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IncomeYield

IncomeYield
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  • Friday Finale: This Is The End, But For Who? [View article]
    I'm not defending the Facebook valuation, but their advertising model is really quite different. Targeted ads based on demographics is much more valuable than anonymous Google ads.

    Also, the network opportunities, scale and viral nature presents Facebook with almost endless opportunities. Even membership at Costco sort of thing.

    MickieD can't virtualize anything. They can't add a $200 server to "serve" another 2 or 300 hundred thousand customers.
    Feb 18 02:19 AM | Likes Like |Link to Comment
  • Selling SPDR S&P 500 Puts - Getting Paid For Time Passing [View article]
    I added a screen shot of a trading window for this years' DEC SPY puts around the $100 strike.

    go to http://bit.ly/A9kmwM and click, In the News
    Feb 17 11:22 PM | Likes Like |Link to Comment
  • Selling SPDR S&P 500 Puts - Getting Paid For Time Passing [View article]
    How do you make the "leap" from 10 leap puts to 25 grand?
    10 contracts at the $125 strike would require $125,000 in cash to secure the puts. Each contract representing 100 shares.

    Not sure about the risky. I like the index idea since no single company issues. Not as much premium as a result though also.
    If you buy 1000 shares of SPY today at $136 and it closes in Dec at expiration at $126 (assuming it didn't dip below $125 and trigger assignment, you made $1k instead of losing on paper $10k less divs collected.

    As discussed, if SPY goes to $146, you still only keep the grand assuming you did not buy to close before expiration.

    Instead of betting that your horse will finish first, you are betting it won't finish last.
    Feb 17 11:14 PM | Likes Like |Link to Comment
  • Selling SPDR S&P 500 Puts - Getting Paid For Time Passing [View article]
    Not if you had the firepower and staying power. SPY has basically recovered and then some.

    Truly amazing actually when you consider the overhead resistance since the 2008/09 lows. Just goes to show that the average investor (retail or institution) probably did not buy the lows even though most say they did or they show a track record coincidentally starting in Mar 09.

    How much of this run is still short covering and chasing?
    Feb 17 11:02 PM | Likes Like |Link to Comment
  • Selling SPDR S&P 500 Puts - Getting Paid For Time Passing [View article]
    Yes, talking about SPY. Sort of like the cost of waiting while trying to time bonds and interest rates. By the the time volatility spikes, you might have lost some of the time premium.
    Feb 17 07:06 PM | Likes Like |Link to Comment
  • Selling SPDR S&P 500 Puts - Getting Paid For Time Passing [View article]
    sure, pm me -- thanks
    Feb 17 07:04 PM | Likes Like |Link to Comment
  • Selling SPDR S&P 500 Puts - Getting Paid For Time Passing [View article]
    Thanks, example or two?
    Feb 17 03:42 PM | Likes Like |Link to Comment
  • Selling SPDR S&P 500 Puts - Getting Paid For Time Passing [View article]
    ephud

    Take us thru max risk and reward with your trade. What's the worst case outcome? TIA.
    Feb 17 03:26 PM | Likes Like |Link to Comment
  • Selling SPDR S&P 500 Puts - Getting Paid For Time Passing [View article]
    With put option writing auth in your account, you could sell the Dec '12 $100 strike for $2.75 today (approx.).

    You tie-up $10 grand and get $275 credited same day.
    Feb 17 02:56 PM | Likes Like |Link to Comment
  • Selling SPDR S&P 500 Puts - Getting Paid For Time Passing [View article]
    Often times authors here at SA indicate that they are Long when they are short puts.

    After trading costs, longer dated options (LEAPS) offer a better return if you make the trade once a year for example vs maybe 5 or 6 times per year.

    As usually stated, the obvious remains, you MUST be willing close the trade and/or accept assignment.

    Also, I have posted the obvious before -- you are taking a fair amount of risk and allocating capital for limited upside and no divs.
    Feb 17 02:31 PM | Likes Like |Link to Comment
  • Understanding 15% mREIT Yields For Retail Investors [View article]
    Yes. Remember when FNM and FRE common was "a sure thing" because they were guaranteed.
    Feb 17 02:24 PM | 1 Like Like |Link to Comment
  • Long-Term Treasuries: How To Short The Stock Market With Greater Returns And Less Risk [View article]
    That's been my concern also, yet TLT has nicely mirrored SPY for some time now. When do they disconnect (and why) and both decline though?

    To the extent interest rates track economic expansion, I think much higher rates will be self-correcting. With this much Fed debt and a real estate market that now thinks a 4% 30-year mortgage is too high, any significant increase in rates at either end or in the middle will hit the govt's income statement like a hammer and tank the already fragile residential real estate market.

    Only some massive new policy or private sector development that both increases employment and tax revenues dramatically can get us out of the corner Ben has painted us into.
    Feb 17 01:03 AM | 1 Like Like |Link to Comment
  • Pity German smartphone users: Two weeks after Motorola Mobility (MMI, GOOG) won an injunction banning iCloud's push-email capabilities in Germany, Apple (AAPL) has obtained an injunction banning Motorola's inclusion of a "slide-to-unlock" feature in phones sold in the country. Motorola, unsurprisingly, says it will appeal the ruling. Apple is also asserting its slide-to-unlock patent in a case against Samsung.  [View news story]
    Best financial advice I can offer:

    Go to law school. Specialize in patents.
    Feb 16 09:15 PM | Likes Like |Link to Comment
  • Talking Coal With SouthGobi Resources' CEO [View article]
    At what share price (if any) would you buy ANR? TIA.
    Feb 16 02:19 PM | 1 Like Like |Link to Comment
  • Apple LEAPS: The Gift That Keeps On Giving [View article]
    and, once something achieves "cool factor" in Asia, everyone has to have one
    Feb 16 01:54 AM | Likes Like |Link to Comment
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