Theta Guy

Four Points on the 'Great Short Trade'

The case you make is a good one Michael but light on details on your specific short choices (entry points specifically). As this market proves time and time again, overvalued equities can remain overvalued for a very long time. The idea that a stock SHOULD come down doesn't make it happen. While most of these stocks could be good short candidates, the question is: At what price?

Market Downtrend Offers Opportunity in Supervalu

Sure, everyone needs groceries but they still don't have to spend their money with Supervalu. Walmart is running romper stomper all over the business of some of these tired chains. SVU margins are taking a hit due to that as well as the spending behavior changes brought on by the recession. Consumers are trading down and in many cases that is to lower margin brands. In addition, non-food items sold by these stores are high margin yet can be considered non-essential for the most part. SVU's warning is real. Their business is being seriously impacted and it's reflected in the shares. The shares merely represent current fair market value. The company needs to turn things around before there is too much upside in the share price.

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

Marco, the title should be "Just ONE Strategy.....for 15 different stocks"

Bed Bath & Beyond Looks Ready to Plummet

I agree with your economic assessment but am not so sure about your position on BBBY. New store openings, and the closing of less profitable stores is frequent in retail. Generally the new stores generate higher sales per square foot due to the higher quality locations and improvements in updated store design.

You mentioned the balance sheet is strong and that alone makes many other retailers better candidates for the short play. Companies like Ann Taylor (ANN) or Quiksilver (ZQK) are in much more perilous situations.

I'm not saying that your short won't work...but if I was doing it, I might sell puts against the short for some extra protection.

25 Options Strategies for a Bullish or Flat Market

With all due respect Marco, covered calls is a fairly 'vanilla' strategy and only works in a bull market (or bear market rally). With the tremendous rally we've had in the last 3 months, covered calls have been easy money on thousands of stocks.

Your basket of suuggested stocks is leaning heavily to financials and tech.

But what's your plan for the next down leg in this market? Responsible investing in an overheated market requires defensive coverage and the covered calls provide very little protection.

I would suggest that constructing positions closer to delta neutral would be less risky at this juncture.

Candidates to Replace GM, Citigroup in the Dow

Donald, you defend your original post by saying Apple produces short life plan products which are therefore faddish. The "Pet Rock" was faddish....Macs, and IPods are consumables.

And I think it's incorrect to say they have "created fads in very competitive markets". They have created 'must-haves' by making beautifully designed products that the wanting consumer instantly craves and their competition immediately tries to emulate. But that is not creating a fad, that is creating a trend. The main difference from an investing standpoint is the latter is tradeable for the long term.

GM Common Stock Is Worth More than You Think

This POS ranks up there as the most irresponsible reporting on Seeking Alpha. I thought they screened their writers to ensure that they had knowledge and competance in the areas which they write.

I sincerely hope that no investors buy into GM stock based on your delusional and uninformed theories. Gerry, you may know a lot about something, but it isn't this. You are ignorant of the process of Chapter 11 and what would happen to the accumulated tax loss. Either hit the books and learn before you write more inane drivel like this or start covering little league and leave the stock market for those who understand.

An Options Trade on GM's Volatility

Well done Tae...your idea was solid and the naysayers missed a tremendous opportunity. I found this trade only in June and then found your article after that. I've been legging out today, essentially buying back the June box spreads for 1.02 average after selling at an average of 1.19. I was up to 650 contracts before starting to liquidate the position and didn't have a single contract assigned early. Although a few posters were adamant that your trade wouldn't work and couldn't work...they were ultimately proven wrong.

Why to Short U.S. Treasury on the Next Uptick

How can you say that you would have recommended shorting GM when there hasn't been shares available to short for a very long time. Also, the interest charged to borrow them makes a straight short undesirable.