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  • Buy Stocks On Sale Using This Strategy  [View article]
    I have dabbled w. selling puts and appreciate their theoretical benefits. I established a small non-IRA account to facilitate this action since it was off-limits within my IRA's. I found that the brokerage firm (T.Rowe Price) forced me into a 50% margin coverage at 7% interest even when I have kept enough money within my sweep account to cover obligations. I see explicit references to selling "cash-secured naked puts" and lots of implicit references. Am I missing something here? The interest charges associated with the margin requirements substantially undermines the utility of these instruments.
    Apr 15, 2013. 02:05 AM | 1 Like Like |Link to Comment
  • Why Fed Policy Is Hurting The Economy  [View article]
    Good comment. Though I do not have the statistical wherewithal to verify your perspective, a careful look at the graph in question strongly supports your thesis. I'm betting that an appropriate correlation analysis that incorporated temporal displacement would show that the rises and falls in Fed rates lag the related Investment rises and falls.
    Feb 10, 2013. 04:20 AM | Likes Like |Link to Comment
1 Like