Thanks Saul for this one.
I agree that the preannouncement is worth a hold…at least. For me, I’ve previously been buying trading shares and also selling cover calls against the trading shares and also selling naked puts.
My core position is 4% and I am comfortable with that level.
Since the shares traded above $15, I’ve continued to sell naked puts that are 1 month away from expiration. I’ve been able to pick up $1.20 in premium for the Apr14 $15 puts which expired worthless today. A few days ago I was able to sell the May14 $15 puts for a $1.05 premium. I expect that these puts will also expire worthless but if not then I’ll likely sell covered calls (June expiration) against any assigned shares from the naked May puts.
I still view AFOP as cyclical and may still liquidate my position in 5-6 quarters from now. But for now, I’d think a good entry point to buy shares has moved up from the $11-12s to the $13-15s given the increase in earnings.
Chris