Thanks, but bear in mind that what I've described above isn't roulette. There are, broadly speaking, two ways of using options -- speculation ('roulette') and hedging (insurance). The examples above are of insurance.
Cisco's Price Correction Is Far From Over: Part 2 [View article]
For CSCO longs who may want to add some downside protection now, I showed a couple of ways to hedge it in this instablog post today: http://seekingalpha.co...
Diana Containerships Business Model Continues To Deteriorate [View article]
That's an interesting theory re how DSX might be using its loan. I haven't been following DSX closely, but I took a look at the cost of hedging it today and noticed something interesting. If you're willing to cap your potential upside at 20% over most of the rest of the year, the cost of hedging DSX against a greater than 20% drop over that time frame is pretty inexpensive. I showed the optimal collar for that in this instablog post: http://seekingalpha.co...
ARM Holdings: Imagination's Recent Fall Invites Caution [View article]
For ARMH longs who decide to keep holding the stock but are wary of the threats you and Ashraf have highlighted, I showed a couple of ways to hedge the stock in this instablog post: http://seekingalpha.co...
Silver: Is This The 'Last' Decline? [View article]
Interesting article, I'm glad he linked to it or I wouldn't have seen it. The first thing that popped in my head reading the quote about bubbles from the former helicopter pilot at FIG was that, in hindsight, "bubble" described his own company's share price immediately following its IPO.
Incidentally, earlier this year, I showed two inexpensive ways SLV longs could have hedged their positions in this instablog post: http://bit.ly/1163E88
Purchasing those $350 strike puts would you give you the right to sell your apple shares for $350 between now and October. So, in the worst case scenario, your downside from here would be limited to $350. But, as we've shown in previous examples (e.g., with GLD in this article: http://seekingalpha.co... ).
I like my iPhone 4S as well, but I would differentiate between the company and the stock. I think Apple the company will continue to be profitable for years, but AAPL the stock's best days are behind it.
Incidentally, for those AAPL investors who prefer to hold their shares but are wary of downside, I showed a couple of ways to hedge the stock in an instablog post late last week: http://seekingalpha.co...
Beware Long-Term Damage From Stock Market Bubble Forming Now [View article]
Going to cash is always one alternative, but another alternative is to remain invested and hedge. And as the market has continued to rise, it has been inexpensive to hedge recently, as I showed in this recent instablog post: http://seekingalpha.co...
According to the Bureau of Labor Statistics ( http://1.usa.gov/uNwVWh ), lawyers average $130,880 annually, and physicians & surgeons average $190,060.
I mentioned off-shoring and automation as factors in unemployment above, but it's an absolute lie on your part that immigration has no effect on wages. As Harvard economist George Borjas notes ( http://bit.ly/18OcGOY ):
"An increase in the number of workers leads to lower wages."
"Classifying workers by education level and age and comparing differences across groups over time shows that a 10 percent increase in the size of an education/age group due to the entry of immigrants (both legal and illegal) reduces the wage of native-born men in that group by 3.7 percent and the wage of all native-born workers by 2.5 percent. "
Supply & demand. It's common sense. If there are fewer jobs (due, in part, to offshoring and automation), there is less demand for workers; therefore, it makes no sense to import more job seekers.
Downside Protection For Cisco Systems [View instapost]
Downside Protection For Cisco Systems [View instapost]
Cisco's Price Correction Is Far From Over: Part 2 [View article]
Diana Containerships Business Model Continues To Deteriorate [View article]
ARM Holdings: Imagination's Recent Fall Invites Caution [View article]
Risky Stocks In An Expensive Market [View article]
Silver: Is This The 'Last' Decline? [View article]
Incidentally, earlier this year, I showed two inexpensive ways SLV longs could have hedged their positions in this instablog post: http://bit.ly/1163E88
I hope it saved a few readers some money.
Two Ways Of Hedging Apple [View instapost]
Apple's Magic Is Broken [View article]
Incidentally, for those AAPL investors who prefer to hold their shares but are wary of downside, I showed a couple of ways to hedge the stock in an instablog post late last week: http://seekingalpha.co...
Risky Stocks In An Expensive Market [View article]
And more recently, in this instablog post: http://seekingalpha.co...
Risky Stocks In An Expensive Market [View article]
Beware Long-Term Damage From Stock Market Bubble Forming Now [View article]
Caution May Be Warranted With These Stocks [View article]
J.C. Penney's CEO Discusses Q1 2013 Results - Earnings Call Transcript [View article]
The A.B.E. Of Economics [View article]
I mentioned off-shoring and automation as factors in unemployment above, but it's an absolute lie on your part that immigration has no effect on wages. As Harvard economist George Borjas notes ( http://bit.ly/18OcGOY ):
"An increase in the number of workers leads to lower wages."
"Classifying workers by education level and age and comparing differences across groups over time shows that a 10 percent increase in the size of an education/age group due to the entry of immigrants (both legal and illegal) reduces the wage of native-born men in that group by 3.7 percent and the wage of all native-born workers by 2.5 percent. "
Supply & demand. It's common sense. If there are fewer jobs (due, in part, to offshoring and automation), there is less demand for workers; therefore, it makes no sense to import more job seekers.