19709

Charlie Gasparino: Another Crash 'Has to Happen Again'

What do you suppose would happen to them next year if politicians talked about a tax increase to close the revenue gap?


On Nov 07 12:35 PM User 401928 wrote:

> Forgetting ALL Politics and All People that you want to blame ......
> my question is very simple ....
>
> Why is nobody talking about the date 4/15/2010, yes tax time. For
> the past year all CD's, saving accounts and all other saving concepts
> have about a 1% to 3% interest rate, and if the information is correct,
> over 30% is in these type of saving for the 50 year old and older.
> In the past these folks paid taxes on their accounts that earned
> 5% to 9%. That will be a huge hit to the US Gov. in the collection
> dollars, a BIG DROP.
>
> Now the 2nd part. in 2009 the IRA folks did not have to
Mandatory
> Distribution, those dollars will stay in the accounts and no taxes
> paid on these dollars ... that will be the SECOND big hit to the
> tax collector. All in all I feel the US. Gov. will be short about
> ? %( my guess will as good as anyone else) in the dollars needed
> to run the country. And nobody is talking about it ... WHY

50 Four-Day September Expiration Option Ideas

The article was published on 9/15 as indicated at the top and confirmed by the author's statement that there were 4 days left to options expiration which was on 9/18.


On Sep 15 09:42 PM S2009 wrote:

> The table is incomplete, no price at the time of publication or no
> bid/ask for options. So if you do not see this table exactly at the
> moment of publication (which is not shown, is it Sep 2009 or Jan
> 2007 - nobody knows) it is basically useless.

Banking on Banks: Detailed Option Strangle Strategy

Tsk tsk tsk. If you don't like the market, you don't have to participate.


On Aug 26 08:15 AM apppro wrote:

> These types of trades & trading are actually what is 'STRANGLING'
> our markets and society as a whole. All this options trading has
> turned into a ponzi gambling scheme that will crash our system and
> adds NOTHING now. They say it adds liquidity - BS! If anything all
> that money being thrown about on ultra short term trades is NOT being
> invested on long-term basis.. it actually takes money OUT of the
> pool and contributes NOTHING to our economy - ever.
>
> We need to figure out a way to stop all this insanity and not come
> up with new methods on how to make it worse. I am still convinced
> that the best way is to TAX these trades as if they were gambling
> wins somewhere around 50%. That'll stop it, and even if it doesn't
> it will help pay for the mess all these trader's/traitor's insanity
> cause.

Two Citigroup Income Generating Option Strategies

Let's see. I bought the stock on 8/11 for $3.72. Today (8/13) I sold August $4 calls @ $0.21 and expect to be called at expiration. Before commissions, that would be a return of 13%+ in 11 days. After commissions, the 11 day return would be 12%+. If C closes below $4 at expiration, I will have lowered my per share cost to $3.53 after commissions and will write calls again.


On Aug 12 07:44 PM Ricard wrote:

> One clarification, when he writes his covered calls, instead of being
> 'forced to cover' he is instead forced to eat the losses garnered
> through holding C. Like I already mentioned, for a stock this volatile,
> losses over 11 days can easily get into the high teens, if not 30-40%,
> without any news, or any rhyme or reason causing the swings in price.
> So, he keeps his 6% premium and loses the farm. This will probably
> happen 50% of the time if he chooses to 'annualize'.
>
> The odds are not in favor of making the trade Marco suggests, unless
> you have a crystal ball that can predict daily/weekly movements of
> any stock. I'm sorry, but mine broke last week, so I'm using LEAPs
> instead, and buying calls, not writing them.

Two Citigroup Income Generating Option Strategies

For further justification of Marco's suggestions, I refer you to. . .
seekingalpha.com/artic...
. . . your own article in which you state the reasons for the "not faint of heart" to trade options on C.




On Aug 12 11:02 AM Ricard wrote:

> That high volatility kills his strategies as well. High volatility
> equates to fat premiums, but you STILL must be correct in direction
> if you use either of Marco's strategies. For a 5% gain, his strategies
> are far too risky for the infinitesimal returns he is suggesting
> you accept.

Two Citigroup Income Generating Option Strategies

Let's see - 6% gain in 11 days equates to an annualized gain of 199%. Doesn't sound infinitesimal to me. And don't forget, good old Uncle Sam isn't going to let this company fail and throw away $45 Billion in the process.


On Aug 12 11:02 AM Ricard wrote:

> That high volatility kills his strategies as well. High volatility
> equates to fat premiums, but you STILL must be correct in direction
> if you use either of Marco's strategies. For a 5% gain, his strategies
> are far too risky for the infinitesimal returns he is suggesting
> you accept.

Two Citigroup Income Generating Option Strategies

The uncertainty engulfing Citi's management and the extent of its credit problems adds to the stock's volatility. The extreme volatility is the basis for Marco's suggested option trades.


On Aug 11 08:53 AM john s. gordon wrote:

> if citi has been left in the dust compared to the others, there is
> probably a reason.....

Two Citigroup Income Generating Option Strategies

You are ignoring the downside protection afforded by the option premium. Unless the stock price at option expiration falls below the premium adjusted stock cost, selling the option has in fact generated income.


On Aug 11 08:53 AM jamo59 wrote:

> calvin has it spot on correctly~~
> thanks for expanding on it thoroughly......
>
> On Aug 11 08:49 AM jamo59 wrote:

Two Citigroup Income Generating Option Strategies

Marco's point in using C is its high volatility. Coupled with the fact that the U.S. Government is more than a > 30% owner of C and consequently cannot afford to let it fail, generating a 6%+ "dividend" in 11 days is extremely enticing. Also remember than Marco is trying to educate individuals who may never have traded options.


On Aug 11 08:49 AM jamo59 wrote:

> agree with acttang...rather amateurish........if you want those buy/write
> returns, do it with dozens of much more enticing stks.....

Don't Let the Banks Break You: Hedge Yourself with These 15 Option Strategies

Whether you have very little downside protection depends, or course, on whether you're writing I-T-M or out-of-the-money calls. If you're called out of stocks you like, you can always buy them back and write additional calls.


On Jun 24 12:51 PM kjangelo wrote:

> selling covered calls is a good income strategy when the stocks stay
> the same or go down slightly , however it weeds out all your winning
> stocks and potentially leaves you with the losers. Also it leaves
> you with very little downside protection.

Don't Let the Banks Break You: Hedge Yourself with These 15 Option Strategies

Actually, Marco suggests I-T-M options on a regular basis where the probability of being called is certainly higher and his projected profitability numbers are consequently more likely.


On Jun 24 10:31 AM LanceLink wrote:

> Bernie --
>
> Here are the problems with this, and other articles that Marco writes:
>
>
> First, he bases his "return" on the possibility that the stock will
> be assigned. This is just based upon the hope that the stock will
> rise to the higher strike price. Basing your returns "if assigned"
> is a shaky strategy.
>
> Second, he keeps listing a column of numbers that he says is the
> "current probability" that the stock will reach that strike price.
> He does not explain the basis for that calculation in this article,
> nor has he ever explained it (I've checked his blog, it's not there
> either). Yes, Marco, I understand that there may be some extrapolation
> you can make from the option price and the volatility, etc. about
> the chances that a stock may reach a certain price, but it's all
> just hope.
>
> Writing calls is a solid strategy for income, but articles like this
> are not particularly useful.
>
> Write ATM for maximum return and protection.

Don't Let the Banks Break You: Hedge Yourself with These 15 Option Strategies

Selling covered calls is a viable way to gain downside protection on stocks you already own while enhancing your dividend yield.


On Jun 24 06:54 AM apppro wrote:

> Don't let these guys fool you either. Options may work, but not for
> 98% of us. Actually we're all suffering this added volitility just
> so a few option traders can make a couple of extra $.
> Stop the insanity! Even as Warren Buffett said the other day:
> "Make it simple!"

Rating the Top 12 U.S. Banks - From Hidden Gems to Zombies

Helplessobserver
BBT just increased its dividend. I believe it has a track record of doing so on a quarterly basis for the last 35 years with a resultant compound dividend growth of > 10%.

JPMorgan: A Better Acquirer than Bank of America

If I'm not mistaken, the $10 Billion in additional TARP funds that BAC has requested represent the TARP monies commited to Merrill Lynch prior to BAC's takeover.