Lyehopper's Roundup....

[IIC]

I don't know much about options, and don't play them, but isn't there some strategy with options that provides a profit if the stock moves a lot in either direction, but is a losing strategy only if it stagnates?

Straddle...Straggle...Strangle...Some name like that...Buy puts and calls on the same stock...Doug(IIC)

[Lyehopper]

I don't know much about options, and don't play them, but isn't there some strategy with options that provides a profit if the stock moves a lot in either direction, but is a losing strategy only if it stagnates?

No options on PARL....

[jiesen]

that was an excellent call on CNXS a few days ago, Lye. wish I'd have picked up a few more shares then...

[Lyehopper]

that was an excellent call on CNXS a few days ago, Lye. wish I'd have picked up a few more shares then...

"Q" is a very wise investor.jejeje

[Lyehopper]

PARL.... oh my sweet PARL!

SNIFFFFFFF! what's that smell?...... ahhhhhhh! sweet PARL!....hehehe

[B.J]

SNIFFFFFFF! what's that smell?...... ahhhhhhh! sweet PARL!....hehehe

Excellent Lye! I'm thinking about buying on the next dip.

[Lyehopper]

ACTU will keep rolling now....

I really like this little stock.... Should quietly move on up from here. 30% gain should be no problem.

[dmk112]

@PARL - just don't see it holding at these levels...where's the support dude?? But earnings change everything overnight so who knows. Are ou going to be holding through them?

[Lyehopper]

@PARL - just don't see it holding at these levels...where's the support dude?? But earnings change everything overnight so who knows. Are ou going to be holding through them?

Yep.... call me crazy.... But I just gotta do it dude....

[IIC]

OK...Rob seems to be back in circulation...So Rob, what is your "Annualized" Formula???...Makes no sense to me...thx...Doug(IIC)

[Rob]

Formula

(1+p)^(365/n)-1

where p = percentage gain and n = number of days.

Is there something wrong with it?

[Lyehopper]

^^^^^^^^^^^^^^^^^^^^^^!!!!!!

(1+p)^(365/n)-1

You see Doug, we (in the "inner-circle") use these kind of formulas all the time for complex VTP searches.... Webs favorite key on his computer is the ^ ....

^^^^VTP FOREVER^^^^

[IIC]

(1+p)^(365/n)-1

where p = percentage gain and n = number of days.

Is there something wrong with it?

Well...maybe I'm confused here???

First of all you have the wrong G/L %'s for the 2 shorts...You used the close as the denominator instead of the open.

Now...Here is how I figure the annual percentage if we are to use 365 rather than the number of trading days available:

p*(365/n)

Lets take GEHL as an example:

23.62*(365/31)=278.11

And if you argue that he really only held it for 30 days then it is still only 287.38%

Am I missing something?...Doug(IIC)

[Rob]

OK Douggie

First of all you have the wrong G/L %'s for the 2 shorts...You used the close as the denominator instead of the open.

Here's the way it works: when there's an S in the L/S column the program takes the "open" price and puts in in the Proceeds column, since you are actually in receipt of funds from a sale when you open a short position. Then when you close it (i.e. you buy to cover), it enters the total closing price in the Cost column. Pretty cool, eh? From that point, it works just the same: Percent Gain = (Proceeds-Cost)/Cost.

Now...Here is how I figure the annual percentage if we are to use 365 rather than the number of trading days available:

Of course you use 365. That's what "annual" means. You could use 365.25 if you want to split hairs. But if you buy 10,000 worth of XYZ on July 20 one year, and sell that same stock for 20,000 on July 20 the following year, then that equals 100% annual gain.

p*(365/n)

Lets take GEHL as an example:

23.62*(365/31)=278.11

Your formula does not compound the gain. This is similar to the objection Scifos raised on the way the POTW calculations are done. I agreed with Scifos at the time but said I would continue doing it the same way as Lye had been doing it, i.e. no compunding. But when you figure a compounded annualized return, each successive increment figures in the gains (or losses) from the previous one.

Back to the way the short gains are figured, I think you are correct that something is being misfigured, but I think it's the way it's been figured on the POTW. (Lye and I have been discussing this on the phone, but I had to cut it short because my wife was expecting a call. I'm calling Lye back again after I enter this post.)

When a short position is opened, there is no cost to you, only gains. The cost comes when you COVER. If you short 100 shares of a $1.00 stock and cover at $.50, your total cost is $50, and your total gain is $50, a 100% gain, right?

[billyjoe]

Wouldn't this work : TDY/TDH X %Gain or loss = annualized gain (or loss)

TDY= trading days in the year

TDH= trading days held

billyjoe