longOnUranus Posted January 5, 2003 Report Share Posted January 5, 2003 Few of us talk absolute cash here. However, my accountant revised several years tax returns last year and I received a check this weekend for the above amount. I am "fully loaded" in my trading account, ie, I don't want to daytrade/weektrade anymore $ than I've got in there now. I'm looking for a place to "sock it" for investing in terms of months or years, with an eye on a higher degree of risk/reward. I'm willing to accept risk, but dislike daily volatility. I want to put the money to use ASAP. Any thoughts on what I should do would be appreciated. My current thoughts are a combination of 1) selling calls on some blue chips 2) buying 2004 LEAP puts on SPX and NAS 3) RYVNX and BEARX 4) silver futures. Link to comment Share on other sites More sharing options...
Yoshaviah Posted January 5, 2003 Report Share Posted January 5, 2003 Options bother me. How about an unhedged gold fund? Link to comment Share on other sites More sharing options...
Guest AssMaster Posted January 5, 2003 Report Share Posted January 5, 2003 How about: BEARX bear fund/10% gold BRMIX market neutral fund (recommended by someone else here) SGGDX gold fund BEGBX euro bond fund Link to comment Share on other sites More sharing options...
fxfox Posted January 5, 2003 Report Share Posted January 5, 2003 5) send it to me? ok seriously, i wouldnt go short blue chips, if you look at long term procler&gambler chart you say "this thing needs a correction", but on the other hand it still hasnt even touched its uptrned since 1982. There are other comparable examples. if we look at currencies you can go short USD/Swiss Franc, but that is only good for say 20% if dollar goes on with its downtrend. Of course it can fall further, but right now the pair is at 1.40 and the low in 1995 was at 1.11, so that would be around 20% gain if it goes down to 1995 lows. I think the best is go short nasquark. Link to comment Share on other sites More sharing options...
sniff Posted January 5, 2003 Report Share Posted January 5, 2003 I like your #1 idea, Covered Calls. But timing and strikes are still important.... Link to comment Share on other sites More sharing options...
Guest yobob1 Posted January 5, 2003 Report Share Posted January 5, 2003 Right now if someone handed me "excess" cash I would probably split it between Prudent Bear Fund and physical metals with an even split between gold and silver on a dollar basis. I know not exciting, but it's almost a set it and forget it type of "parking" with a longer view. The prubear fund gives you someone who seems capable in terms of shorting plus some miners exposure. Unless you're way out of whack already a 20% of net worth position in physical metals would not be considered extreme considering the potential for any number of storm fronts sweeping towards us. If you haven't read this weeks Noland, I would highly reccomend it. Other than that, firearms and Hormel Spam futures might be the way to go. Link to comment Share on other sites More sharing options...
PileDriver Posted January 5, 2003 Report Share Posted January 5, 2003 sock it away and forget about it? BEARX w/o a doubt. You'll be grinning from ear-to-ear three months from now. We're almost at a juncture where a little RYVNX blend might be fun (80/20) Keep it simple Link to comment Share on other sites More sharing options...
longOnUranus Posted January 5, 2003 Author Report Share Posted January 5, 2003 Thanks guys . And, yes, Dr. Stool will get a small percentage. Link to comment Share on other sites More sharing options...
Drekula Posted January 5, 2003 Report Share Posted January 5, 2003 I would like the phone number of your accountant Link to comment Share on other sites More sharing options...
FeedFool Posted January 5, 2003 Report Share Posted January 5, 2003 I would look at converting toilet papers in to some Euro or Swiss Franks. Bush wants lower dollar this is the reason he got rid of O?Neil. To combat deflation He wants lower dollar and wants to flood the market with the newly created toilet papers. This is the last card left behind for the Sir super doper printer Easy Al. Only thing one has to see how stupid the Japs are holding the Junk bonds when the Dollars go down the toilet. One just has to look at how willing they are in propping up the bubbles at any cost. Link to comment Share on other sites More sharing options...
fxfox Posted January 5, 2003 Report Share Posted January 5, 2003 FeedFool, good oservation about the japanese. On wednesday economy minister Takenaka will come to washington. I bet the house that usdjpy will go up this week currently it is at 119.70, i go long with target 122.40. Link to comment Share on other sites More sharing options...
Pigeon Drop Posted January 5, 2003 Report Share Posted January 5, 2003 Wow. Every response a high risk gamble. If that is your bent, and you are averse to doing anything safe with the money, why not have a great week in Vegas with it. You might come home up $100K or so, or come home with nothing. In any case, you'll have a lot more fun than with any of the gambles suggested here, and have the memories of a great trip. Don't kid yourself into thinking that Vegas is gambling but speculating in options or metal futures isn't. I believe your odds of a win are better in Vegas, because the house edge is lower. Play craps, always bet come or don't come, and take max odds. The house edge is only 0.8% with double odds. That means with every bet, you have a 49.2% chance of winning and they have a 50.8% chance of winning. Can't do much better. Oh and be sure to quit if you're ahead a lot. Link to comment Share on other sites More sharing options...
Pigeon Drop Posted January 5, 2003 Report Share Posted January 5, 2003 Better: spend it all on something tangible you want. Remodel your kitchen or get a new bathroom. Something you can look at and use every day. Link to comment Share on other sites More sharing options...
PileDriver Posted January 6, 2003 Report Share Posted January 6, 2003 BEARX is a lock. Even if you bought it in mid 1999 you'd be up a fair sum and this bear is far from over with 99.9 % confidence level. Link to comment Share on other sites More sharing options...
DogBoy Posted January 6, 2003 Report Share Posted January 6, 2003 Go here and page down to DEC 04 420 CALLS: GOLD OPTION PRICES Strike price of 420 at $1500/contract. Actually last trade was 1540 but I'm rounding here for simplicity. Buy 15 of 'em for $22,500. You got 2 years to ride the greatest BULL since the Nazdaq. I beleive we'll go to at least $500 and quite possibly $1500: Profit at $500: 80 * 100 (contract sise 100 oz) = 8000 * 15 (num of contracts pruchased) = $120000 - 22500 (investment) = $97500 profit. At $1500: 1080 * 100 (contract sise 100 oz) = 108000 * 15 (num of contracts pruchased) = $1,620,000 - 22500 (investment) = $1,597,500 profit. And then you can pay Uncle 38% tax and you still got $990,450. A nice cool million AFTER TAX. You can set up your account at www.myfuturesonline.com. It only costs $20 RT for the trade. You don't need a margin acct for options trading and I'd STRONGLY recommend not getting a margin acct. Your losses are limited to the amount invested $22500. It's real unlikely you'll lose since the downside risk in yellow over the next 2 years is MINIMAL that is unless you're reading that idiot Prechter. Wait for a pullback to $335 to buy. We're probably going to $370-380 and then back to $335 as the FEED FOOLS make one more vain attempt to control yellow --- what a bunch of total idiots. Link to comment Share on other sites More sharing options...
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