Jan 29, 2010: General Electric Trading Opportunity

I recently discovered a show on MSNBC called Options Action. It is one of the best options shows I have seen on television. It caters to both the novice options trader and also the sophisticated, and even presents opportunities galore. In one of their segments, a technical analyst showed a chart of General Electric [GE:NYSE]. The stock has been down for the last two years, and has been a terrible investment, but a technical break out is inevitable. What he presents is an ascending triangle that has developed. This is easily differentiated from a wedge because of the lower highs and higher lows: a rising wedge would have higher highs and higher lows. According to the show, this pattern usually indicates a continuation into an upward breakout, which occurs about 70 per cent of the time. What a trader will want to see is a break out above the trend lines, which I have drawn in, as well as strong volume above the normal. Strong volume indicates conviction. He also shows that the stock has risen above the 150-day moving average, and we can see that the average is supporting the long-term trend and price of the stock. The struggle between buyers and sellers is intensifying and the price range is becoming smaller and smaller. As of right now, we do not know which way it will go, but as previously mentioned, there is a 70 per cent probability of a rise. As a gambler, I'm willing to buy a call ahead of the break out, since the loss is limited to less than 10 per cent of the value of GE. I've been studying charting patterns for only a few years. I do not claim to be an expert at all, but I have seen these patterns before and I have made some good money. If the stock does break upwards, you would then target the rise measuring the height of the triangle, approximately $3 a share. Once the rise starts, the stock will move $3 up before entering a new pattern or decreasing.

Jan 27, 2010: Understanding Interest Rates

Earlier today, the FOMC decided to hold rates. The Bank of Canada also kept rates at all-time lows. Both countries hinted that rates would remain at these levels until at least the summer and possibly longer. As a trader, I highly enjoy FOMC meeting days. The volatility and opportunities that arise can be very profitable. I find that the average person is disengaged with interest rate decisions mainly because they believe it has little impact on their lives, but I want to show how this is completely inaccurate, and how everyday life relies a lot on the consequences of interest rate changes. Banking Rates Rates are expected to rise, eventually. The most logical impact it has on our lives would be interest rates at the bank. The cost to borrow would rise, as would saving account interest paid to you. Products such as mortgages, GICs, and lines of credits would move up. Currency Interest rates also impact currency. If Canada were to raise rates, savings products become more appealing to foreign investors, and they would buy up Canadian dollars to buy these products. As you know, increased demand increases the its value, like an auction. Currency affects the cost of our everyday goods from apples to zucchinis. Commodities The direct impact interest rates have on currencies also affects commodities. World commodities, such as oil, gold, copper, and pork, are all priced in US dollars. With all things being equal, a dropping US currency increases commodity values. For most of the world, this would offset, but for Americans, this means prices of goods will increase. Transportation, natural resources, and food costs would all increase. Bonds As I discussed earlier, rising interest rates make investment vehicles more appealing, and as a result, this would decrease the value of standard bonds. For those that have never heard the formula: Interest Rates up = Bond Prices down = Bond Yields up. To better understand this, let us use a bond worth $1000 paying 5 per cent coupon interest. If the interest rate rose above 5%, risk-free investment products would be much more appealing than a risky bond. Therefore, the value of the bond must decrease to attract investors. So maybe, the bond goes to $900, still paying 5 per cent coupon. For bond amateurs, the 5 per cent is not based on the value of the bond today, but the par value, which is usually $1000. So, 5 per cent x $1000 = $50 a year. So now, $50 interest/$900 paid = %5.55, where it was only worth $5. Bond traders will use this as well, trying to make money on the value of bonds. Stock Market Generally, rising interest rates will take the stock market down a little bit. This is because the cost to borrow funds to invest in the market increases. You may see sellers to cover money they have borrowed or even enter bond markets or risk-free investments. The above five examples are very simplified, and in reality, there are always other factors. In most cases, the reactions are very short term. Secondly, rising interest rates could be used to tame inflation or slow down an economy, which isn't always a bad idea, although it seems to have negative consequences.

Jan 25, 2010: Apple, TI

I do want to apologize to my friends and any readers who were expecting a Friday post, especially after a very tough week in the markets. I had a family emergency and was unable to write or even go on line as often. Apple [AAPL:NASD] and Texas Instruments [TXN:NYSE] kicked off the week with quarterly earnings and both stocks beat expectations. Apple beat the estimates easily, netting $3.38B or $3.67 a share against estimates of only $2.07. Texas Instruments, well-known for its TI-83 Graphing Calculators we all endured in high school, posted positive numbers as well. TI made a profit of $655M or 52 cents a share. Both companies saw revenues climb during the holiday season, but both stocks remained tame after hours. According to many writers, new accounting rules allowed Apple to recognize all sales of iPhones and Apple TVs into their revenue at the time they are sold. The news should come as a relief to investors with housing data released earlier in the day showing negative signs. 2009 proved to be the first year in four where sales of houses previously owned were up, but prices were down 12 per cent, the largest year-over-year drop since The Great Depression. Home sales were boosted by low prices and government tax credits, pulling buyers to purchase homes earlier in the year. Expectations for housing sales for the remainder of 2010 look sour. For traders, this week could prove critical. Last week, there was a steep sell-off in the last few days, with the Dow Jones losing over 500 points and the TSX losing just as much. The earnings of key consumer staples and discretionary will be released. Following Apple and TI today, Yahoo! [YHOO:NASD] and Microsoft [MSFT:NASD] will post earnings Tuesday and Thursday respectively. Tomorrow, Johnson & Johnson [JNJ:NYSE], famous for Band-Aid, Neutrogena, and Listerine, will post earnings, as well as Pfizer [PFE:NYSE]. The reason I find this week so critical is because we have some of the largest companies from the needs and the wants posting earnings. If both the needs, like toilet paper, soap, and medication, and the wants, like laptops, music players, and smart phones both show rises, we could see signs that consumers are spending again, which accounts for two-thirds of most economies. Rising consumer spending equates to a rising economy.

Jan 21, 2010: Obama vs. Banks

The war against banks started back in October of 2009, when Bush unveiled a $700 billion bailout to financial institutions. Recently, the American public has expressed much anger at Wall Street, with bank bonuses being paid in the millions while Main Street continues to suffer. The anger stems from the belief that public money saved private firms, and these firms have not provided a return for the public (except Citigroup who paid back all their TARP), only to their already well-endowed board members. These opinions have forced President Obama into a tough situation, and today he announced a proposal to limit Propriety Trading (Prop Trading). As a result, stock markets took the biggest beating of the year. The Dow Jones and S&P 500 dropped nearly 2 per cent; the Nasdaq fell over 1 per cent. This will headline all newspapers and news broadcasts for the next day or so, but what does the limit actually mean for investors and Main Street, and why did all stocks fall, not just banks? Prop Trading is a term used in the industry to describe when a financial institution invests in any financial instrument to make profit for themselves, as opposed to trading for their customers. The firms will use their own money, not risking anybody else's, to try to profit. Prop Trading is being blamed by Obama for the disintegration of the US financial system, and he wants to put a stop to it. Others also believe that prop trading has allowed the market to rise substantially since March 2009, fueled by greed. This proposal would limit the risks firms take in the market, potentially preventing another future meltdown. I personally do not agree with this theory entirely. Firms have historically created huge profits from prop trading. Goldman Sachs [GS:NYSE] generated $45 billion in prop trading revenues last year, which will eventually go back to TARP payments, I hope. For Main Street, this should be good news because jobs will be saved and even created. These firms need traders. Banning prop trading will end that. Secondly, a large portion of the daily movement in the stock market is a result of prop trading. I could not give you a definitive number, but losing these traders could damage the market quite heavily. One website claims that high-frequency trading represents as much as 70 per cent of daily volume. Today, markets fell 2 per cent because these traders may soon be out of the market. Taking out half of the market's traders over night will clearly end the market run-up. Although I do think the market needs to correct, this is not the way it should be done. I haven't heard any regular investor complain about their account doubling in a year. But you will undoubtedly hear them complain if they lose half their wealth. Nearly 95 per cent of investors do not hedge or know how to hedge. I am concerned that the anger in Main Street is being misplaced, and preventing financial institutions to do what they have historically done is not the way to prevent another financial meltdown. Zerohedge.com (a proponent of the bill) wrote, "Undoubtedly, short-term strategies have paid off for banks. In fact, much of the profits earned by our nation’s largest financial institutions have been posted by their trading divisions." The website brings up strong points for the bill, which I highly suggest you read. But the proof is in the pudding. Financial firms are alive because of taxpayer dollars, but continue to strive because of trading. Removing trading means we will remove these profits, and the US government may never see TARP repayments again. President Obama, there are better ways to reduce risk in the market through proper channels and regulations. My job isn't to figure that out; that is yours. The American people will not be willing to bail them out a second time, which means all your work will be all for not. Good bye Recession, hello Depression?

Jan 20, 2010: PFE Trading Opportunity

Today, I was planning on blogging about the US bank earnings that have come out the last few days, but I've decided to hold off, and bring to your attention a potentially profitable trade. Last night, Republican Brown won the Massachusetts Senate seat, which is expected to "de-rail" Obama's health-care bill. Just five days before the election, drug stocks rose substantially: Pfizer [PFE:NYSE] and Merck [MRK:NYSE] have risen up nearly 8 per cent. Both stocks are now above the Bollinger Bands, and have been there for at least three days. The last time I made a Bollinger Bands prediction was on MGM, and if you shorted the stock the day after I mentioned it, you could have made at least 20 cents a share if you held on today. Pfizer was trying to push itself through the $20 level, a great round number for traders. The stock would push through the price today but finished at $19.94. Along with the overbought signal represented in the Bollingers, this could signal a sell-off tomorrow and the next few days, as buyers are not willing to buy above $20, and sellers think $20 is already too high. To better explain the logic behind a resistance level, think of it like a basement ceiling. Not to get sadistic, but imagine you have people trapped in a basement and trying to break the ceiling to escape. The more people you have supporting the move, the higher the probability the ceiling will be broken, and then people can flee above. However, if there are not enough people to aide, the ceiling will remain there, and people may eventually give up. In the case of Pfizer, the stock broke the $20 "ceiling" but was pushed back below $20, as if the guards forced them back into the basement. For traders, people will usually wait three trading days to see how the stock reacts, but I am not patient enough to wait. You must trade with conviction and confident to make the money before the horde follows suit. So, my logic here is quite simple. The stock had trouble staying above $20, and it is above the Bollinger Bands, so I would suggest playing the downside: short stock, short call, or buy puts. The previous resistance was $19 so let the stock fall near that level before closing. For those that can not see the resistance of $19, look at the chart. You can see the stock made five attempts to go above that level. When it finally did on about Jan 12, the stock rose. In a future blog, I will teach my readers how high or low a stock will go.

Jan 19, 2010: Citigroup, IBM, Bank of Canada, Mass. Election

The US trading week was shortened because of Martin Luther King Day, and as a result, the news is crammed into just four days, making it that much more exciting. On Tuesday, Citigroup [C:NYSE] and IBM [IBM:NYSE] released their earnings, the Bank of Canada made an interest rate decision, and an important Senate election in Massachusetts triggers drug stocks upwards. Citigroup released earnings Tuesday morning and posted a loss of $7.6B or 33 cents a share, compared to $17.24B a year ago. These results included a repayment of TARP of $6.2B, so the net loss was really $1.4B, a large improvement from last year. The company also claims that Tier 1 Capital Ratio and Tier 1 Common Ratio also improved, indicating better financial strength. The shares started off the day down 2 percent at the open, but closed higher up $0.12 or 3.5 per cent to $3.54. I am not sure as to why, but I believe it has to do with improving Tier 1 and an upgrade on 2010 earnings to break-even. International Business Machines posted earnings after hours on Tuesday, with numbers up and above analyst estimates. First call EPS shows earnings of $3.59/shr against estimates of $3.47/shr, up from $3.27/shr last year. Total revenue hit $27.23B this quarter. Big Blue is reacting slightly negative after hours, down about $2 a share to about $132 giving up gains it made throughout the regular session. In Canada, the TSX finished up almost 13 points to finish at 11,763. Earlier today, the Bank of Canada held benchmark interest rates at 0.25 per cent. The BofC also predicts the Canadian economy will grow 2.9 per cent in 2010 and 3.5 per cent in 2011. The economy shrunk 2.5 per cent in 2009. Mr. Carney says a high Canadian dollar is hurting exporters, as well as low demand from the US, Canada's largest trading partner. Rates are expected to remain flat until at least mid-year. Lastly, a Senate election in Massachusetts has driven up drug stocks in the past few days. The passing of Senator Kennedy has opened up a seat and many believe the Republican candidate will win. This is believed to put Obama's health-care bill in jeopardy. Last night Jon Stewart talked about this on his show, and I highly suggest people watch it. I am unable to embed the videos, but I have provided a link. Canadians click here. Americans click here. Later this week, I will discuss Bank of America, Starbucks, American Express, and General Electric.

Jan 18, 2010: Oil Prices

Earlier today in London, Goldman Sachs analyst, Jeffrey Currie, discussed their view that oil prices will continue to rise over the next two years, as supply shortages will begin to hit the global market. Last month, Goldman predicted 2010 prices near $90 and 2011 prices near $110. Grant Smith of Bloomberg reported this earlier on Monday while most of the Western Hemisphere was sound asleep. Currie said that capacity will reach pre-financial crisis levels. Investment in exploration and drilling has been limited due to financial and political concerns, especially in Saudi Arabia and Iran with the former having state-controlled production and the latter having economic sanctions. I did find it interesting that Goldman attributed the rise to increased demand from BRIC nations, but did not mention concerns in the US dollar, which some believe is the only reason oil continues to hover around $75 a barrel today. For my friends who are still learning the market, all commodities are priced in American dollars and when the value of the US dollar falls, commodities like oil will rise in relation. Although today is a US holiday, futures continue to trade in America. New York crude closed higher following the news, up 0.3 percent to $78.25, but probably on very little volume. Canadian stock markets also advanced with the energy sector climbing 0.5 percent, led by Imperial Oil [IMO:TSE] and Suncor Energy [SU:TSE]. So what does this mean for the average consumer? Well, with all things being equal, be prepared to see fuel prices above $1 per litre or $4 a gallon for the next few years.

Jan 15, 2010: JPM [2]

JP Morgan Chase [JPM:NYSE] was the first financial institution to announce their quarterly earnings this year, and the numbers were much improved compared to last year, but results were well below expectations. The company reported an EPS of $0.74/shr up twelve-fold from last year's EPS of $0.06/shr. However, analysts had expected the company to announce figures near $0.90/shr. The stock finished down $1.01 and closed at $43.68. The company earned $3.3B this quarter and generated record revenues for all of fiscal 2009, with a whopping $11.7B, even though the rest of the nation and financial industry was in dire need of government bailouts. Many traders also wanted to see if JP Morgan was going to hike their dividend, a sign that financial firms are confident in their cash flow, but no dividend increase was proposed, at least not yet. CFO Michael Cavanagh said they were hoping to restore the dividend to 75 cents or even $1 by the middle of 2010. We will have to see. As I mentioned in yesterday's daily market blog, I predicted that if JP Morgan reported bad numbers, we would see a drop in the price of Intel [INTC:NASD] as well, even though the stock was trading higher last night in the after hours session. Today, the stock finished much lower. Yesterday, the stock closed at $21.48 and went as high as $22 and change after hours. The stock would never reach $21.48 today and would close at $20.80, lucky for me, as I was able to close my uncovered calls for a small profit. Not to validate myself, but I was quite happy to see my prediction come to fruition, especially since there were so many variables. Over the next two weeks, the rest of the big US banks will report their earnings, including Bank of America, Citigroup, Goldman Sachs, and Morgan Stanley. Their financial figures will play an important role in the economic recovery. For now, please enjoy your weekend, and for my American readers, have a great long weekend.

Jan 14, 2010: Intel part II, JP Morgan

Intel [INTC:NASD] has just reported earnings of 40 cents per share, above expectations of 30 cents per share. First initial reactions are positive with the stock trading around $22.00 after hours, up from a close of $21.48. The company also reported Q4 revenues of $10.2B and gross margins at 65 per cent. I personally thought the stock would tank like a rock after earnings, and I held my uncovered calls over night, hoping to buy them for cheap tomorrow. I was clearly wrong. The substantial move in the stock price, the unjustified P/E ratio of 51, and low volume signifying little conviction made me believe this is way too high. I just read an hour ago that Intel actually reduced their EPS from $0.44/shr to $0.30/shr as well. It was evident that they would beat the revised target of $0.30/shr, and now the stock continues to soar. The company again has painted a rosy picture for Q1 2010, and is probably why the stock is going up after hours. Yet, every single individual I know thinks this company is well over-valued. Most blue-chip stocks trade at 15 times multiple, yet Intel continues to trade at extremely high ratios, 51 as I said earlier. People are already claiming that Intel is cooking the books, but I'm not going to go to that extent. The company is still in a multi-billion, with a B, lawsuit against Advanced Micro Devices [AMD:NYSE]. Tomorrow morning, JP Morgan Chase [JPM:NYSE] will report their fourth quarter earnings, as the onslaught continues. The expectation for JPM is to report an EPS of $0.61/shr. If JPM reports bad numbers, and the market decides to react negatively, we could see shares of Intel lose its $22 valuation before markets finish the trading day, which would be great news for me. Banks have gone under much criticism the last few weeks, and now we will get a first look at what is happening at the bottom line. The political debate is another blog.

Understanding Options: Lesson One

I was unaware that my blog was being well-promoted by "The Daily Chow" so I thought to myself, before I make predictions, it might be more beneficial to talk about ways to make money in the market, since a lot of my content is catered for sophisticated traders. I've been a firm believer in options for over two years and have been writing them for just as long. While I was working in a brokerage, one of our clients made over $100,000 off an original $5,000 investment. Needless to say, I was quite jealous. Options are very beneficial, but before I go on, please make sure they meet your risks and investment objectives. At this point in time, I believe that people understand the logic of buying a stock. Buy low, sell high. It's straight forward. This lesson will teach people the basics of options. Tomorrow, after the market closes, I will show how you can profit on call options and how to insure your account with put options. Let's quickly review the terminology used in the options market. When you purchase an option, call or put, you will see two values, which gets confused by many novice traders: premium and strike price. I will go more in-depth later on in the blog. Google [GOOG:NASD] is a stock that trades options. "The $600 calls for February is currently $28.20" (as of 1:30 PM EST today). If you do not understand that entire sentence, continue reading below. If you do, skip to Lesson Two (available January 15, 2010). There are four key items in that sentence that are very important: $600, call, February, and $28.20. $600 is the strike price. This is the designated price that the buyer and seller will agree to trade the stock for, no matter where the stock price is in the near-future. Call represents what type of option it is. A call option allows the holder the right, but not obligation, to purchase Google. A put option does the reverse. It allows the buyer of the optoin to sell their shares of Google, if they have it. February indicates the month of expiration. All equity options expire the third Friday of each month. For January 2010, it is tomorrow. For February, it will occur on the 19th. $28.20 is the premium, and it indicates the amount you must pay today to buy this call option. In turn, the seller will receive $28.20 from you. Two other things you must know is that all options contracts trade in 100-share increments, so you must multiple the $28.20 by 100, but NOT the $600 strike price. That is usually where people get confused, since it really costs $2,820 to buy a $600 call. Secondly, the terms in-the-money, at-the-money, and out-of-the-money are also important. In-the-money means your call option is lower than the current market price. So, if Google is now $700, you have already agreed to buy it at $600, a profit of $100 a share (You buy for $600 and immediately sell at $700). At-the-money means the stock is equal to your strike, and out-of-the-money means Google is below your strike price. With a put, everything is reversed, because the purchase of a put signifies you want the stock to go down. So, in-the-money, if the stock is $500, your put allows you to sell at $600, and so on... Confused? Let me know! It took me a month to learn this. Before you think you've understood it, here's a pop quiz! It's .28 for a Microsoft [MSFT:NASD] Feb 33 put. How much does it cost to buy one options contract of Microsoft and what direction do you want the stock to go? The answer is $28 and you want the stock to go down. If you said $33, please quickly go up and review again. So, now that we have the terminology fully understood, you can see how easy it is to make money, if you are right! A few things that novice traders do not understand is the decay of time value. Time value is like the probability value. Let's use Google again. If you bought the Google option above, you are giving yourself a month for the stock to go above $600. If your neighbour purchased a Google option for March, he has given himself two months. Therefore, it should make more sense that the March 600 Google call should cost more, since the probability of Google going above $600 in two months is much higher than one month. Well, that's the basic terminology and the logic of options. Tomorrow, I will discuss going long options. Please take time to understand this, and do not hesitate to ask me before heading on to the next few lessons. Leave a comment: No questions are dumb!

Jan 13, 2010: Intel

Intel [INTC:NASD] reports fourth quarter earnings tomorrow after the bell, which are estimated at 30 cents a share. This would represent an increase in profits from last year, where fourth quarter results were a dismal 4 cents a share. This morning, however, Bank of America told investors to err on the side of caution and that sales are "likely to disappoint". The stock dropped as low as $20.44 on the news, but still managed to finish higher by 35 cents at $20.96. The stock itself has been trading sideways for the last six months, bouncing between a low of $19 and a high of $21, great if you're an options writer or position trader. On October 13, 2009, Intel's stock closed at $20.49 and surged after hours on a third quarter beat. Three days later, the stock would pummel below $20.49 and would continue to free fall near $19 before Halloween, a sign that investors and traders didn't believe in the valuation of the stock. So here we are again. A day before fourth quarter results, the stock has run up again back to $21. Will history repeat? The answer now lies on whether or not they can live up to their own standards. On October 13, Intel also upped fourth quarter guidance. For anybody who had bought at the low of the range, it may be a good time to take some profits. If it manages to break above $21 and stay there for two trading days (the standard for position trading) then we should see a nice move upwards.

Olympic Torch in Edmonton

The 2010 Winter Olympic Games is less than one month away, and today, the torch relay passes through my city, Edmonton, Alberta, Canada. For my Edmontonian friends, the first leg starts at 5 PM in Hawrelak Park and will make its way to Churchill Square at 7 PM passing the University of Alberta, Whyte Avenue, across the Walterdale Bridge, and Jasper Ave along the way. The excitement is running through my blood right now. Witnessing the Olympic Torch tradition in real life is really a once-in-a-life-time opportunity. The last time Canada hosted an Olympic Game was back in 1988, when I was a mere 3-years old. To my fellow bloggers, take some time this evening to watch it. You will feel the energy Canadians have for these games and maybe, just maybe, you will blog about it.

Jan 12, 2010: MGM Trading Opportunity

I told my friend Charles that I would post a daily blog, if you will, about a trade or trades that I may find profitable for the next three business days. Before I go on, I disclaim that these are my own personal opinions based on fundamental or technical analysis. Always consult a financial or investment advisor before investing or trading in anything. Plain and simple, on a technical level, the charts point to an expected decrease in the price of MGM Mirage, back into the Bollinger Bands. That level is approximately $11.25. I suggest my friends, and especially Charles, read below to see what I did and why. I am willing to answer all of your questions, since many people are unfamiliar with this topic. MGM Mirage [MGM:NYSE] has had a recent run up in its stock price: up over 30 per cent year-to-date. It was great for me, because I was assigned on my short December 10 puts. Seeing that it broke $11 yesterday, I made a quick sale and made a nice little profit. Today Goldman Sachs upgraded the stock on news that Nevada gaming revenues were profitable for the first time since 2007, a potential sign of an improving economy. The stock reacted positively and rose 9 per cent in trading today to finish at $11.95. A little sigh of relief for those who bought at $100 at the end of 2008. Although fundamentals will ultimately price the company, upgrades and downgrades create volatility. These are the days that traders, like myself, live for. An upgrade will always push a stock price higher, at least temporarily, until the fundamentals kick in. A downgrade will essentially do the reverse, that is, knock the stock down a tad. But, upgrades and downgrades present great trading opportunities, especially when a stock like MGM Mirage has pushed itself above the Bollinger Bands. Think of Bollinger Bands (the dark red lines) as the shores of a river. The stock price tends to stay within the shores of the river, and like a boat, if it leaves the river, it must get back into the water. MGM broke the upper Bollinger Bands yesterday, and closed well above today. This presents a potential down day before Friday. There are three ways to play this. 1. Short sell the stock, 2. Write uncovered calls. 3. Buy a put. Shorting the stock is straight forward. Sell the stock today and buy them back at a lower price. For those who don't know, you are negative shares in your account and hope to buy them lower. This is the most common practice to make money on the downside. The second method is to write an uncovered call. I find options a better method than shorting the stock, since it actually can be less risky, but gains are limited only to the premium. However, you can profit if you are wrong, unlike shorting the stock. And with only three days until January options expiry, this may not be a bad trade, since the 12.50 calls were valued at .16 for three days. The last method is buying a put. This is an okay trade, as it limits your loss to the cost of buying the insurance policy, however, with only three days until the January put option is worth nothing, why take that risk?

The Birth of my Blog

So today, I started a conversation with my good friend Tracy Wong about DJ Blend. Yesterday, she sent me a YouTube link (http://www.youtube.com/watch?v=QtovqcYKW2Y) and I loved his mix. In fact, the mix is now my good luck song for the week. Why? Well, yesterday, as I was listening to the mix, American International Group [AIG:NYSE] started to rise, and rise fast I must say. At around 3:30 PM EST the stock made a rise of $1, and I had bought earlier that day. Sadly, my sell order was filled when I wasn't paying attention, so my profit was minimal, but in a matter of an hour or two, I made $61 US. Anyways, Tracy mentioned that I should start blogging, because the life of a day trader can get quite dull in the afternoon. So, here is the birth of "A Minhute with Minhuh." What I post, I do not know, but it will mostly be my opinion on the market and the economy, as that is my field of studies. I don't know how many readers I will get, but I hope you enjoy it.