Day trade tips?

[Ops NCO]

on my IRA i have a 50.5% return this year.. my regular account is 40.9% and my wife's IRA is 16.5% ( I am very conservative with hers.. she has Intel and I write options against it every month for an 3-5% return each month. plus it pays a 3.3% dividend.

Wanted to get your opinion, DD.

As I mentioned above, I'm primarily using leveraged ETFs at this point. The premiums for the covered calls are very nice (due to the inherent higher volatility of the leveraged ETF), and I'm planning to start writing some shortly. I'm also considering buying a protective put so I have some insurance if the ETF stages a healthy pullback. Even with the cost of the puts, I can clear about 5% a month from the premiums, plus any gains if the ETF reaches the strike price for the call. Thoughts?

[Zimmy]

I bought RPC for .50 and it's took the fuck off. I'm buying more.

Look before you leap.

[Feetasshead]

I am reviving this mofo, curious as to how you guys have been doing with your stuff. I have purchased a few pounds of silver but its mostly for saving. The wife is very interested in buying some of her company stock. They have been doing well so far despite the economy.

[SGT G]

I am reviving this mofo, curious as to how you guys have been doing with your stuff. I have purchased a few pounds of silver but its mostly for saving. The wife is very interested in buying some of her company stock. They have been doing well so far despite the economy.

Silver is a good investment. Unlike gold you can barter with it successfully. Gold does not barter well. You wind up on the wrong end of the deal. I've made back my losses for the past five years in the stock market. Bought Ford Motor stock when it hit $1.00 per and sold at $11.00 per. But deals like that are far apart and few between. When investing always be prepared to lose everything. Just my 2 cents.

[CAL]

I am reviving this mofo, curious as to how you guys have been doing with your stuff. I have purchased a few pounds of silver but its mostly for saving. The wife is very interested in buying some of her company stock. They have been doing well so far despite the economy.

I'm up 23% over the last year and up 6% over the last 3 years. Suck on that!

[Feetasshead]

I'm up 23% over the last year and up 6% over the last 3 years. Suck on that!

Kick ass! I would expect that from a financial-guru like yourself.

My paltry silver investment has doubled but I have less than a grand in it so it is not really significant.

Glad that somebody is doing fine.
I am just buying guns and ammo for Judgement day.

[DigitalDeath]

my return this year has been 95.6%. yipee.


Here is some insight. Forget puts.. really forget them. Create synthetic short positions, or arbitrage through etf's.

The VIX is actually a good hedge, but it is tricky. Since they are not American options they only have one date when they can be exercised.

The point of the VIX is that it has an inverse relationship to the market. So you can buy calls as a way to short the market.

Plus the VIX is a measure of volatility. So it moves proportional to changes in options premiums on the S&P.

Why the VIX? With a hedge you want to protect your portfolio, but the problem with any insurance it eats into returns. You also want the hedge to provide the best possible risk protection for the money. Puts are a poor risk arbitrage tool for retail investors. ( If you actually do the calculations or simply look at the deltas, puts do move proportional to the drop in price. Which is the whole point of reducing risk. Calls on average do move proportional to the underlying asset ).

There is a long explination for why puts behave in this fashiion. but the point is that the money you pay for puts, to manage your risk is expensive. You really have to go deep in the money with puts for them to provide any real insurance. But then you are really killing yourself in returns.

This is where the VIX fixes that. You can buy out of the money calls that provide quantifiable protection of your portfolio without killing your return.

Crude oil has been one of my major plays this year. And BP, I love distressed stocks. Last year I killed on the financial sector distressed sale, and this year it was BP.

[DigitalDeath]

The problem I have with metals like gold and silver is that they provide very little direct benefit.

Crude Oil is something we all use every week. When oil goes up, we pay more at the gas pump. So you can hedge yourself against the seasonal oil price changes by buying crude in August and selling out in March or whenever it peaks. It does follow a seasonal trend, and it is worthwhile to hold.

Plus there are a few good etfs where you can go long on crude and make a nice income stream by writing calls. (USO is my favorite, because it is so poorly managed ).

Crude is also a nice way to play the US dollar.

Gold and Silver provide some of the same features, except you do not consume metals each week.

[mark.1]

I would like to suggest you that here everyone is well experienced and could give you good ideas but friend these ideas are not enogh for you as its matter of your money. You must go to a proper business coach or a broker in order to have some useful tips about trading. This practice will give you a lot of benefit.

[Loathe]

Lunch time.

This is what I’ve been doing.

I have a spreadsheet with literally over 600 different stocks. They have to follow One Rule; They must give out Dividends. Stocks like Ford haven’t declared dividends in years. While they might be good for the Long Term, I decided to go after both Dividends and stock price.

Take a look at the document I attached. These are all companies that have declared dividends. Following it isn’t hard to do:

Column 1 is normally blank. In that column is reserved for special notes. Like an M is reserved for financial institutions. It stands for Money, A for Airline, T for Transport, O for Oil and U for Utility. Stocks that are from Utilities don’t normally go up and down like industrial stocks; they are generally allowed to make enough money to give out dividends on a regular basis.

Column 2 is their Stock symbol(s). About 20 stocks only have one Symbol. United States Steel for example is an X. Most are three digits; there are a few with Six digits.

Column 3 is the name of the company. If it has a *M it means that they give out a monthly rather than a quarterly dividend.

Column 4 is their latest Declared Dividend.

Column 5 is the stock’s X-Date. It stands for Exclusion Date. People buying stock on that day and later are excluded from receiving the latest Declared Dividend.

Column 6 is for the day Before the X-Date. There are a lot of X-Dates on Mondays. If you want to get in on a companies dividend, this is literally the last day you can buy the stock and get in on it.

Column 7 is a Recent stock price. It isn’t practical to update 500+ stock prices every day. So I just concentrate on stocks of interest.

Column 8 is a derivative of a stocks yield. It is normally the ratio of a company's annual dividend payment vs. the stock's current price. The Dividend Yield is how investors earn a return on their investment in a stock. For instance the current yield of Xerox is 2.45%. I made it a little easier to read and understand. I took the stock price and divided it by the dividend. The lower the number the better the yield.

After finding a good stock I then proceed to look up how the stock has been doing for the last week. Then I look up its last 6 months. I look at the X-Date and how the stock has been doing. If there is a reasonable chance for price advancement I buy the stock.

It doesn’t always work out. After cashing in on CBS – bought at $5.25 and sold for $7.00+ and dividends – I bought VZ-Verizon and T-AT&T. While I’m going to get dividends from both of them, I bought both just before they lost over a dollar each. Right now they are both Finally nearing what I bought them for. I had plans to sell them and use the profits to buy shares of BA-Boeing. But as they went down I don’t think I’ll be able to buy Boeing in time to be worth it. Currently the numbers say go for either NI-NiSource Inc. or SUN-Sunoco. But I may just plain wait.

I could code something up to automate that.

Maybe even right in the spread sheet with macros or vba.

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