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George Acs  

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  • I Could Do With Less Transparency [View article]
    Thanks. Good to know, but still perplexing
    Mar 2, 2015. 05:03 PM | Likes Like |Link to Comment
  • I Could Do With Less Transparency [View article]
    It's all about the business.

    Way behind the curve my wife and I just started watching "House of Cards." Living in the DC Beltway area watching only the first 2 episodes thus far does nothing to dispel the belief that we should know as little about the process as possible.

    Somehow I forgot to include a reference to sausage making in the article. Some times it's just best not to have any clue.
    Mar 1, 2015. 05:20 PM | Likes Like |Link to Comment
  • I Could Do With Less Transparency [View article]
    Thank you.

    My son had an account there a few years ago and when asked, was told that the ability to sell covered puts was coming "soon."

    I definitely do understand wanting to provide a level of consumer protection, but maybe some tighter reins on margin would be a better place to focus upon.
    Mar 1, 2015. 05:16 PM | Likes Like |Link to Comment
  • I Could Do With Less Transparency [View article]
    It takes some of the premium out, but in the event of a large decline in share price what takes over is the momentum and the uncertainty of even further price drops.

    Getting called early on a put is a little surprising unless the holder of the contract thought shares were going to rebound quickly or the option was so deep in the money that there was no longer any particular advantage to trying to trade the option itself, as time was also running out on the contract.

    I actually bought shares in the afterhours following earnings, something that I very rarely do. I thought that the selling was over done at that point and thought that there would be a decent rebound in the morning, as there was already one during the after-hours that would have allowed a quick profit if I had closed out the position.

    But the next morning shares really dived further during and after Meg Whitman's interview on CNBC. She offered a really weak defense of HP's prospects, put far too much emphasis on currency and the costs related to the break-up process.

    I think that if the market moves higher or stays at the same level in the near term HP will make back all of what it just lost fairly quickly, if Friday's performance is going to be any indication.
    Mar 1, 2015. 04:35 PM | Likes Like |Link to Comment
  • I Could Do With Less Transparency [View article]
    Thanks, but that wasn't always the case. The last time I heard any one comment about Scottrade specifically not allowing cash covered put sales was probably a year ago. I'm certain that the brokerages that don't must have had their reasons, just as those that have made the change, as @MadMary indicated that her brokerage has done, must have had their reasons, too.

    Sometimes, though, those reasons may be a mystery, particularly as selling a cash covered put carries no more risk than buying stock shares outright.
    Mar 1, 2015. 04:22 PM | Likes Like |Link to Comment
  • I Could Do With Less Transparency [View article]
    Sometimes you just need to get rid of the skates and go for a swim
    Mar 1, 2015. 03:43 PM | Likes Like |Link to Comment
  • I Could Do With Less Transparency [View article]
    If they're otherwise in a buy and hold kind of an account you can supplement their income then by selecting a "stretch" strike level - one that you wouldn't expect it to reach even in that one year time frame. If you can add an additional 1% a year on your return then you're way ahead of most everyone else.

    The nice thing is that if you have one of those blue chips assigned there is almost always another blue chip that will have been a relative under-performer ready to take its place.
    Mar 1, 2015. 03:35 PM | Likes Like |Link to Comment
  • I Could Do With Less Transparency [View article]
    I think that may be an entirely different discussion. I assume that the information has validity, even as it may be adjusted at some later point. That assumption is also predicated on the belief that rational people will also take the information at face value, but apply their own subjective interpretations to it.

    For me, it's an issue of too much information and no real weighting system such that disparate bits of information may have disproportionate impacts on markets.

    The challenge for the mindful individual is to place the barrage of data into perspective and to not over-react to the bits as they flow.

    For those who blindly accept what they hear or read from self-proclaimed experts who rarely engage in introspection life is pretty easy. You either completely embrace what you've heard and stick with it despite evidence to the contrary, or you completely walk away from it to another point of view that is equally invalidated.
    Mar 1, 2015. 02:16 PM | Likes Like |Link to Comment
  • I Could Do With Less Transparency [View article]
    Temperament is a big part of any strategy and if you can't match temperament to the strategy it makes for lots of unnecessary angst and anxiety.

    It's funny, but I can't stomach the idea of putting even a quarter into a slot machine, but think little about weekly stock purchases. In the meantime I have some very good friends who think nothing of walking up to a roulette wheel and throwing an obscene amount on red/black while having sleepless nights over a dollar drop in IBM.

    Go figure.
    Mar 1, 2015. 02:07 PM | 2 Likes Like |Link to Comment
  • I Could Do With Less Transparency [View article]
    That would mean I'd actually have to read the article.

    But you ask the question that should be on the minds of anyone with cash available to invest. At these levels it's not easy finding something that may be worthy or at least not over valued.

    I don't short stocks, but looking at your collection of charts, there may be no more compelling short than the SPX, but logic has a way of being ridiculed by reality.
    Mar 1, 2015. 01:38 PM | Likes Like |Link to Comment
  • I Could Do With Less Transparency [View article]
    A thoughtful and thought provoking article, as usual.
    Mar 1, 2015. 01:19 PM | Likes Like |Link to Comment
  • I Could Do With Less Transparency [View article]
    Thanks.

    The safety issue with tax deferred accounts is pretty important not only for the use of options but in stock selection, as well. Without the possibility of having some tax benefits from taking a loss, I prefer to stay away from the MOMENTUM kind of stocks in those accounts.

    On the other hand, I think the sale of stock options in a tax deferred account is great, as you don't have to deal with the issue of the short term capital gains, which are the case even if selling LEAPS.
    Mar 1, 2015. 01:17 PM | 1 Like Like |Link to Comment
  • I Could Do With Less Transparency [View article]
    Thank you.

    I don't short stocks, only their options, most frequently calls.

    The strategy that you are referring to, the use of covered puts, is generally practiced in a high interest rate environment where you sell very deep in the money puts and short the shares, investing the proceeds from the put sales into an interest bearing instrument and hope that shares don't move higher before expiration.

    I simply like selling cash covered puts, as long as a stock is not about to go ex-dividend and I think that shares have either finished their short term decline or will be staying flat or going higher.

    I've thought about documenting a case study on my 1 year experience with Twitter, which included starting with the sale of cash covered puts on numerous occasions that included their expiration, their rollover to avoid assignment and their assignment with the eventual need to sell calls.

    The blow by blow of about 50 trades (the various lots are color coded) that demonstrates how such a position(s) can be managed through stock price variations is at http://bit.ly/1E6xWzq

    I think that cash covered put sales are a great addition to the arsenal and have had a hard time understanding why some brokerages, such as ScottTrade have not offered them to customers.
    Mar 1, 2015. 01:12 PM | Likes Like |Link to Comment
  • I Could Do With Less Transparency [View article]
    You're right, in global terms, but this time around it was all about the timing of that volatility.

    When the week is coming to its end and I've made the mistake of counting my chickens before they're hatched, I could do without that volatility.
    Mar 1, 2015. 11:19 AM | 1 Like Like |Link to Comment
  • I Could Do With Less Transparency [View article]
    It's all in the definition and perspective.

    Physical laws confirm that information travels faster when the opaqueness of the interface is decreased and there's no doubt that the information is traveling faster and faster, to the point that we look at nano-seconds these days.

    As all of that information piles up waiting to be intelligently processed it does become noise and we generally push out those bits of information that seem to be dated or don't fit into some developing thesis that could change with the very next bit of information to come our way.

    I don't worry too much about holding the bag on some positions, as long as all of those other positions keep piling up those small weekly increments. At the very least it buys time for what is, for most stocks, a return to earlier levels, as some variation of a sine wave is the norm for most
    Mar 1, 2015. 11:16 AM | Likes Like |Link to Comment
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