ECC,

What do you think about a speculative play, and purchasing a call or selling a put in oil?

I don't know a lot about options, but sure seems like as good a speculation as playing a sub-penny scam.

King, you are still hilarious.

Thought about you a while ago, King. I don't know if you ever visit I-Hub anymore, but hope you're doing all right. So sorry about the situation up there. Very depressing.

http://octxnews.com/index.html

I just got the pump tonight via Investopedia at 6:54 p.m. Eastern time. Maybe there's still hope if anyone here is trapped. :)

ECC, for some reason, I thought about the Christmas album yesterday. I laughed thinking about Stock Certs Roasting on an Open Fire. So I just looked to see if you had put it up, and sure enough, there it is. LOL Ahhh, memories. Don't ya love them?

Looks interesting, rimshot. Thanks for sharing. Will have to check this one out. Looking for some longterm companies.

http://www.upi.com/Business_News/Energy-Resources/2012/06/15/Massive-shale-gas-find-for-Apache/UPI-28881339770712/

Maybe fracking is what I had heard about.

Better get off here now.

I can't believe it's been six months already since Christmas. Only six more months before you put the Christmas album up. But stick it on this board as well. I almost missed it last time because I never frequent the QMIN board. It will be the five-year anniversary for the album. LOL I love it! I need to see it once a year to always remind me of what not to do.

I am thinking I've heard they've got a new way to, I can't think of the word, but obtain oil from shale that would make it more economically feasible. I believe the US and Canada have a lot of shale. Could be the next boom.

EFC has super ratings by Money Central and IBD and much upside potential. 14 percent yield. Really trying to attract investors. It doesn't have a billion dollar market cap, so a little concerning about how big a storm it can ride and not go under.

Hi, ECC. Hope all is going well. I'm just chasing deadlines and backlog as usual. :) Are any Canadian companies going to capitalize on shale?

Mutual funds pay low dividends, so it's like creating a fund of your own, but it's so financial heavy. One would definately have to have a way to hedge this. I just don't know options, except there are many different ways to trade them. That's why I was looking at the triple financials, but doesn't seem the way to go. I'll be two months or more before I can devote enough time to absorb options.

I assume if a company suddenly files bankruptcy, as Washington Mutual did, even options would be worthless. So you'd lose whatever portion of your portfolio was invested in that company, including options???

Actually, WAMU was shut down for supposed liquidity issues, after 4 p.m., of course. Then they filed bk, with only the bondholders having a chance of any recovery. I forget the name of the Texas man who had just invested seven billion with WAMU. I assume in bonds and/or preferred stock. I've always wondered if he every recouped anything, but got tired of following the saga. lol

Porgie,

These companies are rated over 90 by Investors Business Daily, and are rated 7 or higher on Money Central. Well, I haven't checked all of them on Money Central, but IBD they are rated above 90. They all pay over 6 percent dividend. They all have a market cap over one billion.

So it would be expensive probably to write options on each one as a hedge, and they are highly rated companies. You shouldn't invest in a company if you don't believe in it.

But in case of a meltdown, one could write an option against a financial index or something to hedge?????

NRGM PNG CYS PSEC SFL PVD TWO

Heading to work now.

Porgie,
Since this is the FAZ board, I'm going to write a message on The Hall, a vacant board.

I read the link you posted. That is a lot of math. That is basically what I've read in the past concerning the volatility factor. It emphasizes the short-term use of triple ETFs.

I'll have to break out my options book I've never read. Financials are paying good dividends, but after the shock of the meltdown, it's intimidating to invest in any financials without hedging.

I saw what FAZ did in 2008. Like many, I didn't even know about short ETFs. I also watched the market rocket off the bottom in March of 2009. It was all mind-blowing.

So I'm researching hedging strategies now. :)

LOL Thanks, Clueless!

When I read hedging strategies, they get technical to tenths of percent when discussing using EFTs as a hedge. But then they tout options. It seems like since options expire worthless, you'd lose more money renewing them all the time than you'd losing hedging with a triple ETF. I don't know much about options, but from what I've read in using them as a hedge, they seem to favor shorting the put and call. That could lead to unlimited losses. I don't know. I need to study up on basic option strategies.

Thanks for the reading material. It should help me to understand better.

mono, can you explain something to me. I don't know exactly how to phrase this. They talk about time decay with 3x etf's. I get it. but when they do reverse splits or whatever it is they do in these, does that temporarily fix the big time decay to where it starts over so to speak? I hope that makes sense.

I'm saying his delivery makes us look bad. He's a loose cannon. So is Newt G. The one I agree with about 80 percent of the time is Bill O'Reilly. He always knows how to say what I'm thinking. He's just more articulate. lol I love that, because he gets my thoughts out there. He messes up sometimes. But he's not a loose cannon. He's really smart and a true-blooded American patriot.

Bush was a pure, true-loving American patriot. The world felt right while he was in office. I love that man, because I know his heart is pure and he loves the American way.

Rush L. crossed the line so far it can never be uncrossed. He makes republicans look bad. He's an animal and it reflects on us. That's why I've never paid him any attention. He found his niche and he capitalizes on it. It's all about him. Wish he would have found his niche as a liberal, because he'd make a good one.

Multicollinearity
I believe that means using many indicators that are essentially showing the same signal. In other words, one indicator would do.

They use the term "ten bagger" a lot on the penny stock boards. For instance, they want a one cent stock to jump to ten cents; or a .01 cent stock to jump to one cent. That's a ten bagger.

Warning: Don't mess with subpenny stocks. Scam companies. Been there. Done that. LOL

That sounds like a good penny stock scam too. You make money by just selling shares. Then reverse split. Repeat. Some of them do that for years. Just got to have a crooked mind and no conscious. lol

I don't see low volatility as bad, because when it's too volatile, I won't touch the market; but the high-frequency traders thrive on the volatile markets and they're the ones creating all the high volume we're used to seeing. If they're basically out of the equation this month, volume may not really be that low.

That's my unorthadox analysis.

Boy, that creates a Tums moment.

When you look at monthly volume of the S&P over the last 15 years, low volume months happen. The lack of volatility seems to suggest that the market is just waiting on direction. Like a period of consolidation, maybe.

I've been studying day trading for a while now, for something to do when I retire. Now this is giving me anxiety!

Thank you, spdpro. I really appreciate that article. That really helps.

gleno, why has all the volume dried up? Is it too toppy and traders are waiting for the markets to roll over? Or is this the new norm?

Oh, those were too funny. King and his one-liners. I used to fall out of my chair.

LMAO,

ECC, I can't believe I forgot about the album this year. I should have known you'd put it up. You never miss a year. It is so hilarious. We have to keep this board open forever to always remind ourselves of what fools we were, but how much fun we had going at it back in the day. I learned so much and lost so much at the same time, in the year of 2008. Crazy year!

As always, Thanks Foot. You people keep me researching! Wish I had time to read everything posted here, but I catch a few here and there. Alas, just can't wait to retire.

Thanks, Foot

Those are both for the NYSE? Do they correlate to the Tick of the NYSE? The Trin of the NYSE is volume, I believe. I think the NYAD said advance-decline volume. It's a bit confusing. I've tried to research it, but can't get the answers.

Foot, is NYAD advancing issues and NYDEC declining issues? Thanks.

You Redskin fans are the most loyal fans in the world. I work in PG and husband in Montgomery. We hear it all the time and laugh. :) The Golden Years are never forgotten!!!

My knowledge of civil cases is so limited. I've worked in criminal court almost exclusively. One thing I do know is if a company is big, everybody tries to sue them. But if there's not at least merit to a case, the judge will throw it out. If there's zero merit, a person or entity can get in trouble for filing frivolous lawsuits. So I think this would be a good case to follow.

I followed the WAMU case for a while, and I even attended a hearing in D.C. We need a Texan to attend some proceedings. You get a much better feel than what's written up. But some federal proceedings you can actually listen to online live. That may be bankruptcy proceedings you can hear online. Not sure. Need to find out.

I know how good you are with research. I may put $300 or so in. Let's see if she drops a little more for now.

Oh, they're doomed without oil sales. They've done nothing for the past 2000 years but cause trouble for themselves, and now they're able to reach out to others to cause trouble and pain.

Speaking of taking a piece of my soul, Sonia Sotomayor is probably by biggest foe. She's the type that believes in, say, two people are in school. One works and studies their butt off and makes an A. The other parties down and does nothing, and gets an F. Well, they both get a C. That's the way she thinks. That's what she promotes.

Cain does tell it like it is. I believe everyone should pay the say percent in taxes, but that's just me. It doesn't look like it will ever happen. I don't understand wanting to tax corporations in the ground when they provide so many jobs.