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Charles Brokop

 
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  • These 5 Stocks Hurt By Rising Mortgage Rates Are Set To Bounce Back [View article]
    I agree that both NLY and AGNC are oversold. The recent drop in both earnings and book value have hurt the stocks and the future projections. I believe this is not due as much to rates rising but the pace at which rates spiked higher. If rates go up in a slower pace the Mortgage REIT's can rollout their loans and adjust leverage appropriately to make reasonable rates of return. They have proved that for the past five years. It is when rates move too fast in one direction that it creates unbalance of the borrowing rate & earned return that is heightened with leverage.
    Aug 24 07:16 PM | 7 Likes Like |Link to Comment
  • Get Into Annaly And Earn Up To 42% With This Simple Strategy [View article]
    This is a great article and good information on someone that does not understand spreads. It seems that some reply's do not fully understand the defined risk as well, nor the ability to rewrite a spread prior to expiration. There are commission on trades, yes.......but I believe the author did not even annualize the return on the spread. If you do this 2 times a year it appears even more attractive.
    Oct 27 11:12 AM | Likes Like |Link to Comment
  • Using Options To Take Advantage Of Volatility [View article]
    Mike,

    With many indexes there is a European Settlement, which means it is a cash settlement and nothing gets Put or Call in the traditional sense. There are several ways to protect your positions. You can buy an ETF like SH which is short the SP500 to offer some protection, or you cna do the 2X ETF. I like to buy back positions at a small loss and sell 10 to 20 points down below simultateously as protection in the event that I'm wrong. That gives you more downside room and buffers a loss. Best, Chuck
    Jul 16 11:31 AM | Likes Like |Link to Comment
  • Index Option Hedges Have Not Been Effective [View article]
    You make a great point with volatility and 'Implied volatility' being different. Implied is often a contrarian indicator, when it is low it often signals the calm before the storm or a large sell off. It is interesting that the Black-Sholes Option pricing model uses Implied Volatilty and some have now found flaws with that model and have rewritten it. I rewrote the formula years ago and it have used it with great success. I also don't believe in using 1 hedge, often 2 or more have to be in place to to time premium on options or tracking ETF that use futures and reset prices daily. The VIX and the VXX or VIXY are good examples that just don't track 1 to 1 over a period of weeks. Best to all.
    Jan 27 09:02 PM | Likes Like |Link to Comment
  • Using Options To Take Advantage Of Volatility [View article]
    Thank you for reading and that is a great suggestion, I will offer some real examples and a bit more detail in my next article.
    Jan 23 11:33 AM | Likes Like |Link to Comment
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