Search results

  1. S

    Synthetic long uses more margin than just being long?

    If the borrow costs are say, 20%, and the options don't reflect that, then you simply do the following transaction: Buy shares in the stock, lend them at 20%. Buy the ATM put and sell the ATM call, which if put call parity is holding will cost you only the transaction cost (which is far less...
  2. S

    where to find Equity offerings

    Is there a rule that there has to be a secondary offering every business day of the week? Could be there just aren't any that day?
  3. S

    Synthetic long uses more margin than just being long?

    I agree that synthetics have benefits, although I'd maintain that if a stock has high borrow fee's it's reflected in a violation of put/call parity to get back to the no arbitrage situation, otherwise you have a license to print risk free money. If you actually use international market access...
  4. S

    where to find Equity offerings

    The second hit on google after the definition https://www.theonlineinvestor.com/secondary_stock_offerings/
  5. S

    IB is going to start charging a daily exposure fee

    If they cared about what their customers thought they'd be doing a couple dozen things differently/better. They couldn't give a crap, they offer low prices and lots of products to suck you in and count on most customers sticking with them and the loss of the more rational one's as the price of...
  6. S

    Synthetic long uses more margin than just being long?

    I'm pretty sure it's still because of their independent evaluation of each position, but I won't tie myself into knots too much trying to explain what I feel is at it's root a completely irrational system that IB uses. At a high level, they assign some level of risk to the short and some level...
  7. S

    IB is going to start charging a daily exposure fee

    It kind of does if you buy the argument that's been espoused many times on ET that your money is "safer" at IB because they're so risk averse.
  8. S

    IB sold me put vertical for a large debit that should have been a credit

    That's about as useful a platitude as "buy stocks low and sell high"!
  9. S

    Synthetic long uses more margin than just being long?

    You can and should use SPAN to evaluate a portfolio, i.e. if you have a 5 point spread you can't lose more than 5 points if the market moves against you 5% of 99%. IB doesn't appear to do that, they stress test the long position, calculate SPAN for that, and put it in your margin requirement...
  10. S

    List of stocks that issue K-1s

    You're 100% technically correct and 100% an absolute pedantic jerk for no reason. The OP clearly wasn't splitting hairs with what is technically a stock when they asked the original question, they probably just wanted to know what investments to avoid if they wanted to avoid getting K-1s because...
  11. S

    List of stocks that issue K-1s

    Are you always this pedantic? From your first post it was pretty clear you either weren't aware of instruments that trade on major exchanges that issue K-1s, or you were aware and were being decidedly unhelpful by mincing the definition of "stock" without explaining that the OP was probably...
  12. S

    Startup launches commercial electric plane business

    As I indicated in my first post on this, the weight of a jet engine per KW of energy it produces is substantially less than the weight of the electric motor that would replace it "a typical turbofan is 10KW/kg while a Prius motor is less than 2KW/kg" More importantly, how the heck have you...
  13. S

    Startup launches commercial electric plane business

    They appear to have some kind of in-wing ducted fan which presumably would run off electric motors. One rule of any bleeding edge technology is to minimize the "first of it's kind" stuff to only that which is absolutely necessary. That would call for an electric motor driven prop plane, like a...
  14. S

    Startup launches commercial electric plane business

    Absolutely (on the weight part!), the opposite of jet fuel where the plane gets lighter as it flies. One of many things the founders miss can be seen in their statement "when batteries get a lot better" For now "better" mostly means cheaper and to some extent denser. While weight is a concern...
  15. S

    Startup launches commercial electric plane business

    Google TWA 800!
  16. S

    PwC suggests MF Global was a risk culture run amok

    Some do and some don't for reasons I articulated quite clearly. Since I am one I don't really need to research the concept, but thanks for the advice.
  17. S

    PwC suggests MF Global was a risk culture run amok

    Again, the world's a subtle place and this clearly isn't something you've experienced, but take my word for it, there's a significant benefit to holding a controlling interest that may very well outweigh the benefit of diversity and there is a significant negative impact to a company when the...
  18. S

    PwC suggests MF Global was a risk culture run amok

    First I very specifically said "if they can help it". I'm an entrepreneur and I happily own 100% of my company which also provides my salary. I gain significant benefits from control of the company, and even greater benefits from owing my fiduciary duty only to myself, that I, after careful...
  19. S

    PwC suggests MF Global was a risk culture run amok

    You may find this interesting http://www.foxbusiness.com/markets/2011/11/08/corzines-wealth-is-eroding-with-his-reputation.html No-one who has taken a basic finance course and has even a tenuous grasp on statistics and portfolio theory puts a substantial amount of their wealth and future...
  20. S

    Startup launches commercial electric plane business

    Although these guy's are hopelessly naive the fire part isn't really a legitimate thing to ding them on. I mean in all fairness, jet fuel/diesel/heating oil are pretty flammable as well and catch fire pretty regularly both in the air and on the ground. It's just not as sensationalistic, at least...
Back
Top