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I had to laugh...
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<div class="field-item"><p>I stopped for gas today at a Shell gas station and had to chuckle as I filled up my car.</p><p>A sign on top of the pump urged me to sign up for a Citi Mastercard that gives 10 percent back on all Shell gas purchases. On the sign, in big, black type, the sign says "Earn 38 cents/gallon." Then underneath it in much smaller print, the sign says, "@ $3.82/gallon."</p></div>
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And in more restaurant news...
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<div class="field-item"><p>Raleigh's Rocky Top Hospitality has reopened its Michael Dean's and Bogart's restaurants for lunch service during December. Both had gone to evening-only hours this past summer. Michael Dean's on Falls of Neuse Road in Raleigh is open for lunch through Dec. 24. Bogart's on Glenwood South will be open for lunch through the 19th. Both are serving from 11:30 a.m. to 2:30 p.m. daily.</p></div>
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Urban Food Group expanding to Charlotte...
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<div class="field-item"><p>Raleigh's Urban Food Group is expanding to the Queen City. The company behind Porters, Frazier's, Vivace and the newly opened Coquette in North Hills is planning a new Vivace location at 1100 Metropolitan Ave. The restaurant will open in the summer.</p></div>
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Save on flowers...
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<div class="field-item"><p>If you need to send flowers this week, 1-800-FLOWERS is offering free shipping or no service charge when you pay with a MasterCard and use the promotion code M33. But the offer is only good through Sunday.</p></div>
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OpenTable for iPhones...
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<div class="field-item"><p><img src="/sites/projects.newsobserver.com/files/images/iphone3sm.thumbnail.jpg" alt="" hspace="7" vspace="7" width="83" height="100" align="left" />If you use the OpenTable Web site to make restaurant reservations, you might be intested to know that there's now a free OpenTable app for iPhone users.</p><p>The system will allow users to check real-time availability in restaurants, make reservations and get directions. Find out more on the OpenTable Web site <a href="http://www.opentable.com/mobile/">here</a>.</p></div>
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Walgreens prescription coupon...
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<div class="field-item"><p>If you missed the coupon that ran in the paper a few weeks ago, Walgreens has put its new prescription transfer coupon online as well. The deal is that you get a $25 Walgreens gift card when you transfer your prescription to a Walgreens pharmacy. These coupons can be a great way to get a little extra if you have a monthly prescription that you fill. However, I always caution people that this is not a good strategy if you take several medications that could have weird interactions. Fair warning. You can find the printable coupon <a href="http://walgreens.shoplocal.com/walgreens/Default.aspx?action=detailbrowselarge&storeid=2504303&title=$25+Walgreens+Gift+Card+&img=http://akimages.crossmediaservices.com/dyn_li/600.0.90.0/Retailers/Walgreens/081012_01DD_1CPN.JPG" target="_blank">here</a>.</p></div>
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Tree lighting in Clayton...
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<div class="field-item"><p>In Clayton, the Christmas Village & Tree Lighting is happening tomorrow (Thursday), beginning at 6 p.m. The tree lighting will take place just before 9. If you are interested in going, there's a schedule of events <a href="http://downtownclayton.blogspot.com/2008/12/2008-christmas-village-tree-lighting.html" target="_blank">here</a> and a map <a href="http://downtownclayton.blogspot.com/2008/12/map-of-christmas-village-tree-lighting.html" target="_blank">here</a>. And, if you happen to live in the area, you should know that Main Street will be closed from Smith Street to O'Neil Street between 5:30 p.m. to 9:30 p.m. for the event.</p></div>
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How's this for a BOGO deal?
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<div class="field-item"><p>Buy one get one free deals are usually pretty good bargains, but most of the time they're on things like cans of soup. It's time to think much bigger.</p><p>Florida car dealers, who have seen sales plummet this year, have taken to offering BOGO deals on vehicles. Seriously! <a href="http://blogs.moneycentral.msn.com/smartspending/archive/2008/07/29/buy-a-gas-guzzler-get-a-second-car-for-free.aspx" target="_blank">MSN reports</a> on one Chevy dealer offering a free gas-efficient vehicle when you buy a SUV or truck. And check out <a href="http://www.universitydodge.com/specials/index.htm" target="_blank">this ad</a> from a Dodge dealer offering a BOGO deal on Dodge trucks. Feel free to place your bets on what the next big BOGO deal will be. Jet planes? McMansions? </p></div>
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Here's the deal...
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<div class="field-item"><p>If you are a fan of this blog, here's something that may interest you... The News & Observer has started a weekly e-newsletter for women called <strong>Here's the Deal</strong> that compiles information from Taking Stock as well as other N&O blogs. In the newsletter, which is e-mailed Wednesday mornings after Wednesday Deals is posted, you'll find information on deals, fashion, food and more. And as you all are well aware, it pays to be in the know!</p><p>You must be a registered user on newsobserver.com to get Here's the Deal. <a href="http://www.newsobserver.com/heresthedeal/" target="_blank">You can sign up here</a>.</p></div>
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Know an outdoorsman (or woman)?
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<div class="field-item"><p>Outdoor superstore Cabela's is offering $20 off orders of $100 or more on its Web site through midnight on Dec. 8 (Monday). Of course, there's always a catch. To get the deal, you need to give up your e-mail address. And by entering your e-mail, you will be signing up for the Cabela's e-newsletter. But it's still a good deal and probably worth it, especially if you are shopping for an outdoorsman or woman. <a href="http://information.cabelas.com/cabelasrebates/offer.jsp?cmCat=email&cm_cat=3964&cm_ven=email-nl&cm_pla=HA-0100&cm_ite=offer.jsp&eid=8451667&cmp=I081203A&seg=AN1&cnt=3964&ctb=offer" target="_blank">Check out the details here</a>.</p></div>
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Wednesday deals...
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<p><img src="/sites/projects.newsobserver.com/files/images/coupon%20cart-sm.jpg" alt="" hspace="7" vspace="7" width="106" height="160" align="left" />Well, it?s a mighty fine deals week out there! The pharmacies are busy promoting holiday sales, and Harris Teeter has gone all out to promote its latest initiative involving lower prices on several store brand products and an expanded Unreal Deals selection. There are good deals this week on razors, candy and medications, and there are a few good ones that make the item free after rebate or coupon or both.<br /> <br /> And don?t miss the special Walgreens flier in today?s paper, which has a coupon to get $5 in Register Rewards (good like a $5 bill on a future Walgreens purchase) when you spend $25.<br /> <br /> Happy shopping!!<br /> <strong><br /> Deal of the week</strong>: At Harris Teeter this week, Fiber One toaster pastries are three for $5 and there was a 70-cent coupon on Nov. 16. That will double and make those 27 cents a box.<br /> <br /> Click ?Read more? to see the list! And remember, if the store has a loyalty card, you?ll need it to get the sale price. </p> <div class="node-blog-teaser-footer">
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Galleries staying open late...
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<div class="field-item"><p>If you're a fan of Raleigh's First Friday events, you'll be happy to know that 10 downtown art galleries have declared every Friday in December First Friday and are planning to stay open late for shoppers. Dates include Dec. 5, 12 and 19.</p><p>Most galleries will be open until 9 p.m. Participating galleries include:<br /><br /><strong>Adam Cave Fine Art</strong> - (<a href="http://www.adamcavefineart.com" target="_blank">Web site</a>)<br /><strong>Artspace</strong> - (<a href="http://www.artspacenc.org" target="_blank">Web site</a>)<br /><strong>The Collectors Gallery</strong> - (<a href="http://www.thecollectorsgallery.com" target="_blank">Web site</a>)<br /><strong>Flanders 311</strong> - (<a href="http://www.flandersartgallery.com" target="_blank">Web site</a>)<br /><strong>Lee Hansley Gallery</strong> - (<a href="http://www.leehansleygallery.com" target="_blank">Web site)</a><br /><strong>Lump</strong> - (<a href="http://www.lumpgallery.com" target="_blank">Web site</a>)<br /><strong>M Street Gallery - (<a href="http://www.mstreetgallery.net" target="_blank">Web site</a>)<br />Nicole's Studio & Gallery</strong> - (<a href="http://www.nicolestudio.com" target="_blank">Web site</a>)<br /><strong>Rebus Works</strong> - (<a href="http://www.rebusworks.us" target="_blank">Web site</a>)<br /><strong>Visual Art Exchange</strong> - (<a href="http://www.visualartexchange.org" target="_blank">Web site</a>)</p></div>
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What are people searching for?
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<div class="field-item"><p>Google has created a fun Web site that shows what the top 10 searches are in certain categories, including toys, food and cold weather clothes. I totally enjoy the fact that "ugly christmas sweater" made the list. You can <a href="http://www.google.com/landing/holidayshopping08/gifts.html" target="_blank">check it out here</a>. </p></div>
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Saving online...
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<div class="field-item"><p>If you like surfing the Web for online coupon codes, you might like <a href="http://www.nytimes.com/2008/11/27/technology/internet/27coupon.html?_r=1&adxnnl=1&emc=eta1&adxnnlx=1228238295-1lXLq8ojvpQ7iAzAS68uBA" target="_blank">this New York Times story</a> on the topic. The story lists several Web sites, including a few of my favorites. Share your favorites if they're not included! </p></div>
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Cashing in your points...
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<div class="field-item"><p>I got an interesting press release this weekend from American Express about how more consumers are using their credit card rewards points for holiday purchases this year. I'm particularly interested in this because I've found a lot of people will just sit on piles and piles of points because they don't know how to redeem them or they are waiting to make some huge purchase in the future.</p><p>What are you doing? Have you redeemed points this year, and what did you buy? Or, are you saving up 10,000 points for some big-ticket item? </p></div>
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Introduction To Market-neutral Options Trading
 | 2b19Introduction to Market-Neutral Options Trading Any monkeys can make money in a bull market. Most stocks rise in a bull market, buy (long) any stock, wait for the prices to rise and then sell. A classic example of “buy low sell high.” Some smarter monkeys can also make money in a bear market. Since most stocks crash in a bear market, simply sell (short) any stock, wait for prices to fall and then buy back to cover. A case of “sell high cover low.” Sounds simple enough isn’t it? How does one make money in a market that is neither bullish nor bearish? A market that moves up a bit on one day and falls the next day is also called a side-way market; it is not moving up, neither is it moving down. The fact is that markets, especially indices such as the S&P 500 (SPX), Dow Jones Industrial Average (DJIA) and the NASDAQ Composite (COMP) very rarely have large moves that last for months. While it is true that these indices generally increase in value over time, it is usually over a long period of time. Most of the time, these indices are in a range. For example, the DJIA has not been able to change by more than 5% either up or down from one option expiration to the next for 70% of the time since the beginning of 2002. Like wise, the NASDAQ Composite has not changed by more than 9% over 80% of the time. Since the market is generally within a range for most of the time, it will be rather difficult for traders with a directional bias to consistently profit from the market. The key to consistent profit is to adapt a market-neutral strategy when the bulls and bears are fighting it out. What is Market-Neutral Trading? Simply put, market-neutral is a style of whereby the trader has no directional bias—he or she is market-neutral. This approach is often confused with delta-neutral trading, which is quite a different beast altogether. For our purpose, we’ll just stick to discussing market-neutral trading. When a trader is market-neutral, he or she is speculating that the market will stay within a range. He or she will profit if the market does not make a large move in either direction. This way of is very rewarding and is extensively used by professional market makers because it is a lot easier to predict the range that the market will trade than to predict a bull or bear market. In short, there is a higher probability that the market will trade within a range. How does Market-Neutral Strategies Make Money? While nobody can predict the market, there are certain aspects of the market that traders can see correlations and make a judgment based on his or her own analysis. Some traders rely on fundamental analysis, which requires them to scrutinize the company’s annual reports to make a value judgment for his or her investments. Others rely on technical analysis, which requires them to search for buy or sell signals from the charts. All in all there are many styles of that traders employ. Some adopt a contrarian’s approach while others utilize a combination of all. The market is a place where traders with different perspectives and expectations meet and therefore, it is highly unpredictable. But one thing remains constant in the chaos. Time passes. Options are decaying assets, upon expiration, only options that are in-the-money (ITM) have intrinsic value. In fact, most options expire worthless. It is based on this time-decay element that market-neutral strategies make money. Since out-of-the money (OTM) options will become worthless on expiration, we can sell OTM options before they become worthless and when they do become worthless, we’d have pocketed the money that we collected when we sold the options. All market-neutral strategies work under this principle. However, to sell a naked option requires a huge margin and is also very risky because it exposes the option seller to unlimited risk. For example, let’s say SPY is at 130 and you sell a SPY 132 Call for $0.60. Now, since buying a Call gives you the right to buy the underlying at the strike price, when you sell a Call, you sell someone the right to buy the underlying at the strike price from you. When you sell a Call you are obliged to deliver the underlying at the strike price if the buyer of the
What Is Options Trading - Sponsored Link
Ad - Get Info on What Is Options Trading from 14 search engines in 1.
Falling oil pulls TSX lower
The S&P/TSX was down 3.12 per cent, or 258.69, to 8,038.27 late in the trading day. Oil was trading down 69 cents (U.S.) to $46.10 on the New York Mercantile Exchange, at its lowest level since Feb. 10, 2005. Oil has really been
Nokia Losing Grip on Smartphone Sector
its fourth-quarter forecast, Nokia's shares closed up 40 cents, or about 3%, to $13.70 in Thursday trading
Falling oil pulls TSX lower
The S&P/TSX was down 3.12 per cent, or 258.69, to 8,038.27 late in the trading day. Oil was trading down 69 cents (U.S.) to $46.10 on the New York Mercantile Exchange, at its lowest level since Feb. 10, 2005. Oil has really been
Health Calendar: 12/04/2008
The Health calendar is published weekly. Information to be included can be mailed to the Record-Eagle, P.O. Box 632, Traverse City, MI 49685; faxed to 946-8632; e-mailed to features@record-eagle.com or delivered to: 120 W. Front St. Traverse City.
StatoilHydro shelves upgrader
remains unchanged. Statoil will continue to monitor the cost of building an upgrader and will reassess its processing options, the company added
TD Bank's quarterly net income slips to $1.01 billion
help us weather the storm.' TD shares gained as much as 2.9 per cent in morning TSX trading but at midafternoon slipped 36 cents to $42.14, down from $74.50 a year ago. TORONTO - TD Bank Financial Group (TSX:TD) saw its quarterly profit decline to
Parking Meter Rates To Skyrocket, No More Holidays
Loop for an hour, you'll have to pump 26 quarters into the meter. There will be non-cash options for all meters, the city said. In addition to all that, there would be no more free parking at meters on Sundays, nor at the handful of holidays every year
Cavs win 10th straight at home in Knicks blowout
to us.' New York (8-1) has lost six of its last eight and has struggled for consistency since trading away two of its top players, Jamal Crawford and Zach Randolph, on November 21. The move cleared financial space for the Knicks, ostensibly to make an
GigOptix LLC Announces Shareholder Approval of Lumera Merger
shares of the common stock of the surviving company GigOptix, Inc. The shares of GigOptix Inc. will begin trading on December 10 on the OTC Bulletin Board, which is not a national securities exchange. A press release will be issued when a trading symbol
Merrill warns oil prices could fall to $25
fell 5.6 cents to 98.55 cents a gallon yesterday, the lowest level since the contract started trading in 2006. US wholesale petrol prices, which last traded below the $1 a gallon level in January 2004, have sunk almost 73 per cent since reaching a record
Europeans make big rate cuts
to 9.25 percent, the first since December 2007 as the government sought to protect the economy. In trading that closed before the European rate cuts, Asian shares fell as investors braced for a sharp turn lower in the global economy and sought safety in
Seat Ibiza Ecomotive
the Ibiza Ecomotive if you enjoy Seat's Iberian design flair or you're tempted by the generous options list ? including electric folding door mirrors and integrated TomTom sat-nav. But if you're looking for an economical family hatch that you can
CIAC Story Lines: 2 Beards, 2 Coaches, 2 Recruits
said Brown has an oral agreement with Bryant, but has made it known that he is reserving his options. 'Jordan keeps getting better and better,' Pfeffer said. 'He's in the zone. I'm hoping college coaches are watching because a lot of guys had written him
Minnesota faces $5.27 billion deficit
a balanced budget by the end of each two-year budget cycle. Lawmakers don't have a lot of options because they nearly drained reserve accounts earlier this year. That's led to some unconventional ideas, such as starting the budgeting process from scratch
UPDATE 3-GE Capital launches $6.5 bln FDIC-backed debt sale
to the market, and prior to this they didn't have access,' said Spencer Lee, head of the trading desk at SCM Advisors in San Francisco. Investors for their part are attracted by the government guarantee. 'Many folks think that it could in fact be a
Stocks Close Sharply Lower Following Late-Day Sell Off - U.S. Commentary
lack of direction for much of the session, stocks moved sharply lower in the latter part of the trading day on Thursday. The major averages all closed firmly in negative territory after posting strong gains in each of the two previous sessions. The
DIARY - Today in Washington - Dec 5
to be relied upon in making (or refraining from making) any specific investment or other decisions. Interactive Investor Trading Limited and its Data Providers do not warrant the accuracy, timeliness or suitability of any information provided above. Such
SEC's Cox Urges `Exit Strategy' For US Emergency Aid
is very good at,' including enforcement. He reiterated his support for merging the SEC with the Commodity Futures Trading Commission, provided the SEC's traditional strengths and approaches aren't diluted. Cox said he's already met with President-elect
Investment Industry Regulatory Organization of Canada - Trade Resumption - Berkeley Capital Corp. - BIZ.P
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to be relied upon in making (or refraining from making) any specific investment or other decisions. Interactive Investor Trading Limited and its Data Providers do not warrant the accuracy, timeliness or suitability of any information provided above. Such
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to be relied upon in making (or refraining from making) any specific investment or other decisions. Interactive Investor Trading Limited and its Data Providers do not warrant the accuracy, timeliness or suitability of any information provided above. Such
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and sought approval from the New York Fed, while CME's application was made through the Commodity Futures Trading Commission, though it doesn't need approval from the U.S. futures regulator. NYSE Euronext(NYX) is also developing a CDS clearing offering
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Call chooses to exercise the right.
In this example, you receive $60 for the Call you sold. If SPY expires below 132 on expiration, the 132 Call you sold expires worthless and you get to keep the $60 credit.
However, should the SPY expires at 134 on expiration, the call you sold will be worth $2.
Now, you have two choices: first, you can choose to cover (buy back) your short Call by paying $2 and incur a ($2–$0.60 = $1.40) $1.40 loss; or second, be assigned, where you have to buy the underlying at the current market price of $134 and deliver it to the buyer of your Call at $132 thereby incurring a loss of ($2–$0.60 = $1.40) $1.40 loss.
Either way you suffer a loss of $1.40. The higher SPY goes, the higher your loss. That is why brokerage firms usually require a huge margin for this type of unlimited risk positions. Some brokerage firms don’t even allow retail traders to enter such positions.
Professional traders do not usually sell naked options and responsible ones discourage retail traders to use it. Professional traders prefer to limit their risk by hedging against that naked position. They sell a spread.
Spreads
Selling a credit spread is to go short (selling) an option with a higher value and go long (buying) an option with a lower value.
A basic vertical Call spread involves selling a Call option with a lower strike and buying another Call option with a higher strike. You could sell a SPY 133 Call and buy SPY 134 Call. Now you are no longer selling a naked Call.
For example, SPY is currently at 130.68. A SPY 133 Call is worth $1.15 while a SPY 134 Call is worth $0.80. A vertical Call spread would be to sell the 133 Call at $1.15 and buy the 134 Call at $0.80 for a $0.35 credit.
Sell 133 Call at $1.15 You sold someone the right to buy the stock from you at $133.
Buy 134 Call at $0.80 You purchased the right from someone else to buy the stock at $134.
Net received $0.35 You have limited your risk to $0.65. ($1 – $0.35 = $0.65)
If SPY is below 133 on expiration day, both the options become worthless and the trader keeps the $0.35 credit he or she received.
However, if SPY rallies to 135 on expiration, the short 133 Call will be worth $2 while the long 134 Call will be worth $1. He or she will have to cover (buy back) the short 133 Call at $2 and sell the long 134 Call at $1 to close the position if he or she does not want to be assigned. In that case, he or she would have made a $0.65 (the $1 difference minus the initial $0.35 credit) loss. Even if the SPY goes up to 140, he or she still only suffers a $0.65 loss.
This spread is commonly known as Credit Call Spread, Short Vertical Call or Bear Call Spread. When you sell a Call Spread, you don’t want the stock to move up. It is therefore a bearish instrument.
The opposite (Credit Put Spread, Short Vertical Put or Bull Put Spread) works the same way.
For example, SPY is currently at 130.68. A SPY 128 Put is worth $1.00 while a SPY 127 Put is worth $0.80. A vertical Put spread would be to sell the 128 Put at $1.00 and buy the 127 Put at $0.80 for a $0.20 credit.
Sell 128 Put at $1.00 You sold someone the right to sell the stock to you at $128; you are obliged to buy the stock at $128 from the person you sold the put to.
Buy 127 Put at $0.80 You purchased the right from someone else to sell the stock at $127.
Net received $0.20 You have limited your risk to $0.80. ($1 – $0.20 = $0.80)
If SPY is above 128 on expiration day, both the options become worthless and the trader keeps the $0.20 credit he or she received.
However, if SPY crashes to 125 on expiration, the short 128 Put will be worth $3 while the long 127 Put will be worth $2. He or she will have to cover (buy back) the short 128 Put at $3 and sell the long 127 Put at $2 to close the position if he or she does not want to be assigned. In that case, he or she would have made a $0.80 (the $1 difference minus the initial $0.20 credit) loss. Even if the SPY goes down to 120, he or she still only suffers a maximum of $0.80 loss.
This way of selling options is more prudent than selling naked options without any hedge. You receive less credit (because you have to buy a hedge) than selling the naked option outright but you have also limited your risk. The trade-off is well worth it.
The vertical spreads are the basic building blocks of market-neutral strategies such as the Iron Condor. Vertical spreads can also be used for directional plays since selling a Call vertical spread is bearish and selling a Put vertical spread is bullish, one can sell a Call spread in a bear market and a Put vertical spread in a bull market.
Essentially vertical spreads make money by generating positive theta (the Greek for time decay).
To learn more about Market-Neutral Options Strategies such as the Iron Condor and Double Diagonal, go to www.marketneutraloptions.com.
Make monthly consistent income by options! Marketneutraloptions.com provides the first and only performance-based Market-Neutral Options Advisory Services. You only pay when you make money! Check out the latest promotions at www.marketneutraloptions.com.
Gary Ang is the founder and head trader of MarketNeutralOptions.com.
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to be relied upon in making (or refraining from making) any specific investment or other decisions. Interactive Investor Trading Limited and its Data Providers do not warrant the accuracy, timeliness or suitability of any information provided above. Such
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to be relied upon in making (or refraining from making) any specific investment or other decisions. Interactive Investor Trading Limited and its Data Providers do not warrant the accuracy, timeliness or suitability of any information provided above. Such
BRIEF-Eastman board declares dividend
to be relied upon in making (or refraining from making) any specific investment or other decisions. Interactive Investor Trading Limited and its Data Providers do not warrant the accuracy, timeliness or suitability of any information provided above. Such
ICE Wins CDS Clearinghouse Approval From NY Regulators
and sought approval from the New York Fed, while CME's application was made through the Commodity Futures Trading Commission, though it doesn't need approval from the U.S. futures regulator. NYSE Euronext(NYX) is also developing a CDS clearing offering
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near Ringwood in Dorset has been the focus a storm of controversy since it opened on November 28. Trading standards has received more than 2,000 complaints about the attraction, which charges between £25 and £30 each to enter. Many people have also
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