Subject: A play is only as good as you execute it.
Author: misshuana
Posted on: 01/23/2017 08:37:09 AM
Colletti Dodgers Arent Spending Recklessly - RealGM Wiretap
Ned Colletti doesn't agree with the notion that the Dodgers have been spending recklessly.
The Dodgers have committed more than $600 million to players over the past six months.
Colletti said the Dodgers are never "going to be reckless with what we do."
The team will have a payroll exceeding $230 million in 2013 Authentic Cameron Fleming Jersey , easily a major-league record.
"Our payroll a year ago was $90 [million]," Colletti said in an interview on ESPNLA 710. "We're up over $200 [million] now. If you added it all up, it might be up over 300 [million] over two years. Had we been at 150 last year and 150 this year, nobody would be saying a word, right?
"If we were at $180 [million] last year, which is probably more conducive to our market size and how many people we draw, and we were at $210 [million] or $215 million this year, are people going to say, 'My goodness?' No. What has jostled the whole situation is we were coming from so far below the $100 million mark that it's startling to see all the changes, but that's the mindset of our owners."
锘? The caller seemed surprised that I had never heard about Compound Stock Earnings Programs, or CSEs. "People are earning three to six percent per month with little or no risk", she continued, "I'm thinking of attending a seminar". A wise man once said: "If it sounds too good to be true, it probably is", but this sure is a creative euphemism for what has to be a rather complicated options strategy.
The buyer of a "call" option obtains the right to purchase a specified quantity of a security from the seller of the option, at a stated "strike price" Authentic Ted Karras Jersey , and at any time on or before the contract expiration date. When the option seller owns the security, it is called a "covered" call. The CSE hucksters don't deny that their magic cash flow system is based on selling "covered" call options, but the "come on" includes a laundry list of misinformation, partial truths, and inaccuracies about the stock market and investing.
Covered calls have been around forever, but this is the first time I've seen them touted as safe investment vehicles. They are certainly the safest of a complex array of option strategies, but very few registered, certified, or well known and experienced investment gurus would ever use the word safe when discussing options--- or recommend them. All options are speculations, no matter how well sugar coated and no matter how fail-safe the trading system appears. The risk is in there.
Options are bets about the future price movement of exchange-traded securities--- it's just that simple. The prospect of unusually high returns always signals unusually high risk. Caveat emptor, in spades. Here are some things to consider before you think about attending that free seminar--- not to mention the basic reality that equities are not at all the proper investment vehicle for an income-generating portfolio. That's what income securities are all about.
The pitch begins with the accurate statement that most investment portfolios are chock full of equity mutual funds, and that such funds rarely produce enough income to pay the bills. Consequently, principal drainage occurs when mutual fund shares have to be sold during market downturns. But no mention is made of the fact that really low-risk, monthly-income, and easily traded alternatives (currently ranging upward from above 5% tax free and above 7.5% taxable) are readily available.
The second CSE selling point laments the declining dividend yield on NYSE traded securities. Again, equities have never willingly accepted a job description that includes "provide monthly spending money to shareholders". The purpose of stock ownership is growth in the form of capital gains. When income becomes the purpose of the investment program Authentic Malcolm Mitchell Jersey , proper advice would be to sell the stocks and to buy monthly income producing securities.
Actually, there has never been a time when common stock dividend yields were as high as some of the CSEs report in their propaganda, and historical growth rates of the Dow and S & P have always been calculated ex-dividend. Similarly, the glossies talk about the low yield on individual bonds and treasury securities as though these were the only alternatives an investor has, which they obviously are not. Based on website review alone, it's doubtful that the CSE marketing companies are registered with the Securities and Exchange Commission (SEC).
Even if we pretend that an equity portfolio's growth rate can be enhanced with a covered call strategy, let's look at the things the investor has to think about after he puts the option premium into his pocket. What if someone drops the ball (or if something really good happens over night) and the stock is actually called away? Think of the tax consequences of a gain on low cost-basis holdings, or the actual capital loss if you are writing the calls on stocks that have fallen in price, as you will certainly be doing during corrections.
Additional drawbacks of the covered call program are: (a) limiting the amount of profit on a rising stock; (b) reducing portfolio liquidity and flexibility because the underlying securities cannot be sold unless the option has been bought back; (c) there can be up to four separate commissions paid in one completed transaction; (d) higher premiums are generally associated with higher price volatility and higher risk levels--- which is as it should be. Another possibility is that the call buyer might exercise his option early in order to capture the underlying stock's dividend, or because of take-over rumors.
So as safe as the CSE promoters want you to believe the process is, there is a significant potential for both loss and inconvenience--- enough so that managed municipal, corporate, and government CEFs, REITs, preferred sto.
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