Round Up: Prenups and Truckers

by JT McGee

I’ve a highly specialized round-up this week.

First, a three-way twitter convo with Pkamp3 at DQYDJ.net and Matt at Rambling Fever spawned a question – should you get a degree or drive a truck?

The raw data suggests that this question is actually pretty reasonable. You’ll see that earnings between the average person with a degree and the average young trucker are very close to one another. Adjusting for opportunity costs as well as the cost to finance an education, trucking might get an edge – this is just my interpretation, anyway.

Onto the topic of prenuptial agreements, Kevin at Thousandaire has a hilarious new video discussing why you should always get a pre-nup before you wed. This is a tough topic for some – but the humor of the video really takes the edge off.

I dig it.

Options Update

I meant to include this in past round-ups after posting about why I was bullish on the American auto sector. I bought Ford call options, which have provided one hell of a rollercoaster ride over the past few weeks.

In less than a week, I was up something like 50%. In less than two weeks, I had nearly doubled my money. After three or four weeks, I was back to even. Options are volatile – obviously – but this volatility is a good thing! I said in the post that I didn’t want the equity itself, and that Ford calls provided downside protection (they most certainly have done that.) Europe man…stuff’s crazy over there.

Anyway, I’m a little ahead of the game on my calls. They’ve run to $2.40, which is a ~20-25% gain. I said in the post I’d exit for an easy double if the markets gave it to me quickly – almost, but not close enough! Or hold on for a triple if it took more time.

Looks like I’m in for the triple, so we’ve gotta run to a little under $16 or so by January 19, 2013. Obviously, if serious momentum builds in the next few months or weeks (as I expect from a possible dividend announcement next quarter) I can exit after tripling my money well before January 2013. (Option time decay be damned!)

Photo by: psiaki

{ 5 comments… read them below or add one }

PKamp3 December 3, 2011 at 13:07

Yeah, that was a fun article… if you need anything else that needs a super hardcore examination let me know, haha.

Hedge that theta!

Reply

JT December 3, 2011 at 15:39

Hedge theta? Pfft – you must work for a broker or something, trying to make them rich on my transaction costs. 😉

Reply

Darwin's Money December 4, 2011 at 18:10

I love options now and then; most recently, been profiting from shorting out of the money Treasury options as well as selling QQQ out of money calls. Index ran on my a bit last week, but come on now, how much can this market rally when the world is crumbling…

Reply

Funancials December 4, 2011 at 23:03

I’ve never had a three-way on twitter…sounds kinky

Reply

Matt December 8, 2011 at 00:31

I’ve had plenty of three-ways on Twitter… none kinky so far! Twitter is an incredible tool though. I’ve stumbled upon some pretty cool stuff via Twitter. The way that trucking post came about was about as random as you’ll ever see! Good stuff.

Reply

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