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Short Selling - An Option Trader's Perspective

In turbulent markets, short sellers are among the most profitable, and hated of the many creatures who inhabit Wall Street.  Many retail investors consider short sellers "thieves" and they have even been described as, "The guy who takes out a life insurance policy on his neighbor, and as soon as it takes effect, runs him over."  Both these perspectives, and most importantly, the measures under consideration to "reign in" the short seller are both wrong and wrong-headed, and market-savvy traders know it.  Short sellers provide a several vital mechanisms for healthy, functioning markets.  The "shorts" dampen, not increase volatility.  They provide liquidity, and the shorts also preserve capital.  First, we should understand what short selling is and what short sellers do.  

[Update]  They did it.  They banned short-selling 799 financials, with General Electric (GE), a "financial in drag" considered for addition to the list.  When the next one blows up because fo fundamentals, they won't be able to blame the "shorts."  And the shorts won't be there to preserve the lost capital.  They have lit the fuse on a bomb, and there is no way to do the calculations for burn-time or blast radius.

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Tue Aug 08, 2006 at 01:44 PM PDT

Logical Consistency

by Sorceress Sarah

Weird stuff.  Watching the debate over the current crisis along the Israeli-Lebanese border.  The outcry for Israel to stop bombing is overwhelming.  But there's a huge logical inconsistency.  Remember that we must be logically consistent, or we invite the charge that "we stand for nothing."  

See you on the flip. . .

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Arrogance is a disease of the soul.  It begins when the afflicted says to himself, "I judge us both and I and mine are more important than you and yours."  From here, the afflicted can justify any injustice against another from stealing his sibling's candy
. . .
(see you on the flip)
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As a data miner, I am alarmed not only at the NSA's database, but also at the fear that the name of what I do conjures up.  Data mining is niether inherently good nor evil:  It is a tool.  Like a hammer can be used to build a house or to crush a cranium, data mining can be used for great good or great evil.  But let's look at what the NSA is doing...  

See you on the flip

Poll

Where do you stand?

1%20 votes
9%118 votes
9%124 votes
20%252 votes
0%7 votes
1%18 votes
1%21 votes
2%30 votes
22%288 votes
30%381 votes

| 1259 votes | Vote | Results

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Tue Nov 29, 2005 at 10:04 AM PST

Cunningham's seat can wait.

by Sorceress Sarah

Scott Shields at MyDD makes sense.


Over at Swing State, David NYC consulted California election law and a calendar to come up with potential dates for the CA-50 special election to fill Rep. Duke Cunningham's now vacant seat in the House. He sets the dates at March 20 to April 10, with the caveat that since those dates are within 180 days of a statewide election, the special election can be lumped together with the primary election on June 6. Confused? Go read David's post.

But with the special election in the CA-50 a few months away, it's probably a good idea that we turn our attention to the much closer special election in the CA-48, scheduled for just one week from today. As Big Dog keeps reminding us, Steve Young needs some serious help, in terms of both phonebank volunteers and monetary contributions.

Read the rest at MyDD

More on the flip. . .

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I gave you the heads-up the other day.  Here's the reminder.  

On Thursday, November 17th, Young will be a special call-in guest on The Randi Rhodes Show on the Air America Radio network, heard locally on KTLK 1150AM at approximately 4:30pm PST. On the same day, Young will appear in-studio for The John Ziegler Show and can be heard at approximately 8:00pm PST on KFI 640AM.

Listen and learn why I support this man.

Sorceress Sarah

Discuss
Appearing Live on Air America's The Randi Rhodes Show and KFI's The John Ziegler Show on Thursday, November 17th

Steve Young Gains Momentum; Appearing Live on Air America's The Randi Rhodes Show and KFI's The John Ziegler Show on Thursday, November 17th

Listen to Young on Air America Radio at 4:30pm PST and KFI at 8:00pm PST

More on the flip. . .

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Fri Nov 11, 2005 at 06:06 AM PST

The knockout punch

by Sorceress Sarah

We've all watched with great joy our victories in Virginia, and New Jersey.  We've had time to savor the crushing defeat of the The Terminated in his attempt to hijack California.  We've shed a tear for Texas and cursed the turncoat Democratic leadership in Cuyahoga County.  Overall, Tuesday was a pretty good day to be a Democrat in America.  We've taken heart and maybe even some grim satisfaction from the implosion of the GOP.   We've seen what happens when an energized Democratic Party shows up and a despirited and demoralized GOP stays home.  Steve Young joked, "Gee, I wish I were a Democrat running for office!"

OK.  We've had our moment.  Break time is over.  Let's get back to work.  We still have one more race to run before we celebrate the December holidays.  See you on the flip. . .

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There has been much hullabaloo about the Texas marriage amendment.  Some wail that the cause is lost in Texas.  Others claim that Texas has succeeded in outlawing all marriage.  While the second may or may not be the case, the first is certainly not.  See you on the flip . . .
Poll

The best part of the Texas amendment

3%1 votes
29%9 votes
54%17 votes
12%4 votes

| 31 votes | Vote | Results

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Sat Oct 29, 2005 at 05:02 PM PDT

14 times

by Sorceress Sarah

You know, Kieth Olberman made a great observation.  13 times.  

That was the number of documented cases of bad news for the White House being followed immediately by a terror event or terror alert.

Let's see now...

Libby indicted...

... India bombed.

The pattern holds. See you on the flip...

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Tue Oct 25, 2005 at 12:05 PM PDT

Staring into the abyss . . .

by Sorceress Sarah

I've been thinkin' again.  I know that this is a very frightening thing, but there it is.  I've gone and done it again.  But it's not nearly so frightening as what I've been thinking.

I'm thinking we're being played again. . .

(see you on the flip)

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The Repthuglican machine is fired up and running scared.  They've begun push-polling in the CA-48 race, and it's the usual suspects, CVR doing the push-polling.  One push poll has the "pollsters" telling the people they call that Steve Young was jailed for contempt of court.  Another attack on Jim Gilchrist says that he declared bankruptcy fifteen years ago.  Both have a grain of truth, but are distortions of the facts.  

Steve's contempt charge was vacated and the judge who cited him was suspended for making a racial slur toward a witness in the case. Read the whole story as reported in the legal journal "Los Angeles Daily Journal" after the jump.

Gilchrist paid his debts.

We know we can win in the CA-48.  Apparently the Repthugs are afraid that we're right.

Poll

The Rethugs

26%10 votes
10%4 votes
13%5 votes
50%19 votes

| 38 votes | Vote | Results

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