An equity strategy

Own calls + cash adjacent investments. Model the risk profile. Make money Don't overthink it.

Iran Play

IMO, Iran has no hope. Therefore I'm investing based on a quick loss for them. Its working.

Double Eagle

I found a 'cash adjacent' investment to enhance my returns. A stock, ticker DEA. It pays 8%, plus nice capital gains potential. Two sources of profits.

Oppenheimer Fund, 1987

Oppenheimer funds recorded exceptional performance in 1987 despite the October market crash, with the Oppenheimer Ninety-Ten Fund leading as one of the best-performing mutual funds of the year with a return of +94.77% through December 23, 1987. It was 40 years ago. I was impressionable. I was impressed. 1. You can't insure excellent results normally. You can always insure before a catastrophic loss with good results. 2. You can manage "insurance" costs. 3. You can't implement an insurance strategy passively with good results usually.

Options to Reduce Risk

Its obvious that a stock + a Put is less risky then just the stock. Likewise a `call is simply the piece of a stock that can only go up. To emulate a stock portfolio, sell the stock, and buy an exactly equivalent number of calls. You reduced risk of loss.

Call Options

A stock can be decomposed into simple vectors, a scalar, Strike Price, and an expiration date. Call Option: A vector that begins at the strike price, ends at the termnal price, and extends upward until expiration. Put Option: A vector that begins at the strike price, ends at the termnal price, and extends downward until expiration. It's value is -price. Strike Price: A scalar representing the starting price of the options. Stock=Call+Strike(Cash)-Put Often referred to as Put/Call Parity. Most important: Stock+Put=Call+Cash.

And There's More .....

The FRBNY announced more sales on June 18th.

In addition, they announced (finally) that all the Maiden Lane loans (including ML I) had been fully repaid with interest.

It now seems likely that AIG will receive at least their $5 billion principal investment and $600 million interest by early july.

The current pace of sales, if it continues, will work through the remaining securities in a matter of weeks. 

My current guess is that AIG will have $7 billion in cash available for an early July purchase of Treasury shares.