3 results for tag: Buffett


Ignore it.

The market is up big one day, and then down big the next day. We try our best to ignore it and trade according to our plan. You know Warren Buffett always says that he doesn't pay a lot of attention to daily market swings. That is not his plan. He buys good companies cheap, and waits patiently. Of course, he has enough power to influence the Board and the operations of said companies, should he choose to do that. On the other hand, some people DO trade the daily swings, and that is their plan. They like the excitement of the quickly moving game. This is the game that most people fall prey to - and they lose everything as they watch their account being ...

WalMart – end of the week.

We ended the week at -$265 on our position, so up $75. The Delta of our WalMart position, as weighted to the DIA, is almost zero, and Theta is now $20. We sold a new April 77.5 (basically ATM) on Friday. I'll keep you posted on the progress of this trade. I have been asked about a subject that we work on here, because there is little useful information out there to be found. No one really explains how you, as a small trader, manage your options portfolio. We try to teach it here. There are no bounds to the creative ways you can combine puts, calls, cash, and underlying stock to create a portfolio, so the suggestions that we present are just one ...

Market Panic? Trading Options? The Fed?

The Fed was pushing up the markets over the last few years. They were right, and have been right all along. The doomsayers were wrong. Now, after being right for 5 years suddenly the Fed has it completely wrong, ---or right, ----or they don't have a clue. It's all BS and the truth is that no one knows what the future brings. We must choose to trade based on history and experience and use this knowledge to gain our edge. This kind of market, where the DOW is down 300 and the S&P is down 400, is a newsletter writer's dream. Panic sells and you can be expecting to be contacted by lots of publishers over the next few days and weeks. They will be ...