Friday, December 21, 2007

Insider Trading at Google

Insider buying is usually regarded as a sign of confidence in the company. Only one insider has ever bought shares in Google (GOOG) in the history of public trading. George Reyes bought 75 shares in October, 2005. The price has been increasing since the IPO, and it difficult to buy. Most insiders are probably diversifying their investments out of Google stock.

Sunday, December 02, 2007

Congratulations to the 2007 Boston Red Sox

The Boston Red Sox won the 2007 World Series. With the Yankees tying up most of their money in Alex Rodriguez for the next ten years, in a record setting $275 million dollar contract, the Red Sox can probably win a few more over the next few years. A-rod will be in his 40s when the contract ends, and the Yankees will probably miss out on younger talent due to his contract.

Authentic Ted Williams throwback jersey from Mitchell and Ness.
Boston Red Sox 1939 Home Jersey - Ted Williams

Saturday, October 20, 2007

Amazon.com: Mechanical Turk: Amazon Web Services

Amazon.com: Mechanical Turk: Amazon Web Services

Split up your work amongst many people. Amazon's service lets you post small jobs, and people on the internet can decide to do it.

Monday, October 15, 2007

Covered Call Income Calculator

Covered Call Options Calculator
Calculates profit from selling covered calls. Takes into account option strike price, option market price, expected price of stock, and cost per share. Calculates income in terms of yield generated from selling a covered call. Calculates profit both from selling at the strike price or another price.
Calculates what happens when the covered call expires with the stock price above or below the strike price. Covered calls can generate up to 7 percent monthly returns. Over the course of the year, they can gradually create good returns, sometimes beyond 20 percent annual returns.


Click Here For The Wall Street Journal


TradingSolutions: Financial analysis and investment software that combines technical analysis with neural network and genetic algorithms.

Monday, October 08, 2007

Covered Calls as a Hedge Against Losses

     Covered calls can be sold at a lower price than the current trading price of the stock; this will allow the buyer to not lose capital if the stock price drops. For example, Nokia (NOK) is trading at 36.29 today. A covered call at 35 can be sold for $1.75 per share for a 100 shares. This not only gives the owner a $50 premium, it also gives the trader protection if the price drops below 36.29. Basically, the owner is protected from loss from 36.29 down to 35. 
     Selling a covered call at a lower price offers protection in that security
up to the lower price.  The disadvantage occurs if the price of the stock goes up, since the owner loses any chance of gains beyond his entry point.

Monday, September 17, 2007

Wednesday, September 12, 2007

Covered Call Weekly 9/12/07

Buy 100 shares of Motorola (MOT) at 17.31 for $1731. Sell a Covered Call, the October Call at 18, for $0.40 per share for $40. Short term return is 2.3%. 
If the covered call is excercised at 18, then the total short term return is $40 plus $69 equals $109, or a 6.3% return.

This is an educational series to show the income generating potential of Covered Call Writing. Please do not take this as financial advice. Options involve an increased risk of losing money than owning stock. Appropriate research about options is advised.


Current Reading List

Currently, I'm reading The Wealth of Nations (Bantam Classics), and The Art of War.



My reading list is a combination of western economic theories and eastern political theories. They're both good books to read if you're interested in business, politics, government, economics, and sociology.



Tuesday, September 11, 2007

Using Opera with Blogger

Menu>Tools>Quick Preferences>Edit Site Preferences...>Cookies>Accept Cookies only from the sites I visit

Sunday, September 02, 2007

Thursday, August 30, 2007

Ideal Strategy for Covered Calls

Buy a stock on a dip. Let the stock recover, and then sell a covered call.

Sunday, August 26, 2007

Covered Call Weekly 8/26/2007

Buy 100 shares of Motorola (MOT) at 30.97 for $3097.
Sell the September 2007 Call at 30 at 1.60 for $160.
One month return is 5.16%.

Covered Call Weekly 8/26/2007

Buy 100 shares of CV Therapeutics (CVTX) at 10.05 for $1005
Sell September 2007 Call at 10 for 1.25 for $125
One Month Return = 12.4%

The Golden Years: European Style: Weekend - Yahoo! Finance

The Golden Years: European Style: Weekend - Yahoo! Finance Technorati tags:

Tax havens in Switzerland, Andorra, Italy, and the UK for retirement.

Monday, August 20, 2007

Covered Call Weekly 8/20/07

Buy 100 shares of Nokia (NOK) at 29.65 for $2965
Sell one Nokia 30 call for August 2007 at 1.05 for $105.
One month return of 3.5%.

Sunday, August 19, 2007

Just Live, Baby! - New York Times

Just Live, Baby! - New York Times: "“These are the greatest athletes in the world,” John Madden once said. “They’re like artists. And if you take their creativity away from them by making them robotic, then they’re going to play like robots.” "

Greatest John Madden quote ever.

Saturday, August 18, 2007

Covered Call Weekly

Buy 100 shares of Nokia (NOK) at 29.37 at 2937.
Sell 1 September 07 contract for 100.
Return 3.4%.

Monday, August 13, 2007

Covered Call Weekly

MOT 100 shares at 16.84.
Sell September Call at 17 for 0.55
3.26% return

Sunday, August 05, 2007

Covered Call Weekly 8/05/07

100 Shares of Texas Instruments (TXN) at 33.74
Sell September Call at 35 for 1.09
Total Profit if price reaches 35 is $225 in one month on a $3374 initial investment. This is a 6.6% return.

The Rich Are Willing to Take Risks - New York Times

The Rich Are Willing to Take Risks - New York Times

Take big risks for a short term profit or to make the next eBay (EBAY) or Microsoft (MSFT).

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Sunday, July 29, 2007

Covered Call Weekly 7/29/2007

Buy 100 shares of Motorola (MOT) at 16.95.
Sell 1 Aug 2007 Call Contract at 17 for 0.70.

Monday, July 23, 2007

Covered Call Weekly 7/23/07

Buy 100 shares of Apple (AAPL) at 143.70 for $14,370
Sell 1 August 150 call at 5.80 for $580

Sunday, July 22, 2007

Saturday, July 21, 2007

Covered Call Weekly 7/21/2007

Buy 100 Shares of Motorola (MOT) at 17.95.
Sell one contract for an August 2007 call option at 18 for 0.55.

Google's Free Trade Agenda - Forbes.com

Google's Free Trade Agenda - Forbes.com

Google's (GOOG) trying to be socially responsible, free trade should also include the free flow of information.

Sunday, July 15, 2007

ideal strategy for covered calls

Buy 100 shares of motorola (MOT) at 17.75. Then sell the call to buy it at 18 within a month when it reaches a price higher than 18.

The Wealthiest Americans Ever - New York Times

The Wealthiest Americans Ever - New York Times

A quick graphical look at the 30 wealthiest people in American history. Includes short biographies. Only two are from the 21st century.

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Sunday, July 01, 2007

Covered Calls To Protect Against Losses

Covered calls can be used to protect against potential losses in equity value. For example, New York Stock Exchange Group (NYX) is currently trading around $72, yet the option to buy 100 shares at $75 is available for $3.20 per share. Not only can this generate $320 for the month, it also provides $320 of protection in the event NYX shares decline.

Demosthenes Quotes

Demosthenes Quotes: "Small opportunities are often the beginning of great enterprises.
Demosthenes "

Saturday, June 30, 2007

Selling Covered Call Options Example MOT

Motorola (MOT) is currently trading at 17.70. Buy 100 shares at this price and sell the option to buy it at 18 in August 2007 for 0.50 per share. This will net $50 for the month of August if the stock stays at the current price in August.

Generating Income Through Selling Covered Calls

Open an account with the ability to trade options. My suggestion would be Interactive Brokers. I like their low commissions - $1 for stock trades and $0.75 per option contract trade. Start by buying at least 100 shares of a company. The idea is to sell a call option at a premium to generate extra income on the stock. Screen the available call options. Selling a call option allows the buyer to buy your 100 stocks at a set price. The price of the call option is the difference of the current stock price and the call option strike price along with a premium. Try to find a call option that will expire in one month. At the end of the month, if the call option strike price is above the stock price, then you keep the stock and the premium received from the sale of the call option. If the stock price is above the call option strike price, you sell the stock at the stated price for the option, and keep the money from selling the call option.

Saturday, June 23, 2007

Bloomberg.com: Asia

Bloomberg.com: Asia

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ICICI (ICICI) raised 4 billion dollars in a public sale of more shares. This article states the Indian economy creates $854 billion dollars a year. ICICI appears relatively large compared to India's GDP.

Sunday, May 13, 2007

"Meet the Press" by Nicholas Confessore

"Meet the Press" by Nicholas Confessore

The idea of journo-lobbying is discussed in this article.

Dow 2 Million in 2100

Warren Buffet recently stated in an interview that if the Dow would compound at 5.4 percent annually, the Dow would reach near 2 million by the end of the century. Here are the numbers.

These are the results of compounding the current value of the Dow at 13300 in 2007 for 93 years till 2100 at an annual rate of 5.4 percent.

Money available after 1 years: 14018.2
Money available after 2 years: 14775.1828
Money available after 3 years: 15573.0426712
Money available after 4 years: 16413.9869754448
Money available after 5 years: 17300.34227211882
Money available after 6 years: 18234.56075481324
Money available after 7 years: 19219.227035573153
Money available after 8 years: 20257.065295494103
Money available after 9 years: 21350.946821450787
Money available after 10 years: 22503.89794980913
Money available after 11 years: 23719.10843909882
Money available after 12 years: 24999.94029481016
Money available after 13 years: 26349.93707072991
Money available after 14 years: 27772.833672549325
Money available after 15 years: 29272.56669086699
Money available after 16 years: 30853.285292173805
Money available after 17 years: 32519.36269795119
Money available after 18 years: 34275.40828364056
Money available after 19 years: 36126.280330957146
Money available after 20 years: 38077.099468828834
Money available after 21 years: 40133.26284014559
Money available after 22 years: 42300.45903351345
Money available after 23 years: 44584.683821323175
Money available after 24 years: 46992.256747674626
Money available after 25 years: 49529.838612049054
Money available after 26 years: 52204.4498970997
Money available after 27 years: 55023.49019154308
Money available after 28 years: 57994.75866188641
Money available after 29 years: 61126.47562962827
Money available after 30 years: 64427.305313628196
Money available after 31 years: 67906.37980056411
Money available after 32 years: 71573.32430979458
Money available after 33 years: 75438.28382252349
Money available after 34 years: 79511.95114893976
Money available after 35 years: 83805.5965109825
Money available after 36 years: 88331.09872257557
Money available after 37 years: 93100.97805359465
Money available after 38 years: 98128.43086848877
Money available after 39 years: 103427.36613538716
Money available after 40 years: 109012.44390669807
Money available after 41 years: 114899.11587765977
Money available after 42 years: 121103.6681350534
Money available after 43 years: 127643.2662143463
Money available after 44 years: 134536.002589921
Money available after 45 years: 141800.94672977674
Money available after 46 years: 149458.19785318468
Money available after 47 years: 157528.94053725665
Money available after 48 years: 166035.50332626852
Money available after 49 years: 175001.420505887
Money available after 50 years: 184451.49721320492
Money available after 51 years: 194411.878062718
Money available after 52 years: 204910.11947810475
Money available after 53 years: 215975.2659299224
Money available after 54 years: 227637.9302901382
Money available after 55 years: 239930.37852580566
Money available after 56 years: 252886.61896619917
Money available after 57 years: 266542.4963903739
Money available after 58 years: 280935.7911954541
Money available after 59 years: 296106.3239200086
Money available after 60 years: 312096.06541168905
Money available after 61 years: 328949.25294392026
Money available after 62 years: 346712.51260289195
Money available after 63 years: 365434.9882834481
Money available after 64 years: 385168.47765075427
Money available after 65 years: 405967.575443895
Money available after 66 years: 427889.8245178653
Money available after 67 years: 450995.87504183006
Money available after 68 years: 475349.6522940889
Money available after 69 years: 501018.5335179697
Money available after 70 years: 528073.5343279401
Money available after 71 years: 556589.5051816489
Money available after 72 years: 586645.338461458
Money available after 73 years: 618324.1867383767
Money available after 74 years: 651713.6928222491
Money available after 75 years: 686906.2322346506
Money available after 76 years: 723999.1687753218
Money available after 77 years: 763095.1238891892
Money available after 78 years: 804302.2605792055
Money available after 79 years: 847734.5826504825
Money available after 80 years: 893512.2501136085
Money available after 81 years: 941761.9116197434
Money available after 82 years: 992617.0548472096
Money available after 83 years: 1046218.3758089589
Money available after 84 years: 1102714.1681026428
Money available after 85 years: 1162260.7331801855
Money available after 86 years: 1225022.8127719155
Money available after 87 years: 1291174.044661599
Money available after 88 years: 1360897.4430733253
Money available after 89 years: 1434385.904999285
Money available after 90 years: 1511842.7438692464
Money available after 91 years: 1593482.2520381857
Money available after 92 years: 1679530.2936482478
Money available after 93 years: 1770224.9295052532

Sunday, April 29, 2007

SEOmoz | Google's Patent - Information Retrieval Based on Historical Data

SEOmoz | Google's Patent - Information Retrieval Based on Historical Data

Technorati tags: ,

This piece of paper is worth $145 billion.

In the News : GoodSearch : Search the Internet with GoodSearch and support your favorite charity or school.

In the News : GoodSearch : Search the Internet with GoodSearch and support your favorite charity or school.

Technorati tags:

I don't think they give enough their profits to charity. Some clicks generate up to $3, and they give a penny. Most website owners know how much Google and by transition Yahoo earns them for each click of their visitors. I will say that some clicks do generate only ten cents, but in general some others generate a lot more money. It's a good idea that they donate a penny for each search, but it should be more transparent and a more signifant part of their revenues should be given to charity.

Here's a website detailing some high paying keywords, showing that when a user clicks on these advertisements the website can make a few dollars.

http://www.vaughns-1-pagers.com/internet/top-paying-words.htm

Sunday, April 15, 2007

Google Buys an Online Ad Firm for $3.1 Billion - New York Times

Google Buys an Online Ad Firm for $3.1 Billion - New York Times

Not particularly understanding why Google wants to go into a business it has been avoiding. They made their money on text advertising after it proved to be more successful than banner advertisements.

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Tuesday, April 10, 2007

Kanoodle vs. Google

I've used both services, but I think Kanoodle ends up being the better choice for individual web publishers in the long run. Google (GOOG) may have higher revenue per click for web based advertising, but I've been able to make more money from Kanoodle's RSS feed feature.
Unfortunately, most web publishers only think of Google for their advertising features and overlook smaller providers which may provide them with larger checks.
Google may have a dominant hold on providing advertising for small websites but any other provider with better payouts can take Google's market share.

Monday, March 26, 2007

Angioplasty effectiveness questioned

"Those patients now should try drugs first, experts say. If that does not help, they can consider angioplasty or bypass surgery, which unlike angioplasty, does save lives, prevent heart attacks and give lasting chest pain relief."
from http://www.cnbc.com/id/17800223


"A chance to cut is a chance to cure"

Medicine is constantly debating back and forth between treatments. Change is inevitable, and it's good to question old standards with research. The worst thing to do is not to debate.

Wednesday, February 28, 2007

Another good time to buy NYX

NYX dropped precipitously after the market drop on Tuesday, February 28, 2007. The DOW dropped nearly 500 points at the lowest part of the day mostly due to concerns of a slowing economy in China and also some economic concerns in the US. The day was also marked by a sudden 200 point caused by a delay in the Dow Jones calculations that was corrected abruptly. This was a problem with the Dow Jones calculation of the DJIA and not a problem with the New York Stock Exchange. The stock is down sharply to 84 after rising to a level of 95 in the last week. The stock should correct back towards the low 90s in the next couple of weeks. No other significant news has been present.

Looking at the charts, the stock moves rapidly up when it starts to approach its lower Bollinger band. This has happened a few times in the last year.


NYSE Group, Inc. (NYX)
from : http://finance.yahoo.com/q/ta?s=NYX&t=1y&l=on&z=m&q=l&p=m50,m200,b&a=&c=

Tuesday, February 20, 2007

Wells Fargo 20+ year return

Read the article today about how investing in WFC a while back would give you more in dividend payments yearly than your initial investment. Here's how an initial investment would have done. $1000 invested in 1984 in Wells Fargo would be worth $74,654 at today's closing price of 35.85.

Initial Investment = 999.8399999999999
Shares Available = 2083
Final Investment Value = 74654.72
Total Profit = 73654.88
Percent Return = 7366.7

Sunday, February 18, 2007

For Yale’s Money Man, a Higher Calling - New York Times

For Yale’s Money Man, a Higher Calling - New York Times:
"He was troubled by it: making wealthy people wealthier. I feel privileged to be in a place where the resources that we generate are applied to the world’s problems."
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Goog heading towards 50 day moving average

After dipping to 450, Google (GOOG) appears to be heading back towards its 50 day moving average of 478. At least two times in the last year, it has dipped significantly below its 50 day moving average and returned to the average within 2 months.

NYX oversold at 88

NYX appears to be oversold at 88. It has dropped precipitously from the high 100s range on little news. Appears to be a good time to buy with the positive long term sentiment of expansion into global markets.

Friday, February 16, 2007

Capital Return

Capital Return Walmart from 1974 to 2007

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How much would a 1000 dollar investment in Walmart made during a low in 1974 be worth today? Here are the results of the calculator.

Initial Investment = 999.9910000000001
Shares Available = 58823
Final Investment Value = 2,823,504
Total Profit = 2,822,504.009
Percent Return = 282,252.9

Source: http://finance.google.com


Capital Return

Capital Return of Cisco from 1990 to 2000

Technorati tags: ,

How much would a 1000 dollars invested in Cisco (CSCO) at the beginning of 1990 be worth at the top of the market in 2000? Here are the results from the calculator.

Initial Investment = 999.99
Shares Available = 11111
Final Investment Value = 911102
Total Profit = 910102.01
Percent Return = 91011.1

Wednesday, February 14, 2007

Capital Return

Capital Return

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Enter price paid, capital available, and expected price. Capital available is the amount of cash available to invest. Initially, the code will calculate the amount of shares purchased with cash available. Then, it calculates initial investment, profit, and percent return.

Simple Stock Profit Calculator

Simple Profit

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Enter price paid, shares, and expected price. Calculates profit and percent return.

Monday, February 05, 2007

Internet Boom in China Is Built on Virtual Fun - New York Times

Internet Boom in China Is Built on Virtual Fun - New York Times

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China's most dominant website uses online currency which the Chinese government is trying to stop, fearing the online currency's effect on china's actual currency.

Tuesday, January 16, 2007

Thursday, January 11, 2007

David Beckham Is Coming to America - New York Times

David Beckham Is Coming to America - New York Times

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This soccer story is on a stock blog because Beckham's $250 million dollar five year deal is a big economic transaction. Adidas will likely benefit from him coming to America also.