<p>Bond yields hit 3.125, time to nibble a little there, since I am underweighted in fixed income - although the target allocation 35% Schwab is showing me I think is ridiculous.</p>
<p>I don’t know s*** about bonds. Anybody have a good simple reference to learn about them?</p>
<p>I think there is a Bond Investing book for dummies. Not that you’re a dummy DocT since you and dstark talk about butterflies, condors, spreads. In fact you and dstark should write a book Profitable Options for Dummies.</p>
<p>I think there was a book like Futures and Options for Dummies that I bought 3 or so years ago - it wasn’t very good.</p>
<p>Thanks Krillies.</p>
<p>Yesterday, I did a trade that I have yelled at other traders never to trade. I sold out of the money puts naked for .35 in a stock that trades 460. That is beyond dumb.</p>
<p>I sold 10 of the 440 puts that expire today for .35. If aapl dropped to 425 today, I would have lost about $15,000. And it was possible that aapl could do that. To lose $15,000 when you can make less than $350 is not that smart. </p>
<p>And then aapl drops from 460 to 440 today. I actually bot the 435-440 call spread today for 3.60 when the stock was down at 440. At least there is limited risk in that spread. I almost sold the 445-450 spread against it, a condor, but I decided against it because the stock was too volatile.</p>
<p>Anyway, when the stock broke 438, I was thinking wth was I going to do? But I did think the stock was going to hold 440. Got extremely lucky because aapl came back. I bought the 440 puts for .02.</p>
<p>Made money on the puts and I hope I never do something like that again. I haven’t done anything that stupid in a long time.</p>
<p>I do like trading aapl options. My ex-partner wants me to become an option market maker again. I don’t want to do that, but if I did, I would trade aapl. There are a lot of opportunities in aapl if you can see the order flow. </p>
<p>Goog options…no.</p>
<p>Wow… I wrote the prior post and aapl dropped 4 or 5 bucks at the close. That’s why I bought the 440 puts in for .02 with the stock at 444 with almost 5 minutes to go before the close… 
I might not cut it so close next time.</p>
<p>I might be premature about making money on that call spread. I may end up long 300 shares of aapl. That’s ok. I think. :)</p>
<p>That close changes a lot of option traders pnls.</p>
<p>I have invested in a lot of bonds, but I don’t trade the bonds. I am short tlt calls. If rates drop, I can lose on that trade because tlt will rise in price as rates drop. I am covered though because I am long bonds. That’s the theory. Of course, I don’t trade the bonds so that theory may be bs. :)</p>
<p>That was a wild close. Lots of volume during the last minute of trading and got a low print of 435.88 which was actually the low of the day before closing… at (surprise) 440. You were lucky to buy back those puts at .02. And at the same time the non AAPL indices zoomed to new highs at the close.</p>
<p>AAPL at the close. Whooosh! If you blinked at 3:57 pm, rubbed your eyes and opened again while looking at an AAPL chart. It’s like downing a Starbucks grande cap in 3 minutes.</p>
<p>15:57:00 443.33
15:59:19 441.68
15:59:36 441.13
15:59.53 439.82
16:00:00 439.85</p>
<p>There might be window dressing at the open next week.</p>
<p>have been buying S& P index fund in 401K from low 13xx, then high 13xx, and recently at low 14xx. With almost 1/2 of the 401K in that fund, smiling all way to the bank this week. </p>
<p>YTD change could top $10,000 today!!!</p>
<p>
Well you can’t because you’ll be charged early termination fee and tax. ;)</p>
<p>
</p>
<p>I am not ready to cash out yet - will let them run for another month or so. </p>
<p>Tomorrow we will be doing a review with our “private banker”. The managed portfolio has also been doing well too. Finally we start to enjoy the “money” made from “money”. Even a 0.5% gain like today is not a small amount.</p>
<p>Well, hopefully your euphoria is still there during the Valentine’s weekend.</p>
<p>NJres, I got very lucky. We will see if I get assigned on the 440 calls.
I covered the puts seconds before 15:56. Nice time and sales list, Krlillies.</p>
<p>New highs…hmmmm…</p>
<p>Dad II, nice.</p>
<p>Here is the Ackman vs. Ichan fight. </p>
<p>[Icahn</a>, Ackman in Epic Showdown of Billionaires](<a href=“http://www.cnbc.com/id/100408608]Icahn”>Icahn, Ackman in Epic Showdown of Billionaires)</p>
<p>
</p>
<p>You think the market will crash then? </p>
<p>
Thanks.</p>
<p>BTW, here is my three day rule. Not matter what, do not buy a drop stock until at least the third day. For example, the AAPL has been dropping like a falling knife. Thought about getting in at 460, then 438 but did not pull the trigger. Monday, may be.</p>
<p>Three-day rule is a good one. Sometimes there are cascading margin calls too and those take a few days to play out.</p>
<p>what is the opinion here. What will be the top for S & P for this one - 1510 or 1550?</p>
<p>The down side risk is much great than the possible up side here. Had the index fail to stay above 1500 today, I would have gotten all out to cash.</p>
<p>I don’t get the billionaire showdown except it shows billionaires can be a@@@@@@@.</p>
<p>CNBC did a great interveiw with Ray Dalio, and I hear there were many good long interviews on CNBC in the mornings this week.</p>
<p>This interview was ridiculous. I do wonder why Bill Ackman felt the need to present his case for Herbalife to the public the way he did. I guess that spike up for hlf was during the show. People hoping for a short squeeze.</p>
<p>I have my own pc now so I can watch videos and flash again.</p>
<p>Three day rule is fine. BCEagle91 is right about margin issues.</p>
<p>1600 for the year</p>