True Legendary Trading Stories

SammySOESa · May 29, 2004

i used to post years ago with a guy over on the yahoo E*Trade board. his screenname over there is stckpkr70. he was livin' high on the hog after turning $20K into $2.2 mil.. then dude fell hard. Smart Money did a story on him.

http://www.smartmoney.com/onthestreet/index.cfm?story=200101241

SteveD · May 29, 2004

Jimmy Buffet is actually Warren's cousin. True. Jimmy is one of the most wealthiest entertainers around even though he hasn't had a hit record in decades. Makes like 40-50Million a year on his tours. Controls it all, T-shirt sells, cds, etc. Probably even gets a cut for parking, LOL

Steved

Pabst · May 29, 2004

Quote from SteveD:

Jimmy Buffet is actually Warren's cousin. True. Jimmy is one of the most wealthiest entertainers around even though he hasn't had a hit record in decades. Makes like 40-50Million a year on his tours. Controls it all, T-shirt sells, cds, etc. Probably even gets a cut for parking, LOL

Steved

Really...

TradeTheFunk · May 30, 2004

Anyone in the southern california daytrading retail business would probably remember this nutty family that came in to allow their spoiled, Wigger kid to come in and trade. After all, "He was real good at Nintendo". I swear they were as nutty as the TV Osbourne show.

One day after blowing up his account trading too much DELL circa 1998, the father gave him a crack at his older brother's account. I swear I watched him take a stand in TLAB with like 80k shares and blow up his big brother's 100k dollar acct in less than 7 hours. NICE WORK Jr!!

1st_samurai · May 30, 2004

Quote from cvds16:

reread the story, he had calls to hedge him !

I believe prior to 1987 puts were relatively undervalued for volaitility. After that, volatility was consistently priced higher for puts than calls. Hedge that worked in 87 might not have worked as well later on.

1st_samurai · May 30, 2004

Quote from cvds16:

reread the story, he had calls to hedge him !

But yah, I admit I didn't read that carefully.

swoop[TR] · May 30, 2004

Quote from 1st_samurai:

I believe prior to 1987 puts were relatively undervalued for volaitility. After that, volatility was consistently priced higher for puts than calls. Hedge that worked in 87 might not have worked as well later on.

Hence the volatility smile...

Reitberg · May 30, 2004

Yeah, my buddy who is an options volatility expert claims that before 1987, you could hedge your entire stock portfolio for 2% per year.

Then the vols blew up after 1987.

nzbryant · Feb 12, 2005

Old thread but awesome one.

A story of a friend of mine:

Beautiful woman, worked an espresso cart in Seattle back in the early 90's. Got a tip from a Microsoft employee to buy MSFT, and to buy AMZN just after the IPO (he had seen a pre-IPO presentation). He was a guy who was trying to pick her up.

She had little money, but found some loansharks to lend her $60k at a high interest rate. Bought AMZN and MSFT. Paid off the loan after 6 months. Around 2000 she sold out, and doesnt have to work anymore. She is 33.

risktaker · Feb 12, 2005

Sorry but this is total BS.

Yes volatility picked up in early '87 but how could anyone insure a portfolio for 1/2 percent per quarter?! Deam on.

Quote from Reitberg:

Yeah, my buddy who is an options volatility expert claims that before 1987, you could hedge your entire stock portfolio for 2% per year.

Then the vols blew up after 1987.