Using options with education and technical analysis can lower risk and amplify gains. I’m at the education stage. It’s not simple or easy but it does fascinate me.
Historically, the Fool has shied away from options as an investment vehicle, for reasons best stated by people smarter than us. Peter Lynch, a Foolish favorite, urged individual investors to keep away from options. And we’re ever mindful of Warren Buffett’s first rule: ‘Don’t lose money.’ Options, by their very nature, can significantly amplify losses. Then again, as leveraging instruments, they can also amplify gains.
Situation: I purchased a $200.00 suit 6 months ago from a National Fashion Warehouse chain store. Last week I noticed the seams above and below both side pants pockets had split open. Yesterday I returned the pants to the store so their on premises tailors could make the necessary repairs. I was not willing to pay for the repairs as I consider this was a defect in the tailoring of the garment.
The counter person was perfectly willing to commence the transaction until she heard “and I don’t want to pay for this”. She said just a moment and exits into a rear office. Next up, the store manager. She asks some background questions about the purchase. I show her the defects. Then she starts with the “I cant’s” and a string of denials of responsibility. This takes us about three minutes and she appears to have really dug in. Just at that time out of the corner of my eye I see some customers waiting for the clerk. An idea forms and I quickly pick up my pants holding them so the manager and customers can see the open seam and I say to the manager “You can’t tell me this is not a defect.” There was an instant whoosh like when you win a hard fought tennis match. The store manager responded quietly “I’ll take it to the tailor and see what I can do.”
Five minutes later she returns with pants repaired and a stone face. I complemented her judgement and said she had made a return customer. The stone face remained. I left the store pleased.
On Friday night July 3 The Austin Torpedoes put on a great show/party at Salem’s, Lyceum Bar and Grill to commence the complete renovation of the entire first floor bar, lounge, and dining room. The band will take a little time off from performing to work on new material this summer. You can be informed of the The Austin Torpedoes performance schedule by subscribing to their (no spam) email list. Also a shout out to Dagmaar and Jeff from L’Espalier.
Massachusetts Gov. Deval Patrick has approved a new state budget that hikes the sales tax by 25 percent, largely preserves education spending, and makes deep cuts to other state services.
The budget maintains current eligibility for state-subsidized health insurance programs and funds dental coverage for MassHealth and Commonwealth Care.
The increase in the sales tax allowed the Massachusetts Turnpike Authority earlier Monday to vote to avoid a planned toll hike scheduled to take effect July 1, relying instead on $100 million from the tax increase.
In signing the $27 billion budget, Patrick issued $147 million in line-item vetoes.
At the same time, he submitted a separate $269 million supplemental budget to fund other initiatives, including $70 million for health care for 30,000 legal immigrants.