Disagree. Options can be lower risk, higher reward, and higher percentage chance of working when you isolate yourself to the right situations. But like I said above...novice traders should avoid them completely. It took me a couple years to fully get a feel for option pricing and the correct situations to use options over equities.
RIMM is trading under net tangible assets. I read the analyst about it falling to 10, but at the current price they could just sell the assets and payoff the shareholders.
I thought it was a decent shot to get long when I posted that trade on the last page, but I ended up dumping my position not too long after. I just didn't feel good about my risk and I'm glad I didn't get stubborn with it. The problem with RIMM is that it is a broken company with terrible management and it is not even a buyout candidate because of management. They aren't even expected to get their next gen phones out til LATE 2012. It is a very cheap stock, but it is going to take management selling their shares to an activist fund to actually get the stock to pop. RIMM should change their stock symbol to PALM.
Well I guess it's a decent time to revisit this call. Gold has crashed thru the 200 day MA and now it's looking more like a longer term breakdown on the chart. You can probably reliably short gold on any significant rallies (especially in that 167-170 range on GLD). Maybe look to get long a few hundred dollars lower if you are trying to buy for the longer term. Shorter term I'll be looking for a bounce if we have another puke down day like below 1500 or if we start to hear some panic among the CNBC chatterbox crowd. _____________ Store of wealth.
well, I'm novice to the core and I will gladly lose stacks of cash on options. It's fun!....and fun has a price. Srsly though,buying puts are a good way to short without having the mega-scare factor of an unlimited loss. Which is a big ass deal for us pikers.
Heh. Seriously though, breaking the 200 will probably do just enough to shake out all the weak longs. I mean, if it was that easy to make market calls based just on one moving average, everyone would make money. Robbie will learn though, they all do eventually. Anyways here's a little update: 8/24/11 After Jobs resigned, they actually immediately ran the stock up the following weeks to a fresh all time high, as anticipated. But since then it has started lagging the market which is pretty unprecedented for this market leader. A sign of the change in times. However, if you bought GOOG and shorted AAPL in equal amounts in the meantime, today you would return +19% in GOOG and -1.34% in AAPL since that day. A cumulative return of about +9% in a market neutral position. This is an investment that should do very well for the next few years. Or at least until AAPL reaches the 100s.
I'm cautiously looking to get long here, but the market still feels soft. I would prefer one big wash down day.
Dunno what you are talking about. I think I suggested to you that you should just buy GOOG rather than short AAPL. You would have been better off doing that.
I agree. Short term (days to week) gold looks good risk/reward at these price levels. But I'm looking for a move to at least 1400 before I schedule a longer term buy.
What does that have to do with anything? And I don't think I was. Also AAPL will have $100 in cash by March.
How much cash they have and will have is irrelevant. It always makes me laugh when people trade based on that and call stocks undervalued, seen it over and over. Do you think RIMM was a good buy when it traded below book value? The only thing that drives stock prices is where the company is going in the future, not what is already on its books and priced into the stock. But you already knew that.
Yeah I thought it was worthwhile for a trade in RIMM since there had been buyout rumors around it and book value is something a lot of investors look at. So I figured it was a decent enough area to try the trade mostly thru selling volatility rather than just getting long. After I got a bit more educated on the ownership structure and found out a buyout was a virtual impossibility then there wasn't much reason to screw around with the trade. I lost some money...oh well. It's not like I was falling in love with the trade or anything and I never viewed it as a long term investment based on valuation. Also, if you want to say cash is irrelevant then you are just avoiding reality.
So I have buying rimm the last couple days even though it was down today I still bought more. Hopefully we get a little short squeeze going tomorrow.
