I Need Help With This One

[FatOtt]

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Ran this buy the manager of the hedge fund I work at...


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I don't take advice from irrelevant mediocrities



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Beautiful

You ask for stock-related advice from anonymous people on a predominantly poker-related message board, but won't take it from an anonymous hedge fund manager?


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I think it was the "stick to poker" part he didn't like, can't say I blame him. But thanks for the back up.

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Actually, I was giving him [DS] credit and assuming he wasn't engaging in ad hominem attacks. I assumed that he had some basis to claim that the average hedge fund or hedge fund manager does not outperform the market, and that knowledge allowed him to disregard the opinion of one such hedge fund manager. [If he does have some basis to make that claim, I would like a reference.] Of course, this would be a strange comment to make from someone soliciting advice on a message board whose contributors have no track record at all.

If, on the other hand, he was just being randomly arrogant or pissy about the "stick to poker" comment, I'd say he needs thicker skin.

[yanfu]

Maybe USBL or trading card companies like TOPP, RML Russel owns the Spalding brand which is heavily entrenched in NBA brand gear.

[J.R.]

Wouldn't the looming NHL lockout be perhaps a more significant factor that weighs against a bad business year for the NBA, assuming demand for professional sports entertainment is viewed as relatively constant and the NBA and NHL are regarded as somewhat substitutable goods amongst the typical sports fan. A guy with a sports fix had got to watch something, and with no hockey, doesn't the NBA stand to gain market share in what is not likely to be a shrinking market?

[fnurt]

This is an extremely good point.

[Redsox]

The Celtics were not a stock, but rather they floated a certain amount of their debt into a publicly traded security. Owning an amount of the debt of the Boston Celtics is not akin to equity holdership.

[adios]

Dave wrote:

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The Boston Celtics used to be a stock but aren't anymore I don't think.

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You responded:

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The Celtics were not a stock, but rather they floated a certain amount of their debt into a publicly traded security. Owning an amount of the debt of the Boston Celtics is not akin to equity holdership.

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Again not a kneejerk defense of Dave. Dave could have used a better word than "stock" perhaps (I don't remember the nature of the security that was publicly traded, I'll take your word for it though) but you didn't address his point methinks ie unless David's idea would only apply to equity. I don't see why it wouldn't apply to debt.

[BadBoyBenny]

I think J.R. hit the nail on the head here.

If the NHL locks out, it will override any boredom people have over this years NBA season.

[ApolloQuiet]

I don't think there is going to be much of a negative reaction due to the poor Olympic showing. There were enough shakeups in the league in the off season, to still make things interesting. And even if there is any sort of affect upon sales of NBA related merchandise here in the U.S., I would figure it would be more than made up Internationally. Now you have emerging basketball markets in Argentina, Italy, China and Lithuania that weren't as strong prior to this years Olympics.

[pocketdueces81]

I wouldnt recomend betting on a given stock because of the NBA's failure in the Olympics.

Clearly you are an investor who is willing to take the risks of entering into an options contract.

I would suggest opening a position that limits your downside potential but provides a unlimited upside potential like a Long Straddle (where the maximum loss is the premium paid). Entering into a LS position is a bet on high stock volatility.

I would avoid such a highly speculative assumption on the NBA and then trying to decide which company would take a dive from the leagues lack of success in the Olympics. The poker equivalent of this mistake would be the hero calling an all in with AK when you are sure the villain has Aces.

Perhaps you should look into the airline industry with a few firms filing for chapter 11. That is about all the free advice I can give on option contracts.

I personally like the the health care sector. With patents and drugs being approved or deamed harmful, there is much money to be made just by picking stocks, let alone a highly leveraged option position. A wonderful company who specializes in the health care sector is Leerink Swann & Co.

Just my $.02

[ApolloQuiet]

Nike nearing it's all time high today.