Comments on: What is Risk Worth?

By: Stocks Are Still Better Than Bonds

Stocks Are Still Better Than Bonds — Fri, 22 Jun 2007 12:21:08 +0000

[...] I read a good article on MSN Money today that seemed to echo what I said last week in my post about risk. Apparently Jim Juback reads my blog and must be getting ideas from me (of course I’m kidding, probably). Here’s a quote from his article: “My argument breaks down into two main parts. First, the same macro trends that are almost uniformly negative for bonds have some undeniable upside for stocks. And second, the structural problems in today’s bond market that will drive down bond prices in the next bond panic are largely irrelevant to stocks.” [...]

By: The Trader

The Trader — Mon, 18 Jun 2007 20:06:28 +0000

Kadena, I hope you got out before this news hit about ENCY.

By: The Trader

The Trader — Fri, 15 Jun 2007 11:55:31 +0000

Kadena, All comments are visible, so no secrets there. You are the main one who comments. I don’t get many emails more than just a few saying hi. I enjoy the comments from you and others and continue to welcome feedback.

By: Kadena

Kadena — Fri, 15 Jun 2007 01:56:22 +0000

Agreed!! A thousand bzillion, million per cent. It’s obvious to me I prefer less risk, because even though I may now buy a call or put for trading reasons, I cannot pull the trigger. I’ve been cover call programmed for the last year. Also, I will admit a possible oversight. I did not know much about ENCY, but used it for a June covered call. Now, for risk reasons, I want to ease the pressure in my account from it. What I intend to do is buy my current calls back, and take an October or January so I can get much more money, in case the stock takes a dive. As long as it doesn’t bankrupt I should be able to do an additional cc at that time, and with selling the stock plan on at least breaking even as my worst case scenario. if i ride me current cc for today, i am in too deep if the stock is hit. of course, any good news in the stock will only help. I tried to do this last night, but the time value surprisingly didn’t erode the premium, so hopefully i got one more day.
Otherwise, cc are safe and secure way of 20% annual returns expected, especially with strong stock choices. I am currently waiting for some movement in AMAT and YHOO prior to choosing cc’s. To Trader: Do you ever reveal how many people comment at your blog in a month? Or how many email you? A co-worker of mine thought I should ask, and I am realizing that fluid conversation is the only way I would benefit if I did start a web page. But how many people can actually be expected to respond? PS The other day I felt both AAPL and CROX were due for drawbacks, good put buy opportunities, and I didn’t do it for either. If I ever do start buying these options, I will try for many months out to hopefully increase my chances. I do currently have 3 Sept. calls on USB (US Bancorp), not looking real good right now, and also 2 Jan. calls on AMAT. , up some now.
K, good day. Kadena