bearfund

Comment Stream » CAKE

Comment Stream
Filter comments by:
Highest rated Latest comments
Or filter by symbol:
AAPL AB ABK ABX AC ACF ACFN ADRE ADVNA AEM AET AFL AFN AGG AGO AHBIF.PK AIG AIR AKS AMR APA APC APOL ASTE AUY AWC AXP BA BAC BAIRY.PK BBI BBT BCS BG BGU BGZ BHI BIL BK BKC BLK BMI BMO BND BNI BNS BNZ BP BPO BRK.A BRK.B BSC BSV BVN BWX C CAKE CAL CAT CCC CCJ CCTYQ.PK CDE CDR CF CFC CGR CHK CI CLC CLF CLR CMA CMG.AX CNI CNQ CNX CNY COF COG COP COST COW CSCO CSX CUD CUT CVS CVX CX CYB DAL DB DBA DBB DBC DBO DBP DBS DBV... 
[+ show more]
  • The Cheesecake Factory: Have Your Cake and Eat It Too
    Tell me Paul; is there a restaurant chain you don't like this strategy for? If I were as bullish as you are - and have been - on these stocks, I wouldn't bother with it; I'd just buy calls. Of course, I'd also have lost every dollar invested, which suggests that bullishness isn't justified. Someday you'll be right but it might be 50 years before these stocks regain the valuations they had when you first started pumping them. Or never.

    The options strategy is not a bad one although as Moby points out writing naked puts ties up capital. Still, given the limited upside I have to be quite confident that the bottom is in and the company won't fail. Clearly you haven't done well on that score thus far. Might be a better play with a company like C that is for all practical purposes part of the federal government now. For example, buy C and write the 20 Jan'09 straddle, total cost $14.80. If the stock is lower than that you can bet all hell's broken loose so maybe pick up a GLD 100 call for $2.90 to complete the hedge. See, there, I'd feel pretty confident. CAKE ain't C though.
    Jun 14 23:34 pm |Rating: 0 0 |Link to Comment |View article

bearfund is a Top 100 Commentor

  • 547 Comments, 73 , 17
  • Total Comment Stream rating - = 56