El Filosofo Liberal

Components Short one front month call option and long one far month call option. (i.e. the option you sell is to be closer to expiration than the option you are buying). Risk / Reward Maximum Loss: Limited on both down and upside for market direction. Maximum Gain: Limited. Characteristics When to use: When you are bearish on volatility and neutral to bearish on market price. Note that with this payoff graph I have shown the net theoretical result only at the first expiration date when with the underlying trading at 100, which is the best result: the near month call will expire worthless and you will still have a long call ATM position. Traders use time spreads to take advantage of time decay - the property of options being a decaying asset. However, due to the risk involved in selling naked options, a time spread protects the position buy buying an option in the next month. The long back month option position offsets large losses that can result from being short options when the unde...

Fuente: http://www.nypost.com/seven/09182008/postopinion/opedcolumnists/why_bailouts_scare_stox_129619.htm?page=0 WHY BAILOUTS SCARE STOX LOCKING IN EQUITY LOSSES Paulson: Too confident he knows better than the market. Last updated: 6:46 amSeptember 18, 2008 Posted: 4:06 amSeptember 18, 2008 THE federal bailout of insurance giant AIG is the latest in a series of panicky interventions that add a capricious element of political uncertainty to the market for financial stocks. In essence, these bailouts give bondholders more protection than they'd otherwise see - at stockholders' expense. It's probably true that "something had to be done" in the case of AIG, the nation's largest insurance company with operations in 130-plus countries. But doing something could have meant doing something else - such as offering a secured bridge loan while AIG engaged in some orderly asset sales. As it is, the US government is charging AIG an interest rate above 11 percent for a wel...

El segundo hombre más rico del mundo, Warren Buffet, enumeró los 20 principios básicos que posibilitaron gran parte de su éxito. Pero, aunque estas indicaciones para invertir y ganar en la bolsa parecen sencillas a simple vista, los especialistas aseguran que son pocos quienes pueden seguirlos y aplicarlos con éxito. Buffet es un inversor que hizo su fortuna solamente comprando y vendiendo acciones y que hoy es la persona más influyente del mercado financiero estadounidense.Este genio de las finanzas compró su primera acción a los once años, aunque dice que se arrepiente de haberlo hecho "tan tarde". A los 14 adquirió una pequeña granja con los ahorros que consiguió repartiendo periódicos y aún vive en la misma casa de tres dormitorios en Omaha, que compró hace 50 años cuando se casó.Esas fueron parte de sus claves para convertirse en millonario, tal como lo reveló en una reciente entrevista a la CNBC. Según los operadores, Buffet, hoy conocido como “el oráculo de Omaha”, emp...

Anyone just starting out in covered calls needs to decide if they want to focus on an in-the-money (ITM) or an out-of-the-money (OTM) strategy. This is a significant decision that will have important effects on your long term success and that amount of success. Benefits of ITM (1) More Protection: ITM strategies obviously offer more downside protection than OTM. You will make the same amount if the stock goes up, stays flat, or goes down to a certain percentage that it is ITM. (%ITM is the % the stock must drop to reach the strike price {$purchased - $strike}/$purchase) This is a HUGE advantage because ITM systems are more forgiving of price fluctuations and mistakes on the trader's part. (2) Since an ITM trader is more likely to be called out at the end of the month, every month you will research and find the highest yielding CC positions that meet your requirements. Compared to an OTM strategy, you are more often left with the stock at the end of the month since it did not rise t...

Anybody can invest and get the market rate of return, even my 84 year old grandmother who probably does not even know what stocks are. All you have to do is invest in something like a total stock market index fund. In fact doing this, you will beat around 70% of all the active fund managers. However, if you want to do better than the market, you better have a plan. Covered Calls is a way to do so. Covered calls are the most conservative of all the various option strategies. It seems pretty simple but, many people have trouble making money with them. Most of their problems are one of four things: (1) failure to properly screen good CC candidates (2) failure to monitor and manage your positions once in them (3) not being in enough positions to be diverse and (4) not trading with enough money and thus commissions and taxes take most or all of your profits. (1) Failure to properly screen positions I use OptionsXpress and they are great, but at the time of this writing, their covered call s...

Writing Covered Calls is a conservative strategy where you buy a stock that you would like to invest in and then write a call option against that stock. This is a cash generating strategy that not only offers downside protection that you otherwise wouldn't enjoy if you just bought the stock, but also gives you the ability to generate a consistent monthly income, for only minutes of your time. However as with all option trading strategies, there are pitfalls that you will need to avoid if you are to be consistently profitable. What if the stock price falls dramatically? Your calls really do nothing to protect you against losses as the market falls. Sure, you get to keep the premium from selling the call (when it expires worthless), but you still own the stock, which is now worth considerably less than what you paid for it. The problem then becomes that you will not be able to sell another call at the original strike price. Instead, the next time you will have to sell the call at a l...

de Clarín - Nota - Opinión - Pag. 17 - Tribuna Raúl Bernal Meza PROFESOR DE RELACIONES INTERNACIONALES (UBA-UNC) Doha separa a Brasil y Argentina. No sólo es el nivel de apertura, sino también la inserción internacional basada en calidades de poder tangible e intangible que los distancian. El poder de negociación internacional de Brasil crece; Argentina, desde los 90, sufre una devaluación significativa del mismo. Cristina Kirchner mantiene la estrategia de priorizar el Mercosur como instrumento de negociación; estrategia que la diferencia –porque se apoya en el bloque– del Brasil, un `global player’. Para Argentina, al sur del Río Bravo es "Latinoamérica". Para Brasil ésta no existe; pone su atención en América del Sur. Lo demás es "zona de influencia norteamericana". Con Lula, Brasil busca un liderazgo que Itamaraty antes rechazó. Sus formuladores pretenden construir un nacionalismo moderno, que acepte el rol hegemónico global de EE.UU., pero que amplíe sus espaci...