Solid Financial Strength, 

Cloudy outlook,

Proven management,

Option Premium not thin,

Share $ Near the floor of the support and the trading range.

The odds is in fovor of ..... 

Selling short term covered Call and Puts.

It's a better strategy than CD's ? 

Using NVDA Feb. 12 Put and March 13 Put as trading vehicle, day traded this morning and netted about $200 USD this morning.  

At market open, it is clearly to me that NVDA market is over sold and improving around $12.2  so I sold 10 contracs of NVDA Feb. 12 Put and March 13 Put each.

Then market price of NVDA recovered, and stabilized around $12.36 so I bought back both.

In the process, netting about $200.   

懇請不吝賜教？

Barclays’s five-month notes yield 9.02 percent monthly as long as Nvidia shares are at or above ($11.03) 90 percent of the stock’s Jan. 31 closing, while the coupon drops to 0.5 percent if the price falls by more than the 10 percent buffer, according to the prospectus for the product. If the shares gain more than 10 percent, the notes are redeemed at their full value.

Should the stock close below 90 percent of its initial value on any day between Feb. 1 and 10 trading days before expiration on June 21, the notes convert into the Nvidia stock at maturity, according to the marketing materials.

Nvidia shares closed at $12.26 on Jan. 31, after losing 34 percent of their value through last year since the end of 2009. In the latest earnings release in November, the company reported quarterly profit surpassing analysts’ estimates, helped by sales of chips used in tablet devices.

Does Any one know how can Barclays finds money in selling this kind of deals ?

Please give a scenario ? 

懇請不吝賜教？

Barclays seems betting that NVDA's market $/share will either double or cut in half in 6 months ?  

In another words, 大起 or 大落 ? ! 

大起 or 大落 ? ! 

It's in the neighborhood, not an exact science. 

1) Can it be done 20 times a year?

大哉問 ! Actually, the trades needs to be spreaded out throughout the month, in order to ride out daily fluctuation or average out the risk.  Obviously, there will always some timely gap in between trades.  On the other hand, there must have  預備隊 or 救命錢, in case there is some black swan  http://en.wikipedia.org/wiki/Black_swan_theory  !  

2) And to be right 20 times in a row (what's the odds of that?)  

Obviously, there is a lot other considerations in real world bet.  But, the odds is in your favor if .....  

所言甚是 !

人算 不如天算 ? !

http://blog.udn.com/mbr8879576/3145671

実際操作:  

NVDA 時市价: $ 12.36

Buy 1,000 Share, Sell a Feb. 12 covered call @ $0.60

Also sell a Feb 12 puts @ $0.24

What you are hoping for is that NVDA will not fall below $11.64 on Feb. 15

If NVDA stays about the same, or above $12 on Feb. 15, (Most likely ?)

You make $.48/share or 0.0194% in 2.5 weeks or annualized 40%  

Note: all comission is negnected, so the actual return is a little less.  

白先勇 尊翁 抗日 名將 白崇禧  战略: 『積小勝 為大勝』。

當鬼神缺席時，或然率 掛帥 ? ! 

聽說，當年 白天聽老鄧『黑貓白貓』，晚上聽小鄧 ? ! 

報明牌 ? 

http://blog.udn.com/IAMANOLDMAN/7260911?raid=4936540#rep4936540