Dr. Doom

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Oct 14, 2008 10:29 pm

Who the hell is this whacko?


http://www.cnbc.com/id/27171452


Oct 14, 2008 10:37 pm
snaggletooth:

Who the hell is this whacko?


http://www.cnbc.com/id/27171452



Who knows...an' why should ya care what he thinks what 'chew thinking man?

Oct 14, 2008 10:57 pm
GWB43:
snaggletooth:

Who the hell is this whacko?


http://www.cnbc.com/id/27171452




Who knows...an' why should ya care what he thinks what 'chew thinking man?

 
He scares people.
 
So does this biotch: http://www.cnbc.com/id/27184545
Oct 15, 2008 7:48 am

Do you favor the idea that your clients do not hear all points of view"

Oct 15, 2008 8:44 am

I believe him.
I don't think the financial and government elites have yet addressed what happened here, let alone come up with a solution.



Oct 15, 2008 8:55 am

A couple of years ago there was a guy named Put Trader who posted on this forum.  He warned that the market could go down and virtually all of the "advisors" on the forum whined that he was hurting their feelings, making them sad.

 
One, a baby broker at a bank, declared that Put Trader didn't know what he was talking about because the stock market always goes up because earnings always go up.
 
Put Trader also suggested that clients paying 1% of AUM was acceptable to them when the 1% tended to reduce the client's annual return from, say, 15% to 14%--but that they would not be as willing to allow their return to go from negative 20% to negative 21%.
 
Again the "advisors" all whined about how that made them feel sad.  That they were "professionals" and that paying them 1% of a portfolio's value was acceptable because they send their clients a birthday card and invite them to a BBQ on the office parking lot.
Oct 15, 2008 9:04 am

Welcome back Put!!  It was getting very boring around here.  I would like to hear what's in your personal playbook right now.

Oct 15, 2008 10:06 am

Hah, these are "provocative" old remnants floated by a compulsive and passive aggressive personality-disordered advisor wannabe. Real advisors know their own value and won't take that bait.


After meeting with and talking to all of their clients, good advisors will sharpen their professional skills (knowledge) or take up raquetball, thus meeting new potential clients (who desperately want the benefit of our perspective and experience)in tough times like these.
 
Stand back and watch, Spears, your "Put" has no genuine ideas for the times, only deconstructive agitation during the storm.
Oct 15, 2008 10:23 am

Put,

Regardless what the market is doing, a loser is still a loser.

Oct 15, 2008 10:26 am

Putsey,

 
I've been wondering where you have been. 
 
Oct 15, 2008 2:51 pm

Here's something you could do to add some ooomph to a portfolio.

 
Buy Fluor for 37 and write a Nov 40 straddle for 11.
 
If the stock rises to 40 next month kiss it goodbye.  You'll have made 14 points on an investment of 26 points in a month.  That's better than 50% in a month.
 
If the stock is below 40 next month you can either allow stock to be put to you, or roll the position to December for a small credit--buying more time for it to rebound.
 
There is a bottom in here somewhere.
 
A similar trade is possible in Apple--I'm long the stock and short the Nov 120 straddle.
 
Ditto for Research in Motion--go long the stock and short the November 65 straddle.
Oct 15, 2008 3:27 pm

You have to learn about puts and straddles to pass the series 7. Being able to master the basics is why they say, "the series 7 is basically an intelligence test to screen out the dummies."


Not using them takes real intelligence.
 
I don't think you're gonna learn how to BS here, consider moving along now.
 
For some real excitement, research the economic term,  " law of diminishing returns."
Oct 15, 2008 3:40 pm

Let me see if I have this right.  If FLR moves from 37 to 40 my strategy earns a 13 point gain and, according to the "advisor" calling himself "walking9," I'm not intelligent if I do it?


Yeah, that 50% in a month is something nobody would want.  My bad.
Oct 15, 2008 3:46 pm

Uh huh.

Oct 15, 2008 3:46 pm

I guess buying GE at 19.50 and writing a Dec 20 straddle for $4.40 would be insane.  The return would only be about $5 on $15--33% in two months.

 
Maybe there's an ex date in there to help bump 33% in two months up to something like negative 25% that walking9 has been getting the suckers who think he's an "advisor."
Oct 15, 2008 3:53 pm

Anyone who can afford to waste time here (myself included) is in a different market or discipline than what you describe.


Invest in your own education, and come back after you make it.
 
Good luck.
Oct 15, 2008 4:34 pm

The problem with using options as part of an overall strategy is that the "advisor" has to have an above average IQ so that he or she can explain them to the client.




 
The Options Clearing Corporation is frustrated that the bright advisors are retiring leaving dim bulbs who believe that their role in the grand scheme of things is to meet with their client once a year to give them a summary of the tax implications of their activity--and, of course, to send the client a birthday card and a $100 Outback gift card at the end of the year.
 
I'm I being too honest?
Oct 15, 2008 4:44 pm

Naive might be a kinder and gentler way to put it.

 
You'll not get a rise out of your attack, consider investing in some passive aggressive counseling.  ( I mean that in a kind way. ROI. )
Oct 15, 2008 7:43 pm
Provocative Put:

Here's something you could do to add some ooomph to a portfolio.

 
Buy Fluor for 37 and write a Nov 40 straddle for 11.
 
If the stock rises to 40 next month kiss it goodbye.  You'll have made 14 points on an investment of 26 points in a month.  That's better than 50% in a month.
 
If the stock is below 40 next month you can either allow stock to be put to you, or roll the position to December for a small credit--buying more time for it to rebound.
 
There is a bottom in here somewhere.
 
A similar trade is possible in Apple--I'm long the stock and short the Nov 120 straddle.
 
Ditto for Research in Motion--go long the stock and short the November 65 straddle.
 
OK...this is definitely you, Put.  Where the heck have you been?
Oct 16, 2008 4:45 pm

For some reason I am not able to take part like the rest of you, but I am able to find little windows of opportunity.


I want to explain something that has worked very well for me a number of times.
 
Google makes it a practice to announce its earnings on the Thursday before the third Friday of the month--something about options in there.
 
Anyway, at 3:45 today GOOG was trading in the 340 range and I decided to make a wager that it would rise about 10% on earnings--to the 370 range.
 
So I bought 20 Oct 380 Calls, wrote 20 Oct 370 calls (forming a bear call spread wagering the stock would be beow 370).  I also bought 20 Oct 360 calls and wrote 20 Oct 370 calls (forming a put bull spread wagering the stock would be above 370).
 
I did it for a net credit of $9.50 per share or $19,000.  Commissions at Fidelity are $8 per leg ($32) plus 75 cents per contract ($30) so my net credit is 18,957.43--the 57 cents is that weird taxes stuff.
 
So what could happen?
 
Well, tomorrow the stock could close at 370.  It's at 373 in the after  hours market right now.  If it's at 370 tomorrow afternoon everything will expire adn I'll keep ALL of the money, which makes me happy.
 
On the other hand if it's below 360 I'll have to buy 2,000 shares at 370, but I'll sell them for 360 so I'll lose $20,000 on that, or $1,043 more than I collected this afternoon.  That will make me sad, but will not ruin my life or anything.
 
If it's over 380 tomorrow I'll have to sell 2000 at 370, but I can buy them for $380 so I'll lose $20,000 on that--but I get to keep the money from today so I'll be out of pocket $1,043 for that too.  That too will sadden me, but won't ruin my life.
 
If it's between 361.60 and 379.40 I'll avoid losing.  As of now I like the odds.
 
If I didn't know how to craft things like this myself I'd be willing to pay an "advisor" to suggest them to me.  I bet there are thousands of guys like me out  there--wishing somebody would call them with ideas that might return hellatious profits if they work out.