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We Take Risks Everyday.

We take risks everyday.This morning for example I poured myself a cup of coffee which I held in one hand and I also picked up one of my laptops sitting on a couch by grabbing it by one of it's corners. Then I put down my coffee cup and picked up my cellphone and placed it on my laptop. I then managed to pick up my laptop once again and held it face up so the phone would be less likely to slip off it. With my other empty hand I picked up the same coffee cup and then carefully carried all three of these items from my livingroom to my bedroom. It saved me making two trips. In hindsight that was a stupid move to make. In this decision making process my brain was telling me that I have two laptops and that the second one is more valuable so if I dropped the first one and broke it then that wouldn't be the end of the world. It's funny why it would think like that. My brain was almost tempting me to take that risk. Also, if my cell phone slipped off my laptop and hit the floor wh...
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Harley-Davidson

First, I am not a big fan of playing options on stocks in the thirty and forty dollar range. It's not like speculating in Boeing or Caterpillar Calls and Puts with these stocks swinging up or down two or three dollars nearly everyday. Harley Davidson is a thirty five dollar stock. Look at how it is trading so poorly on the good earnings news back at the end of April.
Now here is some of this news.
All the good news was wiped out by the forecasting of a bit of a slowdown in the second half of this year. Investors who bought in early this year when the stock was trading over fifteen dollars higher who correctly anticipcated this surge of earnings must now feel so frustrated. Where are their rewards? Now look below and see where the January 37 Calls are trading at. If the stock gets above forty you would be in luck. That would buy you their next two earnings reports. By then management might see their business in a more favourable light. Yet the chart looks ugly and there doesn't seem to be a support level.* With most option positions "time value" works against you. When you purchase eight months of time and your reasonings for buying in turn out to be correct the time value can become your friend. It is however still a scary position to be considering.

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