monday

every time the group gathers in chicago, the following discussion nee argument arises between the old school option traders..semi directional, little attention paid to the greeks…and the new school.. all greek, all the time…as to which methodology is better…while I think there is probably some cyclicality involved here related to the amount of capital chasing one approach or the other, I cannot help but wonder what would happen if we started with individual company analysis..ie good companies that are cheap on valuation metrics or bad companies that are overpriced on same..and then applied the greeks, seling overpriced puts and buying under priced calls on our fundamental buys and selling overpriced calls and buying under priced puts on our fundamental sells…as my poor brain holds only the valuation side of the equation and just enough option knowledge to get into seriously deep poo-poo when left to my own devices I hope to discuss and explore this with minds greater than my own in the days ahead…

we are off to a very good start this week, helped along by positive mention of kkd and kg in barrons this week with both articles pretty much echoing the positions taken in above post. the cable and broadcasting groups continue to be very week…with olympic and political revenues starting to flow in their direction it may be time to add some of these names as they continue to hit new 52 week lows….won, cvc cmcsa all are interesting idea and i will explore further during the week. the market was way too optimistic on these stocks coming into the year..naturally because of aforementioned extra revenue sources but soured quickly when the first qtr was weaker than expected….if they continue to seel down they will be like a cute girl in a short skirt doing shots of jaeger…just too compelling not to take a shot at…….