Thought I’d post this as a public service announcement

[DOK]

This guy has a couple hundred more shares than me, but important nonetheless.

NOTICE TO UPS EMPLOYEES WITH MERRILL LYNCH ACCOUNTS: Klayman & Toskes, P.A. Files Claim for $500,000 Against Merrill Lynch on Behalf of Former UPS Employee Who Sustained Losses from Unsuitable Covered Call Writing Strategies

 

[clean hairy]

What is call writing strategies?

 

[Nolimitz]

One needs to know WTF they are getting into before doing Puts and Calls. Not for the feint of heart. Did a broker snooker him into it? That is high risk trading.

 

[ManInBrown]

Holy cow. 29,000 shares? Is this an executive or hourly?

 

[Turdferguson]

Is this the same one from 12 years agao?
https://nypost.com/2005/12/19/wrong-package-ups-retiree-cites-merrill-broker-in-3-2m-loss/

 

[Jackburton]

Merrill Lynch didn’t have fiduciary duties during this time, they just now are under this guidelines last year.

edit: seems they just fell under fiduciary laws as of July 2017.

These brokers make commissions per trade and per contract written. Writing calls is how some investment people like to make a little more money on premiums associated with the contracts, depending on the stock. Problem is when you write covered calls, if the price of the stock shoots up beyond the strike price and the premium collected, you’re stuck selling it to the call buyer at the lower price (strike price).

 

[Jackburton]

One needs to know WTF they are getting into before doing Puts and Calls. Not for the feint of heart. Did a broker snooker him into it? That is high risk trading.

I wouldn’t call it high risk, covered calls are used by a lot of advisors to produce “extra income” as the premium in low beta stocks should reflect the movement in the market.

Problem is like the recent run up, covered calls can limit your gains servely if you’re writing them. If you bought the calls, well, you are riding high right about now.

 

[Catatonic]

What is call writing strategies?

Another example is when a person hypothecates their stock there is in that contract that the lending entity has the right to execute margin calls on a stock used for collateral for the hypo loan.

Many UPSers lost a lot of their UPS Shares when the banks executed margin calls back in 2008-2009.
on top of that, the UPSer had to sell additional stock to cover the tax on the long-term gains of their shares.

Luckily for me, I sold most of my stock and paid off my hypo loans in 2006.
I remember the CIO calling me into his office over my selling of my stock ... 2 years later he congratulated me on the move.
Definitely a GREAT financial decision for myself. I might still be working at UPS if I had not sold 80% of my stock back in 2006.

 

[DOK]

What is call writing strategies?

Another example is when a person hypothecates their stock there is in that contract that the lending entity has the right to execute margin calls on a stock used for collateral for the hypo loan.

Many UPSers lost a lot of their UPS Shares when the banks executed margin calls back in 2008-2009.
on top of that, the UPSer had to sell additional stock to cover the tax on the long-term gains of their shares.

Luckily for me, I sold most of my stock and paid off my hypo loans in 2006.
I remember the CIO calling me into his office over my selling of my stock ... 2 years later he congratulated me on the move.
Definitely a GREAT financial decision for myself. I might still be working at UPS if I had not sold 80% of my stock back in 2006.

It’s all very confusing to me margin calls, covered calls etc.

Smart move for you but help a not so savvy investor understand that if you had all the stock that you had sold in 2006 you’d have double your money today at a share price of $130? Wouldn’t you be in a better position today had you not sold?

I’m just so terrified to sell thinking every dollar it goes up money I’ll lose. Very simple investment strategy I have I guess, I just buy and wait lol.

 

[Coldworld]

Holy cow. 29,000 shares? Is this an executive or hourly?

Pt. Sup....

 

[Coldworld]

Holy cow. 29,000 shares? Is this an executive or hourly?

That’s about what @Monkey Butt had before he cashed in...

 

[Catatonic]

It’s all very confusing to me margin calls, covered calls etc.

Smart move for you but help a not so savvy investor understand that if you had all the stock that you had sold in 2006 you’d have double your money today at a share price of $130? Wouldn’t you be in a better position today had you not sold?

I’m just so terrified to sell thinking every dollar it goes up money I’ll lose. Very simple investment strategy I have I guess, I just buy and wait lol.

I did have to pay a lot of tax but now I will pay less taxes when I sell the new investments now.
I sold at $82 a share.
and I have over twice as much but less tax due if sold.
ROTH IRA's are the way to go but I was too old according to the formulas to convert.

 

[Catatonic]

That’s about what @Monkey Butt had before he cashed in...

Add 10,000 shares and you're in the ballpark.
I hypo'ed too much but got lucky on the sell in 2006.

 

[Wally]

What is call writing strategies?

Call Writing:

This is a common strategy utilized by the everyday split driver when they know the regular driver will return the next day. They stop in front of the address or nearby, turn off the truck for telematic reasons, and without ever unfastening the seatbelt, he or she will scan the call tag as a "Not In One". Then they discard the call so the regular driver goes out missing it the next day.

 

[PASinterference]

Call Writing:

This is a common strategy utilized by the everyday split driver when they know the regular driver will return the next day. They stop in front of the address or nearby, turn off the truck for telematic reasons, and without ever unfastening the seatbelt, he or she will scan the call tag as a "Not In One". Then they discard the call so the regular driver goes out missing it the next day.

Our runners use not ready. Then they don't have to scan an info notice and chunk it on the floor.