May 15
Myron Sholes was just on bloomberg, he’s originally from Timmins, Ontario…cool! He moved to Chicago because of the economics research coming out of the school ’spoke to him’.
He spoke in a fluid prophetic manor with respect to those who are “Flexible”. They inherently possess more ‘options’ than those who are inflexible. Since options have value, flexibility is valuable, which can be invested just like any other form of value. It makes so much sense at any level of an organization’s hierarchy. From a single person’s perspective to a multi billion dollar empire. It also parallels the law of large numbers.
He also spoke on ‘Intuition’ and said it can lead us to believe stuff that we don’t correctly understand. So, true. Guilty. Creating a model, then testing it against data, eliminates this problem and returns progress.
Glad I tuned in.
May 15
I sent some good money after bad, and picked up a little more Sandvine. I also bought RIM at $139, and MFC at $38. I’ve been patiently trying to sell some puts on HXU.TO, in order to get assigned, but nobody has hit me, and I got to believe it’s hitting a short term peak. I just want a couple days of red, in a row, and i’ll be long.
I also got IB finally funded. I only funded the minimum, $10K, because I’m just learning the software. Trying out my account, I wrote a single put on SSO, $75, expiring tomorrow. Yah, I know, it’s only ~$50. But I was playing with the cool VOL (volatility) order type.
Check this math out. I put up $1900, and hypothetically make $50 minus the $1 in fees. *If it expires worthless* that’s a smooth 2.5%, or 36% per year pre-tax. The cool part is, if you could pull that off once a month - your money is only on the line 12 days per year…all you need is the balls/stupidity to risk getting assigned. But, I kind of want a little SSO so I can trade the calls on it.
May 15
A Mexican entrepreneur took a picture of our group as we unloaded the tour bus after we arrived at Chichen, Itza. On our way home, she tried to sell us a mickey of tequila with our picture scotched tapped over the label. $16 USD. We didn’t buy one…maybe web 2.0 it up, somehow. But get this, they didn’t have a bottle of water to sell us, on a day when it was 100*F out.
Tips are going to keep Mexicans uneducated. I’m suffering from an anchoring heuristic, I’m sure, but if tourists keep subsidizing the wages of mexicans working in the tourism industry, then they have little to no incentive to go out and get educated.
I bought an $80 Chess set, reduced for me to $60, then negotiated down to $30. You know what’s the difference between a pond and a bishop in my Mexican chess set? Nothing.
It sucks to have been one of the ~16M Mayans during the 50 years that the Spanish invaded…15.8M died, the rest probably wished they did. But before that, they did really amazing things manipulating gravity, acoustics, and most impressive - the solar angles.
Don’t dive from sketchy dive shacks. If they don’t clean the tanks properly - bacteria will get in your lungs and kill you vacation.
If I ever have a pet jellyfish, I’m going to name it ‘9V’, because that’s what kind of battery a jellyfish feel like when they sting you.
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