What you get with fraudulent elections.
Author: Henry Barnard
I am a voracious reader and also enjoy writing. I often have a very different point of view than the popular one. I do see value in debate, and thought it might add to the public debate on controversial issues if I were to express my contrarian opinions. I also started keeping my poems recently (I've written little pieces my whole adult life but never kept any); and I've been a photographer now for over 25 years. So I will be adding an occasional poem and hopefully interesting photograph to the blog along the way, just to spice things up.
Covering Naked Calls
You can cover your naked call by buying into the stock as it approaches the strike price. If you do this deftly, you then want the stock to be called away as you will make a gain on the sale of the stock. Buy 25 shares first, then leg into the remaining 75 shares as the stock price closes on the strike price.
If you want to be sure that the stock is called away, you can buy the last 25 shares when the stock price is far into the money — you take a small loss on those 25 shares but have gains on the purchase of the first 75 shares below the strike price. This strategy ensures that the stock will be called away — you don’t want to be stuck with 100 share of an overpriced stock.
The awkward situation is when you buy that first 25 shares below the strike price, but then the stock price reverses down hard — now you are stuck with 25 shares on a declining stock. If it declines far enough and hard enough, I start to think about a naked put, which would complete the strangle.
Not crazy about rolling the naked call to a higher and later strike price as you do this with a loss for the first naked call. Hedging by buying the stock means that you get to keep all of the original premium and can even make a small gain on the sale of the stock at the strike price to boot — a win/win. But you must have the cash reserve to do this.
The risk of hedging by buying the stock is that you may be stuck with 100 shares of an overpriced stock because it didn’t hold the strike price. But you have multiple options then. Just sell it immediately for probably a small gain. Sell an in-the-money call for some downside protection if you are bearish on the stock. Or sell another out of the money call if you are bullish on the stock. There are always options with options.
Corrupt
That Biden doesn’t see anything wrong in his son having enriched himself with foreign governments through influence peddling speaks volumes about our next president’s values.
No question, the “swamp” is about to take back the government. Here comes corruption and double talk. They enrich themselves while trying to make you think they act to promote the public interest.
Funny thing how our politicians in Washington are all multi-millionaires while always pushing the “fight for the little guy” narrative. Yeah, right. Many of them come by their wealth after arriving in DC. So I guess Joe’s attitude toward easy money isn’t that uncommon. Nothin’ wrong with it, right?
Next Prez
So this time we get a palatable but ineffectual president who won’t offend anyone. Tell me again. How is that really better?
When the Music Stops
When the music stops in this jet-fueled (thx Federal Reserve) market, don’t be caught without a chair to sit on, cause it’s going to be a rocky road down to the bottom — all sellers and no buyers.
Today’s Fascists
Today’s fascists are on the liberal side. They want to impose their group-think on the rest of us. This doesn’t mean that the crazy right-wingers are the good guys — not at all. Many of them are demented, too. It just means that it would be the liberal side that forces you to think in a particular way and who think they are always right and the rest of us wrong.
One can see this distortion clearly in the liberal press/media. It has turned the “news” into propaganda. It propagates “right think”. That’s fascism. They use “hate speech” to suppress whatever they disagree with. That’s fascism.
Money Printing
The Federal Reserve money printing is causing assets like the stock market to behave as if we were in a very healthy and even robust economy, which of course we are not. Don’t make the mistake and think that we are.
Such a Fraud
The election was such a fraud that you are going to see a lot more of these random explosions. Half the country is going to view Biden as illegitimate. Even a high percentage of the Democrats think the election was phony. Nashville is just the beginning.
Me and Prince
Two-Step Strangles
Don’t buy both legs of the strangle at the same time. Whichever side is getting the most stress and therefore volatility, buy that side first. Then wait for mean reversion, and when mean reversion takes place sufficiently, then buy the other side, as its volatility will then be increasing — but wait for a sufficient increase.
Traders who buy both sides of the strangle at the same time are not taking maximum advantage of volatility. If the target asset is going down hard, then the bullish side will have low volatility, so buying the bullish side simultaneously is not optimal. If the target asset is rising sharply, then the bearish side will have low volatility, so buying the bearish side simultaneously is not optimal. If the target asset is not moving much in either direction, neither side will have optimal volatility. So it is NEVER advantageous to buy both sides of the strangle at the same time.
Whichever side you buy first, leg into it instead of buying all the contracts for that side at the same time. If your contract size is, for instance, 2 contracts for each leg, then buy 1 contract first and if the target asset continues in the same direction, buy the second contract at a better strike price than the first. Do the same thing for the other leg. Don’t kid yourself that you “know” how severe a move the target asset will make in either direction. You don’t, no one does.
Henry's Views 