Vertical Spreads for Aggressive Growth

Discussion in 'Journals' started by Cache Landing, Jan 27, 2006.

  1. man, am i glad i took profits on friday. This market is out of its mind. :eek:
     
    #1141     Sep 25, 2006
  2. ryank

    ryank

    Crazy isn't it? Can't make the market do what we want so we will have to work with what we've got. My positions are set for a drop in the SPX and a rise in OIH, only partially getting my way right now.
     
    #1142     Sep 25, 2006
  3. Yep this market is using any possible excuse to rally.
     
    #1143     Sep 25, 2006
  4. Hey Cache I know your a tos faithful what do you think of the merger? I'm still trying to wrap my mind around it.
     
    #1144     Sep 25, 2006
  5. I think it was a very smart move on the part of the TOS founders. I would've done the same thing. They recieved a huge compensation initially in addition to positioning themselves to make enormous sums of money for years to come.

    I personally think that nothing will change for TOS for a while. I've always expected that TOS service would begin to decline as they grew. This will hasten that as I believe they will have their hands full with the many clients that will be joining from Investools. You'll notice that while Investools has many more clients than TOS, the average account is bigger and traded more frequently at TOS. It would be incredibly stupid business wise for them to shift their focus onto the Investools clients' accounts. OTOH, there is a ton of money awaiting them if they have the ability to convert a good portion of them to more active options trading.

    I think it only makes sense that they will be spending a great deal of time developing classes/seminars focused on integrating the very different Investools clientel into the TOS trading style. That is where the real money lies. They occupy 2 of 8 board seats in a company that is majority institutionally owned, as well as owning 30% of the stock. As a cohesive unit they definitely have the biggest single ownership and thus a large voice in how to run things. The founders of Investools actually got the short end of the stick in the deal. They can easily be run out of their own company. It would be a little harder, albeit still possible, to run the TOS founders out.

    Given the situation I don't think it was merely an exit strategy. On the contrary, I think they are looking to be able to make a significantly greater amount of money.
     
    #1145     Sep 26, 2006
  6. Just to let everyone know. I'm on business in Santa Barbara all week, and have limited access to the internet. Any trades that I make will be posted but I won't be able to do it even close to real time.
     
    #1146     Sep 26, 2006
  7. ryank

    ryank

    This market is going to the moon! I'm going long the futures with all my money and making plans to retire on the beach next month :D.

    I can dream can't I? I'm tired of looking at the red in my portfolio, need a little break in here somewhere.
     
    #1147     Sep 26, 2006
  8. Would you like to look at the red of my portfolio instead?:)

    ~B

     
    #1148     Sep 26, 2006
  9. jychiu

    jychiu

    Stock market has the tendency to move up step by step after a decline. The fall in May was heavy, most chartists expect a bear move is coming, then this denial mode comes in. Up a bit, then up a lot, up, up.

    By then it comes a time, everyone is convinced it is going to the moon, the decline comes.

     
    #1149     Sep 27, 2006
  10. Looking to exit the VLO position on any jump tomorrow. I won't have access to ET so I won't be able to update real time. Sorry.:(
     
    #1150     Sep 27, 2006