Article reminded me, “How much the person great may be never follow him blindly”. There are some glaring intentional misrepresentations in the article, may be to befool to solicit subscription. Apart from the article, body language of the author & later in comments, criticism of seeking alpha as how they dared to edit the "HELL" out of article to exclude the subscription part reminds me his ego state as “I AM OK YOU ARE NOT OK(in investing).So you have no choice but to subscribe". Let me explain as below. "XLE is the ETF for the energy market and it’s currently trading at $67.41. If you want to guard against another $1,000 increase in the price of fuel next year you can, very simply, buy two January 2012 $55/60 bull call spreads for $2.60 ($520) and offset that cost with the sale of one 2013 $50 put for $4 ($400), for a total outlay of $120. If XLE simply maintains $60 for the year (11% lower), you make $880 (733%)." i) Philip how come profit is 733%.How you dared to ignore money blocked in margins on selling 2013 put of 50 and calculating profit only on net option premium blocked. Are we not to calculate returns on capital employed and my learned friend admit to followers that include money blocked in margin of selling a naked put? "--- Hedging is a whole other mindset for investors that needs to be practiced over time and learning how to do it properly is as real a course of study as any pursuit you will go for in college---". ii)Such a beautiful comment author made on hedging. Till I read that, I was not able to convince completely my friends why hedging is so vital. But in my opinion even author is learning hedging and needs more practice as he rightly suggested. This is because once you are naked on an option just to part finance the premium to buy another option; you are taking lot of risk. We may be penny/premium wise but pound/risk foolish. Rule I, Never loose money. And when you are naked you need to introspect if there are better ways to hedge. I am never naked on an option and admittedly learned only after losing a lot. Never say never in stock market.Exception do happen now and then. Who knew 'C’will be one dollar from 60 in a short span? "--let’s say you are worried that home prices will take off again (I doubt this but you never know)". iii) In stock market there are so many better bets then to bet where you ab-initio have doubts.Patience is a virtue. Where is the logic to recommend a position where author himself has doubts? Not only he suggests going long on a doubtful position but also to double it by selling its naked put too. Philip hedge in a wiser way both your portfolio and your subscription. It is seeking alpha not Yahoo message board.
The world is becoming flat.All labor intensive work is getting outsourced genuinely to keep the cost down.In book 'Rule 1',the author says. the company to be invested must have a moat.The same analogy can be applied to countries.One CEO of India mentioned in the book 'World is Flat' that Indians and Chinese know what they are to do in next 20 years whereas Americans will have to explore what they could do.Logical conclusion is till introspection overtakes complacency,employment inter-alia may deteriorate further as more and more conventional work will find a way and reason to move out.Nice article explained in a professional way.
An Income Trade On Apple Using Weekly Options [View article]
you are missing to grasp author could afford to suggest to take multi multi fold risk but negligible reward.Never say never especially for the dark horse.Exceptions do happen now and then in the stock mkt.
How A $10,000 Portfolio Became A $20,000 Portfolio In Just Over A Month [View article]
Trading with paper money does not involve the emotion of greed and fear and is absolutely different when one deals with actual money as wizard also said in book interviews of market wizards. Same thing I felt while guiding my son in stock competition of Wilfred university and he was winner for 4 times in a row.we all knew Nflx will fall but did not have courage having burnt fingers every time.
Andy never catch a falling knife.You had your good time during last jan results and this would be your worst call all the more because readers started believing you and lost. How could you ignore technicals? Author of Rule 1 says never get into stock because of fundamentals till 3 simple technicals are positive.One of which was stock is above 5 days ma.None of those 3 were positive. You got swayed like the instructor flying klm flight thus causing the biggest air accident in history.instructor's brain and emotional stage at that time was later critically and well analyzed by the author in his book Sway.The only difference is Klm pilot and passengers are all dead but your readers are financially dead but alive in pain and stunned in disbelief by your disappearance.May God bless you.
Wal-Mart For The Long Term: It's Not Overvalued Yet [View article]
After adding to follow the author,I noticed to share that 6 articles from his last 8 were editor's pick (which itself may be a record) a new catalyst of mine to read those editor's pick first thing first.
An Apple Story: Alpha, Algos And A Poorman [View article]
great catalyst Travis with the logic why it works.thnks for sharing.Don't you think because of catalyst of conference next week, this wednesday could be made an exception if I understood the article correctly in the very first go.
"It’s a shame, really, that much of what is offered here – at no charge – is not taught in the public school- - -" The above is true.Author is also learning in seekingalpha without charge to be fully equipped before coaching or writing an article.
"Everyone in the business knows levered etfs are dangerous and shorting is the most agressive strategy you can employ."
Jamie I am pained to here this.Shorting does not always mean buying a put or short on stock.There are other ways to do that.One is deep in money Calender spreads or debit options spreads and in some case butterflies too.Apart from the above I mentioned earlier about the article where hedge fund is short mkt and long value stocks.Techtrader in his comments has suggested selling a call but so long as I find less riskier strategies that does not attract my risk profile.So kindly exclude me from everyone in business because in my strong but humble opinion staying both sides of market ( and thus shorting too) is the only strategy that works in long run.And by not following that even Warren Buffet had tough time on his reputation in the last recession.Let us strive to stay 50 50 in the long run with slight leverage in the direction of market as many wizards have said in the book interviews of Market wizards.
Can Apple's Stock Beat the New iPhone Curse? [View article]
At the announcement of iphone share did rise initially but fell because of Steve's stock option predating which became a crisis, if I recollect correctly.Now aapl might have fallen a little because overall market sentiments were below 200 days moving averages.Sell on news could only a be contributory factor but definitely not the rule.
"""" I'm on hold with service people who barely speak English
These guys are doing a service by keeping the cost down.And they are pretty good in English if you are not prejudice ab-initio.For argument sake,If we are so Americans then why we are buying this computer or other goods including ipad,manufactured in China.It will be costlier by 10 times if made here.Be grateful and what you pay for.Patience is a virtue.This arrogance built over years has lead us to this recession.
Who Is Amazon's Next Victim? Not Who You Think... [View article]
Amzn next victim would be me and you for sure if are so sure to short it.It is its own victim thereafter is immaterial as we may be out of mkt along with TDC.
Thanks ST for spending time.Though I mentioned earlier about this book,but may I reiterate by pasting one review telling why mind works that way to take unlimited risk.Here it is: "The latest book on why people sometimes behave illogically is "Sway: The Irresistible Pull of Irrational Behavior," --posing such intriguing questions as: Why would an experienced pilot who values the safety of his passengers take unnecessary risks? Why did the Challenger Space Shuttle go up even after "engineers from the company that build the O-ring recommended that the launch be delayed"? Why would a group of emergency room doctors fail to treat an obviously sick two-year-old girl? Why are most job interviews a complete waste of time and energy?" Objective in this book is to explore "several of the psychological forces that derail rational thinking. Wherever we looked - across different sectors, countries, and cultures - we saw different people being swayed in very similar ways. We're all susceptible to the sway of irrational behaviors. But by better understanding the deductive pull of these forces, we'll be less likely to fall victim to them in the future." . A worth read.It has helped to tell myself 'easy easy'.Sorry for repetition. http://amzn.to/Yykezz
4 Inflation Hedges for 2011 [View article]
Let me explain as below.
"XLE is the ETF for the energy market and it’s currently trading at $67.41. If you want to guard against another $1,000 increase in the price of fuel next year you can, very simply, buy two January 2012 $55/60 bull call spreads for $2.60 ($520) and offset that cost with the sale of one 2013 $50 put for $4 ($400), for a total outlay of $120. If XLE simply maintains $60 for the year (11% lower), you make $880 (733%)."
i) Philip how come profit is 733%.How you dared to ignore money blocked in margins on selling 2013 put of 50 and calculating profit only on net option premium blocked. Are we not to calculate returns on capital employed and my learned friend admit to followers that include money blocked in margin of selling a naked put?
"--- Hedging is a whole other mindset for investors that needs to be practiced over time and learning how to do it properly is as real a course of study as any pursuit you will go for in college---".
ii)Such a beautiful comment author made on hedging. Till I read that, I was not able to convince completely my friends why hedging is so vital. But in my opinion even author is learning hedging and needs more practice as he rightly suggested. This is because once you are naked on an option just to part finance the premium to buy another option; you are taking lot of risk. We may be penny/premium wise but pound/risk foolish. Rule I, Never loose money. And when you are naked you need to introspect if there are better ways to hedge. I am never naked on an option and admittedly learned only after losing a lot. Never say never in stock market.Exception do happen now and then. Who knew 'C’will be one dollar from 60 in a short span?
"--let’s say you are worried that home prices will take off again (I doubt this but you never know)".
iii) In stock market there are so many better bets then to bet where you ab-initio have doubts.Patience is a virtue. Where is the logic to recommend a position where author himself has doubts? Not only he suggests going long on a doubtful position but also to double it by selling its naked put too.
Philip hedge in a wiser way both your portfolio and your subscription. It is seeking alpha not Yahoo message board.
Top Ten Reasons to Be Bearish [View article]
Apple: Can't We All Just Get Along? [View article]
An Income Trade On Apple Using Weekly Options [View article]
How A $10,000 Portfolio Became A $20,000 Portfolio In Just Over A Month [View article]
Apple $1000: Why It's Time To Buy [View article]
How could you ignore technicals? Author of Rule 1 says never get into stock because of fundamentals till 3 simple technicals are positive.One of which was stock is above 5 days ma.None of those 3 were positive.
You got swayed like the instructor flying klm flight thus causing the biggest air accident in history.instructor's brain and emotional stage at that time was later critically and well analyzed by the author in his book Sway.The only difference is Klm pilot and passengers are all dead but your readers are financially dead but alive in pain and stunned in disbelief by your disappearance.May God bless you.
Wal-Mart For The Long Term: It's Not Overvalued Yet [View article]
An Apple Story: Alpha, Algos And A Poorman [View article]
When Is The Best Time To Buy Apple? [View article]
Is Apple Losing Its Glossy Shine? [View article]
The above is true.Author is also learning in seekingalpha without charge to be fully equipped before coaching or writing an article.
Long Equities? Time to Hedge [View article]
Jamie I am pained to here this.Shorting does not always mean buying a put or short on stock.There are other ways to do that.One is deep in money Calender spreads or debit options spreads and in some case butterflies too.Apart from the above I mentioned earlier about the article where hedge fund is short mkt and long value stocks.Techtrader in his comments has suggested selling a call but so long as I find less riskier strategies that does not attract my risk profile.So kindly exclude me from everyone in business because in my strong but humble opinion staying both sides of market ( and thus shorting too) is the only strategy that works in long run.And by not following that even Warren Buffet had tough time on his reputation in the last recession.Let us strive to stay 50 50 in the long run with slight leverage in the direction of market as many wizards have said in the book interviews of Market wizards.
Can Apple's Stock Beat the New iPhone Curse? [View article]
Confessions of an Apple Lover [View article]
These guys are doing a service by keeping the cost down.And they are pretty good in English if you are not prejudice ab-initio.For argument sake,If we are so Americans then why we are buying this computer or other goods including ipad,manufactured in China.It will be costlier by 10 times if made here.Be grateful and what you pay for.Patience is a virtue.This arrogance built over years has lead us to this recession.
Who Is Amazon's Next Victim? Not Who You Think... [View article]
Apple $1000: Why It's Time To Buy [View article]
"The latest book on why people sometimes behave illogically is "Sway: The Irresistible Pull of Irrational Behavior," --posing such intriguing questions as: Why would an experienced pilot who values the safety of his passengers take unnecessary risks? Why did the Challenger Space Shuttle go up even after "engineers from the company that build the O-ring recommended that the launch be delayed"? Why would a group of emergency room doctors fail to treat an obviously sick two-year-old girl? Why are most job interviews a complete waste of time and energy?"
Objective in this book is to explore "several of the psychological forces that derail rational thinking. Wherever we looked - across different sectors, countries, and cultures - we saw different people being swayed in very similar ways. We're all susceptible to the sway of irrational behaviors. But by better understanding the deductive pull of these forces, we'll be less likely to fall victim to them in the future." .
A worth read.It has helped to tell myself 'easy easy'.Sorry for repetition.
http://amzn.to/Yykezz