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  • Carl Icahn Is Wrong, Apple Is Not Worth $240 Today [View article]
    I'm working on my second. I heard its easier that way....
    May 19, 2015. 01:33 PM | 9 Likes Like |Link to Comment
  • Buy Twitter Before Periscope, Video Really Take Off [View article]
    Time is the most valuable asset we have and we never know when it will end....
    May 4, 2015. 05:27 PM | Likes Like |Link to Comment
  • Buy Twitter Before Periscope, Video Really Take Off [View article]
    When I take a position in a stock, I hope and pray it goes down further. I always buy in 3 or 4 tranches, I like it at $40.00 why would I not like it more @ $35.00? Or love it @ $30.00? I am not a day trader, I am thinking 10+ years into the future.
    May 4, 2015. 01:37 PM | 1 Like Like |Link to Comment
  • Buy Twitter Before Periscope, Video Really Take Off [View article]
    Agreed. $35.00 could be a significant line in the sand. I sold puts there and at $34 for June. Also sold some June $45 calls to help reduce basis. I like the stock as a long term bet on Social media. Don't know if it will pay of but its worth a flyer.
    May 4, 2015. 01:33 PM | Likes Like |Link to Comment
  • Buy Twitter Before Periscope, Video Really Take Off [View article]
    I took a small position on this most recent dip. Didn't get in at nearly the bottom. Using options to reduce my basis and get back to even. I am thinking this will be a long term hold in the chance that they really figure it out and go on to do great things. Nice article, although I didn't dive as deep into this as you did. I like the service, use it all the time and think it has a great future. I am prepared to be 100% wrong. This is in my risky biz side of my account and a very small position.
    May 4, 2015. 10:01 AM | Likes Like |Link to Comment
  • Why Apple's Dividend Increase Is A Disappointment [View article]
    If you bought $AAPL for the dividend, you clearly don't know what you are doing. The dividend is like a mini bonus on this terrific company. Sell now and go buy $PG or some other non growing dividend player. I will hold my $AAPL thank-you very much and who knows maybe one day it will become a true dividend play with low growth. I will gladly take the 11% increase. If they can sustain this rate, the dividend will double by 2020 which is fine with me....
    Apr 28, 2015. 11:41 AM | 11 Likes Like |Link to Comment
  • Replace The 4% Retirement Rule With These 4% Dividend Stocks [View article]
    Agreed, the greatest asset you have when you are young is time when it comes to investing. As you get older you are forced to try and increase your returns to make up for lost time. This usually doesn't end well...
    Apr 23, 2015. 01:37 PM | 2 Likes Like |Link to Comment
  • Replace The 4% Retirement Rule With These 4% Dividend Stocks [View article]
    While yes this is an acceptable approach, I prefer to add the extra juice I get from options. I tend to to sell the calls just before the earnings date. Earnings are a known event with unknown outcomes. Sometimes earnings are good, sometimes they are not. This unknown outcome causes an increase in implied volatility in options and causes the premiums to go up. Think of it as trying to buy hurricane insurance the day before a hurricane is foretasted. The insurance premiums go through the roof. (pardon the pun) One can sell calls 4 times a year only holding them for a short period of time and add an additional 4% quite easily. Can your stock be called away? You bet it can and it does from time to time. In my experience about 10%-15% of the time. What did I gain or lose? Well if I get called away it is usually at a higher price than I paid for the stock as I usually only sell calls on stocks that I have a reduced basis on. Plus I am up the premium collected on the option sold. Usually not just for that option but for several previous earnings as well. Can you get back in, yes, but that is up to you. If you liked XYZ at $100 do you still like it at say $110? Up to you. I always have a certain percentage of cash on hand and a shopping list in hand. The shopping list is directly related to puts that I sell on stocks I want to own at a price I determine in advance. EG. I would love to own more AAPL @ $120.00 I sell a put for next January on AAPL at the $120 strike and collect around $7.50 that by the way is about 9% annualized return on a stock I don't even have to own. My worst case scenario is AAPL goes sub $100 and I am obligated to buy it at $120 come January. Could it happen? Sure, I however think it is highly unlikely. If it drops just under $120 I get to own it for $113.00 because I deduct the premium I collected up front when I sold the put.

    For me the way I use options it is win win win. The biggest key to this is knowing the value of the stocks you own. I am not interested in stocks with pie in the sky P/E's that maybe one day some day will grow into them. I am interested in strong dividend growers that make cash hand over fist on a regular basis.

    Stock goes up, I win.
    Stock goes down, I win.
    Stock goes sideways, I win

    Look this is not for everyone, but some of the comments I've read here trying to scare people into thinking options are evil and you can't win are at the very least misinformed and some are just down right disingenuous. With a little research and some hard work anyone can do this. Good luck to all!
    Apr 23, 2015. 01:35 PM | 5 Likes Like |Link to Comment
  • Replace The 4% Retirement Rule With These 4% Dividend Stocks [View article]
    One can easily make it 6% if you add in a few option strategies such as selling covered calls and selling naked or even cash covered puts to reduce basis. Of course this requires a little work and a bit of knowledge to do so. Something sorely missing from most investors. You can even make it 8% if you are willing to do your homework!
    Apr 22, 2015. 05:24 PM | 20 Likes Like |Link to Comment
  • Buy Potash Corp. As Long-Term Fundamentals Are In Place [View article]
    Important to keep in mind is that K+S Potash is currently building the largest mine in the world in southern Saskatchewan. This will lead to perhaps an oversupply near to mid term and could affect pricing.
    Feb 18, 2015. 12:24 PM | 2 Likes Like |Link to Comment
  • How Does VXX's Daily Roll Work? [View article]
    Unless you are on the other side of that trade....
    Jan 20, 2015. 04:47 PM | 1 Like Like |Link to Comment
  • Closing Out My Long Volatility Position And What's Next [View article]
    Yes. They Expire on Jan 16
    Dec 17, 2014. 07:31 AM | Likes Like |Link to Comment
  • Closing Out My Long Volatility Position And What's Next [View article]
    I sold a bunch of $75, $80 and $85 Jan monthly calls naked. The premium is just insane. ROI north of 15% in less than 30 days.
    Dec 16, 2014. 10:42 PM | Likes Like |Link to Comment
  • BP Is A Strong Buy, But Not Because Of Takeover Speculation [View article]
    This is a complete no brainer just as $AAPL was last year in the $400's and $NFLX was a few years back around $75.00. I started my position today @ $38.50 and I hope it continues to crater so I can build a full position in the coming weeks and months. In my lifetime, I have seen opportunities like this time and time again. I would always say that is a steal and I would enter the position. I would then prove impatient in my younger years, wanting to see immediate returns and confirmation of my bias. Only to sell too early and then watch in horror as each one of them recovered and soared. As I have gained experience and gotten older, I have learned to be much more patient.

    Thank God I caught $AAPL last year. I will not miss $BP this time as I did at the time of the spill. I am grateful for this second chance at this great company!
    Dec 9, 2014. 05:23 PM | 1 Like Like |Link to Comment
  • How To Trade Volatility When The Roof Caves In [View article]
    It is a small position in my portfolio. I am primarily an option trader. I am aware of the risks. I am also very aware of the rewards. This is an excellent risk reward in my opinion. Especially in high IV times. In my lifetime I have yet to see vol not revert to the mean. It ALWAYS does.

    There is always more to the story at first glance. They say selling naked calls can wipe you out. I guess that is true if you lever up to the max and it moves against you. I am selling way out of the money calls. When vxx spiked to almost $45.00 I was selling Nov monthly $75.00 calls for a more than 30% ROI.

    Buying the VIX is a directional trade. You're right you win your wrong and you lose. Selling calls in small lots during all times has kept me in the game. I go as much as 10X my position size in high vol markets. Never using up more than 25% of my capital. Could I get totally wiped out? I guess in theory anything is possible. I sleep very well with this strategy in place. I can be wrong about direction and still make money. Collecting some of the richest premium available in the options markets while playing it safe with my guidelines and rules. It is not for everybody, but it works for me!
    Oct 25, 2014. 10:41 AM | 1 Like Like |Link to Comment