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Post by babaoriley on Jul 1, 2014 12:08:19 GMT -5
Great to get the approval out of the way! But now, for a new interim strategy. For those of you that like to play options, today, I've sold some naked puts, November $7 strike, also August 8 and 16, $8.50 and $9 Strike. Premiums are pretty darn good, considering the much lower post approval risk. I'm pretty sure Ashiwi is already all over this! I had been doing that consistently for years, but hadn't done it the last couple of months as PDUFA approached, the premium was not worth the risk to me, but once again is very much worth it.
You know, MNKD fans were like ants on a freshly attacked anthill Friday through Monday. The shorts, who one would have thought would have been in that state, were far cooler. Remember the presentation where the 8 week from approval to partnership was mentioned - I called it something like a "gift to the shorts" - well, the shorts remembered that, and I didn't! No need for them to scurry, they have time! And that fact had been confirmed by Hakan and Matt, two decent sources.
So the stock is behaving like it probably should, given it's a partnershipless approval, also something that was discussed here many times. Yet, the euphoria of the approval, the incredible stock takedown and comeback in after hours Friday, the more than expected national exposure of the approval, the stuff about no shorting allowed Monday, and, of course, my discussion with Spiro, well, crap, it will catch most anybody up, except the most analytical, least emotional of us.
For the present, back to taking what the market will give.
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Post by MnkdMainer (MM) on Jul 1, 2014 12:39:05 GMT -5
Here's my problem with selling puts right now. I have to sell some of my long position to secure the puts.
Are you not doing this? If not, how are you securing your puts?
My broker (TD Ameritrade) gives me the following error message when I try to sell puts that are not cash-secured: "Your order was not accepted. Funds are not available for this transaction of a non-marginable security."
I'm not inclined to sell any of my long position with a partnership announcement around the corner. Are you not worried about missing the boat?
If not, can you explain? Thank you in advance.
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Post by babaoriley on Jul 1, 2014 12:43:56 GMT -5
MM, here's the thing, my accounts are all set up for options trading, as that's really what I have done since 2008 or so. So they are all set up for margin. More importantly, I have a bunch of other stuff in those accounts beside MNKD, so I have amounts available to do those transactions. You need to check with your broker if having MNKD shares will give you the margin you need to trade these type of options, if so, then you have to consider whether or not you want to go the margin route - brings in an element of risk, obviously.
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Post by chmith27 on Jul 1, 2014 12:45:05 GMT -5
Here's my problem with selling puts right now. I have to sell some of my long position to secure the puts. Are you not doing this? If not, how are you securing your puts? My broker (TD Ameritrade) gives me the following error message when I try to sell puts that are not cash-secured: "Your order was not accepted. Funds are not available for this transaction of a non-marginable security." I'm not inclined to sell any of my long position with a partnership announcement around the corner. Are you not worried about missing the boat? If not, can you explain? Thank you in advance. do you have a margin account? edit- tried to erase as baba answered
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Post by MnkdMainer (MM) on Jul 1, 2014 12:48:57 GMT -5
The error message I get from TD Ameritrade (quoted above) tells me that MNKD is "a non-marginable security." Does your broker allow you to margin your MNKD shares? If so, which broker are you using?
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Post by MnkdMainer (MM) on Jul 1, 2014 12:50:05 GMT -5
I should add: I am using a retirement account for my trades, and I don't think margins are allowed in retirement accounts (at least with TDA).
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Post by babaoriley on Jul 1, 2014 12:58:23 GMT -5
MM, I don't have sufficient shares to even figure if they are marginable, most of my MNKD is in the warrants and now options, which are clearly not marginable.
KingsX on the retirement account - best I've been able to do on a retirement account is sell a cash covered put, but the cash has to be there, in person! Also, they do not give you any break in terms of the amount of cash. For example, if I sell 10 puts, strike of $9, I need to have $9000 cash in the account to secure it. If I do it in my taxable, margin account, I may only have to have about $3,500 or so to secure it. A huge difference. Therefore, I do not like selling naked puts in a retirement account.
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Post by chmith27 on Jul 1, 2014 13:11:36 GMT -5
i didn't know this but in my retirement account with optionsfirst (scottrade) i can't trade on margins either. so i called and they said that's an industry standard. makes sense though because if you got a margin call you couldn't necessarily just infuse more pretax dollars into the account if you needed to in a hurry.
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Post by 4allthemarbles on Jul 1, 2014 13:19:27 GMT -5
Does anyone still use cash accounts?
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Post by babaoriley on Jul 1, 2014 14:01:40 GMT -5
i didn't know this but in my retirement account with optionsfirst (scottrade) i can't trade on margins either. so i called and they said that's an industry standard. makes sense though because if you got a margin call you couldn't necessarily just infuse more pretax dollars into the account if you needed to in a hurry. Yes, that would be a bit awkward, wouldn't it? LOL
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Post by BD on Jul 1, 2014 14:19:43 GMT -5
Note that even though you can't use margin, there's nothing that prevents you from trading options in a retirement account (at least an IRA, because I'm doing it.) And options are an alternative (to margin) for gaining leverage...if you really want it.
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Post by thekindaguyiyam on Jul 1, 2014 14:24:01 GMT -5
The error message I get from TD Ameritrade (quoted above) tells me that MNKD is "a non-marginable security." Does your broker allow you to margin your MNKD shares? If so, which broker are you using? I got that message today. Tried again and it went through. try again if you are still intent. If that doesn't work call up TDA. Good luck.
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Post by cannon5974 on Jul 1, 2014 14:37:44 GMT -5
The error message I get from TD Ameritrade (quoted above) tells me that MNKD is "a non-marginable security." Does your broker allow you to margin your MNKD shares? If so, which broker are you using? I got that message today. Tried again and it went through. try again if you are still intent. If that doesn't work call up TDA. Good luck. I bought 10K shares with my TD Ameritrade account on Friday when it dipped below 9. I only had about $20,000 in cash (money market) in that account, so $70k went on margin where it still sits. I could transfer cash into the account if I had to, but no margin call is issued. You must be able to buy on margin if I was able to do so. I thought I was "all in", but when I had seen that Afrezza was approved with clean label and stock was below 9; I had to buy more.
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Post by mdcenter61 on Jul 1, 2014 15:51:41 GMT -5
Note that even though you can't use margin, there's nothing that prevents you from trading options in a retirement account (at least an IRA, because I'm doing it.) And options are an alternative (to margin) for gaining leverage...if you really want it. Great point. Using shares, Leaps, and calls (jan 2015) in my Roth to gain leverage
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Post by thekindaguyiyam on Jul 1, 2014 16:00:22 GMT -5
I got that message today. Tried again and it went through. try again if you are still intent. If that doesn't work call up TDA. Good luck. I bought 10K shares with my TD Ameritrade account on Friday when it dipped below 9. I only had about $20,000 in cash (money market) in that account, so $70k went on margin where it still sits. I could transfer cash into the account if I had to, but no margin call is issued. You must be able to buy on margin if I was able to do so. I thought I was "all in", but when I had seen that Afrezza was approved with clean label and stock was below 9; I had to buy more. Shrewd move.
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