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  • Trading The Pre-Earnings Volatility Spike On Monsanto, Mosaic And Apollo [View article]
    I'm in MOS 52.5 strangle at 2.58.
    Jan 3, 2012. 10:35 AM | Likes Like |Link to Comment
  • A Review Of 'Expert' 2011 Predictions [View article]
    If your analysis of the market is correct, this should work well. The benefit of my approach is that I don't have to worry about the markets direction.
    Jan 3, 2012. 10:33 AM | Likes Like |Link to Comment
  • My Long-Term, Enhanced Investing-For-Income Strategy [View article]
    K202,

    I just came across this article from your later articles and I think you did an excellent job by explaining the strategy. It makes a lot of sense. In fact, I could never understand why someone would buy a stock at a full price when you can buy it at discount with naked puts plus generate some income with covered calls.
    Jan 2, 2012. 09:53 PM | Likes Like |Link to Comment
  • Positioning For 2012: Guide To The Series [View article]
    I described in my article http://seekingalpha.co... how some of the expert predictions performed in 2011 (hint: many experts had 12 months target price of $18 for BAC and $60 for JPM).
    Jan 2, 2012. 09:42 PM | 1 Like Like |Link to Comment
  • Trading The Pre-Earnings Volatility Spike On Monsanto, Mosaic And Apollo [View article]
    Yes, it is definitely possible to structure the trade this way, and I might do it if the difference in deltas is still too big tomorrow. In fact, in hindsight, I should have done it Friday morning - on Friday IV already jumped 4-5%. But no woulda coulda shoulda..
    Jan 2, 2012. 09:18 PM | Likes Like |Link to Comment
  • A Review Of 'Expert' 2011 Predictions [View article]
    Thank you for your comment Greg.

    Your idea makes sense. But if the stock goes below the strike, you will still lose money. WIth collar, you can structure it in a way that no matter where the stock goes, you lose nothing (but also win nothing). It's like selling the stock. Of course it's matter of personal preference.
    Jan 2, 2012. 08:04 PM | Likes Like |Link to Comment
  • A Review Of 'Expert' 2011 Predictions [View article]
    Thank you DAC. No more inspirational kickbacks from me..

    "Getting Started In Options" by Michael C Thomsett is very good.
    "Options as a Strategic Investment" by Lawrence G. McMillan is considered a classic.
    I personally like "The Rookie's Guide to Options" by Mark Wolfinger very much.
    "Options Made Easy" by Guy Cohen is pretty good.

    For more advanced level, I like Jeff Augen books very much.
    Jan 2, 2012. 07:59 PM | 1 Like Like |Link to Comment
  • A Review Of 'Expert' 2011 Predictions [View article]
    Thank you Gary.
    Jan 2, 2012. 12:17 PM | Likes Like |Link to Comment
  • A Review Of 'Expert' 2011 Predictions [View article]
    When analysts talk about price targets, they refer to 12 months periods, not years. Any stock can recover eventually, even BAC, the question is do you want to bet on it?
    Jan 2, 2012. 12:17 PM | 1 Like Like |Link to Comment
  • A Review Of 'Expert' 2011 Predictions [View article]
    Most of the options strategies that I'm using don't require any knowledge about the company. Many times all I know is the ticker of the company (not even its name) and the history of the options volatility.
    Jan 2, 2012. 12:15 PM | Likes Like |Link to Comment
  • A Review Of 'Expert' 2011 Predictions [View article]
    Thanks kwm.

    Yes, volatility is the name of the game, and we can take advantage of it with options.
    Jan 2, 2012. 12:14 PM | 2 Likes Like |Link to Comment
  • A Review Of 'Expert' 2011 Predictions [View article]
    Cramer had some decent calls, like in MSFT and AAPL cases, but he is right no more often than any of us. At least some people find him amusing..
    Jan 2, 2012. 12:13 PM | Likes Like |Link to Comment
  • A Review Of 'Expert' 2011 Predictions [View article]
    Naked put selling is a good strategy. In fact, I'm wondering why would people ever buy a stock at a full price.
    Jan 2, 2012. 12:11 PM | 1 Like Like |Link to Comment
  • A Good Option Strategy: Exploiting Earnings - Associated Rising Volatility [View article]
    The answer is yes.

    Further you go OTM, the larger is the negative theta and the positive gamma. Larger gamma means more sensitivity to bigger stock move.
    Jan 2, 2012. 12:06 AM | Likes Like |Link to Comment
  • A Good Option Strategy: Exploiting Earnings - Associated Rising Volatility [View article]
    In my opinion, the choice of strikes depends on your outlook on the stock. If you think the stock won't move much before earnings, it's better to go closer to the money and hope to get the gains from the IV increase. This is more conservative choice. But I will let Eric to answer.
    Jan 1, 2012. 11:29 PM | Likes Like |Link to Comment
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