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In “Paranormal” Europe, Banks Will Pay You To Borrow, And Charge You To Save

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

A month ago, we wrote about a bizarre situation involving Denmark’s now totally broken monetary system, where as a result of an unprecedented scramble to weaken the currency in order to preserve the peg to the Euro the central bank unleashed a historic rate-cutting scramble, where in 4 consecutive rate cuts its pushed the interest rate to an unheard of -0.75% (while at the same time being the first modern central bank to unveil what we dubbed “Bizarro Backdoor QE“). The culmination of this series of events was the surreal realization by some debtors that the bank would now pay them the interest on their new or existing mortgage.

The insanity was only compounded when one considers that in the vast majority of European countries, depositors are already (or will soon) pay for the “privilege” of providing banks with unsecured funds (in the US, JPM recently also started charging some customers - mostly corporate and hedge funds- for holding their deposits).

In short, this is what Europe has become: savers - those who diligently put away the fruits of their labor – are now forced to pay, using banks as an intermediary, and subsidize the the debtor: spenders, who live beyond their means, and who in increasingly more frequent situations are now paid to take out even more debt! Call it monetary socialism.

Which is probably why with a one month delay, none other than the NYT decided to cover precisely this topic with “In Europe, Bond Yields and Interest Rates Go Through the Looking Glass

Here is the story in a nutshell, shown with pictures so even central bank idiots and other economist PhDs will get it:

A Denmark bank will pay Eva Christiansen, left, $1 a month for taking out a loan. Ida Mottelson’s bank will charge her to hold her money:

The key highlights from the NYT story:

At first, Eva Christiansen barely noticed the number. Her bank called to say that Ms. Christiansen, a 36-year-old entrepreneur here, had been approved for a small business loan. She whooped. She danced. A friend took pictures.

“I think I was so happy I got the loan, I didn’t hear everything he said,” she recalled.

And then she was told again about her interest rate. It was


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The Forgotten War – Understanding The Incredible Debacle Left Behind By NATO In Libya

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Submitted by Mike Krieger via Liberty Blitzkrieg blog,

In retrospect, Obama’s intervention in Libya was an abject failure, judged even by its own standards. Libya has not only failed to evolve into a democracy; it has devolved into a failed state. Violent deaths and other human rights abuses have increased severalfold. Rather than helping the United States combat terrorism, as Qaddafi did during his last decade in power, Libya now serves as a safe haven for militias affiliated with both al Qaeda and the Islamic State of Iraq and al-Sham (ISIS). The Libya intervention has harmed other U.S. interests as well: undermining nuclear nonproliferation, chilling Russian cooperation at the UN, and fueling Syria’s civil war.?

As bad as Libya’s human rights situation was under Qaddafi, it has gotten worse since NATO ousted him. Immediately after taking power, the rebels perpetrated scores of reprisal killings, in addition to torturing, beating, and arbitrarily detaining thousands of suspected Qaddafi supporters. The rebels also expelled 30,000 mostly black residents from the town of Tawergha and burned or looted their homes and shops, on the grounds that some of them supposedly had been mercenaries. Six months after the war, Human Rights Watch declared that the abuses “appear to be so widespread and systematic that they may amount to crimes against humanity.”?

As a consequence of such pervasive violence, the UN estimates that roughly 400,000 Libyans have fled their homes, a quarter of whom have left the country altogether. ?

– From Alan Kuperman’s excellent Foreign Affairs article: Obama’s Libya Debacle

Regular readers will be somewhat familiar with the total chaos NATO left behind in the wake of its so-called “humanitarian” intervention in Libya, but I doubt many of you are aware of just how enormous the disaster actually has become.

Alan J. Kuperman, an Associate Professor at the Lyndon B. Johnson School of Public Affairs at the University of Texas at Austin, wrote an incredible article in the latest issue of Foreign Affairs, which is an absolute must read. If the American public and politicians actually wanted to learn from their mistakes and avoid making them in the future, this piece could serve as a comprehensive warning about what not to do.

That said, after reading this article the unfortunate truth becomes apparent; that there are only two logical conclusions that can be reached about…
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WTF Chart Of The Day – Fantasy February Edition

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Presented with little comment but to say “Thank you Jim…”

His comments, as we noted previously, changed the narrative back to “bad news is good news” and so it goes.

Charts: Bloomberg





“Monetary Policy Is Bankrupt” Dr. Lacy Hunt Warns “Bonds, Not Stocks, Are A Good Economic Indicator”

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Submitted by Erico Matias Tavares via Sinclair & Co.,

In Search of Solutions – An Interview with Dr. Lacy H. Hunt

We had the great pleasure of speaking with Dr. Lacy H. Hunt on the current state of the economy, the limitations of monetary policy and potential solutions to the overindebtedness problem in the main global economies.

Erico Tavares: Dr. Hunt, thank you for being with us today. Your firm manages over $6 billion in treasuries. With the S&P500 at record highs, do you share equity investors’ enthusiasm with the economic prospects of America?

Lacy Hunt: I think the S&P is disconnected from the fundamentals in the US economy. Growth last year was a quarter slower than it was in 2013. We’re on the cusp of either zero inflation or deflation. Corporate profits using the Bureau of Economic Analysis numbers, compiled using data from the Internal Revenue Service, showed year over declines in all the first three quarters of last year (4Q is not yet available). In the third quarter, the after-tax profits adjusted for inventory gains/losses and over/under depreciation were 7% below a year ago.

The standard of living declined again in 2014. And a lot of the growth we had in 2014 really was a massive building of inventories, which is often the case when stock prices are high and top line is decelerating.

The economy enters 2015 in very weak shape. None of the big ticket sectors are doing well. Capital spending is declining, being paced by extreme weakness in oil & gas drilling, which has really been the driving force in manufacturing over the last four years. The best you can say about the housing sector is that it is flat. Not a very important sector.

Vehicle sales are below the best levels of last year and the trade sector is deteriorating. It is very difficult to move the US economy forward by selling things over the counter and through the shopping cart. The US economy is very fragile. And the fragility is highlighted by the fact that firms simply do not have pricing power.

ET: Historically the S&P used to lead the economic cycle by a few months, sometimes there was a lag. In a sense the signaling of equity markets has been muffled by the excitement about central bank
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Homeland Security Shutdown Imminent After House Fails To Pass Stop-Gap Funding Bill

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

As we warned was entirely possible, with just hours to go until The Department of Homeland Security runs out of money at midnight:

  • *HOUSE FAILS TO PASS STOPGAP FUNDING FOR U.S. HOMELAND SECURITY

While more votes are expected tonight (and this weekend), as The Guardian reports, a handful of Republicans defied Boehner's leadership and joined with Democrats to defeat the bill.

  • *MCCARTHY SAYS HOUSE COULD HAVE MORE VOTES TODAY, THIS WEEKEND

As The Guardian reports,

John Boehner’s first attempt to keep the Department of Homeland Security from running out of money at midnight failed in the House of Representatives after dozens of Republicans baulked at his plan to fund it for just three more weeks.

The House speaker had been hoping to prevent a shutdown by buying time to negotiate with conservatives in his caucus over their demands that the bill include a measure to prevent Barack Obama from deferring deportation of undocumented immigrants.

But even this three-week stop gap was rejected by 30-odd Republican congressman who defied their party leadership and joined with Democrats to voted against the bill by 224 to 203 just after 5pm. The department runs out of funds at midnight.

Democrats resisted Boehner’s proposal in the hope of forcing House Republicans to follow their colleagues in the Senate and agree a one-year funding bill.

But the impasse now sets up a dangerous game of chicken between the parties as each tries to see who will blink first before current funding for the department expires at midnight.

*  *  *

What happens if we go into the weekend without a DHS deal?  In the event of a shutdown, the vast majority of DHS employees would stay on the job. DHS Secretary Johnson said earlier this week that about 30,000 of DHS's approximately 240,000 employees would be furloughed. The rest would be considered exempt and most would have to work without pay.

For everyone else, a brief shutdown won't have an impact. Should the shutdown drag on, this is how DHS official describe the "state-less" hell that would be unleashed:

FEDERAL EMERGENCY MANAGEMENT AGENCY

  • If a major snowstorm or earthquake or even terrorist attack hits a city or state, DHS won’t be able to send the state federal funds for recovery.
  • State and local authorities


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Senate Passes One-Week DHS-Funding Stop-Gap Bill, House Expected To Pass

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

UPDATE: In late night negotiations, the Senate has managed to buy themselves a week before this whole farce is played over again:

  • SENATE PASSES ONE-WEEK DHS STOPGAP SPENDING BILL

House GOP Aides Expect One-Week Measure To Pass With Democratic Support
 

*  *  *

As we warned was entirely possible, with just hours to go until The Department of Homeland Security runs out of money at midnight:

  • *HOUSE FAILS TO PASS STOPGAP FUNDING FOR U.S. HOMELAND SECURITY

While more votes are expected tonight (and this weekend), as The Guardian reports, a handful of Republicans defied Boehner's leadership and joined with Democrats to defeat the bill.

  • *MCCARTHY SAYS HOUSE COULD HAVE MORE VOTES TODAY, THIS WEEKEND

As The Guardian reports,

John Boehner’s first attempt to keep the Department of Homeland Security from running out of money at midnight failed in the House of Representatives after dozens of Republicans baulked at his plan to fund it for just three more weeks.

The House speaker had been hoping to prevent a shutdown by buying time to negotiate with conservatives in his caucus over their demands that the bill include a measure to prevent Barack Obama from deferring deportation of undocumented immigrants.

But even this three-week stop gap was rejected by 30-odd Republican congressman who defied their party leadership and joined with Democrats to voted against the bill by 224 to 203 just after 5pm. The department runs out of funds at midnight.

Democrats resisted Boehner’s proposal in the hope of forcing House Republicans to follow their colleagues in the Senate and agree a one-year funding bill.

But the impasse now sets up a dangerous game of chicken between the parties as each tries to see who will blink first before current funding for the department expires at midnight.

*  *  *

What happens if we go into the weekend without a DHS deal?  In the event of a shutdown, the vast majority of DHS employees would stay on the job. DHS Secretary Johnson said earlier this week that about 30,000 of DHS's approximately 240,000 employees would be furloughed. The rest would be considered exempt and most would have to work without pay.

For everyone else, a brief shutdown won't have an impact. Should the shutdown drag on, this is…
continue reading





5 Things To Ponder: Weekend Catch Up

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Submitted by Lance Roberts via STA Wealth Management,

With the "Great Greek Tragedy" now behind the markets, for the time being, all eyes have turned towards the Nasdaq's triumphant march back to 5000.  (The graphics department at CNBC have been working overtime on banners and bugs for when it happens….watch for them.)

However, as I penned earlier this week in "The Run For Nasdaq All-Time Highs":

"The chart below shows the Nasdaq Composite index in both nominal and inflation-adjusted terms using the CPI index as the proxy for the inflation adjustment."

Nasdaq-Comp-Real-Nominal-022415

"As shown, the nominal peak of the Nasdaq Composite occurred in early 2000 at 5132.52. As of yesterday's close of 4960.97, the Nasdaq sits within striking distance of that nominal high.

However, in order for the Nasdaq to enter into the 'real all-time high club' it would currently require an additional gain of 2149.52 points or an additional 43.3% gain from current levels. While that seems like a rather lofty goal, it would only require the top 20 stocks in the composite index to just a little more than double in value from current levels."

The near vertical push in the Nasdaq is eerily reminiscent of the run in the late 90's. While makeup and valuations may be different today, the "risk" remains that prices cannot remain elevated indefinitely.  More importantly, the greater the deviation in price from its long-term moving averages the great the eventual reversion will be. That is just an investment reality. But as I concluded:

"…at the moment, the perceived 'risk' by investors is 'missing the run' rather than the potential destruction of capital if something goes wrong. This is the opposite of what 'risk' management and effective 'risk' controls are about in portfolio management. While this is always the case in late stage bull-markets as exuberance overtakes logic, it is also why investors are damaged so badly during the ensuing mean reversion process.

It is always important to remember that for every bull market there will eventually be a bear. It is the nature of the markets and the reality of full-market cycles."

For now, it is all about the hopes of a cyclical upturn in the Eurozone economy supported by the ECB's QE program starting next month. Market participants have been…
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Prominent Russian Politician And Putin Critic Shot To Death In Moscow: Live Feed From Murder Scene

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Updates from Interfax:

  • PUTIN TAKES NEMTSOV MURDER UNDER PERSONAL CONTROL – PESKOV
  • BORIS NEMTSOV’S KILLING COULD BE ACT OF PROVOCATION, COMMITTED IN THE RUN-UP TO OPPOSITION MARCH SCHEDULED FOR MARCH 1 – SOURCE
  • CRIMINAL CASE OPENED INTO BORIS NEMTSOV’S KILLING – RUSSIAN INVESTIGATIVE COMMITTEE SPOKESMAN MARKIN
  • NEMTSOV’S DEATH APPEARS TO BE CONTRACT KILLING – SOURCE
  • INVESTIGATORS QUESTIONING WITNESSES TO NEMTSOV’S MURDER, CAREFULLY EXAMINING CRIME SCENE – INVESTIGATIVE COMMITTEE SPOKESMAN MARKIN
  • AT LEAST SEVEN SHOTS FIRED AT BORIS NEMTSOV FROM CAR PASSING BY – RUSSIAN INVESTIGATIVE COMMITTEE SPOKESMAN MARKIN

* * *

Just nine hours after tweeting “Putin annexed Crimea and is now handing over Siberia to the Chinese,” and three ours after calling for a “Russian Spring” march, prominent Vladimir Putin critic and former deputy prime minister (in March 1997 Nemtsov was appointed First Deputy Prime Minister of the Russian Federation, with special responsibility for reform of the energy sector), Boris Nemtsov, was killed in the center of Moscow.

 As The BBC notes, the Russian opposition politician and former deputy PM was shot to death on a Moscow street. Life News is reporting he was shot in the chest four times on a street very close to Red Square.

Nemtsov’s last 2 tweets today…

The scene of the murder:



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Puerto Rico’s 3rd Largest Bank Fails

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Based on Bloomberg data, Doral Bank is the 3rd largest (by assets) bank in Puerto Rico…or rather was. After a 58% collapse in the share price today, news broke after the close:

  • *PUERTO RICO'S DORAL BANK PLACED UNDER FDIC RECEIVERSHIP
  • *PUERTO RICO'S BANCO POPULAR AGREES TO BUY DORAL BANK OPERATIONS

Banco Popular will take the deposits (and 8 of Doral's 26 branches) and the FDIC, aka America's bad bank, eats the bad debt estimated to cost the Deposit Insurance Fund (DIF), as in the US taxpayer, some $748.9 million.

3rd largest (by assets) Puerto Rico-domiciled bank based on BBG data….

The writing could perhaps have been on the wall…

And it seems the news of the FDIC Receivership leaked…

What happened is that the FDIC "fatf-fingered" the failure realase just before the market close, with the stock plunging as a reulst, then promptly retracted the release but the damage had already been done. After the close, the FDIC re-informed the public that the bank, which back in 2010 traded at $125, had indeed been liquidated.

From the FDIC Statement:

Doral Bank, San Juan, Puerto Rico, was closed today by the Office of the Commissioner of Financial Institutions of Puerto Rico, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Banco Popular de Puerto Rico, Hato Rey, Puerto Rico, to acquire the banking operations, including all the deposits, of Doral Bank.

Doral Bank's 26 former branches will reopen under normal business hours beginning Saturday, February 28th. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Depositors of Doral Bank can continue to access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

Banco Popular will operate eight of Doral Bank's 26 former branches. It entered into separate agreements with three banks to acquire 18 of the remaining locations. FirstBank Puerto Rico, Santurce, Puerto Rico, will operate and assume the deposits of Doral Bank's 10 other branches in Puerto Rico;


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Prominent Politician And Putin Critic Shot To Death In Moscow; “Shocked” John Kerry Urges Russia To Bring Justice

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Update: John Kerry has decided to comment:

Updates from Interfax:

  • PUTIN TAKES NEMTSOV MURDER UNDER PERSONAL CONTROL – PESKOV
  • BORIS NEMTSOV’S KILLING COULD BE ACT OF PROVOCATION, COMMITTED IN THE RUN-UP TO OPPOSITION MARCH SCHEDULED FOR MARCH 1 – SOURCE
  • CRIMINAL CASE OPENED INTO BORIS NEMTSOV’S KILLING – RUSSIAN INVESTIGATIVE COMMITTEE SPOKESMAN MARKIN
  • NEMTSOV’S DEATH APPEARS TO BE CONTRACT KILLING – SOURCE
  • INVESTIGATORS QUESTIONING WITNESSES TO NEMTSOV’S MURDER, CAREFULLY EXAMINING CRIME SCENE – INVESTIGATIVE COMMITTEE SPOKESMAN MARKIN
  • AT LEAST SEVEN SHOTS FIRED AT BORIS NEMTSOV FROM CAR PASSING BY – RUSSIAN INVESTIGATIVE COMMITTEE SPOKESMAN MARKIN

* * *

Just nine hours after tweeting “Putin annexed Crimea and is now handing over Siberia to the Chinese,” and three ours after calling for a “Russian Spring” march, prominent Vladimir Putin critic and former deputy prime minister (in March 1997 Nemtsov was appointed First Deputy Prime Minister of the Russian Federation, with special responsibility for reform of the energy sector), Boris Nemtsov, was killed in the center of Moscow.

 As The BBC notes, the Russian opposition politician and former deputy PM was shot to death on a Moscow street. Life News is reporting he was shot in the chest four times on a street very close to Red Square.

Nemtsov’s last 2 tweets today…

The scene of the murder:


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Phil's Favorites

The Echo Boom, Part 2

The Echo Boom, Part 2

Courtesy of , Acting Man

Boom-Bust Mechanics

We want to focus on a specific aspect of the current money supply expansion in this part. Price inflation, as well as investment and production will be discussed in a follow-up post shortly.

Let us consider the mechanics of past boom-bust cycles in the US. In “normal” booms, banks expand credit to companies and households, with the former employing the funds mainly for investment and the latter for consumption. Banks that don’t have sufficient reserves will borrow them in the interbank market (Federal Funds market), where the Fed stands ready to satisfy any excess demand for reserves that threatens to push the overnight Federal Fu...



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Zero Hedge

In "Paranormal" Europe, Banks Will Pay You To Borrow, And Charge You To Save

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

A month ago, we wrote about a bizarre situation involving Denmark's now totally broken monetary system, where as a result of an unprecedented scramble to weaken the currency in order to preserve the peg to the Euro the central bank unleashed a historic rate-cutting scramble, where in 4 consecutive rate cuts its pushed the interest rate to an unheard of -0.75% (while at the same time being the first modern central bank to unveil what we dubbed "Bizarro Backdoor QE"). The culmination of this series of events was the surreal realization by some debtors that t...



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All About Trends

Mid-Day Update

Reminder: David is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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Chart School

S&P 500 Snapshot: Biggest Monthly Gain Since October 2011

Courtesy of Doug Short.

The markets had much to consider this week, most notably Fed Chair Yellen's semi-annual congressional testimony on Tuesday and Thursday and today's updates on Consumer Sentiment and GDP. The S&P 500 showed relatively little reaction to any of this week's economic events, trading within a microscopic 0.79% range from its intraday low on Monday to its intraday high on Wednesday (which was also its record high). Today's -0.30% closing loss trimmed the February monthly gain to a whopping 5.49%, the biggest monthly gain since October of 2011, 40 months ago, when the index rose 10.77%.

...

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Market Shadows

Kimble Charts: Coal

Kimble Charts: Coal

By Ilene 

Chris Kimble's chart for KOL shows a recently beaten down ETF struggling to pull itself up from the ashes. As the chart shows, KOL has recently drifted down to levels not seen since the financial crisis of 2008-9.

Bouncing or recovering with energy in general, coal prices appear to have stabilized in the short-term. Reflecting coal prices, KOL has traded between $13.45 and $19.75 during the past year. Bouncing from lows, KOL traded around 2% higher yesterday from $14.26 to $14.48 on high volume. It traded another 3.6% higher in after hours to $15, possibly related to ...



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OpTrader

Swing trading portfolio - week of February 23rd, 2015

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Sabrient

Sector Detector: Sector rankings stay neutral with few bullish catalysts on horizon

Reminder: Sabrient is available to chat with Members, comments are found below each post.

Courtesy of Sabrient Systems and Gradient Analytics

Stocks are hitting new highs across the board, even though earnings reports have been somewhat disappointing. Actually, to be more precise, Q4 results have been pretty good, but it is forward guidance that has been cautious and/or cloudy as sales into overseas markets are expected to suffer due to strength in the US dollar. Healthcare and Telecom have put in the best results overall, while of course Energy has been the weakling. Still, overall year-over-year earnings growth for the S&P 500 during 2015 is expected to be about +8%.

In this weekly update, I give my view of the current market environment, offer a technical analysis of the S&P 500 cha...



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Digital Currencies

MyCoin Exchange Disappears with Up To $387 Million, Reports Claim

Follow up from yesterday's Just the latest Bitcoin scam.

Hong Kong's MyCoin Disappears With Up To $387 Million, Reports Claim By  

Reports are emerging from Hong Kong that local bitcoin exchange MyCoin has shut its doors, taking with it possibly as much as HK$3bn ($386.9m) in investor funds.

If true, the supposed losses are a staggering amount, although this estimate is based on the company's own earlier claims that it served 3,000 clients who had invested HK$1m ($129,000) each.

...



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Pharmboy

2015 - Biotech Fever

Reminder: Pharmboy is available to chat with Members, comments are found below each post.

PSW Members - well, what a year for biotechs!   The Biotech Index (IBB) is up a whopping 40%, beating the S&P hands down!  The healthcare sector has had a number of high flying IPOs, and beat the Tech Sector in total nubmer of IPOs in the past 12 months.  What could go wrong?

Phil has given his Secret Santa Inflation Hedges for 2015, and since I have been trying to keep my head above water between work, PSW, and baseball with my boys...it is time that something is put together for PSW on biotechs in 2015.

Cancer and fibrosis remain two of the hottest areas for VC backed biotechs to invest their monies.  A number of companies have gone IPO which have drugs/technologies that fight cancer, includin...



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Stock World Weekly

Stock World Weekly

Newsletter writers are available to chat with Members regarding topics presented in SWW, comments are found below each post.

Here's this week's Stock World Weekly.

Click here and sign in with your user name and password. 

 

...

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Option Review

SPX Call Spread Eyes Fresh Record Highs By Year End

Stocks got off to a rocky start on the first trading day in December, with the S&P 500 Index slipping just below 2050 on Monday. Based on one large bullish SPX options trade executed on Wednesday, however, such price action is not likely to break the trend of strong gains observed in the benchmark index since mid-October. It looks like one options market participant purchased 25,000 of the 31Dec’14 2105/2115 call spreads at a net premium of $2.70 each. The trade cost $6.75mm to put on, and represents the maximum potential loss on the position should the 2105 calls expire worthless at the end of December. The call spread could reap profits of as much as $7.30 per spread, or $18.25mm, in the event that the SPX ends the year above 2115. The index would need to rally 2.0% over the current level...



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Help One Of Our Own PSW Members

"Hello PSW Members –

This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible.  Feel free to contact me directly at jennifersurovy@yahoo.com with any questions.

Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts.  After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.)  Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.

http://www.youcaring.com/medical-fundraiser/help-get-shadowfax-out-from-the-darkness-of-medical-bills-/126743

Thank you for you time!




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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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