HardToLove
Loading...
Symbols:
Loading...
Symbols:
Hedge Fund Jobs
Job Seekers: Search jobs by category, get job alerts by email or live feed, apply online See full list of jobs »
Employers: See all recruitment options, get applications online or by email Post a job »
Trading Center
- Free E-Newsletters
- About Seeking Alpha
- About Us
- Contact Us
- What's New
- Readers Feedback
- Advertise With Us
- Contributors
- Contribute an Article
- Feature Your Book
- Our Contributors
- Anonymous Contributions
- Dispute an Article?
- Legal
- Terms of Use
- Privacy
- Copyright
Latest Comments10 Comments
Evergreen Solar: Why This Overlooked Company Is a Good Investment
Long ESLR
The Value in Covered Calls
Rule 1: since I'm new at this, I only buy stocks I won't mind holding if the prices move the wrong way. Some big cap, some mid, some small. Diversified too.
Rule 2: If I really want to hold the underlying, I write slightly out-of-the-money longer-term calls (for a lower immediate return) for a longer time-frame. This works really well if I correctly guess a bearish trend (how could I miss that in this market?) with a short-term rally mixed in.
Rule 3: If I don't care about holding the stock, I'll write in-the-money near-term calls that yield a profit of at least 2% when the premiums plus strike are combined.
Rule 4: All costs are accounted for in my spreadsheets so that fees on both sides of all transactions are fully covered in the base cost and profit calculations.
Rule 5: No leaps. No contracts over 6-7 months in duration. This accounts for my trading in my IRA account wherein I can't close out a position without adequate cash. I try to keep about 20-25% cash available for short term trading or taking advantage of a real opportunity.
Rule 6: All equities that I intend to hold are used to write a covered call. So far, only one stock between the three accounts I manage is not underlying a call.
Rule 7: Don't get over my head (vis-a-vis experience level). No diagonals, butterflies, horizontals, strangles, ... yet.
Rule 8: Never write a strike price that does not yield a profit when combined with the premium. Further, if patience is available and the price trends appear favorable, wait to write the call until a profit resides in the strike price alone. Lower immediate return, but higher if exercise occurs (remember that 90% of calls are never exercised though).
Rule 9: Avoid closing out positions: it will eat your profits. Of course, if your pricing is right (not all that often for me) closing a position and writing another may be advantageous. But this requires more insight into the market's future activities than I feel I have now.
Rule 10: never regret the missed profit opportunity when you could have written for a much larger premium or strike if only ... Instead, revel in the consistent smaller profits that accrue over time through a disciplined strategy such as this one. Remember the saying "Bears make money, bulls make money but hogs get slaughtered".
This has also provided a small reduction in "book" losses (amount depends a lot on the "greeks") as I keep insisting on buying as things go down since I'm a long-term sort of fellow.
I hope that this is a valid strategy and may help some other "noob".
Pimco's Bill Gross: Jim Cramer Is 'Courageous' and 'Entertaining'
I have bought only one stock he recommended. Why? Because I did my homework and decided only one met my criteria and suited my situation. The others may have been good, short or long term, but didn't suit my situation, temperament, level of experience, ...
If you lost based on his recommendattions, the onus is on you, not him.
I've learned a *lot* (after all I'm new at this "gambling") - both what and not what to do.
You're all grown ups, pay attention, take responsibility. Don't blame your failings on him. He's human like me, you, us. When he makes mistakes, I don't feel ill of him. When he changes his mind, it is either due to new data, a reconsideration of things he didn't properly consider, or ...
So what?
MHO
E-Trade Financial Carries High Risk-Reward
To #1, AMEN! I've been trying to transfer 3 accounts to them since my first FAX on 7/1/08. Two done, 1 (hopefully) getting there.
IMO, not enough "shoe leather" on the floor. Not enough expertise in systems. Bottom line: management may have a good recovery plan, attitude and goals, but if the organization can't execute they're in a world of hurt.
That said, I'm long and cautious. I could easily be convinced to take short-term profits if there's even a modest rally. I don't expect one near-term, but I do have patience.
National Semi: Now Touting Solar Stuff
By having circuitry that is equivalent to voltage monitoring, diodes to prevent current flow in "reverse" directions, isolation circuits, etc. the array is "balanced" to maintain overall effective output by preventing these "sapping" effects.
BTW, for accuracy's sake, the PR said as hihg as 44%, not 50% and a lab environment yielded an overall 12% gain.
Certainly a useful result.
The more important effect is that it increases the coverage to installations that may not have previously met minimum qualifications for use of PV arrays. That effect *may* provide enough gain in price points (through higher volumes and more wats per $ at less-optimal sites) to provide a noticable acceleration in PV usage growth. Depends on how widespread the adoption of the device is among installtions.
Seeking E*Trade's 'Magic Moment'
<rant>
Investing is not supposed to be an emotional excersize. Cindy presented (alleged? I don't know yet, having just finished reading the mostly useless litany of emotional personal conflicts) facts for consideration. If JBMARIA had omitted the presonal sniping, the prsented considerations seem worthwhile WHETHER RIGHT OR WRONG. Due diligence is enhanced when one is presented with items that may not have been considered. Then proper investigation of those considerations is mandated.
I was long ETFC and as soon as they announced the debt-for-equity swap and the new issuance, I sold. Made a little bit.
I like the company, I look forward to getting back in at the right time (if ever - no crystal ball here - just patience observationa and analysis). But I do NOT let my personal bias (substantially) affect my trading/investing decisions.
The multiple posts of the (substantially) same text wastes the time of all who are here for thoughtful information gatering/exchange, as does the personal jibes attached to the posts.
Take it back to the garbage dump (YAHOO) PLEASE! Let the serious folks with limited time and resources get on with investing here!
</rant>
OK. Now I offer something that bothers me, but I'm not sure how important it is. There is a technical issue that is (apparently) costing ETrade $. I reported this over two months ago and it is still not fixed. My concern is that the financial difficulty ETrade is fighting has cost them needed resources to keep their platform properly maintained and enhanced. I also worry that their level of expertise or astuteness of customer support may be under pressure. This concern grows from the lack of resolution of the first problem and occassional conflicts in information provided by CS reps. I also see a lack of proper CRM and problem tracking systems (or, alternativel, lack of proper use of those tools), as evidenced by the nature of my interactions with CS reps and the number of times I've interacted with them about the problem.
With the recent closing(s) of various branch offices reducing costs in non-core businesses and cash available from the recent financial/equity transactions, I will watch to see if those resources are, or can be after debt service, used to enhance their core competency.
If that is done and they continue effective management of the other business aspects (cost restructuring, primarily, and recovering customer deposits and accounts assets lost in the recent past), they should be on a steady road to recovery.
If I see evidence of improvements in these areas, I will be back into the stock. If not, well the market will do what it does.
DISCLOSURE: I'm relatively new at this trading/investing stuff, have no affiliations with any organization related to anything addressed here other than being an ETrade customer. My professional background does enhance my analytical ability and emotional detachment. I've *lots* to learn yet.
I *can* be hard to love for those who wantonly waste the time and resources of others.
Seven Intriguing Stocks Going Ex-Dividend Next Week
NB: Even small volume guys can take advantage of this. I'm new, small cap (so far ;-) and recognized this strategy early as a valuable addition to my strategies. I *do* make sure the stock is one I wouldn't not mind holding, JIC the price drops too much after ex dividend date.
Last one I did like this gave an effective APR of 200.20% just from the dividends.
Now, NAT has issued another 4M shares (IIRC) which will be dilutive. But they do oil transport, lots of spot business. With oil where it's at, two new tankers being built, long-term div history, good appreciation, I don't care if it drops a bit after dividends date.
Comparative Price Shopping: Selected Banking, Mortgage and Brokerage Stocks
Comparative Price Shopping: Selected Banking, Mortgage and Brokerage Stocks
Comparative Price Shopping: Selected Banking, Mortgage and Brokerage Stocks
Please engage left side of brain.