Using Veritas to Construct the "Per…

29-04-2017 Hits:88584 BoomBustBlog Reggie Middleton

Using Veritas to Construct the "Perfect" Digital Investment Portfolio" & How to Value "Hard to Value" tokens, Pt 1

The golden grail of investing is to find that investable asset that provides the greatest reward with the least risk. Alas, despite how commonsensical that precept seems to be, many...

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The Veritas 2017 Token Offering Summary …

15-04-2017 Hits:82268 BoomBustBlog Reggie Middleton

The Veritas 2017 Token Offering Summary Available For Download and Sharing

The Veritas Offering Summary is now available for download, which packs all the information about Veritas in a single page. A step by step guide to purchasing Veritas can be downloaded here.

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What Happens When the Fund Fee Fight Hit…

10-04-2017 Hits:82159 BoomBustBlog Reggie Middleton

What Happens When the Fund Fee Fight Hits the Blockchain

A hedge fund recently made news by securitizing its LP units as Ethereum-based tokens and selling them as tradeable (thereby liquid) assets. This brings technology to the VC industry that...

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Veritaseum: The ICO That's Ushering in t…

07-04-2017 Hits:86655 BoomBustBlog Reggie Middleton

Veritaseum: The ICO That's Ushering in the Era of P2P Capital Markets

Veritaseum is in the process of building peer-to-peer capital markets that enable financial and value market participants to deal directly with each other on a counterparty risk-free basis in lieu...

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This Is Ground Zero for the 2017 Veritas…

03-04-2017 Hits:83087 BoomBustBlog Reggie Middleton

This Is Ground Zero for the 2017 Veritas Offering. Are You Ready to Get Your Key to the P2P Capital Markets?

This is the link to the Veritas Crowdsale landing page. Here is where you will be able to buy the Veritas ICO when it is launched in mid-April. Below, please...

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What is the Value Proposition For Verita…

01-04-2017 Hits:85208 BoomBustBlog Reggie Middleton

What is the Value Proposition For Veritas, Veritaseum's Software Token?

 A YouTube commenter asked a very good question that we will like to take some time to answer. The question was, verbatim: I've watched your video and gone through the slides. The exchange...

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This Real Estate Bubble, Like Some Relat…

28-03-2017 Hits:56312 BoomBustBlog Reggie Middleton

This Real Estate Bubble, Like Some Relationships, Is Complicated...

CNBC reports US home prices rise 5.9 percent to 31-month high in January according to S&P CoreLogic Case-Shiller. This puts the 20 city index close to an all time high, including...

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Bloomberg Chimes In With My Warnings As …

28-03-2017 Hits:84538 BoomBustBlog Reggie Middleton

Bloomberg Chimes In With My Warnings As Landlords Offer First Time Ever Concessions to Retail Renters

Over the last quarter I've been warning about the significant weakness in retailers and the retail real estate that most occupy (links supplied below). Now, Bloomberg reports: Manhattan Landlords Are Offering...

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Our Apple Analysis This Week - This Comp…

27-03-2017 Hits:84246 BoomBustBlog Reggie Middleton

Our Apple Analysis This Week - This Company Is Not What Most Think It IS

We will releasing our Apple forensic analysis and valuation this week for subscribers (click here to subscribe - lowest tier is the same as a Netflix subscription). As can be...

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The Country's First Newly Elected Lame D…

27-03-2017 Hits:84107 BoomBustBlog Reggie Middleton

The Country's First Newly Elected Lame Duck President Will Cause Massive Reversal Of Speculative Gains

Note: Subscribers should reference  the paywall material here for stocks that should give a good risk/reward scenario for bearish trades. The Trump administration's legislative outlook is effectively a political desert, with...

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Sears Finally Throws In The Towel Exactl…

22-03-2017 Hits:90596 BoomBustBlog Reggie Middleton

Sears Finally Throws In The Towel Exactly When I Predicted "has ‘substantial doubt’ about its future"

My prediction of Sears collapsing once interest rates started ticking upwards was absolutely on point.

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The Transformation of Television in Amer…

21-03-2017 Hits:88167 BoomBustBlog Reggie Middleton

The Transformation of Television in America and Worldwide

TV has changed more in the past 10 years than it has since it's inception nearly 100 years ago This change is profound, and the primary benefactors look and act...

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The market neutral option strategies analyzed and made available for download last quarter have effectively accomplished their mission, namely allowing one to maintain a bearish position while still being able to profit from spikes in the market. In periods of uncertainty, this is the methodology that I will fall back on personally, although the directional positions are the ones that reap my windfall profits. 

The following are the updated payoff's for selected optimal strategies for rhe S&P index, GS, JPM, AXP, HOT, STI, CAT and MAC (subscribers, see the downloads section for the strategies and the forensic analysis of each company). We have computed revised breakeven points, initial cost, payoff matrix, implied volatility and option parameter for the optimal strategies selected previously. I will post these figures in detail within 24 hours, but here is the synopsis.

 

 Preferred strategies

 Underlying

 Company

 Preferred strategies (Net gain (loss)  Oct, 05

 Preferred strategies (Net gain (loss)  Sep, 04

 Net Premium 

 Gain (loss) as % of premium

 Oct, 05

 Sep, 04

 Beginning of period

 % change over prev day

 % change since beg

 S&P 500

             1,032

                  1,244

        (2,966)

34.8%

  1,025.2

  1,016.4

     997.1

0.9%

2.8%

 

 

   

 

       

 

 Stocks

 

   

 

       

 

 AXP

                150

                     136

        (1,500)

10.0%

       32.5

       32.8

       31.7

-1.1%

2.5%

 CAT

              (320)

                   (124)

        (1,235)

-25.9%

       48.8

       46.1

       46.6

5.9%

4.7%

 GS

                (62)

                   (592)

        (4,427)

-1.4%

     179.6

     163.0

     164.1

10.2%

9.5%

 HOT

              (580)

                     151

        (1,690)

-34.3%

       29.7

       28.6

       27.8

4.0%

6.8%

 JPM

                  17

                     308

        (3,187)

0.5%

       41.9

       42.3

       41.2

-1.1%

1.5%

 MAC

              (385)

                     110

            170

na

       27.9

       26.2

       23.6

6.5%

18.3%

 SHLD

             2,965

                  2,800

         3,915

na

       62.6

       62.4

       78.4

0.3%

-20.1%

 STI

              (180)

                     (60)

            260

na

       21.2

       20.8

       20.1

1.9%

5.4%

 WFC

                  96

                     210

        (1,126)

8.5%

       26.3

       26.9

       27.9

-2.3%

-5.7%

 WYNN

              (559)

                   (334)

         1,260

44.4%

       67.7

       56.6

       52.9

19.6%

27.9%

 Total Stocks

             1,142

                  2,605

        (7,560)

15.1%

       

 

 

     

 

       

 

 Total

             2,174

                  3,849

      (10,526)

20.7%

 

 

 

 

 

 

These numbers are as of 10/4/2009's closing prices. Although most of the option strategies would continue to remain optimal, companies such as SHLD and WYNN which have witnessed significant price movement (20-30%), thus the optimal strategies selected previously may not be the best strategy based on current strikes moving forward. I will be updating the output sheet for SHLD, WYNN and WFC within a day or two.

 

Overall the preferred strategies have yielded a gain of 20.7% since September 2009 while the total universe of strategies analyzed have yielded a loss of 12.0% since September, 2009. Take note that the preferred strategies have actually outperformed the market substantially while still allowing for substantial bearish exposure.