One Intel (INTC) investor placed a sizable bullish bet earlier this morning by selling puts and buying calls to simulate a long stock position using options. Shortly after 11:00 AM, this investor bought roughly 10,000 October 25 calls for 47 cents apiece and simultaneously sold 10,000 October 18 puts for 80 cents apiece, collecting a total of 33 cents per spread. Both the call and the put are out-of-the-money, each by about 16%.

Because this type of spread carries a similar risk profile as Intel long stock (without the required capital needed to buy the shares outright), it is occasionally referred to as a "synthetic long stock." Since the call and put are at different strikes in this trade, the strategy is technically called a "synthetic long stock - split strikes."

Continue reading An Intel (INTC) Bull Makes a Big Bet

An Intel (INTC) Bull Makes a Big Bet originally appeared on BloggingStocks on Wed, 02 Jun 2010 15:20:00 EST. Please see our terms for use of feeds.

The editor of The Options Advisor explains, "In the tech sector, we recommend calls on software company Blue Coat Systems (BCSI) while also recommend buying puts on Internet security firm McAffee (MFE).

Continue reading Bernie Schaeffer: Puts and Calls in Technology

Bernie Schaeffer: Puts and Calls in Technology originally appeared on BloggingStocks on Tue, 23 Feb 2010 13:00:00 EST. Please see our terms for use of feeds.

Is this science or science fiction? That thought came to mind when I read that traders who were exposed to more testosterone in the womb made six times more money than their low-testosterone-level peers on very volatile trading days. So if you want to breed a trader, expose him to lots of testosterone in the womb. How do you do that? Beats me.

To determine the traders' prenatal testosterone exposure, University of Minnesota researchers measured their "2D:4D ratio" which is the relative lengths of the index and ring fingers on the right hand. Those exposed to higher levels of testosterone in the womb tend to have relatively longer ring fingers.

Based on the 2D:4D measure, researchers who studied the traders' profits over a 20-month period between 2004 and 2007, found that those with the highest in-womb testosterone exposure in the womb earned six times more than those exposed to the least. They also tended to have the longest careers, surviving about three years longer on average.

Continue reading Traders with higher in-womb testosterone make six times more money

Traders with higher in-womb testosterone make six times more money originally appeared on BloggingStocks on Tue, 13 Jan 2009 11:35:00 EST. Please see our terms for use of feeds.

No joke, does E*Trade Financial (NASDAQ: ETFC) have a purpose? I recently received an offering from E*Trade Financial promoting stock and options trading per transaction of $6.99 to $9.99. It offered 100 free trades to open an account. The problem is that I am already getting free trading from several bank brokerage accounts.

If I was not getting the free trades from my current accounts, there are competitors with better rates anyway. What is E*Trades competitive advantage? If it's not price, or size, or breadth of services, or physical branches or branch locations, how does it intend to distinguish itself? It does not offer in-depth research or anything not readily available elsewhere. In fact, if I was to go by what I received, it offers far less.

I have read many stories that question E*Trade's survival. In the literature that I received soliciting my business, I think it did a very poor job of convincing me it has a purpose for existing. Its beginnings as a web-based company were cool, but now every financial institution is online.

Continue reading Does E*Trade have a purpose?

Does E*Trade have a purpose? originally appeared on BloggingStocks on Tue, 11 Dec 2007 07:01:00 EST. Please see our terms for use of feeds.

Trading curbs are in effect, or were at any rate originally appeared on BloggingStocks on Fri, 17 Aug 2007 13:05:00 EST. Please see our terms for use of feeds.

Warren Buffett or James Cramer, who do we have more faith in? Is that a serious question? Probably not. I have been told that Cramer's TV show has 17 million viewers. I wonder how many people would tune in to hear what Warren Buffett has to say. Indeed, Mr. Buffett might make for very boring television. We have even noticed here at BloggingStocks that when Cramer's name appears in the headline, the stories seem to be more popular. And while Buffett's name certainly attracts attention, it does not seem he is as popular.

Comparing the two noteworthy investment gurus reminds me of the saying: Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime. Cramer throws out dozens of picks and pans every week. Tracking all his commentary has turned into a web sporting event of sorts. When he changes his mind, I can only guess that those hanging on his every word get dizzy. I suppose that with Cramer, followers might get to eat on some days and on some they don't. I do know he has made some good calls. He has also made some unfortunate ones.

Continue reading Buffett or Cramer -- oh please!

Buffett or Cramer -- oh please! originally appeared on BloggingStocks on Tue, 30 Jan 2007 16:35:00 EST. Please see our terms for use of feeds.