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Gary Lucido  

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  • Whether The Massive Call Buying In Annaly And Other Stocks Is A Signal To Buy [View article]
    So are you saying that you wrote covered calls that were never exercised by the ex-dividend date? If so, that is very interesting. I guess some buyers don't understand the economics or forgot to exercise.
    Jan 5, 2012. 12:54 PM | Likes Like |Link to Comment
  • Whether The Massive Call Buying In Annaly And Other Stocks Is A Signal To Buy [View article]
    Actually, that would be a case where the time value is increasing - i.e. implied volatility goes up.
    Oct 4, 2011. 08:06 AM | Likes Like |Link to Comment
  • Whether The Massive Call Buying In Annaly And Other Stocks Is A Signal To Buy [View article]
    If the calls are increasing in value as you describe then the time value is increasing. But almost always the time value of the calls = the time value of the puts. If not, it creates an arbitrage opportunity. So if the time value of the puts are increasing also then that is bearish.

    Basically, there is no way for the options market to disconnect from the stock market.
    Oct 3, 2011. 08:16 AM | 1 Like Like |Link to Comment
  • Whether The Massive Call Buying In Annaly And Other Stocks Is A Signal To Buy [View article]
    Never understood why call buying is considered bullish. If so, isn't call selling bearish? Wait a minute...call selling = call buying. So it's neither bullish nor bearish.
    Sep 30, 2011. 02:45 PM | 1 Like Like |Link to Comment
  • A Cheaper Way to Hold Long Position Than by Owning LinkedIn [View article]
    A big factor in this phenomenon is the fact that there just isn't enough of this stock available to short. But I'm not a big fan of regulation. People who own this stock only have themselves to blame if they don't choose a better alternative.
    Jul 3, 2011. 01:19 AM | Likes Like |Link to Comment
  • A Cheaper Way to Hold Long Position Than by Owning LinkedIn [View article]
    Correct. But it's really economically equivalent to owning the stock except you pocket an extra $869 no matter what. Here is a good explanation of synthetic longs: www.theoptionsguide.co... except you don't have to use at the money options. Any strike price will work.
    Jul 2, 2011. 11:12 AM | Likes Like |Link to Comment
  • A Cheaper Way to Hold Long Position Than by Owning LinkedIn [View article]
    This post is specifically addressed to people who already own the stock. They should get rid of it and enter into a synthetic long position.
    Jul 1, 2011. 04:29 PM | Likes Like |Link to Comment
  • A Cheaper Way to Hold Long Position Than by Owning LinkedIn [View article]
    No. I'm suggesting that people who already own the stock sell it in exchange for entering into a synthetic long position - or people thinking of buying the stock do the same. The synthetic long position is achieved by selling a put and buying a call at the same strike.

    I am baffled why anyone owns the stock outright with this cheaper alternative out there.
    Jul 1, 2011. 04:25 PM | Likes Like |Link to Comment
  • Saratoga Investment Corp: A Way to Buy Debt at Deep Discount to Book Value [View article]
    Two issues, though I own this:
    1) How the heck do they determine the NAV of an investment that is not publicly traded.
    2) Part of the reason they are trading at such a huge discount to NAV is because their expense ratio is out of sight.
    Nov 17, 2010. 04:06 PM | Likes Like |Link to Comment
  • A Blockbuster Arbitrage Opportunity [View article]
    I was right. They are merging the shares.
    Dec 10, 2009. 10:42 PM | Likes Like |Link to Comment
  • Residential Housing ETFs Reflect Recovery Expectations [View article]
    Actually, these instruments reflect a more optimistic outlook than you think. Their price also reflects the risk of an early termination and the fact that the high expenses will eat away at the NAV of the vehicles: blog.lucidrealty.com/2.../
    Sep 16, 2009. 07:30 AM | Likes Like |Link to Comment
  • Is There a Bad Bet with the MacroShares Housing Funds? [View article]
    There are actually several subtleties with these instruments. For one, the expenses are likely to be higher than 1.25%. I cover the issues here: blog.lucidrealty.com/2.../
    Aug 31, 2009. 05:57 AM | Likes Like |Link to Comment
  • Oil ETFs and ETNs: More Complicated Than You Think [View article]
    I believe that during the period you are referring to oil was not in contango or not nearly in as much contango as it is now.
    Feb 11, 2009. 08:02 AM | Likes Like |Link to Comment
  • Oil ETFs and ETNs: More Complicated Than You Think [View article]
    Unfortunately, I don't think there is a way to buy spot oil. It would require huge storage facilities to implement an instrument like that. As for why OIL and USO have diverged I would have to research it. The only thing I can think of is that they roll their contracts at different times and have been affected differently by contango.


    On Feb 03 07:38 PM NewbieTom wrote:

    > Gary,
    > Another thing... I am into OIL right now.
    >
    > Like you said it tracked right with USO until about a month ago.
    > There seems to be ~4% delta there... Not sure how that works...
    >
    >
    > Any info on that would be great. Thanks.
    Feb 4, 2009. 06:57 AM | Likes Like |Link to Comment
  • Oil ETFs and ETNs: More Complicated Than You Think [View article]
    I have always assumed that OIL and USO work very similarly. Up until very recently they performed almost identically. However, they have diverged in the last month or so. Maybe OIL rolls over at a different time.


    On Feb 01 04:10 AM User 348554 wrote:

    > hey gary thanks alot . How does the oil index work - you explained
    > uso but not oil.
    Feb 1, 2009. 03:22 PM | Likes Like |Link to Comment
COMMENTS STATS
75 Comments
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