Comments on: OptionsXpress Holdings (OXPS) – Un-Noticed Value Building

By: camiseta del barcelona

camiseta del barcelona — Thu, 08 Dec 2011 12:14:38 +0000

Safe-keeping pocket is situated around the tailgate end from the palm grip.

By: jackson

jackson — Wed, 03 Jun 2009 17:26:30 +0000

what does the payment for order flow line really mean?

By: Borisb

Borisb — Tue, 05 Feb 2008 00:25:56 +0000

GOOG- i went ahead and closed this in premarket 516s just to be defensive. CMGs if the dip deepens in front of earnings, for whatever reason, longs would be better setup. YUM! and Wendys have fallen on earnings today, 2/4, maybe the group or a downgrade work as downside catalyst.

By: Zach

Zach — Mon, 04 Feb 2008 20:27:39 +0000

Boris – I have always found it interesting that the “B” shares trade at such a discount. But because the liquidity is greater with the A shares and because the discount seems to continue, I have found it easier to trade the A shares. If I were holding long-term it would probably make more sense to own the B shares.

GOOG is down another $20 as I write. I’m not saying that your long position will not work. Only that the stock is very volatile and often stocks that ran “too far” on the positive side also run “too far” when they decline. I really do hope you make money on the trade. I’m just not brave enough to put my own capital to work there.

By: Borisb

Borisb — Sun, 03 Feb 2008 23:35:29 +0000

ZACH, what is so “bad news” about google that you object to giving a seemingly low $515 long your blessing?

By: BorisB

BorisB — Sat, 02 Feb 2008 15:51:19 +0000

ZACH, did you know CMG “B” shares trade for a discount of 20%+ to “A” sahres even though eps and all other rights are 100% identical? this interest me because if you are angling for a super sized dip from $155 the “B” shares have traded down to the 80s/90s. maybe not perfect but quite a pull back.

By: Zach

Zach — Sat, 02 Feb 2008 14:40:59 +0000

Tony, Thanks for your expertise!

Management credibility is definitely worth considering in any analytic process. I will go back and see what language was used over the last few quarters regarding the penny pilot program.

I have to say, from a traders perspective, I am really excited about the prospect of trading options in pennies and look forward to when this program reaches some of the less liquid stocks I trade in.

Boris – I’m glad you were able to sidestep the GOOG disaster. Good luck with the position. You are a braver man than I

Thanks guys for the comments.
ZDS

By: BorisB

BorisB — Sat, 02 Feb 2008 01:15:17 +0000

thankyou for google red flag post. i had some optomistism for goog a few months ago but stayed on the sidelines. i opened a small long term long today after the earnings crusher, way below the high point.

By: Tony

Tony — Fri, 01 Feb 2008 21:41:21 +0000

I still think the Payment for Order Flow line is the primary issue here. For someone like Etrade this revenue line is actually an expense line. I think this is what will happen to OXPS.

What will exacerbate this is the make or take model that some exchanges are using (e.g., Arca). I believe this approach will win (it’s winning in the equity markets). Since most of OXPS’s retail trades are liquidity taking this could make the PfOF revenues turn to expenses even more quickly. I do agree they are growing quickly and this will offset some of this. Nevertheless it’s a headwind.

But I do not believe the company when they say they are trying creative ways to monetize their flow. Last quarter they claimed that the penny pilot would not impact them and that is clearly not the case.