Hey market watchers

[greg]

Brewer: Thanks. I liked your 10% calls-90% Bonds idea, one teeter-totter with only the ends (time and interest rates) to watch. I'm setting up my options account today. Your spread idea, borrowing short-buying long was good though if leverage wasn't its own risk.

--Greg

 

[brewer12345]

Brewer:  Thanks.  I liked your 10% calls-90% Bonds idea, one teeter-totter with only the ends (time and interest rates) to watch.  I'm setting up my options account today.  Your spread idea, borrowing short-buying long was good though if leverage wasn't its own risk.  

--Greg

Greg, that's all fine and well, but don't forget that options have implicit leverage that is very real. The big difference with options is that at leat your max loss is capped.

 

[greg]

Greg, that's all fine and well, but don't forget that options have implicit leverage that is very real. The big difference with options is that at leat your max loss is capped.

I've started the process: I'm currently rereading all the relevant parts of my Investor's Desk Reference and plan to spend the next week working thru all the things that can go right (one) and all the things and purmutations that can go wrong (64,000,000 or so?) so that the only thing left to worry about are the things that I don't know enough about to worry about yet. I might do most of this work in the basement--away from DW.

--Greg

PS I just read the best "It's different this time' article I've ever seen (about RE). Interested?

 

[brewer12345]

Look up the Options Industry Council. If memory serves, they publish a lot of good information on options and I think they even run a toll-free hotline to answer questions.