helplessobserver

Why I Sell Put Options (Part I)

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.

Wall Street Breakfast: Must-Know News

I somehow think investors and the markets do not comprehend how serious the troubles in the financial sectors are. Every time a bank takes a CDO on to its balance sheet is equivalent to making a big loan without even knowing the name of the borrower or even worse nothing about his financial circumstances. I frankly have never seen anything like this in my years of borrowing and investing. Loan officers I've encountered over the years were tough cookies. Nothing good can come from these going on.