Come join me for lunch for the Mad Hedge Fund Trader?s Global Strategy Update, which I will be conducting in Chicago on Friday, April 19. A three-course lunch will be followed by a PowerPoint presentation and an extended question and answer period.
I?ll be giving you my up to date view on stocks, bonds, foreign currencies, commodities, precious metals, and real estate. And to keep you in suspense, I?ll be throwing a few surprises out there too. Enough charts, tables, graphs, and statistics will be thrown at you to keep your ears ringing for a week. Tickets are available for $199.
I?ll be arriving an hour early and leaving late in case anyone wants to have a one on one discussion, or just sit around and chew the fat about the financial markets.
The lunch will be held at a downtown Chicago venue on Monroe Street that will be emailed with your purchase confirmation.
I look forward to meeting you, and thank you for supporting my research. To purchase tickets for the luncheons, please go to my online store.
https://www.madhedgefundtrader.com/wp-content/uploads/2013/01/Chicago1.jpg240351Mad Hedge Fund Traderhttps://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.pngMad Hedge Fund Trader2013-04-03 09:13:192013-04-03 09:13:19April 19 Chicago Strategy Luncheon
Delta announces that revenues grew by only 2% in the last quarter, so of course, they trash United Continental Group (UAL), taking it down 11% from the recent high.? As a former pilot myself, I always allow an extra safety margin separating me from a catastrophic event. This time it came in handy, my deep out-of-the-money call spread limiting my losses to a handful of basis points.
Have no doubt this position will expire in the money. But the share price has crossed that line in the sand of the upper strike price on the call spread. Prudent risk control demands that I bail. I am still up 30% in 2013. There is no point in blowing it on a crappy airline that doesn?t even give you free peanuts back in coach anymore. Or so I heard.
The one mitigating factor here is that those who also strapped on the United Continental Holdings (UAL) April, 2013 $34-$36 bear put spread at $1.76 will now almost certainly take in 68 basis points in profit by running it to the maximum $2 value, cutting the loss on the call spread by half. Such is the value of the hedge. If I had gone with a full 10% weighting on the short side, I would have had the luxury of running both positions into expiration.
After sending you 30 consecutive winning trade alerts, it was just a matter of time before one of these bites you back. Notice that the higher prices go, the more often this will happen. Markets get dizzy, squirrely, and punch drunk at high altitude, no doubt from the shortage of oxygen in the form of fresh new cash flows. Let this be a shot across your bow, that we are entering dangerous, even uncharted territory.
Notice also that we lost money an individual name while the main market continued to ascend. That is the double-edged sword of picking a single sector or company. A one off news event can send your prices spilling while everyone else is laughing all their way to the bank. This happened to me last year with Apple (AAPL). You get double the profit with individual option spreads, but with double the risk. Live by the sword, die by the sword.
Crash and Burn With a United Call Spread
https://www.madhedgefundtrader.com/wp-content/uploads/2013/03/3.21.2013-B.jpg167251Mad Hedge Fund Traderhttps://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.pngMad Hedge Fund Trader2013-04-03 09:11:172013-04-03 09:11:17Pulling the Ripcord on United
It has definitely been a tough year for ski bums, massage therapists, and black jack dealers at Incline Village, Nevada. After getting a prodigious eight feet of snow over one weekend at Christmas, there has been nary a flake since then. Hats off to the Diamond Peak ski resort for trucking down enough snow from the higher elevations to keep the bunny slope running.
However, the real estate business is another kettle of fish. After a six-year hiatus, business is now booming in the High Sierras, as it is throughout the West. Until December, my real estate agent had only sold one house since 2007, and that to me, a nice little foreclosure deal where I picked up a beachfront estate for pennies on the dollar. Since then she has sold six residences, half to Chinese buyers for cash, and has another three in escrow. I guess when it rains, it pours.
I was surprised to learn that my neighbor, Oracle mogul, Larry Ellison, has placed on the market his nearby Glenbrook compound for $28.5 million. The property includes a six bedroom, eight bathroom 9,242 square foot main house on 2.6 acres, with 230 feet of frontage on the east shore of Lake Tahoe (click herefor the listing).
I guess his existing 7.6 acre estate with 420 feet of beachfront next door is enough. Larry has been accumulating ultra high-end properties all over the world for the past two decades, more than he could ever possibly live in. Who knew these were investments, and not conspicuous consumption? This is the first time I have ever seen Larry sell anything. Is this a tell?
You can?t swing a dead cat in Incline Village without hitting a billionaire, so the public events are incredibly well funded. Junk bond king, Michael Milliken, pays for the Fourth of July fireworks, as the celebration falls on his birthday. On Sunday, the ski slopes were amply planted with plastic eggs, some containing candy, others, free lift tickets. Even the pet hospital here is better equipped than most public hospitals.
So I knew the Easter egg hunt would not disappoint. Perhaps, the eggs contained real gold coins. I have to tell you that it was a total blast wading through 500 hyped up children. Click here for the video of the event and hit the ?PLAY? arrow, if for no other reason than to admire the spectacular Lake Tahoe scenery.
This Can Be Yours for $28.5 Million
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?Technology always disappoints in 2 years but goes farther than you then in 10 years.? said Todd Wagner, CEO of 2929 Entertainment, and founder, with Mark Cuban, of Broadcast.com.
https://www.madhedgefundtrader.com/wp-content/uploads/2013/04/Charlie-Chaplin.jpg195251Mad Hedge Fund Traderhttps://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.pngMad Hedge Fund Trader2013-04-03 09:03:372013-04-03 09:03:37April 3, 2013 - Quote of the Day
Come join me for lunch for the Mad Hedge Fund Trader?s Global Strategy Update, which I will be conducting in London on Monday, July 8, 2013. A three course lunch will be followed by a PowerPoint presentation and an extended question and answer period.
I?ll be giving you my up to date view on stocks, bonds, currencies commodities, precious metals, and real estate. And to keep you in suspense, I?ll be throwing a few surprises out there too. Enough charts, tables, graphs, and statistics will be thrown at you to keep your ears ringing for a week. Tickets are available for $249.
I?ll be arriving an hour early and leaving late in case anyone wants to have a one on one discussion, or just sit around and chew the fat about the financial markets.
The lunch will be held at a private club on St. James Street, the details of which will be emailed to you with your purchase confirmation.
I look forward to meeting you, and thank you for supporting my research.
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As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. Read more
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As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ?look over? John Thomas? shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen.Read more
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Featured Trade: (APRIL 12 SAN FRANCISCO STRATEGY LUNCHEON), (THE US DOMINANCE IN HIGHER EDUCATION), (AN EVENING WITH JAMES BAKER III), (THE CORN CRASH CONTINUES), (CORN), (WEAT), (SOYB), (DBA)
Come join me for lunch at the Mad Hedge Fund Trader?s Global Strategy Update, which I will be conducting in San Francisco on Friday, April 12, 2013. An excellent meal will be followed by a wide-ranging discussion and an extended question and answer period.
I?ll be giving you my up to date view on stocks, bonds, currencies, commodities, precious metals, and real estate. And to keep you in suspense, I?ll be throwing a few surprises out there too. Tickets are available for $189.
I?ll be arriving at 11:00 and leaving late in case anyone wants to have a one on one discussion, or just sit around and chew the fat about the financial markets.
The lunch will be held at a private club in downtown San Francisco near Union Square that will be emailed with your purchase confirmation.
I look forward to meeting you, and thank you for supporting my research. To purchase tickets for the luncheons, please go to my online store.
https://www.madhedgefundtrader.com/wp-content/uploads/2013/02/San-Francisco-e1410363065903.jpg238359Mad Hedge Fund Traderhttps://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.pngMad Hedge Fund Trader2013-04-02 09:29:122013-04-02 09:29:12April 12 San Francisco Strategy Luncheon
I spent the weekend attending a graduation in Washington State, a stone?s throw from where the 2010 Winter Olympics were held. While sitting through the tedious reading of 550 names, and listening to the wailing bagpipes, I did several calculations on the back of the commencement program.
I came to some startling conclusions. Higher education has grown into a gigantic industry, with a massively positive impact on America?s balance of payments, generating an impact on the world far beyond the dollar amounts involved. There are 671,616 foreign students in the US (90,000 from China alone) paying an average out-of-state tuition of $25,000 each, creating a staggering $16.8 billion of payments a year.
On a pro rata basis, that amounts to a serious part of our total surplus in services in 2011 of $188 billion, not far behind financial services (click here for the Bureau of Economic Analysis site). A fortunate few, backed by endowed chairs and buildings built by wealthy and eager parents, land places at prestigious Universities like Harvard, Princeton, Yale, and the University of California at Berkeley. The overwhelming majority, however, enroll in the provinces in a thousand rural state universities and junior colleges that most of us have never heard of.
The windfall has enabled once sleepy little schools to build themselves into world class institutions of higher learning with 30,000 or more students, boasting state of the art facilities, much to the joy of local residents and state education officials. Furthermore, this dominance of education industry is steadily Americanizing the global establishment.
I can?t tell you how many times over the decades I have run into the Persian Gulf sovereign fund manager who went to Florida State, the Asian CEO who attended Cal State Hayward, or the African finance minister who fondly recalled rooting for the Kansas State Wildcats.
Those who constantly bemoan the impending fall of the Great American Empire can take heart by merely looking inland at these impressive degree factories. It also might give them an explanation of why the dollar is so strong in the face of absolute gigantic and perennial trade deficits.
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