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.


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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

All About MLPs

All About MLPs Technorati tags: ,

MLPs carry large dividend yields and are involved in oil transportation.

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

Do the Mash (Even if You Don’t Know All the Steps) - New York Times

Do the Mash (Even if You Don’t Know All the Steps) - New York Times Technorati tags:

Programming for the people: a NY Times article on tools provided by Yahoo, Microsoft and IBM to enable users to make web programs.

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.