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A better presentation of his point. http://financialsense.com/fsu/editorials/schiff/2009/0109.html

A small paperback book "For the New Intellectual" takes excerpts from her books to summarize the meat of her philosophy. A much less painful means of reading her work than wading through massive uninspired fictional stories. I personally try to follow the basic principles of her philosophy...

Quote Dagynt: 1) the price you paid is 100% irrelevant. You must consider the price of your position today. 2) Why would you settle for 4.85 for a box spread that is worth about $5? Why would you convert one position to another - and not only lose those few cents, but be forced to...

I knew a guy like him. Screwed his family and friends, associates mercilessly, for maybe 3 to 5 million. Makes me happy to know he went to jail for 3 years, lost his wife and most of his family, now living in a medicaid nursing home. Quite unhappy. By not regretful, not one bit - except that...

Better take out a good chunk for taxes next year!! Fantastic work- congratulations.

I also wanted to point out that the reason I am still here to talk about this, is the technique I recently talked about at length, which was rolling out the spreads in time. That is taking a XYZ SEP08 40/50 and selling it (if it looks like it might be a loser), and replacing it with a XYZ...

Good thought appleseed. I am aware of your caution and realize I have to keep a close watch on the short positions. I'm prepared to take a small loss on the short call if the stock price seems to be moving up too much too fast. However equally true is the prospect of using brief market...

Call an IB rep. They require proof that the funds qualify, and I think a direct transfer might be required.

tao - just for the record, I bought the spread in Sept when DBA was in low thirtys. Also I am bearish/neutral for the stock near-term so I expect the short call to expire zero. I think both of us fully expressed our opinion. I'm content to let the market decide this one. And your opinion was...

In the example I posted, a spread on DBA. DBA is an commodity ETF that I do think will be above $30 to 35 by Jan 2010. So I am bullish for the long term, and I think it is reasonable to take this action under the present volatile market. I think it is very reasonable to take the approach that...

How do you handle the situation when a bull vertical call spread loses value due to a drop in price of the stock? Could you BTC the short leg and replace it (STO) with a different earlier month short call, resulting in a diagonal or calendar?

tao - Thanks for your reply. I agree 100% with your last post. It's not a "trick", but a technique that allows you to adjust a long term spread to take advantage of current market conditions. If you are not aware of the technique it just seems like a trick, but you do need to know how to use it...

Taowave mis-understands my post. By “hedge” I mean maintaining your present position and adding a second position to protect your first position from (further?) decline. In the post he refers to, I was searching and failing to find an answer to my dilemma. In my last post, I propose a...

This is a lessons learned AND SOLUTIONS FOUND final chapter to this journal. The cost of this lesson has been dear, but the cost will end up being recovered, without doubt. The solution to the problems I had is so simple, yet no one suggested it in any of the previous responses, at least not...

If Adelson pull off his Asian financing, this is a real good time to buy some 2011 options spreads for pennies. Las Vegas is still great. Just returned from seeing a magic show with free tickets for locals, and had a decent dinner for $15. Friday night and the strip is packed. But still no...

The XYBER9.com website sells moon trading for a living, and supposedly was nominated for a nobel prize. interesting website for when you want to waste some time pursuing the end of the rainbow. Actually he uses the affect of gravity on the human psych. And gravity is primerly due to moon cycles...

The market is a great teacher, if it doesn't kill you first. I have come to a number of conclusions about hedges for my spreads. all of the ideas discussed here so far have not worked for me. It doesn't make sense to hedge positions that you think are good going into them. It also doesn't...

There really is little point in continuing this journal. My methodology has been fully and excruciatingly explained and exemplified. All my judgment calls and mistakes are here for anyone to see. All my trades for the future are placed and it only remains to see how it all works out. I...

A tale of October. The end of September left me with a portfolio of spreads that were shaped during July, August and September. My account (at $160K) was down about 22% from its May highs. I was upset, but certain that the sectors I was in (energy, commodities, metals) were going to be less...

I took max advantage of this day. I traded nearly 500 spreads today in various accounts to buy new spreads, or to bleed out more near term poison and replace with spreads for JAN2010 (hoping a modest recovery occurs by then). To keep the record straight, here are all trades for this account...