Everyday Finance

http://www.everydayfinance.blogspot.com

82 Comments

    • Elan, Wyeth's Alzheimer Drug News Doesn't Please Investors [view article]
      Still wouldn't touch. I just capitalized and made 500% last week on puts as posted in advance; still down from here methinks. Recall, this was a $4 stock as recently as 2005.
       Aug 02 11:40 AM
    • Investing in Tankers: Ship, Ship, Hooray? [view article]
      FRO's been declared the #1 dividend stock of the year (at least by me at Everyday Finance); but in this horrendous market, can't complain at all even with FRO slightly off its highs. This whole class should continue to do well, especially comparitively speaking, for the foreseeable future. Aug 02 11:39 AM
    • Terra Nitrogen: A High Yield Ag Stock to Sink Your Teeth Into [view article]
      Sorry guys, nothing as elaborate as a wife that's short or anything like that. I have no position either way in TRA or TNH, now does anyone that I know. The next dividend should be declared in the coming weeks; will be interesting to watch.

      Note that since the post, as I recommended checking out the parent TRA, we've seen TRA up over 10% while TNH has lost close to 15%. Almost a 25% spread! S&P lost 5% during this period.

      So, you would have done OK checking out TRA per the last PP.

       Aug 02 11:36 AM
    • Investing in Africa - Three Options [view article]
      There's always the S&P Emerging Middle East & Africa ETF (GAF), which is heavily weighted toward Israel, but provides exposure to Africa as well. Over prior 1 year period, it's flat vs. down 15% for S&P.

      I have plenty of little-known international holdings and post my portfolio routinely if interested in this sort of play (just posted my high yield self-directed IRA portfolio).       Jul 05 09:18 AM
    • Oil: If You Can't Beat 'em, Join 'em Using Credit Spread Options [view article]
      Sure, left out the "put" in the conversely piece; thanks for clarifying for first commenter. The costs cited in the article are exactly off the Ameritrade history, so authentic. Oil's running up more, so looking good.

      To address some of the concerns over commisions, etc., here are some add-on notes from the original post (I add commentary as the play evolves or comments come in at Everyday Finance):

      There are some benefits to playing this with spreads as opposed to other options plays:

      -buying a straight put or call opens you up to loss of premiums at expiry: 2/3 of all options expire worthless

      -selling naked puts or calls leaves you with unlimited liability if a run up or down occurs. With spreads, you liability is capped.

      -the liquidity requirements are drastically reduced if you cap your ends with a spread as opposed to selling a naked option.

      -finally, the commission is the same for a spread as it is for a single option; you just have to pick spread in the complex option tab or equivalent with your broker.




       Jul 02 03:51 PM
    • Ethanol Is Dead: How You Can Still Profit From It [view article]
      Heck, let's make it 50 comments!
      Note that both stocks are down 7-8% today. Armor starting to crack further? I can only hope this ethanol hoax comes to an end by August expiry; I'll be sitting on 10-15x returns on my out of the money puts.
      Great discourse here by the way;
      Jun 30 11:10 PM
    • RIMM Long Strangle Options: Volatility Exercise [view article]
      Well, RIMM dropped 13% yesterday and is down another 2% in pre-market today, so the strategy is well into the money. I might actually think about playing the other side of this one as earnings expectations from the likes of RIMM mature. In this case, I have a marginal gain of a few hundred dollars locked in.
      Jun 27 08:06 AM
    • The Corn Shortage: Ideas for Investors [view article]
      Wow, TSN crushed today. Now might be the time to play this out. Timing it's tough, but the logic may well exploit the massive pessimism in the sector right now. Jun 18 11:47 AM
    • Defending the Vulture Funds [view article]
      For an investment play on the vulture funds, check out Leucadia National; it's trounced the S&P500 and is great in this market. Up 8% vs S&P down 7% YTD.

      everydayfinance.blogsp...

      Jun 16 09:23 PM
    • The Final Frontier: Social Investing [view article]
      Interesting article. For a contrarian view, it's instructive to consider the antithesis of the aforementioned instruments.

      There were some surprising results when I evaluated the VICE fund vs. Neuberger Berman Socially Responsible Investment Fund. It trounced the socially responsible fund and the S&P500 to boot. Since I hadn't looked at the ones you mentioned here, I ran a screen going back to inception for DSI. Vice Fund exceeded the returns of those cited here going back to that start date of Nov2006.

      It's been a rough start in 2008, but over the long term, I think the Vice Fund's worth a look:

      everydayfinance.blogsp...

      Jun 16 09:18 PM
    • Six Profit Plays Amidst Soaring Oil and Zooming Inflation [view article]
      I'm actually considering nucluear as well; I think these high prices are here for a bit and with a change in policy (or actual formation of one for once), there may be some surprising support. Jun 11 10:18 AM
    • Focus Media: Interesting Bounce Candidate [view article]
      I couldn't agree more. A one-time event is often an opportune time to enter. The market generally over-reacts and arbitrage quickly fills the gap. Down big premarket. I'm buying more. My full portfolio is updated weekly at EverydayFinance; other Chinese/Russian stocks as well if you like international investing. Jun 06 09:04 AM
    • Identifying a Bottom for Financials [view article]
      While "results" for the financials may continue to suffer with additional writedowns and surprises, I believe this is mostly built in to the prices and as usual, markets have over-reacted with respect to share valuations. I entered UYG, 2X financial ETF at the bottom in March. I since sold 1/3 stake, but I'm still holding a substantial amount for the recovery. I think if you look out a year, you'll see that financials outperformed. I update the portfolio weekly at Everyday Finance. Jun 04 10:53 AM
    • Calling It Quits on Gold, Platinum - It's Time to Go Financials! [view article]
      I disagree. Since the post, gold is essentially flat and the dollar is recovering. There's still risk in the financials and I say they're oversold. If you sit here and tell me you think in a year the financials will be where they are now or lower, I wouldn't think you were serious. They should clearly outperform when the dust settles (which will happen, this isn't a 5 year downward spiral like airlines or big auto). With the Fed approaching closure on rate cuts, they're going to have to move into inflation fighting mode and strengthen the dollar. Notice oil has dropped dramatically of late? I have a clue; we disagree. Let the portfolio speak for itself, it's 8 for 9 now on weekly beats on the S&P as just posted. Where's yours at? Jun 03 11:23 PM
    • Fundamental Analysis for Central and Eastern Europe Emerging Markets [view article]
      Great play on the region is CEDC. I'm long after watching it run the past 50%.

      everydayfinance.blogsp...       Jun 03 02:14 PM
Loading...
Symbols:
Authors:
Quick Links:
Contribute an Article Become a Seeking Alpha Contributor

Transcripts

More Transcripts»