I recently closed off a few AMD PUT option contracts/LEAPS. These were AMD PUTS for January 2014 at a strike price of $4.00. I purchased these when AMD’s share was trading around $6.75 (contract price was $0.53) and sold the contracts when AMD’s share price hit $4.26 (contract price was $0.91). See above MetaStock chart.
Archive for the ‘Technical Analysis’ Category
Closed AMD PUT Option/LEAPS Position – 15% Return
Wednesday, July 25th, 2012Quants: The Alchemists of Wall Street (Marije Meerman, VPRO Backlight 2010)
Tuesday, July 24th, 2012
Here is a great documentary on Quants. Those genius mathematicians that come up with financial products to be sold to investors. Some of the formulas they come up with are so complicated that the people that sell them don’t understand them.
The investors do not understand the consequences of these financial products as well. Well, heck even the Quants do not know the true extent of the consequences if these products react to unforeseen circumstances. Some of these products were responsible for causing the 2008 crash due to complicated credit default swaps and mortgage backed securities.
Why Doesn’t The Stock Market Reflect The Imminent Global Depression?
Monday, July 2nd, 2012
The truth is that the world economy is balancing on a very fine line, kinda like the man that recently tight roped walked across Niagra Falls. The momentum and direction is total slowdown and the reality is that things are getting worse.
No Full QE3, Continuation of Operation Twist Says Fed
Saturday, June 23rd, 2012
So on Wednesday the Federal Reserve of the United States chairman Ben Bernake said that they will not do a full quantitative easing (extensive money printing or QE3), but instead continue short term treasuries purchases with “operation twist”.
The stock market reacted quite muted, then fell and on Friday bounced up a bit. The question is can the stock markets go higher from this level or can it maintain this level. In light of all the bad economic data out there and the fact that the summer months up to August and September are historically down months it would seem that the answer is a resounding “NO”.
Shorting NASDAQ Decline , AMD Puts and Silver Bull ETF – VBLOG5
Wednesday, June 20th, 2012
I am going to short the NASDAQ and at the same time PUT options on AMD for Jan.2014 with strike price of $4.00 and also long on silver with ETF.
The above trades would have to wait though if the Federal Reserve decides to print more money and lift the markets of course. If Ben Bernake does do that then the decline probably won’t happen until after new year (Feb. 2013).
Gold Will Rise Again: Mike Pento Sees $1800 By Year-End
Thursday, June 7th, 2012Stocks Aren’t Cheap Enough to Buy Now: Stein
Tuesday, May 8th, 2012I agree with Ben Stein here. The market is at the top for now, so buying stocks here would be stupid, I rather wait for a correction (mini-crash). Even after the mini-crash you still have to be careful though.
QE3 Will Arrive Later This Year, Says Harry S. Dent
Thursday, May 3rd, 2012
The mini-crash has not come yet. Maybe in May or most likely July or August, the reason is that it is an election year. The Fed need to manipulate the market so that they can inject QE3 (print more money) into the market to make it rise and look nice, after the mini-crash before the election in November, 2012. So the giving the illusion that the economy is doing well into November so that Obama can get re-elected.
Caution Is Key In The Stock Market Over The Next Little While
Monday, April 16th, 2012
Points covered:
- Some disappointments into earnings season
- China slowing
- Unemployment rising
- By August markets “might” turn around a little
Silver Poised to Hit New Highs This Year: Purves
Sunday, April 8th, 2012Stock Markets To Take A Dump Soon – Record Low Volume is Setting Up The Market For A Crash
Sunday, April 8th, 2012
I’ve been saying this since early February, that the markets has topped and is going to roll over, but usually when trying to predict a top or reversal timing is never easy or accurate. Sometimes, it could go on for months, generally market Euphoria carries on for longer than usual and is unpredictable.
I am now anticipating the crash to happen in May/June period this year, but then again I can be wrong. The magnitude will be 5-10% correction.
