How goes it folks,

Well I cant say I am chiming back in at the happiest of times. Charles Bradly has passed, Tom Petty has passed and what took place in Las Vegas early this week does nothing short of bring tears to my eyes. And what is currently taking place in Puerto Rico is equally tragic. Both places are special to me in different ways.  Vegas was an adolescent stopping ground, my Thompson trail if you will.  It was a source of music, of golf, and my annual Black Jack hand.  Puerto Rico, well… I had the pleasure of spending upwards of two and a half months there this year making friends and enjoying all the splendor that is the Spanish Virgin Isles.  In fact, it was the first place I decided to go for the year long around the world Environmental Hedging tour.  All I can really say and process at this point is that my heart goes out to all of those affected by these senseless tragedies.  If you need a lending hand, feel free to reach out.

As far as I go…well, I have been on the move over the last couple weeks and have been on the move in very interesting times. Everyday I cant help from thinking about the world at large, what’s taking place, and wondering about the path we are embarking upon as a species.  On the one hand I often make the presumption that all of this can be solved by adding a pinch of “peace and love” to the recipe.  On the other hand, skepticism tends to take hold and I begin to envision the bleakest of realities for future generations.  Really the only thing I am sure of is that this is a time of action.  If two particular generations do not seize this moment I fear they will be generations vilified throughout history.  I myself do not want to be apart of such a tragic eulogy.

Even in the darkest of times, there is always light.  There is always insight to be had and more often than not intuition bears it’s own fruit.  For example, the idea of love in Socratic Greece is akin to the idea of friendship and love, in its purest form, is in and of itself the highest form of friendship.  To be “friends” with another is to love the other as you love yourself.  And to love, well that is an institution of respect, of honor, and human dignity in Greek culture.

As I am in Greece at the moment I find it applicable to bring forth a couple tidbits that I have learned since arriving: For one, Greek history is a history characterized by dark times.  And it is from these dark times that Greece created Democracy and laid the foundations of Western Civilization and the modern notion of freedom.  I suppose what made these cornerstones primarily Greek in their early inception has a lot to do with the general Greek mindset. You see, Greeks have an uncanny ability to make the best of a bad situation while remaining true to the universal principals of love and friendship.  That, and it is very Greek to resist governmental control—just look at tax behaviors in Greece, or the lack thereof.  But all in all they are a very hospitable culture which always has an open door, no matter what. I believe we can learn from this and my gut feeling has it that as long as we can be good to one another, to love and be loved, we stand a strong chance of getting through all of this in one piece.

Now what does this have to do with the markets?  Nothing.  I am just making note of current events in relation to my current reality.  As far as the markets go this last week was a bit better than the previous two.  I mean last week stocks around the table hit support levels and began their climb back north—which has been helpful to my accounts.  However, it’s rather concerning how much optimism is in the markets, especially when one considers the fragile emotional state the world is in.  It reminds me of Alan Greenspan’s famous quote on the markets being “Irrationally Exuberant”.  If Trumps tax plan and the central banks around the world continue to keep low interest rates then the market is going to continue to be…Irrational.  For now, it is business as usual and it is important for a investor to live in the present for the time being, keep it simple, and stay frosty.

Robin Hoods:

FCX—Freeport McMorhan

Naked Puts: As mentioned last week FCX had been hovering around support. Finally we are back in the green. If momentum continues I anticipate the Put positions we have been holding onto to pan out nicely. There also seems to be a “W” formation in creation. Mmm…

X—United States Steel

Naked Puts: We have had a bit of a scare over the last two weeks with our Put positions. Things are looking up however. I am still being cautious with the stock but we could be seeing an renewed opportunity to sell Puts early this week. It would be a short-term position but if you haven’t issued yet you may have a modest time frame to do so…

AMD—Advanced Micro Dynamics

Naked Puts: She is creeping along… Nothing bad and nothing out of the ordinary for a neutral trend. As mentioned last week I anticipated letting this trade expire but technical analysis has us in a squeeze. We very well could see some substantial moment this week. I expect a battle between technicals and news.

Targeted Stocks:

SPWR—Sun Power

Covered Call: I am going to be pulling off my call position on the stock. I am seeing a decent consolidation pattern, I’ve collected more than 75% of premium on my calls and I can see the stock heading back north this week.

FSLR—First Solar

Covered Call: Unlike SPWR I am going to hold onto my calls for a couple days longer, maybe even into next week. Overall my posture is similar to Sun Power, but I see the neutral to bearish trend continuing for First Solar a tidbit longer. If your ok with being exposed, feel free to collect profits and uncover the position though.

TSLA—Tesla Motors

Covered Call / Bull Put Spread: She is getting ready to bounce. This could be a great opportunity to uncover the position or issue a Bull Put Spread. I would say Wed or Thurs being go time. Wait for confirmation, however.

Environmental Hedging Week 16—Unfamiliarity and Solidarity.

As mentioned I am currently in Greece and specifically the island of Crete.  Wow, what a special place.  As it is easy to fly to Crete from Athens I would highly suggest taking the 9hrs night ferry if you have the time.  It’s basically a mini cruise and a great time to catch a local perspective on nearly anything.  Greek people rarely shy away from telling you what they think of things in conversation and I have been continually impressed by how philosophically savvy the average person is.  They know their roots and know how to make conversational use of them.

For example, the idea of “Philosenzia” is an important concept in this country.  In English it can be best described as a “good love” or “special love”.  At least that’s what our bar-tender described it as. She went on to explain that its a form of dignity and respect, i.e. love, one gives to a foreigner or newcomer in order for them to feel welcome, to feel at home, and be at ease with their current situation.  You know, its the kind of love you show a potential friend without having full gauge as to what kind of person he or she is.  Some cultures call it courtesy, others call it solidarity, and most call it human dignity.  The beautiful aspect of the term is that it is rich and all encompassing.  But in the broadest sense, “Philosenzia” is love of, ultimately, what is unfamiliar.  Just like in Le Stange, it is the fringe of a culture which ultimately defines the whole, especially if the fringe is not there by birthright.  It must be noted that cultures which embrace their outliers are cultures that often come out ahead in dark times.  In fact they sometimes go on to change history forever, just like Greece has.

I suppose the lesson embedded is commonly understood but not commonly practiced.  In short, be open to different people, don’t be afraid of the unfamiliar.  Embrace it.  And better yet show it respect, dignity, and the same level of love that you show yourself. In fact let curiosity bring the cat back. The worst thing you can do is pass by someone in need without helping.  That, or not take the time to include those who are not outgoing enough to include themselves.  Sometimes that lonely guy at the bar will go onto to be the bearer of grievous acts against humanity.  You never know… And you never know if any one small gesture of love and kindness could ever change that.  You very may well inspire the next Rousseau.  Or you very well may not have an affect, whatsoever, however, at the end of the day the right thing to do, the mindful act, is never a wasted effort.  One thing humanity needs to embrace is Philosenzia.  The world is too small not to.

And if you make a little money off the above mentioned trades.  Maybe donate a portion to the victims of Las Vegas or Puerto Rico.  Or even, for that matter, the continuing refugee crisis in Greece.  Its good love, its Philosenzia, its human dignity.  As Adam Smith once said: “All for ourselves and nothing for others, seems to be, in every age of this world, to have been the vile maxim of the masters of mankind”.

Next montage will be of Greece proper. Good Love and remember one thing, when you have asset money, that is money you don’t have to work for, you can live whatever life you want and that is the true essence of Environmental Hedging.

Cheers,

Bob Shannon