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There is your opportunity to get an edge...

If its part of employee compensation it might be a LITTLE hidden (although they still have to file that information in fillings like S-8s). Stock offerings and stocks dividends (dividends paid with shares instead of cash) will be announced for everybody

The money from the buyback was 'returned' to shareholders (by making their ownership in the business bigger) so it then counts as a negative on the equity portion because of that. If you capitalize your friends business with $100,000 ($100,000 total equity capital) and then one day, he gives you...

https://www.elitetrader.com/et/threads/shorting-boxes-as-a-funding-strategy.303880/ I mentioned this as an idea to borrow funds and lever up but its also an idea on how to earn some interest and not take a lot of duration risk (and duration is being punished pretty bad in this market) It looks...

I mean you dont run the risk of having the broker change the rules on you and ask for the money back (or pop the interest rate), or use some obscure clause in the margin contract, etc, etc

Tks. This is a fun little trick to know, maybe I will use it one day when markets are cheap and oversold and I want some extra exposure. But I probably wouldnt go above 1.4-1.5 to 1 leverage

I meant the fact that the loan is non-recourse. If someone goes out takes the proceeds and loads up in stocks on a 4-1 basis, then that wouldnt be conservative at all

As far as US stocks go, I'm semi-skeptical of this market. The CAPE ratio is rich (and I posted a chart earlier showing that historically, that meant a higher chance of a significant correction) but at the same time, central banks have been pretty good at putting shorts out of business since...

Here is the data http://bvmf.bmfbovespa.com.br/indices/ResumoVariacaoAnual.aspx?Indice=IBOV&idioma=en-us By real returns I mean inflation ajusted USD (assuming a 2-3% USD inflation rate). The Japanese situation was a unique one, there the CAPE ratio reached over 70 points! Investment analysis...

This is a form of convervative leverage. You only have to pay back the 'loan' at expiration. So you can assume some positions knowing you will be fine all the way to exp (in the case of European style options). With a broker margin loan, they got all kinds of liquidation policies. Also a broker...

What is the interest rate one can get currently for the longest term short box on SPX right now?

Due valuation and the business/sentiment/Soros cycle, I believe Brazilian stocks are like US stocks in late 2009/10. Yes they are up a lot but they are still headed much higher

I understand your point. The thing is, I got a plan and I have to stick with it. My investment analysis sayis its not time to sell, therefore I cant. Brazilian stocks are probably due for a drop but that will be an opportunity to buy more. As a matter of fact, I hope you are right and I'm being...

On Natenberg's book Option Volatility & Pricing: Advanced Trading Strategies, he talks about how being short a box (being in a synthetic long and synthetic short at the same time, with different strikes) is pretty much like borrowing funds. What are the margin requirements associated with that...

Its very intoxicating to be MAKING money while everybody is losing. you feel like a genius, you are the phophet that predicted the apocalypse, the media wants to talk to you all the time, and then all of the sudden you got to change your mind and buy everything and give up on that drug. Its...

One has to remember that in Brazil, to match that benchmark is so easy. All you got to do is to buy SELIC bonds and you earn the overnight rate (14% a year now). I believe the issue here is that he predicted the crisis so well (earned 28% last year vs 13% of the benchmark, due being out of the...

What's funny is that if you look at my posting history, you would see that I was the biggest market timer proponent around. I avoided US stocks for a long-time because I was 'worried about this or that'. But the market taught me very well to not play that game. I watched the S&P500 go up almost...

The manager I mentioned is up 9.5% YTD (BRL) against 10.5% of the short-term interest rate benchmark rate (his benchmark, even though he is a multi-asset manager) and ~50% of the Bovespa. He would be making his job a lot easier if I owned SOME equities

This is due to the fact that in a cheap market if your worry plays out and then markets overshoot down, that is an opportunity to buy more. Stocks go from, say, 15% expected real returns, to 20% expected real returns. But if you are wrong and your worry dont play out (which happens most of the...

I believe Shiller talks about this in his book Animal Spirits. Markets tend to fluctuate widely even though the fundamentals are not flutuacting that much The 80's experience in Brazil (and in a lot of other countries) suggests those issues (fiscal problems, hyperinflation, debt defaults) might...