The Facts Dispute The Claim That The Short-Term Volatility ETF Drifts Lower And Spikes Higher [View article]
I haven't disappeared, and my facts stand for themselves. My point was just that spikes don't just occur to the upside - in fact, they are more likely on the downside. By the way, my portfolio that bets on VXX falling has made over 20% this month.
How To Play The Starbucks Earnings Announcement [View article]
George - Wonderful to hear from you. I read everything you write if only for your humor which always brightens my day.
After reading your comments I think I will add some SBUX calendars that should make about 40% this week as long as the stock doesn't fluctuate over $4 which you suggest might be what happens. I won't hold you responsible for any possible losses (nor will I share any gains).
Keep your readers smiling! We love your off-beat thoughts.
How To Play The Starbucks Earnings Announcement [View article]
Good questions with no easy answers, I'm afraid. I chose 15 just because it was a good deal more than the number of straddles I owned. If I were more worried about a big move I would have bought more.
The best time is a tough question, too. I plan on buying and selling the straddles Wednesday and then the extra straddles nearer to the end of the day on Thursday just in case they might have decayed a little bit, but that timing is a pure crapshoot. Good luck.
How To Play The Starbucks Earnings Announcement [View article]
Good question - I used the average IV of the at-the-money puts and calls for each series as the best measure of the implied volatility for that series. That has proved to be the most accurate measure.
A Remarkably Safe Way To Play The Apple Earnings Announcement [View article]
I agree with you that they are the same as two calendars, as well as your experience with the other stocks. That why I emphasized that it would probably not work with using Feb options as the long side - IV will plummet for that series while it shouldn't for the April options.
A Remarkably Safe Way To Play The Apple Earnings Announcement [View article]
I spent a lot of time checking out the strangle alternative, lower-strike puts and higher-strike calls rather than a straddles for the extra positions - it reduced the initial cost but did not deliver quite as much protection in the event of a huge move in the stock.
How To Play The eBay Earnings Announcement [View article]
I addressed the possibility of an IV collapse in my article. You only have to worry about the IV of the February options since the January ones will all expire, and it was only 35 yesterday while it normally is about 33, so no collapse is likely. 100% is still possible, but I will be happy with 50% for the week.
How To Play The eBay Earnings Announcement [View article]
I plan to close out the "investment" on Friday. Given the initial reaction to the earnings announcement, I will be disappointed if I don't make at least 50% on my money after commissions. It could be a whole lot more.
Implications Of Herbalife's Soaring Short Interest Ratio [View article]
Thanks for your kind words. I sure hope I am right so I can avoid those gibes and taunts. The good thing about the calendar spreads is that I really don't have to be absolutely right - the stock can go down and I still make money (just as long as it doesn't go down too much).
More Reasons Why Herbalife Is Headed Higher [View article]
A short squeeze is a real possibility here. When you short a stock that doesn't pay a dividend your only cost is the money you have tied up. When that company pays a dividend, you, the short seller, must pay the dividend. In Herbalife's case, Ackman will have to shell out $32 million a year. I suspect the short sellers won't maintain their short positions for the long term and a short squeeze will come along when they start unwinding their positions.
As the battle heats up between Herbalife (HLF +3.8%) and hedge fund short sell Bill Ackman, the SEC's enforcement division has opened an inquiry into the company, being led by enforcement officials in the SEC's New York office. The inquiry comes on the back of earlier scrutiny of its financial disclosures by the regulator's corporation finance division last year, and just a day before its meeting with investors to rebut the accusations that the direct seller is a ponzi scheme. [View news story]
I must disagree with the article. There is a huge difference between a Ponzi scheme and a pyramid operation (the rules are fuzzy here, but not for the Ponzi).
How To Play The Starbucks Earnings Announcement [View article]
I do like your thinking process. The broker must like you, too.
The Facts Dispute The Claim That The Short-Term Volatility ETF Drifts Lower And Spikes Higher [View article]
How To Play The Starbucks Earnings Announcement [View article]
After reading your comments I think I will add some SBUX calendars that should make about 40% this week as long as the stock doesn't fluctuate over $4 which you suggest might be what happens. I won't hold you responsible for any possible losses (nor will I share any gains).
Keep your readers smiling! We love your off-beat thoughts.
Terry
How To Play The Starbucks Earnings Announcement [View article]
The best time is a tough question, too. I plan on buying and selling the straddles Wednesday and then the extra straddles nearer to the end of the day on Thursday just in case they might have decayed a little bit, but that timing is a pure crapshoot. Good luck.
How To Play The Starbucks Earnings Announcement [View article]
A Remarkably Safe Way To Play The Apple Earnings Announcement [View article]
A Remarkably Safe Way To Play The Apple Earnings Announcement [View article]
How To Play The eBay Earnings Announcement [View article]
How To Play The eBay Earnings Announcement [View article]
How To Play The eBay Earnings Announcement [View article]
How To Play The eBay Earnings Announcement [View article]
How To Play The eBay Earnings Announcement [View article]
Implications Of Herbalife's Soaring Short Interest Ratio [View article]
More Reasons Why Herbalife Is Headed Higher [View article]
As the battle heats up between Herbalife (HLF +3.8%) and hedge fund short sell Bill Ackman, the SEC's enforcement division has opened an inquiry into the company, being led by enforcement officials in the SEC's New York office. The inquiry comes on the back of earlier scrutiny of its financial disclosures by the regulator's corporation finance division last year, and just a day before its meeting with investors to rebut the accusations that the direct seller is a ponzi scheme. [View news story]