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condoroptions.com - 3/16/2009

Options as a Language

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Some traders are initially attracted to options because of the leverage they provide. But leverage, as anyone who’s followed the fate of the investment banks knows, is just a means for magnifying outcomes. A leveraged risk-taker will experience more glorious wins and more disastrous ...

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Monday links: bye bye buybacks
Abnormal Returns — ... Some times a view cannot be expressed as buy or sell, that is what options are for.  (Condor Options) ...

Further reading
FT Alphaville — Elsewhere on Tuesday, - The new-new Gettysburg address . - Bear Stearns: A year on, the Fed’s original ’systemic risk’ sin. - Infections, turns and bottoms . - AIG windfalls : Non-US banks have nothing to feel guilty about. - Yes, Virginia, there is still life on Wall Street . - FSA staff training , a visual take. - The gloriously subtle language of options . - Divorce now - save a bundle! - The newspaper that is getting rid of paper . - Rare creatures: Five debt-free companies . - And, the 10 most ...

Your Broker's Ignorance, Your Loss
Minyanville — Jared at Condor Options eloquently expressed an opinion that I share. Because he makes it sound so obvious, I want readers of this blog to benefit from the comment: "Although the investing public seem to have little tolerance these days for anything that smacks of financial complexity, the simple fact is that some financial propositions cannot be uttered in the language of buy, sell or hold. For more elegant elocution, derivative language is needed. "...option spreads allow us to express our core view [of the markets] with more precision."Exactly right. In my efforts to get ...