The iPhone is stirred up controversy and there are people on both sides of the fence. The iPhone nags at me as being a lesson in how you can fool people by marketing.
Now I found the reason why I had this nagging doubt. Nokia is about to launch the N95 which would be an iPod competitor. Let me line up the features of both devices:
Kimber wrote an interesting post regarding diversification. BTW Kimber, no idea where you got the idea that women can’t trade.
It has me thinking, do you diversify or do you become delta neutral? For those wondering, delta is one of the Greek letters in option trading, and it implies risk neutrality.
The question is what do the big traders recommend? Without knowing a hundred percent, they would probably recommend delta neutrality. I myself trade for the most part risk neutral (not completely delta neutral). Risk neutral means regardless if the security goes up or down I win!
Steve Jobs held a keynote and announced the iPhone. One site even did a quick look and feel of the phone. Apple surged by 8% and others like Nokia and RIMM dropped. Though RIMM dropped more than Nokia.
What I think: Sell Apple at its peak (it should climb a bit more) and buy on the weakness of the other players.
The remaining part of this blog will explain why I am skeptical of the iPhone. Some may view this as being overly critical, but others will wonder. You will wonder who is right me or Steve Jobs. Since Steve is much richer and has built a big company (unlike myself) you will be biased towards Steve.
I want to apologize for the porn spam that has taken over our forums. I just finished clearing out all the bad posts I could. It took me over one and a half hours. Painful stuff. And the worst thing is that most of the links (or at least the few I checked) didn’t even (more…)
Pictures can speak louder than words. So here is a shot of the performance of my E*Trade account.
I just wanted to thank all of you readers for making IG an interesting place for discussions and arguments and rants about my favorite topics. Happy Holidays and Merry Christmas, Invest in peace…
Based on seven months of investment our ROI is 26% as that is when I jumped in this year. I have to say that I am very happy about this. This ROI is based on funds, stocks, and bonds throughout Europe, and the America’s.
As of today my positions are as follows:
In reply to my automated trading blog entry I have had people send me emails asking what about this or that toolkit? This made me think that I should be doing some reviewing of products and toolkits. Therefore if anybody wants to send me your toolkit WITHOUT RESTRICTIONS I will do a feature by feature (more…)
A while back somebody asked me what I thought of Google stock. My thoughts, then as now is; good company, but I would not trade their stock. Today I read something in Business Week that confirms why I am not a fan of Google stock.
The article talked about how employees will be able to sell their options instead of stock. Interesting idea, but I am not completely happy about it. The following comment from the article bothered me quite a bit.
Under Google’s Transferable Stock Option program, employees could sell their stock options on the semi-private marketplace much the way public options are sold today. That would let employees potentially reap more than if they merely exercised and then sold the securities. Say an employee holds an option with a strike price of $400, meaning it can be purchased for $400 and then resold at a higher price. If Google’s stock is trading at $500, an investor might pay $150 for that option, betting that the stock will rise well past $500 during the life of the option. The employee selling the option could net an immediate $150. An employee exercising and then selling the same option would net only $100, the difference between the strike price and the current price.
When people talk about investments, they tend to leave out a missing value that everyone ignores when figuring out their investment strategy. That little tidbit of information would be the massive elephant in the room called: risk.
