Success?

Dems in charge destroy jobs and undermine the economy with their actions, and then call it a success. Nixing the Canadian pipeline costs 70k jobs. Raising the minimum wage to $15 per hour nation-wide means that many employers will simply cut the requisite number of jobs in order to protect their profit margins, particularly in states with a lower cost of living. In other words, more jobs destroyed because of unintended consequences. The Dems don’t care; they call this success.

We have lunatics in charge who do not consider the ramifications of their ideological actions. Hard times are coming…hard times for sure.

Expect More Crime with Biden

Taiwan?

Is Taiwan going to be the next world-wide black-swan event? China may consider Biden a weakling and act militarily against Taiwan. They may consider Biden’s election their opportunity to take back this troublesome island. It could be over in just a matter of days, should they act. But it would send shock waves around the world, and send all the stock markets into freefall. A successful invasion of the island by China might, in turn, prompt North Korea to act against South Korea. None of this would ever occur under Trump.

Stock Market

I Don’t Think So

I don’t think there is systemic racism.

I don’t believe white people are evil.

I don’t think people younger than 60 should refrain from going back to work.

I don’t think we should suppress the use of fossil fuels and ruin our economy.

I don’t think the Chinese government is benign.

I don’t think Russia is the bogeyman.

I don’t think suppressing “hate speech” is a better or viable substitute for freedom of speech and the 1st Amendment.

I don’t think groupthink is better than individualism.

I don’t think open borders is a good idea.

I don’t think you accept immigrants as citizens without vetting them for criminal behavior, infectious diseases, and terrorism.

I don’t think this last presidential election was honest and above board.

I don’t think over half the country supports this new administration in Washington, but that a sizeable portion of the country sees this recent presidential election as a fraud.

I don’t think your vote matters anywhere near as much as who counts the votes.

I don’t think a majority of conservatives in the American public agrees with the goals propagated by the Left and the universities.

I don’t think Biden’s son’s influence-peddling was anything other than graft.

I don’t think the liberal press is anything other than distorted ideology.

I don’t think you impeach a former president after he leaves office.

I don’t think you impeach a former president because of a popular demonstration protesting a rigged election.

I don’t think all the money printing by the Federal Reserve is going to end well.

I don’t think our fiat currency in dollars has much value anymore.

I don’t think government by massive deficit spending is viable long term.

I don’t think our current economy is anything other than crony capitalism, thanks to the money-printing Federal Reserve as well as bale outs by the government.

I don’t think socialism is a viable economic system or produces any real value.

I don’t think the anti-business Biden administration is going to tackle the dismal unemployment situation and restore the economy.

I don’t think raising the minimum wage across the entire country is going to help create jobs — I think it will do the opposite, as employers reduce staff to compensate, particularly in states with a lower cost of living.

I don’t think the future is going to be bright.

I don’t think life in the US is going to be peaceful in the future.

Decline

Hedging Naked Calls with Stocks

You sell a naked call on a stock trading at 50 for a 45-day April call at strike price 65. The stock price starts to shoot up immediately and half way to April expiration, the stock price is already at 60, and naturally your call price is way under water. So you start to hedge with 25 shares of the stock. You add 50s shares at 62 and then the final 25 shares at 64.50, so now your naked call is covered.

But the stock price continues to move much higher, all the way to 75 a week before expiration. Now the 100 shares are showing a nice profit, but you need them to cover the April 65 call at expiration. But do you?

What if you rolled the April call at 65 all the way to the LEAPS 85 call at break even on the roll. That gives you a new 10 dollar leeway on this new naked call at 85, which you would again hedge by buying the stock, if need be. Although this tactic creates a lot of time exposure, if you do it, it would allow you to sell your 100 shares and take the profit ($1287) on the stock now that the price has sharply risen to 75, and it may be that the new naked call way up at the lofty price at 85 is a bridge too far for the stock to ever reach, despite the 8-month exposure, given its recent sharp rise.

Would you take that bet? You don’t get paid for not taking risk. If you don’t take the bet, you forgo the $1287 profit on the 100 shares, and merely walk away with the premium on the 65 call after the shares are called away — comparatively little to show for your trade, although now you are risk free, which is a positive. But if you do take the bet, you get the $1287, and if the stock fails to reach 85, you get to keep the premium as well — or the same scenario may play out on the 85 naked call.

Covering Naked Calls