ETFC

[aiki14]

Somebody dumped a few million shares on the market a few minutes ago, I am buying everything I can at $1.06

[Gordo]

Why?

[aiki14]

I think E-trade is amongst the most overhit companies out there, and I am still digesting the numbers but I like them so far, all the bad news is baked in and revenue generating trades up, accts up big YOY (97k vs 7k) on a Q to Q basis. And they have a new superbowl commercial (last years resulted in a 32% increase in funded accts).

[useless]

Why?

Probably to see if you would? :biggrin:

I am currently with etrade by virtue they bought the company I was using before.

They did something a little odd, mailed something about "Please deposit 5k and we will give you 10 dollars"

I thought that was a little odd. First time I have been mailed anything in awhile from them.

Stock is def cheap though, I think I heard Cramer mention he liked em at some point also.

[aiki14]

Probably to see if you would? :biggrin:



I am wondering if that was an intentional insult or just a stupid off the cuff remark?

[aiki14]

Up to $1.14 in extended hrs trading.

[XOM]

Looks like a 27% increase in the stock would result in a 50% profit on the APR3 calls. Excluding whatever the change in IV is, 7 days from now a 37% increase would still yield the same profit.

Would the need for at least a 27% move in the stock be the reason you would not consider using options on this trade? Or were there other more important considerations?

Just looking to glean a little of your methodology.

[aiki14]

Looks like a 27% increase in the stock would result in a 50% profit on the APR3 calls. Excluding whatever the change in IV is, 7 days from now a 37% increase would still yield the same profit.

Would the need for at least a 27% move in the stock be the reason you would not consider using options on this trade? Or were there other more important considerations?

Just looking to glean a little of your methodology.

I can't see the calls moving in a typical way since they are so far out of the money, I think the stock would have to double before the contract price would move much and then there is the matter that the contracts don't trade in enough volume. The stock however is very liquid and wont expire worthless. If I could buy Apr1 calls on this I'd be very much in the options or I'd buy the stock, the 1 strike and sell the 2 or 3 strike. Even the Jan10 2.50 calls might be worth a consideration but it's still very far OOTM.

[XOM]

Makes sense, do you have a particular underlying volume to call volume ratio that you look for?

[aiki14]

Makes sense, do you have a particular underlying volume to call volume ratio that you look for?

Not really, but I need to be able to exit the position I am likely to take, and todays total volume in calls measured by value represented 1/20th the position I took in the stock. If they came into the money it would be a grand slam, but if they didn't I would be left holding a bag I can't even close to justify.

[XOM]

Yeah, I thought about the size of the position you were likely to be taking after I posted that. Thanks for the replies though.

[aiki14]

Yeah, I thought about the size of the position you were likely to be taking after I posted that. Thanks for the replies though.

Always a pleasure X

[jmarkd59]

Nice trade aiki! Looks like you may have the last laugh (all the way to the bank) on this one.

On a different note, I have a lot of respect for your posts in this forum. They're usually gems among the pooh.

[Albert0373]

...

On a different note, I have a lot of respect for your posts in this forum. They're always gems among the pooh.

Fixed ;)

[useless]

I am wondering if that was an intentional insult or just a stupid off the cuff remark?

off the cuff, reference too
http://www.onlinetradersforum.com/showthread.php?p=185506#post185506

no insult intended apologies if anyone offended.

[aiki14]

off the cuff, reference too
http://www.onlinetradersforum.com/showthread.php?p=185506#post185506

no insult intended apologies if anyone offended.

Accepted.

Albert and Jmarkd, thanks for the kind words.

[aiki14]

I am getting a really good feeling about this trade, 1000 shares just traded premarket at $1.50+ (300 at 1.55, 700 at 1.50), that continues and I am gonna have a seriously good day.

[Gordo]

Nice.....very nice.

[freakscene]

push it over 2 so i can break even ! ;)

[Florida]

great catch on this one aiki14!! If it were me, I would be out of at least half of the position pre-market, and would dump the rest on any surge after the open.

I don't think this move is rational, and will probably bleed off all day, I could be wrong, it wouldn't be the first time, but I would bank the trade as soon as possible.

[aiki14]

great catch on this one aiki14!! If it were me, I would be out of at least half of the position pre-market, and would dump the rest on any surge after the open.

I don't think this move is rational, and will probably bleed off all day, I could be wrong, it wouldn't be the first time, but I would bank the trade as soon as possible.

I am reducing now, trying to get $1.25 for as many shares as I can, got a few and then the price receded to 1.22. i still like the stock but have too many shares to hold long term.

[aiki14]

I managed to slim the position down to comfortable levels and cashed out a nice profit. I'll stop out the remainder if we hit 1.20. Buying it back at $1.12 should we see that again.

To X,
The options for Apr didn't move on this at all, the Jan10 contracts moved from .30 to .35 which is about the same as the stock (13% or so on the options , 15% on the stock) Can you imagine if there were $1 strike calls? Would have been nice, but you gotta play the game as it's laid out.

[XOM]

Nice trade Aiki, and I do see your point in real time on the options, experiencing the same lack of volatility on my UYG FEB6 calls. Good food for thought.

[aiki14]

Still seeing attractive volume action at 1.25, if it breaks through we could see 1.32 today. Big wall of sellers though at 1.25. Interesting to watch.

[smartinvestor30]

Somebody dumped a few million shares on the market a few minutes ago, I am buying everything I can at $1.06

Agreed, :top:

They have banking with great rates on savings accounts (3.01%) and they offer Global Trading on 6 different markets for those that feel the US may not be so promising. They offer a debit card that lets you make purchases against the cash balance of your account. Need to buy something? Sell a few shares and use your debit card!

[aiki14]

I thought we'd get a buyable dip here but no dice. I think it's a hold here, and a buy nearer to 1.12

[useless]

Did you stop out at open?

I thought I read somewhere Etrade was considering taking/asking/applying for TARP monies. Interesting stock to watch here.

[aiki14]

Did you stop out at open?

I thought I read somewhere Etrade was considering taking/asking/applying for TARP monies. Interesting stock to watch here.

I don't do stops when I am sitting at the computer, and no way I let a market order go in, and I reduced my position yesterday.

[aiki14]

ETFC just got cut to underperform from market perform by Raymond James
10:14 Am

[XOM]

So let's see; somebody dumps a few million shares and two days later it gets downgraded. In light of all of the recent shenanigans on the Street, how could anyone cast a skeptical eye on that trade? lol

Doesn't seem to be having much effect on the stock currently though.

[aiki14]

Starting to take shares here at $1.15

[Iceman4021]

How long are you planning on holding your shares??? Looking to make a quick trade if the Superbowl Ads go over well or is this a more long term purchase???

[Rynn]

I bought at $1.15, it was up to $1.20 after hours. I will place a limit order to sell at 1.20 on monday (4.3% profit).

[aiki14]

How long are you planning on holding your shares??? Looking to make a quick trade if the Superbowl Ads go over well or is this a more long term purchase???

Just a trade, when I see the rise petering out I'll start to reduce.

[Rynn]

Sold @ 1.20 today. Thanks for the tip on this one, Aiki.

[smartinvestor30]

I wouldn't hold this too long, take your profit and get out,

too much uncertainty in the market and we don't know how the furture of stocks/investing is going to be so be cautious. This makes a good trade but a BAD investment IMO.

[aiki14]

I wouldn't hold this too long, take your profit and get out,

too much uncertainty in the market and we don't know how the furture of stocks/investing is going to be so be cautious. This makes a good trade but a BAD investment IMO.

I am wondering what you think is a good investment? Are you betting everything on the end of the world? If not ETFC is a stellar investment, overhit, good inflows and a good chance to gobble up market share from the old guard brokers. It is also a good trade from 1.15 or below to 1.20 and above. Great liquidity for moving shares in and out at price, no probs moving 20-50k shares all day.

[aiki14]

Taking shares again here, at 1.15 or below.

[XOM]

Thanks for the reminder on this one, I'd forgotten about it...however I take my thanks back since you propped the price up, lol.

I'm cheap, I tried for 1.10 hoping for a selloff into the close and a gap up in the morning.

[XOM]

Well 1.10 is here, but now I'm looking to grab some under a dollar on some panic selling.

[XOM]

Not so much selling as a lack of buyers, looks like a bunch of us are sitting around like vultures looking at each other, lol.

[Horsefish]

ETFC is at .98 right now. just doubled down.

[Albert0373]

Thanks for the heads up on ETFC via Twitter yesterday aiki, posted a nice gain today and still holding.