Category Archives: Strategy

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A Buffett Put Trade Refresher

It’s been a while since I first wrote about Berkshire Hathaway selling put options on broad based indexes.  The following is a refresher or introduction to the trade if this is new to you. Back in 2008, as the financial world was falling apart, the business media loved to quote Warren Buffett’s comment about derivatives […]

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Option Trading – Are You Ready? Part 1

“Great traders have passion, confidence, an edge and a game plan. They are prepared, They keep their system simple.” – Gavin McMaster I have been option trading for several years, and while my results have been up/down – what is important is that I have survived many different market cycles.  That should tell you a […]

No Comments Weekly Market Outlook – Valuation Concerns Creep In

The market didn’t end last week on a particularly bullish foot, but it doesn’t matter  – it started the week on such a bullish foot the S&P 500 (SPX) (SPY) was still up 1.6% for the week, and still above a fairly important resistance line. The strength still doesn’t outright guarantee stocks will keep moving higher. […]

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Trading Lesson 2: The 90’s Were Alive

Time for another trading lesson.  Back in 1996 I took a job with Sunkist Growers as their Pension and Investments Manager.  I was hired to manage pension assets for a mature fund.  By mature this means there were many beneficiaries drawing monthly pensions, and as the company had been around 100 years the plan was […]

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Know Your Time Frame

Forecasting is fun, but it leads to many errors in the process.  We hear them all time, someone trying to be a hero but often failing miserably in their predictions.  I read a quote last week by Howard Simons of the ‘Iron Law’ of forecasting (for economists):  Give ’em a number or give ’em a […]

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Weekend Review – Volatility Indexes and ETPs 3/7 – 3/11

Three out of the four S&P 500 based volatility indexes dropped last week with the longer term focused VXMT rising slightly.  I went on a data fishing expedition with respect to weeks where VXMT and the S&P 500 rose, but couldn’t find a definitive patters.  I even looked at the predictive power going out as […]