OptionsANIMAL Weekly 2-3-2012

Research In Motion is the Apple of My Eye: Four Reasons To Be Bullish on RIMM

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A couple of weeks ago, I shared one of my trades on RIMM with our community. The trade was a naked put using the weekly options that expired this past Friday.

When you buy a put, you pay a premium and you have the right to sell at specific price. It’s just like insurance – if the value of the stock goes down you have coverage, but that coverage comes at price – the premium that you paid. When you sell a put, you have an obligation to buy the stock at a set price. But, you also get to keep the premium. When you sell puts, you are the insurance company.

Apple Inc posted a phenomenal quarter and reignited a tech market that felt like it was losing a little steam. The company posted so many records this quarter that is felt as if Drew Brees were the CEO, instead of Tim Cook.

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What The Analysts Expected

The following represents what analysts expected in first quarter of the fiscal year.

• Revenue – $39.2 Billion
• Earnings Per Share – $10.19
• iPhones Sold – 25 to 36 Million
• iPads Sold – 13.5 Million
• Macs Sold – 4.13 Million

Revenue of $39.2 billion and earnings per share of $10.19 would represent year-over-year growth of the first fiscal quarter in 2011 of 47% and 58%, respectively.

Just because you call yourself a securities trader doesn’t make you one in the eyes of the Internal Revenue Service.

In fact, Uncle Sam is predisposed to consider you merely a hyperactive investor—and thus deny you more favorable tax status—unless you meet a number of criteria that are frustratingly open to interpretation.

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You read that right: the tax code contains no actual definition of trader tax status.

Instead, the IRS has issued guidelines that the tax courts have expanded upon with case law, most of which denied tax appeals by traders.

What we’re left with is a blurred image, like a photograph of a trader taken from a speeding car.

OptionsANIMAL Weekly 1-27-2012

2008 was a year to learn how to trade bearish. 2009, how to trade bullish. 2010, how to trade in a range. Through the summer of 2010 the market moved in a range and finished the year with a nice bullish run. I expected the same for 2011 but never got the bullish run at the end of the year.

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As it turned out, a nice wide IC placed at the beginning of the year would have given a bit of a scare but would have returned a very nice profit.

So what would you do at the scary times? Would you have the conviction to stay the course? Would you have a plan to compensate? Would you know the outcome because you planned the trade and traded your plan?

How important is achieving your financial goals to your investing or trading activities? Should your goals be strictly a percentage profit target? Where do you start?

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You’ve heard the catchy comments about goal-setting;

• “If you don’t know where you’re going, how will you know when you’ve arrived?”
• “A goal without a plan is just a wish.”
• “What is not started today is never finished tomorrow.”
• “If you can find a path with no obstacles, it probably doesn’t lead anywhere.”
• “Success is not final, failure is not final; it is the courage to continue that counts.”
• “You are never too old to set another goal or to dream a new dream.”
• “Set your goals high, and don’t stop till you get there.”

When serious investors approach goal-setting they often set a profit target to the exclusion of all else. This is not only short-sighted, but a dangerous attitude with which to tackle the task. There are other specific and measurable activities that lead toward the ultimate goal of making money. Many who have walked this path before us have identified them and written their goals accordingly.

Here I offer some general activities that work well within goals.

The anticipation of volatile stock movements can instill fear in the most weathered stock trader. Market mavens tout stock picks prior to earnings announcements and with abandon, these “hot tips” are disseminated through media channels. Just look at the all the predictions on stocks that are moving higher based on anticipation of the event, to only have to event come and not meet expectation, causing the stock to lose ground.

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In spite of growing concerns about the global economy, the market continues to march steadily higher. This is driving to a market that feels a little over bought, but continues to do well. The main drivers this week have come from a barrage of earnings that for the most part have been good. IBM, Microsoft, Intel all beat analyst expectations.

Google, on the other hand missed their estimate badly on both earnings and sales. The reason for the miss was both increasing costs and well as some foreign currency issues. GOOG was down $53.57 a share, to close at $586 on Friday. JPM, C and GE also contributed to the weak performances with their respective reports.

OptionsANIMAL Weekly 1-20-2012

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Money is one commodity that is needed in order to sustain life at a decent level. With money people can buy food, clothes and have a place to stay. In addition, money is needed to buy things to make our life better such as cars, homes, electronics and other items. Because of the importance of money, people need to learn and appreciate it at a young age.

Kids start learning about money at a relatively young age. From the time that they begin to learn how to count, they can start learning how to count money. Also at a very young age, kids can start to find out that money is needed in order to buy items. Whether it is buying toys, magazines or games, children find that they need money to purchase these items. Because they learn to need money, children can begin to have an appreciation for money and to learn how to acquire the money that is needed.

To learn how to appreciate money, parents can help teach kids at a young age. The education of these kids can continue for many years. The early lessons that parents can teach children can last for years. In addition, teachers are able to provide basic information about the importance of money through their teen years. The lessons that are taught children can help plant the seeds of financial education through adulthood.

To help parents, children and educators, we have gathered a number of useful resources about money and money related topics. We have included a number of links of educational resources on money, to help learn more. We hope this guide is helpful to all. Please feel free to look over these resources and use them to help teach children about money.

United States Money Information

• U.S. Currency - information on the various types of currencies which are produced in the United States.
• Money for Kids - fun and informative site for kids teaching them about a number of money related topics.
• Coins and Currency – useful information from the Treasury Department discussing the types of currency and coins used.
• New Money – informative resource outlining the new designs of money that have been put into use.

World Money

• Money of the World – information showing the various types of currency that is used around the world.
• History of World Money – educational and informative site covering the history of world currency and coin.
• Money and World Currency – images and information on different kinds of currency that is used around the world.

Counting Money

• Counting Money – worksheets that teachers and parents can use to teach children how to count money.
• Basics of Counting Money – helpful site used to teach kids the basics of counting money.
• Money Flashcards – site helping teach children about money and how to count money.
• Money Tutorials – information and tutorials to produce lessons for children about counting money.
• Counting Coins – fun site for kids teaching them some basics about how to count coins.

Online Money Games

• Teaching Kids About Money – helpful collection of games and online resources which will help teach kids about money.
• PBS Money Games – online games aimed at teaching kids about money.
• Money Games – informative educational site which has many games and activities teaching kids about money and finances.
• Money Skills and Games – site for older kids providing information, facts and games to learn about money.

Online Money Activities

• Activities and Games for Kids – resourceful site with math activity and games for kids of various ages.
• Money and Coins – online activities teaching math concepts that are used in money and coins.
• Money Activities – informative site teaching various money concepts and ideas through a series of games and activities.
• Kids Math Games – fun collection of activities and games for kids to learn about math and finances.
• Money and Math Games – useful resources and games for kids to learn about money through math.

Spending and Saving Money

• Spending Money for Kids – informative site providing kids with information that they can use about spending money wisely.
• Kids and Money – helpful site for kids and adults with information on how to use an allowance sensibly.
• Children Spending – information on how to teach your children how to wisely spend money.
• How to Save Money – useful information on how kids can be taught to save money for purchases.
• Money Saving for Kids – government site with information and tips on how to save money.

Other Money Resources

• Kids and Money – site containing information for kids about a variety of money topics.
• Kid Money Resources – collection of resources for kids and parents about money.
• Money Resources for Kids – resourceful site with links for kids about money and finances.
• Kids and Money – educational resources for kids teaching them about money.

Options Trading Resources

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