well do this
you keep in mind where they are
4% to 6% coming the other way and when they do ill answer for you
oh hey; lets just drop it
i wont guarantee it happens
but im betting on it - all i can do is bet on what i think works.
First the 200-300k/year i make selling puts is not imaginary.
Second, yes u will make money if u could SUCCESSFULLY short mfa. But mfa is not cooperating is it? At least not so far.
Guy STILL does not get it.
With little understanding, Lenny wrote: "Hey jt u still see no diff between SELLING puts where u RECEIVE money and BUYING stock where u SPEND money. When one recycles one RECEIVES even MORE money."
Hey not a problem. Under your theory, if I am down on my longs, I'll just short more MFA...and magic, I get more money in my account!
Now, Lenny, if you can explain why that theory is full of holes, perhaps you can understand why your recycling of puts doesn't entitle you to "win" when you short those new puts. You may win eventually, but, you didn't "win" at the time of your recycle.
Hey jt u still see no diff between SELLING puts where u RECEIVE money and BUYING stock where u SPEND money. When one recycles one RECEIVES even MORE money.
Also puts DECAY with time ie FATHER TIME is on your side, which is always good.
Oh well some folks can never get it. The neurons just don't fire in the right sequence.
Lenny wrote: "Yeah if u kept buying ur longs on dips aggressively, as u advise others (like the hapless jt) then you kept digging ur self a deeper hole."
And this wonderful advice is coming from a guy who invented the "recycle your puts all the way down" theory?
Of course, if you buy at one price and the stock drops below that and never returns to that price, all the "Time" in the world, as you put it, is not going to help you.
Listen to Lenny as he is the only one who knows how to make money in the market.
Lenny - I don't know if you read the AGNC message board but Raybans2 posted this yesterday. It is called "A day in the life of an AGNC short" as that board has been overrun with short sellers preaching doom and gloom.
As I read it, I couldn't help but think of you and your life's work of bashing Reik. Enjoy. Just sub. Reik where he wrote AGNC.
8:00 AM - Wake up alone on wrong side of bed with leg cramps
8:10 AM - Cut self shaving
8:30 AM - Pour hot coffee in lap
9:00 AM - Get shocked plugging in laptop
9:30 AM - Log into Yahoo chat board to start bashing AGNC
10:00 AM - AGNC down 0.10 feel good but stub toe on desk
10:30 AM - AGNC down 0.20 feel good, read something about bird flu on Drudgereport...post into chatroom...feel clever! Spill bowl of cereal on laptop laughing must clean up.
11:00 AM - AGNC back to even..upset and must post about interest rates going up..that's it! Run over foot with rolling chair.
12:00 - AGNC up 0.10...must tell off that other poster smart-a--. Burn mouth on hot pizza.
1:00 - AGNC up 0.25...what? Isn't anybody listening about interest rates going up...must post again and again til they get it. Open a coke and it sprays all over me.
2:00 - AGNC up 0.50...getting frustrated. sick of people mocking me. Must post more threats. Gum stuck in my hair...how the he-- did that happen?
3:00 PM - AGNC up 0.75...now I'm really mad. This is the 10th day in a row it went up...how can everyone be so stupid to keep buying? Mom calls...Dad isn't my real Dad...didn't see that coming!
4:00PM - AGNC up 1.00...thank Gawd the markets closed. I'll show those AGNC longs tomorrow. Dog pees on my leg...I hate that dog.