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Dr. Terry Allen

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  • A Timely Test Of The Ultimate Hedge Against A Market Crash [View article]
    In the linked article I give all the exact positions. I have since sold 4 Nov-12 45 calls against the uncovered Jan-13 45 calls just to pick up a little premium. I think it is unlikely that VXX will get over 45 by next Friday.
    Nov 8 03:30 PM | Likes Like |Link to Comment
  • A Timely Test Of The Ultimate Hedge Against A Market Crash [View article]
    I have only a single put butterfly, long 141s and 135s and short 2 138s. I never let assignments take place. Tomorrow for the weeklys I will sell the 141 puts and buy back 2 138 puts (each spread) and not bother with selling the 135 puts because they will be trading at less than the commission would cost.
    Nov 8 10:23 AM | Likes Like |Link to Comment
  • The Ultimate Protection Hedge Against A Market Crash? [View article]
    I have been a college professor most of my life and in the academic world the Dr. is used. By the way, I don't have a Ph.D. - it is a Doctorate in Business Administration.
    Nov 5 04:53 PM | Likes Like |Link to Comment
  • The Ultimate Protection Hedge Against A Market Crash? [View article]
    I didn't hide anything - all the spreads are there in the article. I understand that it looks horribly complicated but it was the best way I could figure out how to get coverage in both directions.
    Nov 5 04:52 PM | Likes Like |Link to Comment
  • The Ultimate Protection Hedge Against A Market Crash? [View article]
    I agree with you perfectly.
    Nov 4 09:37 PM | Likes Like |Link to Comment
  • The Ultimate Protection Hedge Against A Market Crash? [View article]
    A couple of things. First, I hope you won't hold my PhD against me. I'm embarrassed enough having it myself.

    Second, while my little strategy is convoluted, it does two things you deny. First, it provides insurance that doesn't cost anything (like your put purchase would cost). Second, it isn't a perfect hedge. If VXX falls more than 14% it starts losing money. I can live with that possibility.

    I am not a contrarian or otherwise. I accept the fact that I have no idea which way the market is headed. So I put some of my money in a hedge that will pay off big time just in case the market does tank. It helps me sleep better at night.
    Nov 4 09:36 PM | 2 Likes Like |Link to Comment
  • The Ultimate Protection Hedge Against A Market Crash? [View article]
    I totally agree with you, and have most of my money is on a big AAPL bounce. Still, it doesn't hurt to have some protection in case there is a general market meltdown, especially when the protection will probably make a little at the same time.
    Nov 4 09:31 PM | Likes Like |Link to Comment
  • The Ultimate Protection Hedge Against A Market Crash? [View article]
    I would be interested to see what strikes and time periods you might use, and also whether the positions would make a gain if VXX fell by as much as 14% or moved higher by any amount and also provided substantial gains if VXX moved substantially higher. My experience with put diagonals is that the upside is severely limited.
    Nov 4 11:59 AM | 1 Like Like |Link to Comment
  • An Options Play For The Upcoming Apple Earnings Announcement [View article]
    I'm sorry it doesn't work for you. It works on my computer and most others.
    Oct 25 08:14 AM | Likes Like |Link to Comment
  • An Options Play For The Upcoming Apple Earnings Announcement [View article]
    Yes.
    Oct 24 04:22 PM | Likes Like |Link to Comment
  • An Interesting Options Play For Green Mountain Coffee Roasters [View article]
    Steady Options has a better idea than mine. Check out the diagonal.
    Oct 21 01:31 PM | Likes Like |Link to Comment
  • An Interesting Options Play For Green Mountain Coffee Roasters [View article]
    My hat is off to you. Yes, that would be a simpler trade with fewer commissions. I agree, and thank you for sharing your good idea.
    Oct 21 01:30 PM | Likes Like |Link to Comment
  • How To Play Google Options Post-Earnings [View article]
    I love the comparison of the above two comments. Guess there is a diversity of opinion about the company.
    Oct 15 06:08 PM | Likes Like |Link to Comment
  • Apple: A Match Or Mismatch For Calendar Spreads? [View article]
    Good explanation of calendar spreads. I might add that they can be used as bullish bets if you select only higher strikes. I wrote a Seeking Alpha article a few weeks ago where I showed how I made 613% in seven weeks using calendar spreads on Apple in a period when the stock was moving higher.
    Oct 15 10:19 AM | 1 Like Like |Link to Comment
  • How To Play The Google Earnings Announcement (Vs. Apple) With Options [View article]
    I agree.
    Oct 14 11:01 AM | Likes Like |Link to Comment
COMMENTS STATS
213 Comments
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