Comments for KYO Blog http://www.knowyouroptionsinc.com/blog Founded on Trust, Fueled by Knowledge Tue, 23 Aug 2011 13:09:38 +0000 hourly 1 http://wordpress.org/?v=3.1 Comment on Unprecedented Times? by Marlene Sackheim http://www.knowyouroptionsinc.com/blog/2011/08/20/unprecedented-times/comment-page-1/#comment-2062 Marlene Sackheim Tue, 23 Aug 2011 13:09:38 +0000 http://www.knowyouroptionsinc.com/blog/?p=504#comment-2062 Right on target. I remember after Bear Stearns in early 08, according to Bernanke, "there was no risk of another failure." Famous last words. Into the summer, everyone whose opinion we respect (?) were in DENIAL about the systemic risk to the world that Allen Greenspan had perpetuated with deregulation of the banking and mortgage industry in the late 90/s and escalated after the 2001 crisis. Once again, the analyst, economists, media (a joke), are in DENIAL of the potential implications of the unmanageable macros around the world. Are good micros good enough to sustain, at least, a mild recovery? The markets look to the Fed to save the economy. Bandaids are no longer the answer. QE3 will, at best, have a short term effect as QE 2 obviously did. The true effect with be the further destruction of the dollar, which may be good for multinational companies but is horrible for the average man who can barely afford to put food on the table now. I, for one, do not want to pay $20.00 for a loaf of bread. In the end, I think you have to add the dollar devaluation about 16% against a basket of currencies and more individually against specific currencies when you address risk management and portfolio valuations, particularly in relation to retirement. Not only are pensions worth less than anticipated, unless you bought AAPL at 78 in 2008, but the ability to live off ones income from these portfolios with SAFE investments has, all but, disappeared thanks to Ben's keeping interest rates negligible and the inherent risk in ALL equities. Of course, Congress still has it's pensions, healthcare, and other benefits fully in tact. Have a great day. Right on target. I remember after Bear Stearns in early 08, according to Bernanke, “there was no risk of another failure.” Famous last words. Into the summer, everyone whose opinion we respect (?) were in DENIAL about the systemic risk to the world that Allen Greenspan had perpetuated with deregulation of the banking and mortgage industry in the late 90/s and escalated after the 2001 crisis.
Once again, the analyst, economists, media (a joke), are in DENIAL of the potential implications of the unmanageable macros around the world. Are good micros good enough to sustain, at least, a mild recovery?
The markets look to the Fed to save the economy. Bandaids are no longer the answer. QE3 will, at best, have a short term effect as QE 2 obviously did. The true effect with be the further destruction of the dollar, which may be good for multinational companies but is horrible for the average man who can barely afford to put food on the table now. I, for one, do not want to pay $20.00 for a loaf of bread.
In the end, I think you have to add the dollar devaluation about 16% against a basket of currencies and more individually against specific currencies when you address risk management and portfolio valuations, particularly in relation to retirement. Not only are pensions worth less than anticipated, unless you bought AAPL at 78 in 2008, but the ability to live off ones income from these portfolios with SAFE investments has, all but, disappeared thanks to Ben’s keeping interest rates negligible and the inherent risk in ALL equities. Of course, Congress still has it’s pensions, healthcare, and other benefits fully in tact.
Have a great day.

]]> Comment on Deal Or No Deal by Marlene Sackheim http://www.knowyouroptionsinc.com/blog/2011/07/22/deal-or-no-deal/comment-page-1/#comment-1947 Marlene Sackheim Tue, 26 Jul 2011 01:13:26 +0000 http://www.knowyouroptionsinc.com/blog/?p=472#comment-1947 Another good one. I have spent the last few weeks locking in profits from set ups earlier in the year and lowering risk (shorts in my case). In fact, I even have positive options positions in many accounts, which is usually unheard of for me and not really the way I like to play, but sometimes you have to change the game and do the right thing even if it isn't any fun!! Too many white and black swans out there to be short even 100 points OTM on the SPX. I thought you'd never hear me say that!! There be plenty of time later in the year to play my games the way I like to play them again but right now I need to sleep nights. Have a good one. M Another good one. I have spent the last few weeks locking in profits from set ups earlier in the year and lowering risk (shorts in my case). In fact, I even have positive options positions in many accounts, which is usually unheard of for me and not really the way I like to play, but sometimes you have to change the game and do the right thing even if it isn’t any fun!! Too many white and black swans out there to be short even 100 points OTM on the SPX. I thought you’d never hear me say that!! There be plenty of time later in the year to play my games the way I like to play them again but right now I need to sleep nights.
Have a good one.
M

]]> Comment on Save The Date: Options Block Live at Elephant & Castle by Tom http://www.knowyouroptionsinc.com/blog/2011/07/15/save-the-date-options-block-live-at-elephant-castle/comment-page-1/#comment-1911 Tom Mon, 18 Jul 2011 19:32:55 +0000 http://www.knowyouroptionsinc.com/blog/?p=460#comment-1911 Looking forward to The Option Block event. It should be an interesting time. I'm a fan of the show and want to see the full panel in action. Looking forward to The Option Block event. It should be an interesting time. I’m a fan of the show and want to see the full panel in action.

]]> Comment on A Down Day In the Market: The Catalyst of Emotional Reactions by Marlene Sackheim http://www.knowyouroptionsinc.com/blog/2011/05/12/a-down-day-in-the-market/comment-page-1/#comment-1773 Marlene Sackheim Tue, 17 May 2011 13:59:57 +0000 http://www.knowyouroptionsinc.com/blog/?p=418#comment-1773 Hi Mike, Those short straddles (all with some sort of coverage), worked out in the end. This is the most annoying market since 2007 where there are real fundamental catalyst potentially driving the market in either direction. I am by far not a fundamental trader but have to consider fundamentals when it is prudent and, like 2007, there are strong fundamentals for either direction, making an aggressive range trading play difficult. I am much more diversified that my normal SPX/NDX trading. I am still only in options set up trades, but have some metals, hi cap ndx stocks, currencies, etc. In the end, I am having a good year, but it has been too much work, forcing me to overtrade in order to maintain my RULES, which will NEVER be broken no matter what my personal opinion may be. Have a good one. Marlene Sackheim Hi Mike,
Those short straddles (all with some sort of coverage), worked out in the end. This is the most annoying market since 2007 where there are real fundamental catalyst potentially driving the market in either direction. I am by far not a fundamental trader but have to consider fundamentals when it is prudent and, like 2007, there are strong fundamentals for either direction, making an aggressive range trading play difficult. I am much more diversified that my normal SPX/NDX trading. I am still only in options set up trades, but have some metals, hi cap ndx stocks, currencies, etc. In the end, I am having a good year, but it has been too much work, forcing me to overtrade in order to maintain my RULES, which will NEVER be broken no matter what my personal opinion may be.
Have a good one. Marlene Sackheim

]]> Comment on Is This Just a Roaring Bull Market Climbing a Wall of Worry? by Marlene Sackheim http://www.knowyouroptionsinc.com/blog/2011/03/31/is-this-just-a-roaring-bull-market-climbing-a-wall-of-worry/comment-page-1/#comment-1713 Marlene Sackheim Wed, 27 Apr 2011 21:50:56 +0000 http://www.knowyouroptionsinc.com/blog/?p=397#comment-1713 Hi Mike, Just when it looked safe to jump into the water and sell straddles/strangles, we break SPX resistance. Bernanke's shenanigans will undoubtedly cause a bubble somewhere along the line - the ultimate question, as you soon adptly put, is when and at what strike. Have a great day. Happy trading. Hope you are having a great year. M Hi Mike,
Just when it looked safe to jump into the water and sell straddles/strangles, we break SPX resistance.
Bernanke’s shenanigans will undoubtedly cause a bubble somewhere along the line – the ultimate question, as you soon adptly put, is when and at what strike.
Have a great day. Happy trading. Hope you are having a great year.
M

]]> Comment on Mike Tosaw Talks Options on Benzinga.com by corey nelson http://www.knowyouroptionsinc.com/blog/2011/04/08/mike-tosaw-talks-options-on-benzinga-com/comment-page-1/#comment-1634 corey nelson Tue, 19 Apr 2011 20:12:45 +0000 http://www.knowyouroptionsinc.com/blog/?p=405#comment-1634 wanted to hear webinar with Benzinga wanted to hear webinar with Benzinga

]]> Comment on 6 Factors That Affect Extrinsic Value of Options by j http://www.knowyouroptionsinc.com/blog/2011/01/27/6-factors-that-affect-extrinsic-value-of-options/comment-page-1/#comment-1138 j Mon, 31 Jan 2011 20:07:38 +0000 http://www.knowyouroptionsinc.com/blog/?p=329#comment-1138 Forgot Historic Volatility Forgot Historic Volatility

]]> Comment on “Hedge” Out Living Your Money by rick kingsbury http://www.knowyouroptionsinc.com/blog/2011/01/21/hedge-out-living-your-money/comment-page-1/#comment-1122 rick kingsbury Sat, 29 Jan 2011 13:46:17 +0000 http://www.knowyouroptionsinc.com/blog/?p=323#comment-1122 Mike, Great article because of future uncertainty. I used to think annuities were ok, however, until I read my annuity policy. What the large print giveth, the fine print taketh away. Under "Payments for Life" is the sentence "At the death of payee, all payments of any kind cease". I went back to the agency and forced the agent to explain what this meant. Found out that when the person receiving payments dies, the entire balance in the annuity reverts to the insurance co. Yup, every dime. What goes to their heirs? Nothing. And payments for period certain, like 20 years, you calculate the payments out and find that you are getting about 8% interest on the balance each year for 20 years and you are done. Since they can invest the hundred grand you put in at rates of 8% or greater, guess who still has a hundred grand at the end of 20 years? Their contention is that you not only got the hundred grand back but also sixty thousand of "their" money. I didn't buy his argument. After about 10 minutes of grilling, the agent couldn't look me straight in the eye. An annuity "policy" is sooooo much different than the brochure that I read when putting money in. Mike, Great article because of future uncertainty. I used to think annuities were ok, however, until I read my annuity policy. What the large print giveth, the fine print taketh away. Under “Payments for Life” is the sentence “At the death of payee, all payments of any kind cease”. I went back to the agency and forced the agent to explain what this meant. Found out that when the person receiving payments dies, the entire balance in the annuity reverts to the insurance co. Yup, every dime. What goes to their heirs? Nothing. And payments for period certain, like 20 years, you calculate the payments out and find that you are getting about 8% interest on the balance each year for 20 years and you are done. Since they can invest the hundred grand you put in at rates of 8% or greater, guess who still has a hundred grand at the end of 20 years? Their contention is that you not only got the hundred grand back but also sixty thousand of “their” money. I didn’t buy his argument. After about 10 minutes of grilling, the agent couldn’t look me straight in the eye. An annuity “policy” is sooooo much different than the brochure that I read when putting money in.

]]> Comment on Roth vs. Traditional IRAs: Crunch the Numbers by Robert Soucy http://www.knowyouroptionsinc.com/blog/2011/01/16/roth-vs-traditional-iras-crunch-the-numbers/comment-page-1/#comment-1055 Robert Soucy Tue, 18 Jan 2011 15:48:19 +0000 http://www.knowyouroptionsinc.com/blog/?p=316#comment-1055 Hi Mike, How does the rate of return affect affect the Roth/Tradional IRA debate? As a proactive investor, I expect to make 20+% per year, sometimes more. Bob Hi Mike,

How does the rate of return affect affect the Roth/Tradional IRA debate? As a proactive investor, I expect to make 20+% per year, sometimes more. Bob

]]> Comment on Can an option ever be “too cheap” to sell? by Marlene Sackheim http://www.knowyouroptionsinc.com/blog/2010/12/17/can-an-option-ever-be-too-cheap-to-sell/comment-page-1/#comment-966 Marlene Sackheim Tue, 21 Dec 2010 22:14:05 +0000 http://www.knowyouroptionsinc.com/blog/?p=281#comment-966 Good story. Glad you were covered. Could be a very interesting year ahead. As much as I love playing a down market, throughout the years, I have learned to play an up market, and, even though it is harder to do with the strategies I employ, I am looking forward to the potential of a nice up market next year. The fact that I still think the economy is in the toilet and it will be a momentum, liquidity and commodity driven rally is irrelevant. I also learned a long time ago that you can't stand in front of a moving train and what I think isn't really worth a hill of beans. That's one of the problems I find with investors that you might want to address, they let their own opinions and selves get in front of them and can't let it go. Have a great holiday. Marlene Good story. Glad you were covered.
Could be a very interesting year ahead.
As much as I love playing a down market, throughout the years, I have learned to play an up market, and, even though it is harder to do with the strategies I employ, I am looking forward to the potential of a nice up market next year. The fact that I still think the economy is in the toilet and it will be a momentum, liquidity and commodity driven rally is irrelevant. I also learned a long time ago that you can’t stand in front of a moving train and what I think isn’t really worth a hill of beans. That’s one of the problems I find with investors that you might want to address, they let their own opinions and selves get in front of them and can’t let it go. Have a great holiday. Marlene

]]>