MOS Since MOS reports Wed 9/28 at the close, would we be better waiting to make the trade till we see which direction it’s going or shouldn’t that matter very much? Thanks, Linda
Linda – MOS pre-announced earnings last week in connection with a secondary offering of shares owned by the Margaret Cargill Trusts. There is no dilution to shareholders as these are not new shares – just being moved out of “strong” hands that had owned them for a long time into potentially weaker hands. And – it was “only” about 18 milllion shares – MOS trades over 8,000,000 shares per day normally – and the total float is 446,000,000. http://finance.yahoo.com/q/ks?s=MOS+Key+Statistics. Plus, it coincided with the addition of MOS into the SP500 on Friday to replace NSM which was acquired by TXN – and this should help soak up the shares as index funds should be buying. I think last week’s announcement probably takes away any nasty surprise for this week. Hope that helps.
On Fast Money the option traders often recommend what I think they call a risk reversal. They buy a bull call spread and pay for it by selling a OTM put that is usually very OTM. The trade usually ends up costing nothing. Is this trade appropriate in some of these bull put spread situations?
MOS Since MOS reports Wed 9/28 at the close, would we be better waiting to make the trade till we see which direction it’s going or shouldn’t that matter very much? Thanks, Linda
Linda – MOS pre-announced earnings last week in connection with a secondary offering of shares owned by the Margaret Cargill Trusts. There is no dilution to shareholders as these are not new shares – just being moved out of “strong” hands that had owned them for a long time into potentially weaker hands. And – it was “only” about 18 milllion shares – MOS trades over 8,000,000 shares per day normally – and the total float is 446,000,000. http://finance.yahoo.com/q/ks?s=MOS+Key+Statistics. Plus, it coincided with the addition of MOS into the SP500 on Friday to replace NSM which was acquired by TXN – and this should help soak up the shares as index funds should be buying. I think last week’s announcement probably takes away any nasty surprise for this week. Hope that helps.
On Fast Money the option traders often recommend what I think they call a risk reversal. They buy a bull call spread and pay for it by selling a OTM put that is usually very OTM. The trade usually ends up costing nothing. Is this trade appropriate in some of these bull put spread situations?