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  1. U

    Paradox of value investing

    OK, now let's back-up a minute. The answers were based on the set-up supplied. Based on the variables and assumptions you supplied, I answered how a "value" investor may look at it. Now I am not sure if someone would label me a "value" investor or not but my objective is to purchase stock...
  2. U

    Paradox of value investing

    I don't agree that buying at 900K is "riskless". Remember, we are buying stock. The market determines the price. There are many companies whose stock sells for less than their "value" but until the market recognizes that value and prices it accordingly, you may be holding on to a stock that...
  3. U

    Paradox of value investing

    Please remember that I am answering in context of the given variables. One of the items missing in the example is time frame so I will add it. First, I am conservative so I would use the $900K estimate. Next I will assume that it takes an average of 1 year for the market to "agree" with my...
  4. U

    Paradox of value investing

    Not sure where the disconnect is. In the given example, the amount of discount required is 50% to cover return, risk premium, expenses etc. therefore when a stock which I value at $80 (your value may and obviously the market's value at this time differs) is trading for $40, I buy. Now if...
  5. U

    Paradox of value investing

    ??? Value investing is trying to buy something currently priced for less than you believe it is worth (buy low, sell high). I think you are giving my "buy low, sell high" some other meaning that I did not intend. Joe.
  6. U

    Do you always assume 100% loss when you long an option?

    Yes. I think a lot of traders (especially new ones) think that they can adjust their way to profit but IMO it only leads to wiping them out faster due to trading costs, spreads and yinging when they should have been yanging. :eek: Joe.
  7. U

    Paradox of value investing

    There is no paradox. The object is to buy low and sell high. The individual investor decides the %'s that he/she would like to attempt to capture. This is not a perfect science so you have to allow room for costs, mistakes (losses) and still allow for a "good" rate of return. Joe.
  8. U

    Trading basics - a quick poll

    Maybe we need to define "trade". Joe.
  9. U

    Trading basics - a quick poll

    Not true. Now whether or not it will pay you 5:1, that's a different story. Joe.
  10. U

    Trading basics - a quick poll

    For me, I would only do trade A. Combining Trade A and Trade B would only reduce risk of loss by 5.1% at the expense of a much higher return. Joe.
  11. U

    tax stimulus checks

    Got $1,200 (wife's share included) but I feel a little dirty and un-American, I didn't spend it, I put it in the bank. :eek: Joe.
  12. U

    Mozart Effect

    Bolero! :eek: Joe. :)
  13. U

    Proposition to Trade your account ?

    If you can really make 5-20% per month, you don't need any more accounts (unless you can only do it for a limited time). Do the math. It would not be very long before you had more money than you would know what to do with. You scoffed at the poster that suggested you make some sacrifices...
  14. U

    consistent income

    I am not talking about making a living type of monthly income level, if I can make close to $2K consistently per month, I would be happy. ************************************ I will assume that you are kidding. If not, my suggestion would be to leave your money where it is and to read as...
  15. U

    Writing options for a living

    Bump. Joe.
  16. U

    How well to humans know random?

    1000011100 0110100010 0100001110 0110010011 0100111011 1111100001 1001011000 1010011010 1100010101 1100111101 Joe. Edit: To put space between the groups of 5
  17. U

    The Monkey Calendar

    A calendar spread ATM is non-directional. The OP is suggesting a calendar spread ITM which results in greater profit as the stock rises to the strike. Joe.
  18. U

    Las Vegas Leaves Its Mark On The Options Market

    The above is moot as far as Orlando is concerned. I live in Orlando and I am not aware of any prostitutes in Orlando! Joe.
  19. U

    Can Opponents "SEE" your stop.. emini NDx100

    PS. Is it possible to block comments from specific users?? ********************* Go to Your Account and then Edit Ignore List Joe.
  20. U

    Stimulus Payments early and my favorite quote of the day...

    My payment was wired to my account today. Now I have to do my part as a good American and stimulate the economy. Joe.
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