The Judge Should Rule Favorably For Vringo On Motions [View article]
Calls are expensive just because the market makers expect speculators to speculate on them. It's all about supply and demand. There is a demand for call options so the market makers raise the price.
One way to capitalise on this is to buy the stock and sell a call option a.k.a. the covered call strategy.
Herbalife, Ackman, Free Markets And A Put Strategy [View article]
@manfedthree,
You are right. I read Ackman's presentation. A lot of what he says seems to be similar in principle to many MLM companies. I am thinking of both NuSkin (ticker symbol: NUS) and Amway (not publicly traded in the USA). Someone from Amway tried to recruit me about 20 years ago and what I saw in Ackman's presentation reminded me very much in principle what I remember. So the problem for the regulator would be to apply the law consistently for all MLMs.
Herbalife, Ackman, Free Markets And A Put Strategy [View article]
@roman2012,
There is a typographical error in his original article. acpipa also picked up on this. Based on the author's reply, he meant buy the January 2014 Put with a strike price of $30, not the January 2012 put.
Retired Investors - How Do You Manage Risk? [View article]
Actually there are 2 ways to trade options: 1. As a speculation tool 2. As a hedging tool
Using options as a speculative tool is a gamble but using them as a hedging tool is a fine way to spread your risk. You just have to know the advantages and disadvantages of the various methods. (There is no such thing as a free lunch.)
In my own portfolio, I have various stocks. I use options as a hedging tool to protect my position in case of a sudden drop as in what happened to YUM earlier this month.
Retired Investors - How Do You Manage Risk? [View article]
Interesting comment. There is a typographical error in your first sentence. It should be "If you SELL covered calls", not "If you BUY covered calls".
As for the strategy itself,there is no free lunch so there is the risk of the stock being called away from you if the price rises. Then you either have the choice of either lertting the stock be called away from you or of buying back the sold option. at a higher price than what you sold it for.
The Big Mac And Your Financial Health: Rising Burger Prices Show A Worrying Trend [View article]
Antonio, The McDouble is what is called a loss leader. You sell something at a loss so as to bring in more customers into your store with the expectation that they will then buy other goods ( a large Coke, fries and/or a hot fudge sundae) which will more than offset the loss on the loss leader.
Can you please cite your source for the obesity rates for South Korea? I was in South Korea in July this year. Based on my personal observation, there did not seem to be too many fat people there. Again, based on my personal observation and not on any specified source, the percentage of obese Asians in the US seems to be less than that for the general population.
The Judge Should Rule Favorably For Vringo On Motions [View article]
One way to capitalise on this is to buy the stock and sell a call option a.k.a. the covered call strategy.
Herbalife, Ackman, Free Markets And A Put Strategy [View article]
You are right. I read Ackman's presentation. A lot of what he says seems to be similar in principle to many MLM companies. I am thinking of both NuSkin (ticker symbol: NUS) and Amway (not publicly traded in the USA). Someone from Amway tried to recruit me about 20 years ago and what I saw in Ackman's presentation reminded me very much in principle what I remember. So the problem for the regulator would be to apply the law consistently for all MLMs.
Herbalife, Ackman, Free Markets And A Put Strategy [View article]
There is a typographical error in his original article. acpipa also picked up on this. Based on the author's reply, he meant buy the January 2014 Put with a strike price of $30, not the January 2012 put.
8 High Growth Stocks At A Big Discount And With Low PEG, Low Debt [View article]
For therest, the site link is: http://bit.ly/q8jCf0
8 High Growth Stocks At A Big Discount And With Low PEG, Low Debt [View article]
@Petrach,
I am not so sure about NUS. I am rather cautious about MLM companies.
Retired Investors - How Do You Manage Risk? [View article]
1. As a speculation tool
2. As a hedging tool
Using options as a speculative tool is a gamble but using them as a hedging tool is a fine way to spread your risk. You just have to know the advantages and disadvantages of the various methods. (There is no such thing as a free lunch.)
In my own portfolio, I have various stocks. I use options as a hedging tool to protect my position in case of a sudden drop as in what happened to YUM earlier this month.
Retired Investors - How Do You Manage Risk? [View article]
As for the strategy itself,there is no free lunch so there is the risk of the stock being called away from you if the price rises. Then you either have the choice of either lertting the stock be called away from you or of buying back the sold option. at a higher price than what you sold it for.
Retired Investors - How Do You Manage Risk? [View article]
Retired Investors - How Do You Manage Risk? [View article]
The Approaching Arena Battle [View article]
The Approaching Arena Battle [View article]
The Big Mac And Your Financial Health: Rising Burger Prices Show A Worrying Trend [View article]
The McDouble is what is called a loss leader. You sell something at a loss so as to bring in more customers into your store with the expectation that they will then buy other goods ( a large Coke, fries and/or a hot fudge sundae) which will more than offset the loss on the loss leader.
The Approaching Arena Battle [View article]
The Judge Should Rule Favorably For Vringo On Motions [View article]
The Judge Should Rule Favorably For Vringo On Motions [View article]
For those not in the know, that means "Rolls on floor laughing".