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Pfizer Inc. Message Board

  • moses2111 moses2111 May 28, 2011 12:53 PM Flag

    A prototypical investment for my latest cautious lender

    My latest lender is a millionaire who doesn't like the stock market. He has most of his liquid assets in money-market instruments like CD's and he hates the rate he's getting but he just doesn't want to take any risks at all.

    He very much liked the idea of my 12% guaranteed loans but being as cautious as he is, he's only lending me the minimum of 5K at this point. But he said he would enter into much more substantial loans if I could prove to him that my superior naked put strategy works.

    Since he's never been in the market, there's no way of getting him naked put-writing authorization at my brokerage and so any transactions of necessity would have to be in my account.

    The loan agreement, which I have drawn up and which will begin next Friday, calls for a guarantee of principal and 12% interest compounded annually. The term is 85 weeks which is when the Jan. 2013 options expire.

    Besides the guaranteed interest, he will receive 70% additional of the difference between what the naked put returns and 12%. I would keep 30% of the differential.

    Settlement is the earlier of 85 weeks or when the naked puts are bought back at a price that would mean a 12% annualized return or greater.

    Should market conditions be awful and I'm not able to earn the 12% annualized by January 2013, I have the right to extend the agreement and settlement out one year to the third Friday of Jan. 2014.

    Because I wanted him to have a copy of the actual transaction, yesterday I actually did the transaction in my account using a little of the excess margin availability that I have. I sold 21 of the 15-strike naked puts for Pfizer at $89 apiece with the stock around $20.90 and the option quote at $89 bid, $90 asked.

    Cash required to do this is $240 per option or $5,040 for the 21 contracts. So next Friday, I will be receiving the loan in the amount of $5,040 and he will receive his copy of the loan agreement and the actual transaction.

    I'm looking forward to receiving a lot more in the way of loans from this guy in the future - as well as loans from his wealthy friends and associates.

    05/27/2011 14:01:33 Sold 21 PFE Jan 19 2013 15.0 Put @ 0.89 1,848.31

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    • > I am constantly amazed how you can be wrong about everything.

      He has already shown his ignorance of diabetes by claiming diabetics have an extreme dislike of injections, and that Exubera failed simply because one man, the head of the ADA, was against the product.

      While he is a failure at investing, ne actually might be an excellent writer of Fairy Tales.

      He should consider a new focus for his efforts.

    • Here is an excerpt from your post:

      It should be noted that exercise is also a huge factor.

      What does a shut-in like yourself do for exercise? Twiddle his thumbs?

    • I think it is time to understand it is all a lie. This mystery sucker only has bank deposits and has only had such fixed return deposits for years. Now, he moves into derivatives with nothing but chartjerk's promise to perform. He, according to Mr. Fraud, has never owned an equity and now goes for options on equities? Yea, right.

    • You get it. The totally mentally challenged moron doesn't get it. Sweets are carbohydrates and it is carbohydrates that must be controlled. It should be noted that exercise is also a huge factor. For a real lard bucket such as chartjerk, it would be necessary to keep carbohydrate intake to a minimum. I know, if I spend 1.5 hours mowing the lawn, I can easily have a piece of pie after dinner with a normal meal.

      The fact is, a conscientious diabetic soon learns to balance carb intake so that the daily intake does not exceed his limit that is consistent with good control. The carbs can be through 100% sweets if he chooses. Obviously, such a diet would not be healthful for a person that is not diabetic. The fact is, a good balanced diet is about all that is needed to keep blood glucose under control with proper medication. zIn some cases, no medication is necessary.

      The diabetic soon learns how to do it without counting carbs in the diet. It is not unlike a normal person looking at a percentage gain over time and at a glance being able to make a good estimate of the gain over a given time of another duration. For example, what would be the annual gain if an investment gained 2.9% every eight days for a year. Just a glance at that would tell a normal person of average intelligence the gain would far exceed 100% if compounded over a year.

      I should also be noted that a good diet, whether diabetic or not, would keep weight under control and eliminate the need for lap band surgery at tax payer expense. Further, there would be no need for fraud to get society to pay for the needless surgery.

      To summarize, you are correct. Diabetics can and do eat ice cream and chocolate with no problems whatever. Only a total moron would pig out on orange sticks or any other vice.

      Again, the moronic one is WRONG. Diabetics can and do eat ice cream and chocolate with no problem.

    • chartys_a_mental_case chartys_a_mental_case May 28, 2011 5:34 PM Flag

      "Sweets count as carbohydrates in your meal plan. The trick is substituting small portions of sweets for other carbohydrates — such as bread, tortillas, rice, crackers, cereal, fruit, juice, milk, yogurt or potatoes — in your meals. To allow room for sweets as part of a meal, you have two options:

      Replace some of the carbohydrates in your meal with a sweet.

      Swap a high carb-containing food in your meal for something with fewer carbohydrates and eat the remaining carbohydrates as a sweet.

      Let's say your typical dinner is a grilled chicken breast, a medium potato, a slice of whole-grain bread, a vegetable salad and fresh fruit. If you'd like a frosted cupcake after your meal, look for ways to keep the total carbohydrate count in the meal the same. Trade your slice of bread and the fresh fruit for the cupcake. Or replace the potato with a low-carbohydrate vegetable such as broccoli. Adding the cupcake after this meal keeps the total carbohydrate count the same. "

    • chartys_a_mental_case chartys_a_mental_case May 28, 2011 5:33 PM Flag

      "People with diabetes may be told by friends and family that they have to give up sweets or other types of food. But "there's no food that's a can't-ever-have," says Deborah Fillman, R.D., a certified diabetes educator and registered dietitian in Owensboro, Ky. And you don't have to follow a one-size-fits-all "diabetes diet" that is overly restrictive or that looks radically different from what other people eat, she says.

      Our survey of 5,012 people with type 2 diabetes confirms that. It suggests that the most important dietary strategy for managing diabetes isn't limiting sugar or counting carbs but simply eating less. The two habits that separated successful survey respondents from unsuccessful ones were cutting calories and watching portion sizes. "

    • chartys_a_mental_case chartys_a_mental_case May 28, 2011 5:30 PM Flag

      "Some think diabetes and sweets don’t mix, but with the appropriate balance, they can still be included in your diabetes meal plan. The key is moderation. “To ensure adequate nutritional intake and not be indulgent in any one area, you want to balance intake,” says Amanda Kirpitch, a Nutrition Educator at the Joslin Diabetes Center."

    • chartys_a_mental_case chartys_a_mental_case May 28, 2011 5:29 PM Flag

      > I've never heard of a diabetic that can eat sweet

      I am constantly amazed how you can be wrong about everything.

      Q:If you have diabetes, can you eat sweets and/or use sugar in recipes?

      A: Yes! Though people continue to think that people with diabetes need to avoid sugar and sweets, today's recommendations suggest that people with diabetes can enjoy sweets and sugary foods in moderation and on occasion.

    • ilaughatallthewrongjokes ilaughatallthewrongjokes May 28, 2011 5:17 PM Flag

      <<And interest mounts.>>

      Oh, BTW, 'compounded'. This is because your cautious investor had his money in CDs.

      Once they mature, the investor buys another CD and uses his principal and interest to do so. So, he is compounding his return. He will expect the same from your 'prototypical' investment.

      Incidentally- prototypes are not what goes to market. Production ready product is.

      I don't think you are ready for prime time in that sense.


    • Here is an excerpt from your post:

      You can't compute an annualized rate without compounding,

      Of course you can - it's routine and done all the time. If I earn 5% on a naked-put investment over three months, what do you suppose the annualized rate is?

      Where is the COMPOUNDING?

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