The Oracle Speaks
November 3rd, 2013
Greetings and Welcome aboard to all new subscribers.
I am getting a lot of emails and phone calls about this months picks.
Mostly from new subscribers.
- we can’t sell Calls unless we get some Puts exercised.
- You only make or lose money when you sell. This is important.
It does not matter if we pay $5 per share for a stock trading at $1. We have not lost any money. We only lose if we sell it for less than we paid for it. Read that again.
We intend to sell the stock for $6+
Stocks go up and down like little kids jumping on a bed.
Any move you make while a stock is “down” just guaruntees a loss or prolongs your pain.
3. PRKR is a $6 plus stock. How can I say this?
Since march it has been bouncing between $3.50 and $4.50. So let’s say $ 4 per share before lawsuit. (Now it looked like they would get $500 million, and a lot of people expected this, so when they “only” got $170 million a lot of people started selling. This is what caused the plunge”)
With 98 million shares out (round up to 100 million for easy math) , $170 million works out to $1.20 per share after taxes and lawyers.
Plus they will likely get at least $100 million per year in royalties, that is worth another .60c per share.
4.00+ 1.20 + .60 = $5.80
Close enough to $6 that it’s normal bounceing will sometimes go over $6 once everyone settles down from the (not so) bad press it is getting.
As for SPWR and SCTY, we might get lucky and get long on those positions too.
Following the “Bucket Rule” (only put 5 -10% into any trade) allows us to stay calm, even when the sharks are driving the other guppies off the cliff.
Interesting editorial: http://seekingalpha.com/article/1797982-parkervision-filling-the-information-void?
This guy thinks PRKR is a $20 stock.
So keep calm and trust the system. It really works, unless you panic.
Until next time
The Options Oracle.
Brad Lee AKA “The Options Oracle” and “The Money Medic” is an individual investor who does not manage money for any financial institution. You are purchasing the list of stocks that he uses to select options contracts he feels will return him the highest, safest profits. Brad is not a broker, or financial adviser. He is a remarkable investor who has developed a successful strategy for himself, and is willing to share some of his magic with you. We urge you to paper trade these picks and learn how to develop a strategy that is appropriate for you. Thank You.
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