Showing posts with label margins. Show all posts
Showing posts with label margins. Show all posts
Tuesday, June 21, 2016
Thursday, September 20, 2012
CME Lowers Initial ES And Other Key Equity-Related Margins By 12%
Yes, it is obvious. The CME and the powers-that-be favor certain commodities and asset classes. Keep driving equities up, so the Fed's strategy to catalyze "animal spirits" and create a "wealth effect" (even though it is false prosperity), so people will open up their wallets again (even though they are broke). Suppress bond yields to artificially prop up bond prices--and demand for said bonds (even though their "safe haven" status is questionable at best).
Meanwhile, when the energy complex (including crude oil) and precious metals (specifically gold and silver) begin spiking in price, do whatever it takes to take them down and teach all the "speculators" a lesson.
http://www.zerohedge.com/news/cme-lowers-initial-es-and-other-key-equity-related-margins-12
Meanwhile, when the energy complex (including crude oil) and precious metals (specifically gold and silver) begin spiking in price, do whatever it takes to take them down and teach all the "speculators" a lesson.
http://www.zerohedge.com/news/cme-lowers-initial-es-and-other-key-equity-related-margins-12
Monday, October 27, 2008
The other side of calls and puts...
Most speculators buy calls and puts, looking to earn exponential returns if they guess right on the movement of shares. Reading charts and using technical analysis, as well as exercising discipline and pricing models are pre-requisites in order to succeed. A great sense of timing--and luck help.
I normally don't like to do it, but selling covered calls is actually a conservative strategy to increase income and overall returns, so I've been known to utilize that strategy occasionally.
And I've never entertained selling puts--until now. Due to high volatility (as measured by the volatility index) and extreme uncertainty in the markets, options premiums have been astronomical. Hence, I sold a few puts on INTC, collecting the premiums, and lowering my entry point on Intel shares, should they dip below my strike price. If they don't hit, I still keep the premiums. Not a bad way to make money by doing nothing and standing pat.
And if the world were to end tomorrow, people will still go on-line, so Intel will be one of the strong brands that will be left standing. They have dominant market share, a strong cash position, no debt, and high margins. I like them at the present price, but I like 'em even more if the price falls further.
I normally don't like to do it, but selling covered calls is actually a conservative strategy to increase income and overall returns, so I've been known to utilize that strategy occasionally.
And I've never entertained selling puts--until now. Due to high volatility (as measured by the volatility index) and extreme uncertainty in the markets, options premiums have been astronomical. Hence, I sold a few puts on INTC, collecting the premiums, and lowering my entry point on Intel shares, should they dip below my strike price. If they don't hit, I still keep the premiums. Not a bad way to make money by doing nothing and standing pat.
And if the world were to end tomorrow, people will still go on-line, so Intel will be one of the strong brands that will be left standing. They have dominant market share, a strong cash position, no debt, and high margins. I like them at the present price, but I like 'em even more if the price falls further.
Labels:
calls,
cash,
conservative,
covered call,
debt,
INTC,
Intel,
margins,
market share,
options,
options premiums,
puts,
strike price,
volatility
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