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  • 10 Rules For Trading Calendar Spreads [View article]
    As with any strategy, there are advantages and disadvantages of doing double/triple calendar vs. single. The biggest disadvantage of multiple is that you significantly reduce your positive theta which is the main driver behind this strategy. The reason is that theta is the highest for ATM strikes and goes down as you go further OTM. So yes, if the stock starts to move, the double MIGHT do better. However, in my example, if you do say 530/560 instead of 545, and the stock moves up, the 560 will make money but 530 will start losing, so overall gain will be not much higher than the 545.

    The key as always is timely adjustments. It is absolutely critical to keep the deltas under control.

    You can see a case study here http://bit.ly/15swg2A where I did an AAPL 450 calendar, the stock moved to under 400, but the trade could still be profitable with proper adjustments.
    Sep 14 10:24 AM | Likes Like |Link to Comment
  • Why The Dow Is An Imprecise Measure Of The Market [View article]
    I wouldn't hold my breath waiting for Dr. Allen to respond. Take a look at this article http://seekingalpha.co... where he recommended a trade that lost 85%. We didn't hear from him the next day.

    You also might want to check out this post http://bit.ly/18XaGmg to see how his investments are performing. This guy calls himself an expert.
    Sep 13 04:07 PM | Likes Like |Link to Comment
  • Why The Dow Is An Imprecise Measure Of The Market [View article]
    The biggest problem with the Dow is the fact that this is a price-weighted index (compared to capitalization-weighted index like S&P). That means that a $100 stock will have 10 times more impact than a $10 stock even if they have the same market cap.

    The rest of the article is a complete nonsense. How is it relevant that the companies added have been good performers?? Who said they will continue performing well?

    btw, S&P is outperforming the Dow most of the time, so this argument is irrelevant as well.
    Sep 11 03:56 PM | 1 Like Like |Link to Comment
  • Is It Worth Listening To Newspaper Tips Or Investment Newsletters? [View article]
    ".but really, this investing stuff isn't that hard..." - well, I guess if it was true, everyone would be a millionaire.. everyone who was invested in AAPL just a year ago was so sure that this stock will help them to retire early. Tell it to people who bought at $705.
    Sep 9 06:06 PM | Likes Like |Link to Comment
  • Is It Worth Listening To Newspaper Tips Or Investment Newsletters? [View article]
    "Great article! Newsletter success (or lack thereof) seems to mirror mutual fund success (or lack thereof). Of course, it's impossible for more than 50% of all newsletters to beat the market."

    This is true for stocks newsletters only. With options, it's completely different and the gains or losses usually have very low correlation with the general market returns. In fact, some of the options strategies work better in a bear market. I suggest that you take a look at our performance http://bit.ly/MXsvon and note the returns in August 2011 and May 2012 when everyone else was getting killed.
    Sep 9 04:02 PM | Likes Like |Link to Comment
  • Is It Worth Listening To Newspaper Tips Or Investment Newsletters? [View article]
    Majority of the newsletters is a complete garbage, and their performance reporting in many cases is very questionable - see some of the tricks here http://bit.ly/18JnBHJ.

    Those charlatans make a bad name for the whole industry.
    Sep 9 01:33 PM | Likes Like |Link to Comment
  • Kerry: International support growing for action against Syria [View news story]
    People who say that Israel used chemical weapons in Gaza are in the same camp with people who say that Holocaust is an Israeli propaganda. To me, they are worse that Nazis.
    Sep 8 06:42 PM | 3 Likes Like |Link to Comment
  • Kerry: International support growing for action against Syria [View news story]
    The fact that the US and the world watched other terrible events from the sidelines doesn't make it right and doesn't justify to stay on the sidelines this time. By doing this, the world gives legitimization to those regimes to continue their terrible actions. There are times when the civilized world has to stand together and say "enough is enough".

    Whoever still says that it is not clear if Assad used chemical weapons, despite all intelligence reports confirming that he did, acts like Chamberlain in 1939. Didn't we learned nothing from the history?
    Sep 8 05:51 PM | 2 Likes Like |Link to Comment
  • Kerry: International support growing for action against Syria [View news story]
    Assad is now in the exclusive club of only three leaders in the history of civilization (along with Hitler Saddam Hussein) who have used chemical weapons against his own people.

    If US does not act now, it will lose its right to be called a leader of the free world.
    Sep 8 03:40 PM | 4 Likes Like |Link to Comment
  • Kerry: International support growing for action against Syria [View news story]
    Sure.. no matter what happens - blame Israel.. the easiest thing to do.

    One of the very few things that Obama wants to do right.
    Sep 8 12:49 PM | 3 Likes Like |Link to Comment
  • 10 Rules For Trading Calendar Spreads [View article]
    Yes, it was me, but I don't use it anymore. Last time I tried they had a lot of bugs and missing data. Maybe it improved, but I just have enough sources that I don't need them. I use TOS and ONE software for most of the analysis.
    Aug 21 01:48 PM | Likes Like |Link to Comment
  • 10 Rules For Trading Calendar Spreads [View article]
    Such trade would work very well if the stock doesn't move enough. But if it does move more than the options imply, the calendar will be killed no matter the strikes.

    The examples you gave - the stocks moved MUCH less than the options predicted. For example, GMCR straddle implied 12%+ move, but the stock moved only 3.5% making the calendar a big winner. But there are many examples when calendar would lose 70-90%, no matter which strikes you used. One recent example is CREE when the stock moved 22% while the options implied 8% move.
    Aug 20 01:48 AM | Likes Like |Link to Comment
  • How To Play The LinkedIn Earnings Announcement This Week [View article]
    43% gain last week.
    Aug 8 11:56 AM | Likes Like |Link to Comment
  • Barron's Article Creates Great Buying Opportunity For Green Mountain Coffee Roasters [View article]
    How refreshing to see Dr. Terry here after the trade worked nicely. Too bad he didn't show up on the LNKD article after the trade lost 80%+..
    Aug 8 11:11 AM | Likes Like |Link to Comment
  • How To Play The LinkedIn Earnings Announcement This Week [View article]
    There is nothing wrong with trading earnings. And there is actually nothing wrong with how Terry is doing it. One important thing is missing in all his articles - mentioning of the risks. In some cases he makes it sound almost like risk free trades. This is far from truth, as we could see with ACN and LNKD trades which lost 80%+. Those trades deserve no more than 5% of your portfolio (and even this is too much) while Terry recommends allocating 50-80% to his subscribers. This is a financial suicide.

    We played earnings too, but we always sold before the announcement. Some of the results from this cycle only:
    PCLN +43%
    LNKD +40%
    MA +27%
    AMZN +23%
    FFIV +25%
    NFLX +32%

    All trades held 7 days or less.
    Aug 8 09:30 AM | Likes Like |Link to Comment
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