these two trades will start off the thread will see how well/poorly I do on a few trades, mainly to see what worked and what did not.
these were first posted in Bakers Nasdaq thread.
note: I have writen more puts on Williams and own more shares with covered calls, similar to the trades below since this post; this may effect my outlook.
Williams went up $2.49 there is a story on why in this thread, the puts are doing well, the calls are already in the money and perphaps I wrote them to low, still if I lose the stock will still gain +17.75% (not counting div+ or comission-) in roughly seven months, not a bad trade. May roll up and out will see in July or August.
Recently have been looking at Williams WMB - they have been caught up with Enron and also have problems of their own.
still Feb 19, close $16.72
1. WMB buy 400 $16.72
sell covered calls August $17.50 (last $2.40) bid $2.20 ask $2.50
400 X $2.20 = $880
2. WMB write 4 August 15 puts last $1.95 bid $2 ask $2.40
400 X $2 = $800
plus commissions costs
warning = usually trade Canadian stocks would rate Williams risk level high. still let us see how it turns out.
thanks
selkirk
Williams Resolves Major Issues Related to Debt of Former Subsidiary
16:26 EST Tuesday, March 05, 2002
TULSA, Okla., March 5 /PRNewswire-FirstCall/ -- Williams (NYSE: WMB) today announced a significant step toward resolving major issues related to certain financial obligations of its former telecommunications subsidiary.
As a result of successful negotiations with noteholders, Williams has confirmed its responsibility for semiannual interest payments on the $1.4 billion WCG Note Trust notes. The debt, which matures in March 2004, will be reflected on Williams' balance sheet in 2002. As a result of today's agreement, Williams expects that any change in the business condition of Williams Communications Group will have no impact on this note.
Financial terms of the deal were not disclosed. The consent is effective immediately.
Under terms prior to the negotiations with noteholders, the notes were contingent liabilities of Williams with the full $1.4 billion due upon certain changes in the business condition of Williams Communications Group or a trigger directly tied to Williams' credit ratings. The restructured terms remove those triggers.
"This is a very positive development -- one that we believe will be well- received by credit-rating agencies and lenders. We believe our stockholders also should feel more confident that this eliminates any substantial near term cash requirement related to this issue," said Steve Malcolm, president and CEO of Williams.
"We are continuing to resolve these financial issues in a manner that is designed to preserve the financial flexibility and appropriate debt and equity levels that support our investment-grade credit rating," Malcolm said. "The major elements in our effort include today's restructuring of the WCG Note Trust notes, reduced capital spending, asset sales, issuing securities that will result in the issuance of common equity and reducing costs. In addition to what we've already achieved in this area, we will continue to pursue additional measures that we believe best enable the long-term success of the company and meet the credit-rating agencies' new, more conservative standards for an investment-grade balance sheet."
Malcolm said the company plans to release audited 2001 earnings prior to a March 8 analyst conference.
Williams, which on Jan. 29 reported record recurring 2001 segment profit of $2.7 billion, has previously announced a balance-sheet strengthening plan that includes the issuance of $1.1 billion in securities, which has already been accomplished, reduction of 2002 capital spending of $1 billion or more, the sale of assets, and reductions in operating expenses. Part of that overall plan included the removal of triggering events such as the ones eliminated today.
The solicitation agent for the WCG Note Trust consent agreement was Salomon Smith Barney.
About Williams
Williams, through its subsidiaries, connects businesses to energy, delivering innovative, reliable products and services. Williams information is available at www.williams.com .
Portions of this document may constitute "forward-looking statements" as defined by federal law. Although the company believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Any such statements are made in reliance on the "safe harbor" protections provided under the Private Securities Reform Act of 1995. Additional information about issues that could lead to material changes in performance is contained in the company's annual reports filed with the Securities and Exchange.
these were first posted in Bakers Nasdaq thread.
note: I have writen more puts on Williams and own more shares with covered calls, similar to the trades below since this post; this may effect my outlook.
Williams went up $2.49 there is a story on why in this thread, the puts are doing well, the calls are already in the money and perphaps I wrote them to low, still if I lose the stock will still gain +17.75% (not counting div+ or comission-) in roughly seven months, not a bad trade. May roll up and out will see in July or August.
Recently have been looking at Williams WMB - they have been caught up with Enron and also have problems of their own.
still Feb 19, close $16.72
1. WMB buy 400 $16.72
sell covered calls August $17.50 (last $2.40) bid $2.20 ask $2.50
400 X $2.20 = $880
2. WMB write 4 August 15 puts last $1.95 bid $2 ask $2.40
400 X $2 = $800
plus commissions costs
warning = usually trade Canadian stocks would rate Williams risk level high. still let us see how it turns out.
thanks
selkirk
Williams Resolves Major Issues Related to Debt of Former Subsidiary
16:26 EST Tuesday, March 05, 2002
TULSA, Okla., March 5 /PRNewswire-FirstCall/ -- Williams (NYSE: WMB) today announced a significant step toward resolving major issues related to certain financial obligations of its former telecommunications subsidiary.
As a result of successful negotiations with noteholders, Williams has confirmed its responsibility for semiannual interest payments on the $1.4 billion WCG Note Trust notes. The debt, which matures in March 2004, will be reflected on Williams' balance sheet in 2002. As a result of today's agreement, Williams expects that any change in the business condition of Williams Communications Group will have no impact on this note.
Financial terms of the deal were not disclosed. The consent is effective immediately.
Under terms prior to the negotiations with noteholders, the notes were contingent liabilities of Williams with the full $1.4 billion due upon certain changes in the business condition of Williams Communications Group or a trigger directly tied to Williams' credit ratings. The restructured terms remove those triggers.
"This is a very positive development -- one that we believe will be well- received by credit-rating agencies and lenders. We believe our stockholders also should feel more confident that this eliminates any substantial near term cash requirement related to this issue," said Steve Malcolm, president and CEO of Williams.
"We are continuing to resolve these financial issues in a manner that is designed to preserve the financial flexibility and appropriate debt and equity levels that support our investment-grade credit rating," Malcolm said. "The major elements in our effort include today's restructuring of the WCG Note Trust notes, reduced capital spending, asset sales, issuing securities that will result in the issuance of common equity and reducing costs. In addition to what we've already achieved in this area, we will continue to pursue additional measures that we believe best enable the long-term success of the company and meet the credit-rating agencies' new, more conservative standards for an investment-grade balance sheet."
Malcolm said the company plans to release audited 2001 earnings prior to a March 8 analyst conference.
Williams, which on Jan. 29 reported record recurring 2001 segment profit of $2.7 billion, has previously announced a balance-sheet strengthening plan that includes the issuance of $1.1 billion in securities, which has already been accomplished, reduction of 2002 capital spending of $1 billion or more, the sale of assets, and reductions in operating expenses. Part of that overall plan included the removal of triggering events such as the ones eliminated today.
The solicitation agent for the WCG Note Trust consent agreement was Salomon Smith Barney.
About Williams
Williams, through its subsidiaries, connects businesses to energy, delivering innovative, reliable products and services. Williams information is available at www.williams.com .
Portions of this document may constitute "forward-looking statements" as defined by federal law. Although the company believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Any such statements are made in reliance on the "safe harbor" protections provided under the Private Securities Reform Act of 1995. Additional information about issues that could lead to material changes in performance is contained in the company's annual reports filed with the Securities and Exchange.
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