I personally like the strangle, buy the stock, sell a call on it and then sell a put, both near the money. If the stock gets called a 8-10% premium profits is gained. If the stock declines the premiums give a 6-8% discount from the buy. Below your break even price buy two out of the money puts to protect your capital. A strike on Iran will cause a 500 - 800 drop on the DJIA. I use an Excel spread sheet model to quickly compute profits, percentages and break even prices.
I agree this Palm story is a mystery. Like they say in embassy circles, at parties it's now where you have been that important, but where you look like you have been. Always have a sun lamp for use in the winter season. Palm may all be smoke and mirrors.
What Are Some of the Best Hedge Fund Managers Doing? [View article]
I like Simon's portfolio the best. He knows all the mathematical skills in the world cannot predict future stock prices for marginal companies. Solid companies with deep markets and pricing power are more amenable to statistical analysis
Why I Sell Put Options (Part I) [View article]
Palm: Hot or Hype? [View article]
Fast Money Recap - Goodbye to the Goldman Standard? (12/2/08) [View article]
Hope you will make the Fast Money Recap a daily feature for this page.
What Are Some of the Best Hedge Fund Managers Doing? [View article]