These days I only buy puts.

I guess I am missing something, but why are DD holders going to lose all their money?

I don't own Dupont.

Ldvee,

First you stopped what little interest there was in picking the Dow by suggesting I was the sex object. Now you are shorting DD.

Sure has a very ugly chart. Give me another compelling reason to buy it other than the spin off is complete. Really i am interesting, but it appears they will continue to lose money for the next few years.

interested

Looks like Iam going to win this week I picked 8800 on the Doe. No one else made a pick

Hey, I picked 9,100. There's still two days left, so I may very soon be the proud owner of a piece of Ben's ass, for picking correctly two weeks in a row.

I don't understand the Dupont comments either, but would love to hear the reasoning.

"I'm in for 8800 next week" see my post last Friday.

"Do you own DD", not a question, meant to say do your own due diligence about SURE, sorry about the lousy typing.

SURE is losing money, but I'm betting it gets back to $4 in the next month or so, which is where it was hanging prior to the massive trading caused by TTN giving TTN shareholders its 80%+ SURE holdings on Aug 5. It's a start-up, whether it is going to work or not, I don't know. Just thinking it might be a good candidate for a quick buck. I'm probably totally wrong...but I did buy at $2 today.

Ben picked 8500 for this week, not 8800.

Kendrickswhokeepsacloseeyeonben

Will hell i knew somebody picked 8800.

I hope you or Ldvee wins and it looks like one of you will.

I need QCOM to hit 30 so I can write some more options.

KENDRICKS, You are busted.

I pick 9,100 for next Friday's close. By the way, what do I win for being right this week?

Ldvee

"Due to an extreme amount of optimism, I'm in for 8800 next week."

Opps to much cerveza

Sorry Kendricks, I miss understood your previous post.

Of course I am confused about many of your posts

Ben,

"I pick 9,100 for next Friday's close."

Now wait a minute, what are the rules?? How about you can't pick "next friday's close" until "this friday" is over. Don't make me state the date, hell I was convinced all day today it was Wednesday.

La "idontknowwhatdayitis" Vida

You guys are looking good, but I am thinking we will see a 400 drop in the Dow on Friday.

Other wise i will have to pay $3000-$4000 to buy back calls on AIG and AMGM tomorrow

Why do you need to buy back the calls? Why not just let the stocks get assigned, and reinvest the money you pull out? This isn't a criticism, it's just a question.

Because I am in AIG at 68 and I wrote the AIG 60 calls when AIG had tanked. I was basically shorting AIG thinking it would stay down around 60 for a while and I picked up $2.50 a share at the time.

I will buy back the Aug. 60's today and sell the Sept. 65 calls today and basically have a wash. Or I might just buy back the calls and take a $2.50 hit and hope it keeps moving up.

Same thing applies to AMGN, except AMGN is a break even if I let it get assigned.

I will have some shares of GE get assigned today.

Ah, I see. Very interesting - the 60 calls were sold in anticipation of AIG continuing to trade below 60, in order to use the profit from the option sale to cut your losses on the trade, and to lower your effective point of entry.

One more question - don't you also risk taking a hit if the stock is assigned early, by using this strategy? As a practical matter, how often are stocks assigned early?

I had bought PBY at around 12.3 and sold the AUG 12.5 call, so it looks like that one will definitely be getting assigned today (PBY is trading at 14.53 as I write this). I have another stock that is about .80 in the money (STAR), and another one that is pretty far out (STK).

I'm hoping that STAR doesn't get assigned so I can sell some more 20 calls. If it does, I may buy it again, and sell some more 20 calls anyway. I will probably sell some DEC 15's for STK next week, in order to generate a little income while I look for it to rise off its lows. This would lower my risk on the trade to about 13.4. Selling the SEP 12.5's would leave me with a loss on the trade, and the DEC 12.5's would make the entire trade a wash, if they were assigned in DEC. This stock has no OCT or NOV options listed for some reason.

Overall, this strategy seems to be working out well so far. My SEP 25 QCOM option is over $4 in the money right now, so I'm not sure what to do with that one. Probably just let it get assigned next month (provided it doesn't fall in the meantime) since I can't think of anything else to do at this point that has greater profit potential.

As always, your comments and opinions are very welcome and greatly appreciated.

Call options are assigned early ocassionaly, but very seldom. I have probably had it happen twice in the past year on my own and other clients accounts. I would guess I have done at least 350-400 option transactions during that time. So less than 1% of the time.
Most people that buy options are gamblers(or at least have that mentality) and many don't have the money to buy the stock at any price. They obviously get allot of leverage and they almost always sell their option reather than own the stock. They are looking at a fast 50%-200% on their money

Normally an early asignment would be brought on by a significant dividend or some extraordinary(positive) event. I am always aware of exdividend dates for that reason. But some times there really is no explanation for an early assignment.

I have also found that I usually regret having to or wanting to buy back an option at over .20 to.25 per share(if I have a profit), but the exception is when I am upside down like AIG.

Below is my worksheet on AIG. I have really been spinning my wheels on this these trades, but at least AIG is now above $65.
Options Account
Amer. Inter. Group
Price
Date Description Price Per Share

3-26-02 Bought 500 Shares AIG $36,255.00 $72.51

6-14-02 Sold 5 August 70 Calls ($370.00) ($0.74)

6-14-02 Net Cost Per Share $35,885.00 $71.77

7-18-02 Bought to Close 5 Aug. 70 Calls $205.00 $0.41

7-18-02 Sold 5 August 60 Calls ($1,420.00) ($2.84)

7-18-02 Net Cost Per Share $34,670.00 $69.34

8-16-02 Bought 5 Aug 60 Calls $2,555.00 $5.11

8-16-02 Sold 5 AIG Sept. 65 Calls ($1,445.00) ($2.89)

8-16-02 Net Cost Per Share $35,780.00 $71.56

One other piece of advice, and obviously my opinion and many would disagree, I usually try to write options only one month or at the most two months away. If you do the math, it is much more efficient and also gives you better control.

Regarding STAR, there is an Oct. option. The Oct 20 call is "olie jd". Incidently the "j" represents the tenth letter in the alphabet. All Sept. options are normally "i" for the ninth letter and so on. You may already know that, but just thought I would mention. It could be the STAR Oct options were created today, as generally new options are created the Friday or Monday after option expiration date

Sorry for the confusion, Ben, I was discussing STAR and STK in the same paragraph. I know that STAR has OCT options, it is STK that does not have any listed for OCT or NOV.

I also completely agree that it makes much more sense to write options only one month or at the most two months away. As far as STK goes, I may make an exception, though, since my current risk is about 14.15 (15.40 entry - 1.25 realized from sale of AUG 15 call), the stock is currently trading at 12.40, and the SEP 15 calls are bid at .10. Writing the SEP 12.5's for .75 would leave me with a loss on the trade, if assigned.

Since STK doesn't have any OCT or NOV options listed, I will probably just sell the DEC 15's for .85, and hope for the stock to rise over the next few months. That isn't how I hoped for this trade to work out, but it still isn't looking too bad, and all the other ones I have going worked out nicely.

Sorry thats oue jd

Just saw your reply. You still might see an Oct or Nov option offered next week on STK.

Thanks, Ben, I didn't realize they were sometimes so short lived. I'll take a look before I do anything.

I pick 8650 for next week's close.

DING DING DING

Ldvee Is the winner with a pick of 8800 on the Dow. Dow closed at 8778.

Kendricks came in last.

I pick 2000 for next Friday if Kendricks undercover spy report is true.

Just want to keep this open. we need your picks for the Dow for next Friday August 23rd.

My picks:

DOW - 8,440
NASDAQ - 1,285

Dow is the only one that counts in this game.
Those are the rules.

We have you down for 8440.

Kendicks is 8650.

I pick 8300.

Donde esta Ldvee?

Oh man, after last night in the zone I need 9000 on the DOW. Last of the big spenders. Who sez money can't buy me love, well, enthusiastic sexo.

I'll stick my neck out, one more week of gains then some profit taking.

9000

Do you think Dogster and I beat that Dr. Strangelove stuff to death or what?? Folks that don't know the movie must think we're crazy.

La "ihatemondaysbacktowork" Vida

Ok we will accept you belate 9000 for this week on the DOW.

Now please keep on topic, unless you want to share the details with Kendricks and I.

benwhoisfailsafe

Ldvee, the fukin rules say that a belated entry can only be accepted if it is accompanied by gratuitous details of enthusiastic sexo.

Dear Stork Broker, Ldvee, Kend. & friends:

I think it is worth emphasizing that Dr. Strangelove is a documentary, not a simple drama. Everything in that movie is TRUE. I'm SERIOUS. SERIOUS!!! I'll never understand why people laugh at such a serious topic.

LOL.

How about that stock market? (on topic portion of this post)...

Radiantly,
Dogster

Dog,

Of course it is true and Bruce Lee and Elvis just confirmed with me last week it was true.

I think you need to take a road trip to Nebraska.

Home of SAC.

Kendricks: You gotta see Dr. Strangelove if you haven't already. It's yer kinda flick.

and now back to the stock market...

Hello. I'm Martha Stewart and today I'd like to share with you some easy and fun decorating ideas.

Lets begin with condoms. Many people dispose of them in the garbage but here are some ideas that you and your friends can enjoy. After rinsing and drying, a prophylactic can be such fun around the house.

Have kids? Trojan condoms can be made into an endless mengaerie of toys. Tie three together and you have a wonderful elastic band for a slingshot. You can even nail them to a board like so, and you have an instant Barbi Doll holder for your daughter. Hang it on the wall for guests to admire.

Another thing I like to do is combine my passion for hard fucking and lotion. I scrape off the used oils and lotions and put whatever I can save into the condom. No need to worry about the jism - it's already in there. Then I tie a know in the top like so, and when I have a good week's worth (about 40 or so condoms), I use the oil and lotion to make candles. The special sperm scent is just another way to remember fond afternoons. And they make wonderful holiday or occasional presents. Happy Birthday Mom!

Around the house the condoms can be used in so many clever ways.

Over here is my family silver. I have placed each in its own handy condom for safe keeping for corrosion. Notice how I have the knives in red colored condoms, the forks in a bright pink, salad forks in a summery green, and so on. Just lovely.

Do you have frequent house guests? Fill them with shampoo, conditioner, hand cream, liquid soap, whatever. Tie them in a knot (very important) and have them available. You can add a festive touch by tieing each condom with some string and adding a label.

At Halloween you can fill a condom with individual sized portions of candy. I like to add stickers to them. It just looks so nice.

Do you or a loved one do a lot of travelling? Why not use condoms as travelling cosmetic cases or pill containers. Heat a pan, any old pan will do, and fill each condom with your necessaries. Put a spatula in the pan and get it hot. Now, press the condom ends together and use the spatula to heat and seal them. Just great.

Next week we'll look at how to use vibrators and dildos in the garden.

;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;

The following was copied from www.myredbook.net which is a (mostly) Bay Area site dedicated to the hobby. With all the emphasis lately on stock scandals, particularily with Martha Stewart, I thought this post would remind people of what a valuable contributor she has been to enhancing all of our lives through color, texture, smell, and so many other ways.

Dogster,

Kendricks was the living person that the character Dr. Strangelove was based on.

Of course he has seen Dr Strangelove.

Manchurian Canidate was on TV this morning. Fascinating story with very good actors.

I wonder if Disney will ever be a good investment? Lots of old movies in those archives.

Whaaaat? Was kendricks Strangelove???

I am confused.

Tight Fit,
Thank you for staying on topic.

Martha has lost over $400,000,000, yes (Four Hundred Million Fuckin Dollars) since her little insider selling deal. By the way she saved her self approx. $275,000 by selling her inclone stock before it dropped. Bad people do sometimes get punished.

She is also still under investigation by the SEC, so it is not over.

Hey, I bought some Home Depot the other day at $28.65. Stock is up as their earnings were announced this morning. They beat their estimates and are forcasting a good third quarter.

Everytime I go in one of these stores I have to stand in line 3 deep.I talked to a couple of HD employees in one of their stores a few weeks ago and they both loved working for them.

I also have a neice who is in human resources on the east coast for HD and she says they are currently hiring allot of people.

Stock is close to its 52 week low and might be worth looking at in this price range.

Many feel Lowes will take market share away from HD, but it looks good for me.

OF COURSE YOU ALL KNOW THAT YOU COULD LOSE ALL YOUR MONEY IN THE STOCK MARKET AND I AM NOT RECOMMENDING THIS STOCK TO ANYONE... YADA YADA YADA... Fuckin lawyers

I hope HD's incursion into Mexico does not drag them down like it has other companies. I know that when they tried argentina, it did not work out.

Walmart is an exception. After only 5 years they are the largest retailer in Mexico.

I like Walmart, but just to damn expensive at 33 times earnings.

Of course I use to say the same thing about Microsoft that sold for 50 times earnings for 10 years. Difference is that Mr softy was growing earnings at30-50 % per year.

HD may regret moving to Mexico, but many U.S. companies have done well in Mexico

Ben, our friend Martha was being discussed this morning on CNBC by Joe Kernan and the woman who is now anchoring the mid morning segment. Her take on it was that Martha was being singled out because of her sex. Kernan responded that Martha, and Leona Helmsley before her, both were attacked more for their arrogance towards the "little people" than because of their sex.

As someone who has voted Republican his entire life, I am really disillusioned about all the head honchos from failed companies who have walked off with millions and millions. Greed follows no party line but it has always been easier to associate one party with capital formation and the other with labor issues.

The immense difference between the wages of those at the bottom and those at the top begin going crazy in the late 80s. When times were good it was easy to convince oneself that multi million dollar salaries, options, loans, and the like were somehow worthwhile in order to attract the best talent. It is when the economy falters that we learn most of the elite were only riding a wave of good fortune. Michael Isner is a great example of a golden boy showing his true worthlessness. And at what a price!

Toss every one of these crooks in jail and walk away. These assholes have done more to damage the future viability of business as a whole than all the robber barons of 100 years ago put together.

Tightman,

You are right on the money about these assholes.

for someone to suggest that MS is being picked on because of her gender is absolutely stupid. If you or I (will at least me) had done insider trading we would be in allot more trouble than she is in. I bet nothing happens to her yet anyone that has really been reading the circumstances of how she actually decided to sell her stock, know she is guilty.

As for political parties, bith sides are pretty dirty. The head of the National Democratic Party "McAuliffe" is as bad as the Republicans.

OK guys,

I had a good August and had 500 shares of GE and 500 shares of PFE called. Will not all that good, because i lost my ass on AOL. I blinked and sold it at its almost 52 week low. Damn.

Now how greedy do I get on Home Depot. It is up another $2 today and I am now up almost $4 in one week.

I could:

1. Sell a call Sept.30 = $2.75. Sept. 32 1/2 = $1.05.

2. Do nothing and hope it goes up another few dollars and then sell a 35 call.

3. Invest for the long term(hasn't worked to well the last couple of years).

4. Forget about the market and leave for TJ in about an hour to go see a little sweetie who is waiting to have a late lunch with Ben.

The answer is "4".

i had a great time in TJ

Now the answer is "3".

Just sold the Sept. 32 1/2 calls for $1.90 per share and my cost is now $26.75. Needed the cash to cover my todo noche for tonight.

I am really going to pissed if this thing keeps going up. It is up over 25% in the last week and "usually" profit taking kicks in about this time.

Five of the six stocks that I own now already have call options sold against them that are in the money, too. It's nice already having taken some profit, but I really wouldn't mind if the market eased up a little about now, and backed off a tad. People are getting way too optimistic.

Its funny how sometimes we root for stocks we own to go down, after we have sold calls. I guess sometimes we don't want the profit. We want MORE profit. Its called greed or trying to buy at the bottom and sell at the top. I ocassionally have a bad case of this greed virus.

I sure would like to see Southwest Airlines keep moving up. I own some shares at $18 and LUV is currently at $15. Last week I almost(but didn't) buy a 1000 shares at $12 to average down my cost. LUV is a very well managed company with a great business model.

Greed. Greed. GREED!!! Is there anything better than greed, other than LUST, or possibly HATRED???

ARXX is currently trading at 5, and the September 5 calls are selling for .45. 9% return in four weeks, for a stock that is only selling for a little over a dollar a share more than its book value, and is virtually debt free.

Sweet, sweet greed.....

You mean the chicas haven't got all of your money yet?

Not yet they don't, I'm trying to drag it out as slowly as I can...

The market finally had a nice down day today. I was worried that people were getting too optimistic again.