Well ... a lotta folks consider Warren Buffet to be a "smart money" guy himself, and he reportedly lost $9 billion of Berkshire's money selling puts on the SPX this year.

Regards,

Doc

Dr Stock:

Well ... a lotta folks consider Warren Buffet to be a "smart money" guy himself, and he reportedly lost $9 billion of Berkshire's money selling puts on the SPX this year.

Regards,

Doc

 

"Mark to market" loss or actual loss? 'Cause there's no way he got a margin call. 

Pardon my ignorance, as I've never done a put or call, so my question may be obvious, but not to me. 

Limoman:

Do you think buying some long options on GM is a good idea?

James Stewart -Smart Money , thinks so..

?

Disclaimer: I have never invested in Options in my personal portfolio ever. I dont consider myself sophisticated enough yet to do so.

With disclaimer out of the way, you could even consider selling some far out of the money call options. Hopefully you own some GM stock and are not writing naked call options.

By writing far out of the money call options, you get some income for your portfolio at a time when its hard to come buy. With GM in doldrums, even with a bailout news i doubt volatility would be high enough for it to breach your far out of the money calls.

just food for thought.

EagleTed:

Dr Stock:

Well ... a lotta folks consider Warren Buffet to be a "smart money" guy himself, and he reportedly lost $9 billion of Berkshire's money selling puts on the SPX this year.

Regards,

Doc

 

"Mark to market" loss or actual loss? 'Cause there's no way he got a margin call. 

Pardon my ignorance, as I've never done a put or call, so my question may be obvious, but not to me. 

Not an ignorant question at all. At this level, trades are made that we mere mortals can barely imagine. I don't have the details, but I believe the loss was reflected on Berkshire's 3rd quarter results. My guess would be they covered the position ... if not and these are/were long dated options, look for BRK shareholders to be grumbling about it when 4th Q. results come out. :)

Regards,

Doc

General Motors Downgraded From Overweight to Neutral at JP Morgan

Today's downgrade of [[GM]] from Overweight to Neutral at JP Morgan is one that you would expect to see after the close on the Friday before Memorial Day when no one is at work.

:) 

You guys are way over my head, but I do have some GM in one of my funds, so this is of interest to me.

In spite of this personal stake, I am not in favor of a Gov. bailout.

Ben

The governor of Michigan has been in office since 2003.

Michigan has deteriorated into an economic basket case during that period.

I've been told the governor of Michigan has recently been appointed as an economic advisor to President-elect Obama.

Given the above (along with a Democrat House and Senate), it seems to me the auto industry is a shoo-in for Federal taxpayer's bailout money.

Mike

RE; On GM

Obama is in a Tight spot.. UAW spent Millions supporting him

I think a Compromise plan will insue...

GM probably wants the Fed to be the Bad Guy and change Union deals  ..or  File Chapter 11 or 13 and go forward... ? 

I'm watching to buy Stock/Options on it...

the state of Mich can't afford another 100,000 laid off workers getting Unemployment..cks.   , half the state already is...lol

Now if Mich. were to tax it's Universities/Colleges?  It Would pay off it's budget debts and be one of the wealthiest states in the union.. While Mich. U and M.State enjoy their Multi Billion endowments and outrageous costs.and over paid teachers pay and benefits.. .like all the rest like them..

While on the Auto Front in regards to FORD?

Auto makers stock should go up at least 500%  if this is Enacted: 

Washington, DC - President-elect Barack Obama and the Democrat-controlled Congress are considering sweeping new legislation: TheAmericans With No Abilities Act. AWNAA is being hailed as a major legislative goal by advocates of the millions of Americans who lack any real skills or ambition.

'Roughly 50 percent of Americans do not possess the competence and drive necessary to carve out a meaningful role for themselves in society,' said California Senator Barbara Boxer. 'We can no longer stand by and allow People of Inability to be ridiculed and passed over. With this legislation, employers will no longer be able to grant special favors to a small group of workers, simply because they have some idea of what they are doing.'

In a Capitol Hill press conference, House Majority Leader Nancy Pelosi and Senate Majority Leader Harry Reid pointed to the success of the U.S. Postal Service, which has a long-standing policy of providing opportunity without regard to performance. Approximately 74 percent of postal employees lack any job skills, making this agency the single largest U.S employer of Persons of Inability.

Private-sector industries with good records of non-discrimination against the Inept include retail sales (72%), the airline industry (68%), and home improvement 'warehouse' stores (65%). At the state government level, the Department of Motor Vehicles also has an excellent record of hiring Persons of Inability (63%).

Under The Americans With No Abilities Act, more than 25 million 'middle man' positions will be created, with important-sounding titles but little real responsibility, thus providing an illusory sense of purpose and performance.

Mandatory non-performance-based raises and promotions will be given so as to guarantee upward mobility for even the most unremarkable employees. The legislation provides substantial tax breaks to corporations that promote a significant number of Persons of Inability into middle-management positions, and gives a tax credit to small and medium-sized businesses that agree to hire one clueless worker for every two talented hires.

Finally, the AWNAA contains tough new measures to make it more difficult to discriminate against the non-abled, banning, for example, discriminatory interview questions such as, 'Do you have any skills or experience that relate to this job?'

'As a Non-abled person, I can't be expected to keep up with people who have something going for them,' said Mary Lou Gertz, who lost her position as a lug-nut twister at the GM plant in Flint, Michigan , due to her inability to remember 'rightey tightey, lefty loosey.' 'This new law should be real good for people like me,' Gertz added. With the passage of this bill, Gertz and millions of other untalented citizens will finally see a light at the end of the tunnel.

Said Senator Dick Durbin (D-IL): 'As a Senator with no abilities, I believe the same privileges that elected offi