Stock market or home improvements?

[Denny]

wasn't silver around the mid teens in 2007?

It was mid teens last June!

[slow99]

With silver closing @ over 43 this week, I'm almost tempted to take out some insurance out, like some puts for a six month, 20% loss. Shit.

Yeah, it's gonna burst and burst hard...just when? I'm actually taking my metals allocation back down to around 5% of holdings. I'm using the proceeds to buy a couple at the money 1 year options on the S&P at today's strike price.

It's a really cool strategy, I actually do it with most of my equity allocation and do it for family and friends. You can participate in market upside, but you use the option leverage to magnify the return. Put the rest of the portfolio in bonds, metals, TIPS, what have you and earn return. The beauty of it is, you get to set the exact dollar amount of risk you're taking in the equity market.

That's the problem with the IPS development process... ask someone how much risk they can handle. Who the fuck knows?? This strategy lets you know exactly how many nominal dollars you're risking.

[KBScobravert]

It was mid teens last June!

.....and you didn't tell a cracker?

Just kidding. I saw the threads and miss that boat too.

[Denny]

Yeah, it's gonna burst and burst hard...just when? I'm actually taking my metals allocation back down to around 5% of holdings. I'm using the proceeds to buy a couple at the money 1 year options on the S&P at today's strike price.

It's a really cool strategy, I actually do it with most of my equity allocation and do it for family and friends. You can participate in market upside, but you use the option leverage to magnify the return. Put the rest of the portfolio in bonds, metals, TIPS, what have you and earn return. The beauty of it is, you get to set the exact dollar amount of risk you're taking in the equity market.

That's the problem with the IPS development process... ask someone how much risk they can handle. Who the fuck knows?? This strategy lets you know exactly how many nominal dollars you're risking.

Right. I figure if I lose this 2%, I'll probably more than make up for it in silver gains. If it does drop below the 20%, I'll make some good money to buy more metal at the lower price. I figure June is going to be key... to QE or not to QE. THAT is the question.

A one year option is going to cost more and I had market ADD (and don't have the balls to make too long of a cal... yet).

[Denny]

.....and you didn't tell a cracker?

Just kidding. I saw the threads and miss that boat too.

Like a dumbass, I didn't dump everything in @16.70, like I had planned to, but it was when I made my initial and biggest purchase.

LOL... poor Leslie was a wreck. I think she's cool now

[KBScobravert]

My wife knows that I am crazy so she doesn't question me anymore. If I buy something she just says "okay, if you think we need it".

I should know tomorrow what kind of gains I have on my GE and JNJ. I am really leaning towards man cave and just work a few more months to bring back savings. It should also help I am getting a 30% increase in pay in June. Company lost contract new contract says I am worth more. Hard to beat. That is one that I will have to SELL to the wife though.

[slow99]

Right. I figure if I lose this 2%, I'll probably more than make up for it in silver gains. If it does drop below the 20%, I'll make some good money to buy more metal at the lower price. I figure June is going to be key... to QE or not to QE. THAT is the question.

A one year option is going to cost more and I had market ADD (and don't have the balls to make too long of a cal... yet).

Precisely the issue we're struggling with on one of our stocks right now. We've had a buy rating on it since October and love the company, but fuck when do you downgrade it... 100% 200% 300% 400% 500% returns in 6 months?

http://finance.yahoo.com/echarts?s=BSFT+Interactive#symbol=bsft;range=6m;co mpare=^gspc;indicator=volume;charttype=area;crossh air=on;ohlcvalues=0;logscale=off;source=;

[Denny]

Precisely the issue we're struggling with on one of our stocks right now. We've had a buy rating on it since October and love the company, but fuck when do you downgrade it... 100% 200% 300% 400% 500% returns in 6 months?

http://finance.yahoo.com/echarts?s=BSFT+Interactive#symbol=bsft;range=6m;co mpare=^gspc;indicator=volume;charttype=area;crossh air=on;ohlcvalues=0;logscale=off;source=;

That's a nice, long run. The market is weird since 2008. How do you pull the plug on the goose that lays golden eggs? LOL

[Denny]

My wife knows that I am crazy so she doesn't question me anymore. If I buy something she just says "okay, if you think we need it".

I should know tomorrow what kind of gains I have on my GE and JNJ. I am really leaning towards man cave and just work a few more months to bring back savings. It should also help I am getting a 30% increase in pay in June. Company lost contract new contract says I am worth more. Hard to beat. That is one that I will have to SELL to the wife though.

Fuck that. I'm done as soon as this base closes. They already offered me a position in Afghanistan with a pay increase, but I turned it down.

[KBScobravert]

Fuck that. I'm done as soon as this base closes. They already offered me a position in Afghanistan with a pay increase, but I turned it down.

Hommie, Fluor's compensation package is stupid good. R&R every 75 days and you MAKE money going on R&R vs the red lanyard where we lost money. The pay is excellent.

I know all the HSE fucks here since I work in the Security Ops Center now (I am the the Ops center lol) and the HSE guys don't do shit. They literally have 200+ Safety guys in theater.

If I can beg the wife to give me at least until the end of the year I will be happy. Right now I will be home on Sept 9th for good if she says "no". The dumb thing is we are just at the edge of being set. Zero debt (but house) great credit scores, good amount in savings and stocks, and prepared to be able to live off of a combined income of only $45K a year anything over that is gravy. There will be lots of gravy.

[KBScobravert]

Sale of the shares will mean he pays his marginal rate, probably 25 to 28% for short term gains, if any, if he has held them less than a year. If he has held them more than a year the gains would be taxed at 15%.

Upgrades to the house can add value but only in certain areas. Real estate Nate would be a good source for statistics in this area of residential real estate but generally speaking, money spent in the kitchen offers a great return, while money spent on frivolous shit like swimming pools will net you close to nothing.

Well looks like at 28% my tax liability on the gains I have are only $4,452.

[Broncojohnny]

Well looks like at 28% my tax liability on the gains I have are only $4,452.

This is a long term gain though, the rate should be 15%.

[KBScobravert]

This is a long term gain though, the rate should be 15%.

Okay so only out $2400 +/-

[Broncojohnny]

Long put = write to sell the underlying stock at a given strike price. It's an "insurance contract" in basic terms. You pay for the insurance in the form of the put premium.

Writing a put = selling a put. If the put you bought is the right to buy at a price, the short (sold, written) put is the obligation to buy the underlying at that exercise price. Al sold the obligation to buy GS at a given price and collected the premium that the long put paid as compensation. When the stock starts moving down, the long put benefits from the insurance by selling it at the strike above market price... which means the seller of the put has to buy the stock at prices above market price.

More specifically, I sold these contracts at $1.60 about a month ago. Each contract is good for 100 shares. So I pocket $160 a contract. My strike was $155. If the stock would have closed below $155 on Friday I would have had to buy $15,500 (100 shares at $155 each) in GS stock for each contract. It didn't so I pocket the $160 per contract.

To me this makes sense only because I don't mind buying GS at $155.

[slow99]

More specifically, I sold these contracts at $1.60 about a month ago. Each contract is good for 100 shares. So I pocket $160 a contract. My strike was $155. If the stock would have closed below $155 on Friday I would have had to buy $15,500 (100 shares at $155 each) in GS stock for each contract. It didn't so I pocket the $160 per contract.

To me this makes sense only because I don't mind buying GS at $155.

tdd just pm'd me and said to be sure you buy shares on margin so you can enjoy your debt lifestyle, plastic slave!!