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Comment by gbase

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  1. gbase
    June 21st, 2011 at 3:04 pm
    Income Trader -
    Thanks so much for this discussion!  I’d like help/advice with the following trade - which will hopefully be helpful to the rest of the group.   
    When I placed the July trade – I moved my strikes down 10pts.  As you may remember, the RUT dropped ~10pts that morning to 778.22 and when I reviewed the deltas it looked like moving the strikes down better fit your parameters.   Here is what I have:
    -5 RUT JUL11 690P  2.95 delta was .08
    +5 RUT JUL11 680P 2.30
    -5 RUT JUL11 845C  1.45 delta was .08
    +5 RUT JUL11 855C  .90
    Net Premium: $1.20
     
    I have the following questions:
    1) With RUT at ~805 - and the short 845C with a delta of .15 -- should I be buying insurance?  
    If so, what  and how many do you recommend?  (Please note – I only have qty 5)
    2) Should I have bought insurance sooner?
    3) Do you ever use TZA/TNA for insurance?
    4) Would you recommend closing the Put spread for .20 or better?  It is there now…
    4) Was moving the stikes down from your recommendations an obvious error?  By that I mean – in hindsight it seems like a mistake, but should I have seen something then that would have prevented me from moving down? 
     
    Thanks in advance for your help – this is a great Topic!!
     







Comment by IncomeTrader

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  1. IncomeTrader
    June 25th, 2011 at 11:33 am

     ocelli7-

     

    The trade was sent out as an alert to Income trader alert to subscribers. It was also posted in the comment section of the June trade cycle and will be posted by the end of the weekend on a the new page for the July Trade cycle. 







Comment by jomptien

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  1. jomptien
    June 25th, 2011 at 9:51 am
    I think he mentioned to make the dajustment when it is 10 points from your price – ex. 700 to 710 and 855 to 845 .







Comment by l4real

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  1. l4real
    June 16th, 2011 at 10:21 am
     Kojo,
    Is this the official alert?  You are suggesting that we roll down the Put side and roll down the call side as well?







Comment by l4real

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  1. l4real
    June 16th, 2011 at 11:32 am
     Good explanation of the Trade Management Income Trader! Good point dforster 2!







Comment by diamond

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  1. diamond
    June 21st, 2011 at 2:33 pm
    ocelli7 - July Trade.







China Manufacturing Conditions Deteriorate, New Export Orders Fall at Fastest Rate Since March 2009

Courtesy of Mish.

In what should be no surprise to Mish readers, the HSBC China Manufacturing PMI™ shows Operating conditions deteriorate at quickest pace since last September, and new export orders plunge.

Key points

Output contracts for first time since last October
New export orders fall at the joint-fastest rate since March 2009
Job shedding intensified

Manufacturing PMI

After adjusting for seasonal factors, the HSBC Purchasing Managers’ Index™ (PMI™) – a composite indicator designed to provide a single-figure snapshot of operating conditions in the manufacturing economy – posted at 48.2 in June, down from 49.2 in May, signalling a modest deterioration of business conditions. Operating conditions have now worsened for two successive months.

Chinese manufacturers signalled a first reduction of output for eight months in June. The rate of contraction was modest, and generally attributed to weaker client demand, as total new orders declined for the second month in a row. New business from abroad also fell in June, with the rate of contraction the fastest since last September, and the joint-sharpest in over four years. Anecdotal evidence suggested that reduced client demand, particularly from Europe and the US, led to fewer new export orders.

Comment

Commenting on the China Manufacturing PMI™ survey, Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC said: “Falling orders and rising inventories added pressure to Chinese manufacturers in June. And the recent cash crunch in the interbank market is likely to slow expansion of off-balance sheet lending, further exacerbating funding conditions for SMEs. As Beijing refrains from using stimulus, the ongoing growth slowdown is likely to continue in the coming months.”

I frequently disagree with Markit economic comments but these comments from Hongbin Qu are spot on.

Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com 



Continue Here





Comment by IncomeTrader

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  1. IncomeTrader
    June 25th, 2011 at 11:30 am

     henryedelman -

    We are not gamblers, we are strategist and risk managers. Notwithstanding selling RUT naked requires massive amounts of capital. Look at the other side of your argument, what if there is a violent move to the up side, what happens to the naked short position. We have been around long enough to realize that anything can happen in this type of business and not to take risk management for granted.







Comment by IncomeTrader

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  1. IncomeTrader
    June 16th, 2011 at 12:21 pm

     i4real -

    This is just an article and not an alert. This is to enable subscribers understand how the adjustment process works.







Comment by henryedelman

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  1. henryedelman
    June 20th, 2011 at 6:42 am
    I can understand using a put spread to protect against a sudden and violent downside move but with the initial deltas so low, what is the disadvantage to selling a naked call instead of a call spread?







 
 
 

Zero Hedge

Will The US Slap Sanctions On Nord Stream 2?

Courtesy of ZeroHedge. View original post here.

Authored by Nick Cunningham via OilPrice.com,

There is a growing push in the U.S. Congress to slap sanctions on the Nord Stream 2 pipeline.

The pipeline under construction would carry Russian natural gas to Germany, and has been a lightning rod of controversy both in Europe and across the Atlantic. Many governments and officials from Eastern Europe fear deeper dependence on Russia for gas supplies, a sentiment echoed by the U.S. government. Meanwhile, many in Western Europe are less concerned,...



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Phil's Favorites

US is already fighting a conflict with Iran - an economic war that is hurting the wrong people

 

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US is already fighting a conflict with Iran – an economic war that is hurting the wrong people

Courtesy of David Cortright, University of Notre Dame

Many are worried about the risk of war with Iran after the Trump administration leaked discussions of a troop deployment in response to claimed threats to U.S. warships in the region.

And in r...



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Insider Scoop

Jefferies Sees 60-Percent Upside In Aphria Shares, Says Buy The Dip

Courtesy of Benzinga.

After a red-hot start to 2019, Canadian cannabis producer Aphria Inc (NYSE: APHA) has run out of steam, tumbling more than 31 percent in the past three months.

Despite the recent weakness, one Wall Street analyst said Friday that the stock has 30-percent upside potential. 

The Analyst

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Kimble Charting Solutions

DAX (Germany) About To Send A Bearish Message To The S&P 500?

Courtesy of Chris Kimble.

Is the DAX index from Germany about to send a bearish message to stocks in Europe and the States? Sure could!

This chart looks at the DAX over the past 9-years. It’s spent the majority of the past 8-years inside of rising channel (1), creating a series of higher lows and higher highs.

It looks to have created a “Double Top” as it was kissing the underside of the rising channel last year at (2).

After creating the potential double top, the DAX index has continued to create a series of lower highs, while experiencing a bearish divergence with the S...



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Chart School

Brexit Joke - Cant be serious all the time

Courtesy of Read the Ticker.

Alistair Williams comedian nails it, thank god for good humour! Prime Minister May the negotiator. Not!


Alistair Williams Comedian youtube

This is a classic! ha!







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Cryptocurrencies are finally going mainstream - the battle is on to bring them under global control

 

Cryptocurrencies are finally going mainstream – the battle is on to bring them under global control

The high seas are getting lower. dianemeise

Courtesy of Iwa Salami, University of East London

The 21st-century revolutionaries who have dominated cryptocurrencies are having to move over. Mainstream financial institutions are adopting these assets and the blockchain technology that enables them, in what ...



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DNA as you've never seen it before, thanks to a new nanotechnology imaging method

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

 

DNA as you've never seen it before, thanks to a new nanotechnology imaging method

A map of DNA with the double helix colored blue, the landmarks in green, and the start points for copying the molecule in red. David Gilbert/Kyle Klein, CC BY-ND

Courtesy of David M. Gilbert, Florida State University

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ValueWalk

More Examples Of "Typical Tesla "wise-guy scamminess"

By Jacob Wolinsky. Originally published at ValueWalk.

Stanphyl Capital’s letter to investors for the month of March 2019.

rawpixel / Pixabay

Friends and Fellow Investors:

For March 2019 the fund was up approximately 5.5% net of all fees and expenses. By way of comparison, the S&P 500 was up approximately 1.9% while the Russell 2000 was down approximately 2.1%. Year-to-date 2019 the fund is up approximately 12.8% while the S&P 500 is up approximately 13.6% and the ...



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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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It's Not Capitalism, it's Crony Capitalism

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It's Not Capitalism, it's Crony Capitalism

Excerpt:

The threat to America is this: we have abandoned our core philosophy. Our first principle of this nation as a meritocracy, a free-market economy, where competition drives economic decision-making. In its place, we have allowed a malignancy to fester, a virulent pus-filled bastardized form of economics so corrosive in nature, so dangerously pestilent, that it presents an extinction-level threat to America – both the actual nation and the “idea” of America.

This all-encompassing mutant corruption saps men’s souls, crushes opportunities, and destroys economic mobility. Its a Smash & Grab system of ill-gotten re...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

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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Promotions

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In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

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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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