Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: deeno who wrote (57327)	7/6/2006 5:27:59 PM
From: ChanceIs	Respond to of 306849

>>>"Money markets aren't RISK FREE"<<< Your point about the trickiness of expiry and weekend corporate raids is well taken. Of course you are correct that the money market is the better investment. I haven't considered money markets in ages - no yield at all two years ago. Today you can actually earn something. If the trade did move sharply either way quickly, you would have the opportunity to close it for say 80% of what you expected, and with the shorter investment time, your annualized yield would be better. (I sold a DSL vertical spread for $1.75 net just after June expiry. Within a week I could have bought it back for $0.55 for 60% of what I had hoped to make. I figured Bernanke's address would drive it my way further. I was wrong, and now have only a $0.50 profit should I close it today. Always take profits when they come your way that quickly even if they aren't all of what you hoped to make.) I trade with Schwab which just cut its transaction costs even more. I typically move in 1,000 share blocks - its just what I do, and almost have to do to make trades worthwhile (I hold some with my righ hand and trade around them with my left hand, almost always hedging with covered calls or puts). At those levels an equity or option trade cost 0.01/share. I don't even consider transaction costs any more. I would not have done that Beazer arbitrage. It was interesting to look at. I don't like to have money tied up that long - November. And the yield wasn't there.