Doctor Jack's Stock Medicine

[Runner]

The problem with that fund is that you you have no control over how hedged the portfolio is (if at all). If you want to hedge your portfolio, you're better off in a Rydex or Profunds inverse market fund.

Dave, thanks for the info..

[Jack Haddad]

Dr. Jack, you bring up some great points. Here is how he explains his hedging of the fund.

Typically, the Fund uses option combinations. Buying a put option on a stock index,
and simultaneously selling short the call option having the same strike price and
expiration, is equivalent to an interest-bearing short sale valued at $100 times the
underlying index. So for example, if the S&P 100 Index is at 500, buying a put option
and selling short the corresponding call option (regardless of the specific strike price
or expiration chosen for the pair) is equivalent to selling short $100 x 500 = $50,000
worth of S&P 100 stocks.
The most defensive position held by the Fund is a fully hedged stance where the
entire value of stocks held by the Fund is offset by a short sale of equal value in
major market indices. So for example, if the market falls by 10% and the stocks held
by the Fund fall by 5%, a fully hedged position would result in a positive return of
about 5%. In contrast, if the market falls by 10% and the stocks held by the Fund fall
by 15%, the Fund would experience a loss of about 5% despite being fully hedged.
Similar examples apply to market advances. In either case, the return of a fully
hedged position is driven by the difference in performance between the stocks we
own and the indices we use to hedge, not by absolute market direction.

It appears that he is leveraging through a combination of spreads and calander type plays. I would need to know the specifics of his options' strike prices to calculate the intrinsic/decay value. Only then, I could judge if his leveraging techniques are sound or are as he promises.

[DSteckler]

Several points in the article made by Hussman invite reflection and debate...

All of which are no doubt answered in the prospectus.

[Jack Haddad]

Imcl

Rob, your stock is above 40.00, an important psychological landmark.

[Jack Haddad]

The triple digit loss on the DOW is very healthy will invite bargain hunting once more. While I believe the intraday low has not maxed out yet, I'm looking at several scalp set=ups here-- BA, and INTC

[Rob]

IMCL, Expecting Volatility

Rob, your stock is above 40.00, an important psychological landmark.

It's also good for my June 40 calls, which were out of the money when I bought 'em. I'm watching it like a hawk and expecting more than the usual volatility, as the 2006 ASCO meeting is scheduled to kick off on Friday.

[Jack Haddad]

Ebay

Purchased 2 blocks at 33.12, and wrote 200 June 32.50 calls at 1.45

[Lyehopper]

Potw....

Hey Dr. Jack!!!! You have till 3:59pm today to enter your pick in the POTW. Remember you can enter ca$h initially.... that will get you in the game and allows you two stock plays any time this week (long or short).

Note: A link to the "Rules" can be found at the bottom of any of "Rob's" posts.

[Jack Haddad]

Hey Dr. Jack!!!! You have till 3:59pm today to enter your pick in the POTW. Remember you can enter ca$h initially.... that will get you in the game and allows you two stock plays any time this week (long or short).

Note: A link to the "Rules" can be found at the bottom of any of "Rob's" posts.

Humm, thanks for the offer. I'd like to stick and concentrate on my trades in real life.

[Lyehopper]

Humm, thanks for the offer. I'd like to stick and concentrate on my trades in real life.

It only takes about ten seconds to post a play Jack....

I always play my real life picks in the POTW. So do many of the other fellas. Karel, Jiesen and Rockin'Rob usually play repeat stocks each week that they hold (or trade) in real life.

Now Doc! If we were 13 years old again and I invited you over to play some good old "rough and tumble sandlot tackle football".... Would you decline because you might get your trousers dirty?.... I won't tell your mom.... I promise!.... As a matter of fact.... I've got an old pair of wranglers I'll let you wear. COME ON!!!! it'll be fun dude!

[Jack Haddad]

It only takes about ten seconds to post a play Jack....

I always play my real life picks in the POTW. So do many of the other fellas. Karel, Jiesen and Rockin'Rob usually play repeat stocks each week that they hold (or trade) in real life.

Now Doc! If we were 13 years old again and I invited you over to play some good old "rough and tumble sandlot tackle football".... Would you decline because you might get your trousers dirty?.... I won't tell your mom.... I promise!.... As a matter of fact.... I've got an old pair of wranglers I'll let you wear. COME ON!!!! it'll be fun dude!

LOL...lol...

[DSteckler]

COME ON!!!! it'll be fun dude!

Lye, you're looking at the difference between those of us who do this for a living and those who do it for fun.

[Lyehopper]

Lye, you're looking at the difference between those of us who do this for a living and those who do it for fun.

I have fun while making a living Dave.... That's why it's called a "living"....

[DSteckler]

I have fun while making a living Dave.... That's why it's called a "living"....

Lye, my point was that those of us who do this for a living don't pick a single stock in a contest to have fun.

[peanuts]

AAPL, long @ 61.83



going long here, looking for 62.14 by EOD