75% of calls doing likewise reinvested net premiums are usually a major source of appreciation as well.

What month? What strike?

 

[william the wie]

NAT I caught prior to any purchase

 

[Toddsterpatriot]

NAT I caught prior to any purchase

What happened to your ODP puts that got assigned?

 

[william the wie]

I sold the shares as soon as I caught the error but it is relatively simple to keep beta the same on both fields since it the most recent 200 data points that determine beta. Unhappily td Ameritrade/Scott trade is even worse.

 

[Toddsterpatriot]

I sold the shares as soon as I caught the error but it is relatively simple to keep beta the same on both fields since it the most recent 200 data points that determine beta. Unhappily td Ameritrade/Scott trade is even worse.

That's great. But which puts did you sell?

 

[william the wie]

Office Depot. No offense but except for very simple stuff that can be traced back to say Benjamin Graham the SEC is very unsympathetic about getting its quota and their agents do monitor websites. for pump and dumps. Silence may or may not be golden but staying low profile and only giving out public information is the easiest way to stay out of jail.

 

[Toddsterpatriot]

Posting which Office Depot put you sold, and got assigned on in the past, can in no way be considered
a pump and dump scenario.

The price of ODP stock and ODP options is public info.
Unless you're an officer or hold a huge position in ODP, you're not an insider.

So what are you worried about?