Muzie

Can You See Apple Under $60?

"Zach, this implies the determining factor of a depression is the valuation of the stock market. Is that really what you mean?"

Ya isn't that funny logic, heh.

Unfortunately that's the way the MARKET seems to think. Aka. "If I crash so hard that people tremble in their homes, maybe I can trigger the depression by myself".

Exploiting the Downside of the Markets

Let me recap the article for you:

"Hello silly longs! Mark here, folks, hey who do these losses feel? Bad huh? Well, psst, let me whisper in your ear. See, it doesn't have to be that way. You can look like a genius like me, and make money too! Just short everything! It's easy! It always works! "Short & Hold" baby! Here's 4 stock tips to get you started - I did a lot of research on these. Here's my investment thesis, I'll write it doesn on this piece of napking: "Short these stocks because Cramer liked them at some point before". That's it! Just go run through those old Cramer tapes, short it all, that's all you need!

Why be a sucker when you can make easy money like me!"

Possible Outcomes of My Apple Purchase

It is incorrect to say your loss is "limited" on a covered call because you won't be selling the stock. The outcome is indeed the same as Krishna mentioned: in both cases, if the stock closes below the strike price you end up being the owner of the stock (the put buyer will assign you the stock, remember? And in that case, just as in the call, you pocket the premium).

I would have thought you would know more about the strategy if you are writing about it.... But nevertheless.

There are some differences:
- Covered call requires more capital vs. put writing
- Covered call entitles you to dividends
- Calls generally have slightly higher premiums than puts, everything else being equal
- Covered calls cost more in transaction costs

Oher than these slight differences, they are functionally very similar.

Apple Analysis: When Leaders Don't Lead

Perhaps we should split the stock market in two.

In one we put a whole bunch of imaginary companies where some monkeys put out imaginary earnings reports with random news. That's where we put all the TA freaks and they can argue all day whether we have a cup and a handle, a heads and shoulders or a black dove inside a tree stump.

Then in the other market we can put all the other real companies where people actually expect stock prices to have a semblance of a relationship with the company's income stream.

Why is Apple So Disconnected From Its Fundamentals?

Geez, the comments pretty much confirm the content of the article. People always get so emo about AAPL.

Sell These Three Stocks Before Everyone Else Does

I think I was more convinced by the comments than from the actual article.

To sell that is.

These people are obviously in love head over heels with their stock. Mr. Brochstein just wrote 6 sentences vaguely pointing to APPL going down and that was sufficient to generate 10 comments (or should I say insults) pointing to the contrary. Nothing very rational going on here.