CFC at $7.60

[drunkle]

mr wrong:

i haven’t graduated yet, but i’m getting there. my school? http://www.piggington.com/forum. professor ucodegen at the helm today.

hopefully, i can write off my tuition fees, they’re killing me.

uco:
seems like the tax basis is the most important thing to note… taxing options at full income rate blows…

[barnaby33]

All option purchases are effectively ‘long’. Not true, you can write puts and calls, essentially shorting them.

Josh

[barnaby33]

All option purchases are effectively ‘long’. Not true, you can write puts and calls, essentially shorting them.

Josh

[barnaby33]

All option purchases are effectively ‘long’. Not true, you can write puts and calls, essentially shorting them.

Josh

[barnaby33]

All option purchases are effectively ‘long’. Not true, you can write puts and calls, essentially shorting them.

Josh

[barnaby33]

All option purchases are effectively ‘long’. Not true, you can write puts and calls, essentially shorting them.

Josh

[barnaby33]

As I was pointing out, I’m not seeing how CFC is going to find new customers or steal existing (good) customers elsewhere without offering a better rate or some incentive or some sort.

You’ve just asked the 64k question. Unless you come up with a good answer, their goose is cooked. I’ve said since last year they were headed for BK, based on that same question. Their whole business model, what made them profitable is no longer possible. So either they go back to doing conforming loans which are the grunt work end of lending, or they die. Even if they do go back to traditional types of lending, now they are competing with every other bank that does the same thing. I’d bet their costs are a lot higher, considering their costs of borrowing have soared.

Josh

[barnaby33]

As I was pointing out, I’m not seeing how CFC is going to find new customers or steal existing (good) customers elsewhere without offering a better rate or some incentive or some sort.

You’ve just asked the 64k question. Unless you come up with a good answer, their goose is cooked. I’ve said since last year they were headed for BK, based on that same question. Their whole business model, what made them profitable is no longer possible. So either they go back to doing conforming loans which are the grunt work end of lending, or they die. Even if they do go back to traditional types of lending, now they are competing with every other bank that does the same thing. I’d bet their costs are a lot higher, considering their costs of borrowing have soared.

Josh

[barnaby33]

As I was pointing out, I’m not seeing how CFC is going to find new customers or steal existing (good) customers elsewhere without offering a better rate or some incentive or some sort.

You’ve just asked the 64k question. Unless you come up with a good answer, their goose is cooked. I’ve said since last year they were headed for BK, based on that same question. Their whole business model, what made them profitable is no longer possible. So either they go back to doing conforming loans which are the grunt work end of lending, or they die. Even if they do go back to traditional types of lending, now they are competing with every other bank that does the same thing. I’d bet their costs are a lot higher, considering their costs of borrowing have soared.

Josh

[barnaby33]

As I was pointing out, I’m not seeing how CFC is going to find new customers or steal existing (good) customers elsewhere without offering a better rate or some incentive or some sort.

You’ve just asked the 64k question. Unless you come up with a good answer, their goose is cooked. I’ve said since last year they were headed for BK, based on that same question. Their whole business model, what made them profitable is no longer possible. So either they go back to doing conforming loans which are the grunt work end of lending, or they die. Even if they do go back to traditional types of lending, now they are competing with every other bank that does the same thing. I’d bet their costs are a lot higher, considering their costs of borrowing have soared.

Josh

[barnaby33]

As I was pointing out, I’m not seeing how CFC is going to find new customers or steal existing (good) customers elsewhere without offering a better rate or some incentive or some sort.

You’ve just asked the 64k question. Unless you come up with a good answer, their goose is cooked. I’ve said since last year they were headed for BK, based on that same question. Their whole business model, what made them profitable is no longer possible. So either they go back to doing conforming loans which are the grunt work end of lending, or they die. Even if they do go back to traditional types of lending, now they are competing with every other bank that does the same thing. I’d bet their costs are a lot higher, considering their costs of borrowing have soared.

Josh

[ucodegen]

@drunkle
seems like the tax basis is the most important thing to note… taxing options at full income rate blows…

Yes it does… as with most taxes.. but you have extraordinary leverage with lower risk with options… if you are careful. The tax at income rate is similar to STCG(Short Term Capital Gains). Short term capital gains are for issues held less than a year, and options generally have a less than one year period. Remember that with options, you are often making a contra bet with the originators, who are often the so called experts who may be running mutual funds (They will be the ones on the short side with options).

NOTE: On options spanning more than 1 year period, I would need to check on their tax status. They may be covered by LTCG. Depends upon the amount of time the option is held.

Thanks for calling me ‘professor’.. though I really consider myself a gifted amateur. I figured that working for a salary was not going to cut it these days.. so I have set out to teach myself much of what the experts don’t tell you. In 1997 (amazing how you can remember things that change course of ones life) I re-ran numbers from a portfolio that I was going to set up in 1988 and never got around to. After much crying in my beer, I took action to learn… of course I had some more crying in my beer in 2000-2001, but it wasn’t nearly as bad as the revelation in 1997.

[ucodegen]

@drunkle
seems like the tax basis is the most important thing to note… taxing options at full income rate blows…

Yes it does… as with most taxes.. but you have extraordinary leverage with lower risk with options… if you are careful. The tax at income rate is similar to STCG(Short Term Capital Gains). Short term capital gains are for issues held less than a year, and options generally have a less than one year period. Remember that with options, you are often making a contra bet with the originators, who are often the so called experts who may be running mutual funds (They will be the ones on the short side with options).

NOTE: On options spanning more than 1 year period, I would need to check on their tax status. They may be covered by LTCG. Depends upon the amount of time the option is held.

Thanks for calling me ‘professor’.. though I really consider myself a gifted amateur. I figured that working for a salary was not going to cut it these days.. so I have set out to teach myself much of what the experts don’t tell you. In 1997 (amazing how you can remember things that change course of ones life) I re-ran numbers from a portfolio that I was going to set up in 1988 and never got around to. After much crying in my beer, I took action to learn… of course I had some more crying in my beer in 2000-2001, but it wasn’t nearly as bad as the revelation in 1997.

[ucodegen]

@drunkle
seems like the tax basis is the most important thing to note… taxing options at full income rate blows…

Yes it does… as with most taxes.. but you have extraordinary leverage with lower risk with options… if you are careful. The tax at income rate is similar to STCG(Short Term Capital Gains). Short term capital gains are for issues held less than a year, and options generally have a less than one year period. Remember that with options, you are often making a contra bet with the originators, who are often the so called experts who may be running mutual funds (They will be the ones on the short side with options).

NOTE: On options spanning more than 1 year period, I would need to check on their tax status. They may be covered by LTCG. Depends upon the amount of time the option is held.

Thanks for calling me ‘professor’.. though I really consider myself a gifted amateur. I figured that working for a salary was not going to cut it these days.. so I have set out to teach myself much of what the experts don’t tell you. In 1997 (amazing how you can remember things that change course of ones life) I re-ran numbers from a portfolio that I was going to set up in 1988 and never got around to. After much crying in my beer, I took action to learn… of course I had some more crying in my beer in 2000-2001, but it wasn’t nearly as bad as the revelation in 1997.

[ucodegen]

@drunkle
seems like the tax basis is the most important thing to note… taxing options at full income rate blows…

Yes it does… as with most taxes.. but you have extraordinary leverage with lower risk with options… if you are careful. The tax at income rate is similar to STCG(Short Term Capital Gains). Short term capital gains are for issues held less than a year, and options generally have a less than one year period. Remember that with options, you are often making a contra bet with the originators, who are often the so called experts who may be running mutual funds (They will be the ones on the short side with options).

NOTE: On options spanning more than 1 year period, I would need to check on their tax status. They may be covered by LTCG. Depends upon the amount of time the option is held.

Thanks for calling me ‘professor’.. though I really consider myself a gifted amateur. I figured that working for a salary was not going to cut it these days.. so I have set out to teach myself much of what the experts don’t tell you. In 1997 (amazing how you can remember things that change course of ones life) I re-ran numbers from a portfolio that I was going to set up in 1988 and never got around to. After much crying in my beer, I took action to learn… of course I had some more crying in my beer in 2000-2001, but it wasn’t nearly as bad as the revelation in 1997.

[Author]

Posts