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thanks, jim, but i'm not patrick. -g- easy mistake to make, the "to" and "from" lines are exactly upside-down from the SI order we have become so used to.
OTM are cheaper, so they have more leverage in the sense that same dollars by more contracts. but the point here isn't to leverage the number of shares you control, it's to leverage the expected return per invested dollar.
i normally use ITM options because the return-leverage (#shares * option-price-change/stock-price-change) is often greater than on OTM shares where your gain is in constant competition with time-premium erosion. i don't know if that is the common definition of leverage, but it is my working definition of same.
well, that's my story, anyway.
the reality is my brain isn't big enough to compensate for time premie so i (mostly) eliminate it by going a little deeper ITM.
EDIT: when i talk of premium i do not mean cost, i mean the difference between intrinsic value and option cost.
people "hate" greenspan because it is in our nature to search for a scapegoat. that doesn't make it his fault.
sylvester is right, the bubble happened because we all collectively made it happen. including mo-mo players and trend trackers who knew it was a bubble but took Ze'ev's words to heart....
when the FA and TA disagree, listen to the TA.
could greenie have made "better" choices? of course. then again, isn't that true for everyone?
EDIT: before someone takes this the wrong way, no, our thread leader did not cause the bubble! -g-
whoa, hold on buddy, all i said was that the most populous parts of the country are experiencing simultaneous local bubbles. i didn't advise anyone to do anything, and i expressly stated even a psuedo-national bubble like the one (arguably) out there now does not have to deflate at the same time everywhere.
in addition, IMO the home you live in is an investment considerably different from the stock market.
after all, you (generally) have to pay to live somewhere...
EDIT: i also don't think you can tell a bubble just by looking at the price. people don't buy homes based on prices, they buy them based on payments. imo you need to look at the whole picture.
yes, real estate bubbles may be local, but if they are locally bubbly in NYC, the Bay Area, SoCal, New England and Florida all at the same time...
well...
for all intents and purposes it is a national real estate bubble because that covers such a huge chunk of the nation's real estate market.
history clearly shows, though, that even if the bubbles are everywhere they do not have to burst at the same time.
that is the best thing i have read anywhere in any medium in the past week. unfortunately my father-in-law fits the profile you describe perfectly - there's always a reason to hold or buy more, never a reason to sell and admit a mistake - and your words may help in my ongoing attempt to help him preserve his retirement.
thanks for the posting, ze'ev.
Never realized how well God and money meld together
you didn't grow up catholic, did you? -bg-
if i pay and get ads anyway, my wrath is limitless. if i don't pay and get ads i don't feel i have much cause for complaint.
is it related to "10/20/50/100"? listen to me, i sound like a collect-calling commercial...
lol, i agree. nice "knife through butter" call this PM.
"yopt mat"
wait a minute. this sounds suspiciously similar to a croatian profanity that goes something like "jeb....(snip)...matre".
sounds like another bubble. hope those who got caught in the stock bubble don't now get caught in the real estate bubble.
George, if i may ask, what do you use as a vehicle for these japan/euro trades? something like EWJ?
i was there to, went flat around 2:15. if this thing has legs in the AM i might take another ride, otherwise i'm waiting for the 15-min chart to rollover so we can take a ride to 1300 (or wherever).
EDIT: lesson i (re)learned today: levarage on the primary trend is a Good Thing. leverage on a countertrend will bounce your heart right out your throat.
how about a little respect for somebody willing to do all this in public. nobody gets it right all of the time, and Ze'ev is far better than most.
SAP just dropped a steamer?
yeah, me too. does this count towards the 18?
-g-
time to rock'n'roll...i'm fully loaded to the long side...
very nicely done, syl.
i like the flight-deck look of your charts, augie, all that red-on-black....
-g-
thanks again, rich. as compensation for your helpfulness, may your Calls blossom in value like cherry trees greeting the spring sun.
thanks, rich. i'm guessing the details on how he derives CLX are propietary in nature...?
"CLX"
i assume you're not talking about Clorox?
i went long this PM, and would be quite quite happy with 1500. well, to be honest, 1500 is probably irrelevant since i'll probably go flat by 1450, lol.
"perhaps he should just try to earn respect"
he has earned great respect over a great deal of time. which begs the question...WTF are you and what have you ever done?
yeah, but on SI they have an "ignore" button. it's not that i don't like you, softie, it's just that i don't have time to read through all your posts!
-g-
i see nothing indicating an imminent ramp. keeping all my powder dry.
this is why we need an "Ignore" feature...
Moved the thread header over from SI...just in case.
Bob put me in SI jail numerous times, I'm just giving him a chance to continue the tradition.
-bg-
JK, Bob.
test 3...if this goes through i guess i'm in the "approved" category...
test 2...
test 1...
test 0...
testing the mostest
Another test...