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Alibaba IPO - Largest IPO in US History


All Hail

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How fitting that the largest IPO in US history is a Chinese internet company.

 

Tomorrow, probably around 8 am PST, BABA will be purchasable by the public.  

 

I've liquidated some positions and I am buying the second that sucker hits the market.  I suggest you do the same.  Anything under $80 a share will be considered a steal by the end of the year.  For those of you that control your IRA, try picking up a few shares.  

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Ma joined the global board of the Nature Conservancy. Says Orville Schell, a former dean of the journalism school at the University of California at Berkeley, and a close friend: “Business is not his first love.â€

Ma has been spending time in the Bay Area. He rents a home there, and he has audited history courses at Berkeley, where his son is an undergraduate.

 

I wonder if his son likes football or if his father likes donating to the Universities his son attends?  Jack Ma would instantly be the richest donor in the College Football scene.  One can dream...

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Glad you made some bucks, AH. 

 

I post my picks in the hopes that others might be included to take a dive in the market and make some money.

 

Speaking of money, Apple is down 3.5% due to the IOS software being recalled and the general weakness of the Nasdaq due to European markets. 

 

Easy money can be made buying Apple December 20 call options at a 105 strike price.  I know you've got some liquid money, do it! 

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I post my picks in the hopes that others might be included to take a dive in the market and make some money.

 

Speaking of money, Apple is down 3.5% due to the IOS software being recalled and the general weakness of the Nasdaq due to European markets. 

 

Easy money can be made buying Apple December 20 call options at a 105 strike price.  I know you've got some liquid money, do it! 

 

No hablo espanol

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No hablo espanol

 

 Apple December 20 call options at a 105 strike price

 

What this means is that you can buy "Options Contracts" for a price that allow you to purchace a certain number of shares of Apple for 105 dollars a share from now until December 20th when the options expire. If the share price of Apple goes above 105/share + what you paid for the option to buy it at that price, you make a profit. You can make more money by purchasing options, because you can controll a much larger number of shares for the same money, but if the underlying stock never goes above the strike price before the expiration date, they are worthless and you are out the entire value of what you paid for the options.

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 Apple December 20 call options at a 105 strike price

 

What this means is that you can buy "Options Contracts" for a price that allow you to purchace a certain number of shares of Apple for 105 dollars a share from now until December 20th when the options expire. If the share price of Apple goes above 105/share + what you paid for the option to buy it at that price, you make a profit. You can make more money by purchasing options, because you can controll a much larger number of shares for the same money, but if the underlying stock never goes above the strike price before the expiration date, they are worthless and you are out the entire value of what you paid for the options.

 

Good description, although I would add a few things.  You can certainly make a profit before the strike price as options can be traded at any time before their expiration.  In that same logic, options can also be traded for a loss if you begin to think that the stock isn't behaving the way you thought it might or if unexpected binary events like a War or a credit crisis suddenly intervene with your strategy. 

Here is an options profit calculator with the info on my call option.  I'm already up a good amount and decided to sell 2 of my contracts for an 18% gain and hold the other 3 for a bit longer. 

http://opcalc.com/ltGn

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