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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: CommanderCricket who wrote (82963)	4/13/2007 4:37:30 PM
From: ChanceIs	Respond to of 206326

>>>I've got so much more to learn<<< We all do. The bottom line is very visible. The path over which we trod is not so. I mentioned that I had determined to write my own option risk control software (using APL). Right now I do it with a spreadsheet on a forward month looking basis. I manage an account for an aunt who by age is necessarily risk adverse. I start every month trying to put her account perhaps 10% ITM and earn about 3% for the month in time value. (Right now it is 25% ITM - sold way too close covering calls on her CNQ - TDW at $50 and DYN at $7.50 Triple Grrrrrr.) I am happy to say I have earned her 16% annually of which she takes out 7% for living expenses. So yes the bottom line there could be bigger, but if we had a big pullback, that 3% time premium would look nice when I need to get 7% for the year and the recovery could be months away. I am damn well going to make that software do the taxes as well. I just came up for air to catch the close. Wash sales, short sales to open getting cranked into the bottom line sales on the 1090. Heaven help me/us. [Funny personal story: I have a certain high school associate who was a co-founder of "Old Lane Hedge Fund" which was sold to Citi for $800MM this AM. I expect he got $100MM. He and I weren't too close, and I haven't seen him since about '77. The guy wore three piece suits to high school and would have his nose in the Wall Street Journal at every spare moment. Naturally we used to call him "Wall Street." He loved it. Funny how these tendencies are recognizable early in life. At any rate, the WSJ reported this AM that Old Lane earned 6.9% for the last 12 months. I think I might call him up and say, "Remember me?? If I am wracking up 16% and you are only doing 6.9% I am sure that you can arrange a nice deal between me and Citi." Of course they had some $9 billion under management, and I am quite a stretch from that. Quite a long stretch.]