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George Acs

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  • Margin Accounts For The Conservative Investor [View article]
    Yeah, like me, too. Never guilty, but I once knew a guy who knew a guy. Let's just leave it there.
    Mar 31 05:31 PM | 2 Likes Like |Link to Comment
  • Margin Accounts For The Conservative Investor [View article]
    I think that most online trading platforms give you a warning when you are trading with unsettled funds and refer to the potential for a regulatory violation if the securities are subsequently sold prior to funds settling. Anything that might protect you from a free-riding violation would be a good thing if using a covered option strategy.
    Mar 31 03:39 PM | Likes Like |Link to Comment
  • Margin Accounts For The Conservative Investor [View article]
    It appears, from having done a quick search, that the reference to a "margin IRA" is actually just an account that allows you to trade with unsettled funds. There is no loan liability involved, as that is specifically not allowed in a traditional IRA.
    Mar 31 02:41 PM | Likes Like |Link to Comment
  • Margin Accounts For The Conservative Investor [View article]
    I'm not too concerned about tracking balances, per se. The issue may be one of ensuring that balances neither increase nor decrease on the basis of the addition or subtraction of funds that may be related to some kind of margin loan and/or repayment, due to potential tax consequences in a tax deferred account. But I'm certain they have all of that figured out. As long as the onus to reconcile the account and the potential tax liabilities isn't left to the account owner.
    Mar 31 01:38 PM | Likes Like |Link to Comment
  • Margin Accounts For The Conservative Investor [View article]
    That sounds like an interesting product. I haven't heard of it before, but can imagine that the bookkeeping on someone's end may be something of a nightmare, especially if a traditional IRA. However, it would especially be nice for the dividend plays, particularly since those are really best suited in a tax deferred account for most people.
    Mar 31 01:07 PM | Likes Like |Link to Comment
  • Don't Give Up On Momentum [View article]
    Generally it is buying back the puts at either a gain or a loss and then selling new puts to accrue an additional premium, the net result of which must be a gain. Otherwise, you should consider taking assignment.

    You can easily select the parameters that form the basis for the new premium by manipulating the strike price and/or time frame.

    I want to at least use the same strike price, if not lower and go out one week in the hope of closing the position, but am prepared to go out further or on a recurring basis, as was demonstrated in an article last week (Margin Accounts for the Conservative Investor, using CREE as an example http://seekingalpha.co... )

    I make these trades as a spread, rather than attempting to execute two separate trades, especially when there is a large gap between bid and ask prices on both legs of the trade. I generally will pick the mid-point on each and specify a "Net Credit" and then possibly fine tune that Net Credit offer as I'm getting more motivated to see the trade get executed. Additionally, I do not select "All or None" as my trading choice.
    Mar 31 12:37 PM | Likes Like |Link to Comment
  • Margin Accounts For The Conservative Investor [View article]
    Whoever invented the spreadsheet should get a Nobel Prize.
    Mar 31 11:30 AM | 2 Likes Like |Link to Comment
  • Don't Give Up On Momentum [View article]
    When they work those momentum stocks are great, but they do carry some peril.

    Where possible, and if you sold the Twitter $47 puts, rolling over can be a much better way to manage position than taking assignment. Unless a stock is irreparably broken rolling over generates the income while biding time for a price recovery and eventual expiration of puts contracts that were sold.

    Doesn't always work that way, but when it does, it's a really nice thing to behold.
    Mar 31 09:30 AM | Likes Like |Link to Comment
  • Margin Accounts For The Conservative Investor [View article]
    As an alternative, during periods of low volatility, another consideration is executing a closing transaction on both the shares and the short calls so that you can get your assets back to work for you.

    When volatility is very low, such as right now, you will pay a small additional "surcharge" beyond the intrinsic value of the option to close the position. The supposition is that once you get your assets untied from the shares that are essentially dead money to you until assignment would have occurred is that you will take that money and invest it elsewhere, sell your calls and generate more revenue than the surcharge you paid to get your hostage assets back.
    Mar 30 01:06 PM | 1 Like Like |Link to Comment
  • Don't Give Up On Momentum [View article]
    I'm not certain where the "old tech" statement comes from but your argument is one that could be made at any point in time. The problem is good luck doing it prospectively. It's always easy to pick and choose the companies in hindsight and then compare their relative performances during a period of time that satisfies your underlying thesis.

    I like to invest in a manner that balances risk and reward and believe that even staid performs can return momentum like rewards, but without the risk, by simply being a serial buyer and seller of calls. The reduction in risk is very significant, particularly when greed gets in the way of taking profits on a high flier before the floor falls out.
    Mar 30 08:45 AM | 1 Like Like |Link to Comment
  • Don't Give Up On Momentum [View article]
    As far as seasonality is a synonym for patterns, I'm historically all in.
    Mar 30 08:37 AM | Likes Like |Link to Comment
  • Don't Give Up On Momentum [View article]
    Often there seem to be themes that appear following the previous week's trading. For me it is often based on the weaknesses that may have been evident the prior week or weeks. While I have a preponderance of retailers this week high on my list, it was a past week that saw some very steady names takes losses that were often well in excess of the S&P 500 and I think that may e the over-riding theme for the week going forward.
    Mar 30 08:35 AM | 1 Like Like |Link to Comment
  • Margin Accounts For The Conservative Investor [View article]
    No doubt that the use of options makes investing in the market a much more forgiving experience and makes it less necessary to feel humbled, even when a thesis proves momentarily incorrect.
    Mar 30 08:31 AM | Likes Like |Link to Comment
  • Margin Accounts For The Conservative Investor [View article]
    What I especially like about options is that there are so many ways to approach the use of the product and so many strategies that are well suited to individual temperaments and evolving market situations.
    Mar 30 08:28 AM | 3 Likes Like |Link to Comment
  • Don't Give Up On Momentum [View article]
    Educational fertilizer?

    Thank you?

    While I love what volatility offers and would prefer a declining market in exchange for the volatility into which options can be more profitably sold, the past week, with all of its uncertainty saw a decrease in volatility. I would love to see forward week premiums reflect increased volatility so that I could stagger my expiration dates without giving up premium opportunities.

    As mentioned earlier in reference to an article I wrote about 2 weeks ago at http://j.mp/NniOqe I think that increase in volatility at that time was just a head fake and part of a transient, smaller increase cycle. I think more volatility is coming, but the peak of which may be another 4 weeks away.

    The only problem with the nice sentiment that you closed with is that in heaven we're all winners, so I can't see how being the house could offer any advantage. I'd hate to be the one to adjust the odds that would make losers of some and cause me to be cast out, although down below would offer more opportunities and certainly less guilt.
    Mar 29 06:59 PM | Likes Like |Link to Comment
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