Hope you all enjoyed the three part series on stock replacement. Here’s what started it all:
Most recent video from Cramer/Altucher
http://link.brightcove.com/services/link/bcpid1155328549/bctid1254124213
First video from Cramer/Altucher
http://link.brightcove.com/services/link/bcpid1155328549/bclid1111461880/bctid1224769899
And in case it gets lost in the blogosphere, here’s the link to the three part series
Introduction
The Plan
The Cycle
Good luck out there and have a great weekend!
We’ve started with an introduction to the stock replacement strategy and we’ve gone over the plan. Here’s a recap of the plan:
Purchase deep in the money calls for a high momentum stock as its delta is close to 1, resulting in an almost 1:1 movement in call value to stock price
Short common stock against [...]
From the introduction, here’s the current status of the example stock replacement strategy:
Long 10 x GOOG Mar 610 Call @ 95.4 = $95,400
The second phase of this strategy involves shorting common stock against the long calls. The calls act as protection against your shorted common. This effectively creates a put against your calls. [...]
Over on TheStreet.com, Jim Cramer and his partner James Altucher have created a couple of video segments regarding options and a strategy Cramer calls stock replacement. I’ve searched the internet for what stock replacement is and how the theory is applied but sadly came up with the following:
Stock replacement in the spotlight
Investopedia: Stock replacement [...]
October 26, 2007 | Posted by Jorge 
Categories: Options, Trading Strategies | 
Tags: Options, Trading Strategies | 
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