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Showing posts from February, 2014

It's funny when a non-white person says these things...

I was requesting quotes from some Chinese suppliers for parts we need that they just don't make in the US.  Everyone knows the stories about why so much of the US manufacturing sector moved to China; they can build stuff much cheaper than we can.  They are known for being frugal.  Thus, I got a pretty good laugh when I saw this message from a supplier:

3)For the brightness, the type we quot you is for ultra brightness. We only send products with low brightness to india market. I think you understand their need is always with very low price and normal quality.
There!  I didn't say it originally nor alter the text, I'm just passing it onto you verbatim as it appeared in my inbox.  Many cultures love to point out differences in other cultures, and it's not meant to be racist in a hurtful or derogatory way; many times, it's simply stating facts.  I think Americans go too far with what is defined as racist, and are too quick to censure someone simply for pointing out cul…

Getting An Option Assignment Isn't Such A Scary Thing

Publicly-traded stocks and other equities often feature options, which are essentially derivatives of the motion of the underlying equity.  Stock options are also publicly-traded (unless you're at a company that still gives stock options as performance bonuses).  They allow individuals to reduce risk in their portfolio, or (infinitely more fun) to speculate on the movement of the underlying stock or equity.  There are two forms of options, and just like regular equities, two ways to play them.  In American-style markets, you are free to exercise options at any point prior to expiration.  I'll spare you a crash-course in options, since you can get the jist of how they work in many other places.

However, many tutorials gloss over a glaringly obvious fact that must not be intuitive to many people, based on my personal experience.  It's also extremely simple:  It is never optimal to actually exercise a call early, unless the underlying stock is about to pay a dividend.  That is…