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David Pinsen

 
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  • S&P And Brent Breakouts Signal Inflation-Driven Rally [View article]
    The Fed may be OK with seeing gold fall, but I imagine gold investors feel a little differently about that. For those invested via GLD, here are two inexpensive ways to hedge it: http://seekingalpha.co...
    Jan 27 08:34 PM | Likes Like |Link to Comment
  • It's Getting Hard To Be A Gold Bull These Days [View article]
    It might be a little easier to be a gold bull if you knew your downside was protected. Here are two inexpensive ways to do that with GLD: http://seekingalpha.co...
    Jan 27 08:28 PM | Likes Like |Link to Comment
  • Lessons Learned From An Apple Bull [View article]
    626 million people in India practice open defecation: http://bit.ly/120f8Qp

    When you start selling to people who don't use toilets, you are no longer a premium brand, and can no longer charge premium prices. Apple should continue to cede the third world to competitors such as Nokia making cheaper products.

    The best thing for Apple longs to have done was to hedge before last week's drop; I offered a few ideas for doing that on my instablog: http://bit.ly/VbwToJ

    In that post, I also linked to an essay by hedge fund manager and blogger Tim Knight, a long time fan of Apple as a company, who explained why, back in November, he thought the stock's best days were behind it.
    Jan 26 08:01 PM | Likes Like |Link to Comment
  • Lessons Learned From An Apple Bull [View article]
    Sophisticated long term investors often hedge; investing for the long term and hedging are not inconsistent. For example, if you had purchased one of the hedges I mentioned on my instablog ( http://bit.ly/VbwToJ ), and were still bullish on Apple in the long term after its tumble last week, you could have sold your appreciated hedges and used the cash to buy more Apple at a lower price.
    Jan 26 07:03 PM | 1 Like Like |Link to Comment
  • Lessons Learned From An Apple Bull [View article]
    I'm part of the solution. When Apple was hitting highs last year, I was showing investors optimal ways to hedge it against significant losses. For example, in this tweet: http://bit.ly/UtlEeh
    Jan 26 07:00 PM | Likes Like |Link to Comment
  • Best And Worst Performing Stocks On Earnings [View article]
    For NFLX investors looking to hedge after its big run-up last week, here are a couple of ideas: http://seekingalpha.co...
    Jan 26 06:34 PM | Likes Like |Link to Comment
  • Lessons Learned From An Apple Bull [View article]
    Heaven helps those who hedge themselves: http://seekingalpha.co...
    Jan 25 07:42 PM | 1 Like Like |Link to Comment
  • Lessons Learned From An Apple Bull [View article]
    Good, reflective post, Michael. Kudos to you for writing it. Another way to mitigate risk -- something to consider for the future, perhaps -- is to hedge. I wrote about hedging Apple specifically recently, if you'd like to take a look: http://bit.ly/VbwToJ
    Jan 25 06:37 AM | 10 Likes Like |Link to Comment
  • Mr. Market Should Be Looking At Apple's Cash Flow Rather Than Its Profits [View article]
    Tim Knight made a similar point about Apple back in November, as I noted on my instablog: http://seekingalpha.co...
    Jan 25 06:29 AM | 1 Like Like |Link to Comment
  • Two Ways To Hedge AAPL And RIMM [View instapost]
    In&Out,

    Thanks for the comment.

    Clearly, if you think 100% plus gains are likely in a security, you wouldn't want to cap your potential upside at 15%. You would cap it at 15% if you thought the stock probably wasn't going to appreciate more than that over the next several months. I don't know what RIMM's future prospects are; I included it as an example of a stock too expensive to hedge against a >20% drop over the time frame in question with optimal puts, but not too expensive to hedge with n optimal collar.

    Congrats on your success trading RIMM options so far.
    Jan 21 01:58 PM | Likes Like |Link to Comment
  • 5 Undervalued Healthcare Stocks That Analysts Love [View article]
    Analysts "love" ALR? According to Fidelity, it has more "underperform" and "sell" ratings by analysts than it does "buy" or "outperform". GMI gives it an Accounting and Governance Risk of "Very Aggressive" (bottom 10%), and technically, its chart looks like crap.
    Aug 29 02:22 PM | Likes Like |Link to Comment
  • Get Hedged By Thursday As Merkel Says 'Nein!' And The Fire Nears France [View article]
    Interesting article, Josh. Another way to hedge would be to buy optimal puts on an index-tracking ETF. I wrote about that in an article last year: http://seekingalpha.co...
    Jun 27 01:15 AM | Likes Like |Link to Comment
  • As Natural Gas Edges Out Thermal Coal, A Look At Hedging Coal Miners [View article]
    Related to this article: "Coal Inventory at Chinese Ports Hits Record High" -- http://read.bi/MQsJRk

    (Hat tip to John Rothe: http://bit.ly/LlQuwJ ).
    Jun 25 03:17 PM | Likes Like |Link to Comment
  • Avoiding 'A Harsh Lesson' While Investing For Yield [View article]
    Nstollon,

    Thanks for your comment. The table is telling you what the optimal hedging costs were; it doesn't speculate as to why the costs were what they were, but I believe the first possibility you mention (sentiment/expectation of future price drops) is worth bearing in mind. We've seen examples in the past (e.g.: http://seekingalpha.co... ) of stocks with higher optimal hedging costs under performing those with lower optimal hedging costs.

    Portfolio Armor's chief quant consultant and I have discussed conducting an academic study on this, using historical options pricing data he has available at the university where he is currently finishing a post doctoral fellowship, but between his current academic responsibilities and the work he's doing for Portfolio Armor now (testing the soon-to-be added optimal collar algorithm), we haven't had an opportunity to pursue that yet.
    Jun 18 05:30 PM | Likes Like |Link to Comment
  • Avoiding 'A Harsh Lesson' While Investing For Yield [View article]
    TopDogInvesting,

    Impressive. Thanks for the comment.
    Jun 17 03:33 PM | Likes Like |Link to Comment
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