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  • Nokia: This Stock May Surprise You. Here's Why [View article]
    Well, my long and option position in Nokia is already showing a ROI of 10% so far in less than a week. A bit more upside and we will be talking some real money.

    If that is insanity, then you can keep any lost marbles.
    Jul 21 02:46 PM | Likes Like |Link to Comment
  • Is Whitney Tilson Smarter Than These Great Investors? [View article]
    Don´t be so sure about that. I looked into this issue in some detail last year, read many articles, annual reports, etc., had some private correspondence with an accountant in Australia and came to the conclusion that Tilson is probably right. It is also reasonable to assume that he may have some information that he has not published.

    I would be extremely wary of taking a long position in Interoil, or if I did, I would want it very well hedged, but I think there are better investment opportunities elsewhere.
    Jul 21 08:02 AM | Likes Like |Link to Comment
  • Nokia: This Stock May Surprise You. Here's Why [View article]
    Not exactly, because the devil is always in the details, and with the options trade the stock could be down, but you would still be in profit. However, selling puts IS a long position,and the supposition is that there is an excellent chance that Nokia stock may recover from its current swoon if the Windows phone catches on.

    With the Facebook-Skype-Nokia hookup, you could see a worldwide epidemic of phone sex that would make billions. (I know, I know, but one has to look at potential real life applications!)
    Jul 20 04:41 PM | Likes Like |Link to Comment
  • 6 Stocks that Make Good Bear Call Spread Writing Candidates [View article]
    SInce in bear call spreads what you want to do is sell premium and then let the theta decay, you don´t necessarily have to locate stocks that you think are overvalued, as stocks that are unlikely to move sharply upwards are just as good if you don´t mind waiting for your money.

    In a recent comment on these boards a gentleman who has recently quit working for a hedge fund and who has an interest in natural resources suggested that BHP Billiton stock could not be expected to make much headway due to the already very large size of the conglomerate and the vast number of shares outstanding.

    This seems like a rational thesis for selling bear call spreads. Find companies that are too big to grow explosively, pay dividends, and yet have sufficient volatility to make premium harvesting profitable. Bought on upward volatility spikes and rallies such companies should yield up some of their wealth to the investor.
    Jul 13 09:00 AM | Likes Like |Link to Comment
  • Sirius's Shares Heading for a Major Slump [View article]
    The author has written a number of articles on SeekingAlpha mostly indicating companies that he believes may be overvalued or whose stocks could be vulnerable should the market tank. Phil´s Stock World is also an excellent source of information and discussion on longs, shorts, covered calls, hedging, and other topics of interest. Just write Philip Davis in the search box.
    Jul 12 01:55 PM | Likes Like |Link to Comment
  • America the Jobless Ghost Ship Sails Onward [View article]
    As I recall, after the assassination of President Garfield in 1870, competitive exams were introducedfor post office jobs, a kind of IQ test. This means that the post office is full of brilliant test takers who couldn´t get jobs elsewhere for one reason or another.

    Still, great literacy skills come in handy reading addresses.

    What you say about college may be true of many degree subjects, although there is a certain irony that nursing courses are in short supply and are always 100% subscribed, but that the US cannot educate enough doctors to meet the demand and imports many medical graduates from overseas. In one hospital I worked at almost none of the physicians were US born,the largest number being from Vietnam and from an assortment of South and Central American countries.

    So interesting that we may have lost the war in Vietnam, but we got most of their doctors!
    Jul 10 08:14 PM | Likes Like |Link to Comment
  • Not a Short Covering Rally [View article]
    First generation American versus heritage Americans is not really a matter of race as there may be many races in both categories. It is just that once people start to buy into the profit at any cost mentality that is so predominant in the US business world, then their value to customers diminishes.

    For example, the first generation business person might be proud to make the best hamburgers in town, but the second generation entrepreneur looks to make hamburgers as cheaply as possible and sell them as high as posssible, thus adding less value from the consumer point of view.

    I only comment on my car repair guy being Muslim, because he has a newpaper article about pork on the wall of his reception area and because in many circles in the US Muslims are looked down upon due to association with terrorism, etc. whereas actually their religious principles may guide their business practices .

    Islam, as a matter of principle, prohibits all activities which may cause harm either to the traders or the consumers in the market.
    Jul 9 09:26 PM | Likes Like |Link to Comment
  • What the VIX Is Telling Investors [View article]
    One of the best recent articles on SA.

    @Convo. Making money is definitely good, and there are almost inumerable strategies available. Right now I am short OTM AAPL put spreads in the expectation that the stock will continue to run up into earnings for the next few days, intending to close position before earnings and possibly sell OTM call spreads after earnings.

    By selling call spreads on VXX you are essentially short VIX or long the market. By setting a baited line and selling onto spikes, you are juicing the potential of the transaction, but the biggest danger is that sudden negative news (say a political assassination) drives the VIX quickly upwards outside the limits of your spread.

    The question is really whether the risk to reward of this particular trade offers gains greater than can be had elsehwhere for less or the same risk. Why not sell bull put spreads too at times of antispikes and make it into an iron condor? I t seems to me that the VIX can only revert to a level when fear subsides, and has little potential to spike sharply downwards.

    Or when volatility spikes does this have an inverse effect on the price of VXX puts so that more expensive SP500 puts cause cheaper VXX puts?
    Jul 9 10:50 AM | Likes Like |Link to Comment
  • The Black Hole of Financialization: Zero-Sum Profits vs. Beneficial Wealth Creation [View article]
    My understanding is that credit default swaps are actually insurance, only by another name to avoid regulation. Compare this to women offering something called body rubs to avoid being regulated by the state board of licensed massage therapists. I would assume that now the game has been exposed no sophisticated investor would get sucked into CDS without knowing that the game is rigged. Perhaps there are some tribal chiefs with teepees on oilfields somewhere who have not heard about VDS yet.
    Jul 8 04:26 PM | Likes Like |Link to Comment
  • Monday Madness - Greece Is a Drop in the Bucket Compared With Us [View article]
    Yes, but the teaching of Christianity includes the concept that all men are brothers, and the teachings of Jesus, such as the parable of the Good Samaritan strongly support this concept.

    I would imagine the ideal would be for the parents of a handicapped child to do whatever they can with the support of the whole community if and as needed.

    I am here in the Dominican Republic as I write, and there is no welfare or unemployment here, but on the other hand you have people who are mentally handicapped working as unpaid labor in family business, disabled people begging in the streets, and many single mothers supporting their children by prostitution.

    I guess you would say this is good, because they all maintain their independence, but I think there has to be some kind of equilibrium to maintain a balance between independence and state interference and to prevent the complete breakdown of orderly society. We see often enough on TV via the Middle East how quickly a seemingly orderly nation can break down into complete disorder. People think it couldn't happen here in the US, but I would not bet the farm on it.

    I'm not religious, but clearly there are many different perspectives that all claim to be theologically correct.
    Jul 4 12:00 PM | Likes Like |Link to Comment
  • Why Covered Call Writing Is No Free Lunch [View article]
    In the case of a stock like AAPL that has no dividend, it would certainly appear that the covered LEAP is a more efficient use of capital. One might buy three or four LEAPs with a decent delta, depending on your taste for risk, for the price of 100 shares, and thus get 3 or 4 x the return on covered calls.
    Jul 3 04:15 PM | Likes Like |Link to Comment
  • If a CEO was running the show in the U.S., the option on the table would be to raise taxes and cut spending at the same time, Buttonwood writes. It's not only the rapid pace of government spending that has led to ballooning deficits, but tax receipts have fallen off since 2000. Will anyone in Congress dare suggest the idea?  [View news story]
    Can't we just have the same program as the Greeks?
    Jul 2 04:33 PM | Likes Like |Link to Comment
  • If a CEO was running the show in the U.S., the option on the table would be to raise taxes and cut spending at the same time, Buttonwood writes. It's not only the rapid pace of government spending that has led to ballooning deficits, but tax receipts have fallen off since 2000. Will anyone in Congress dare suggest the idea?  [View news story]
    Success is given its due reward in the Cayman Islands.
    Jul 2 04:32 PM | Likes Like |Link to Comment
  • If a CEO was running the show in the U.S., the option on the table would be to raise taxes and cut spending at the same time, Buttonwood writes. It's not only the rapid pace of government spending that has led to ballooning deficits, but tax receipts have fallen off since 2000. Will anyone in Congress dare suggest the idea?  [View news story]
    George Harrison wrote that song, as is well known.
    Jul 2 04:30 PM | Likes Like |Link to Comment
  • Why Covered Call Writing Is No Free Lunch [View article]
    Good post. 4 of your stocks are on my list.
    Jul 2 12:08 PM | Likes Like |Link to Comment
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