Thursday, July 28, 2011

Stock Tip? Boeing, BAE to Build 'Laser Machine Gun

The stock tip below caught my eye because I personally have always wanted to have my own laser machine gun, and because it will change the economics of war and that is something that I, as a Binary Day Trader need to be kept abreast of.  I found this article at http://pimp-my-trades.blogspot.com/2011/07/boeing-bae-to-build-laser-machine-gun.html

I found this article while trolling the web and aside from thinking that it is very much out of sci-fi movies to shoot stuff with a laser gun, I also think that it will result in strong performance from the companies developing it.  The primary companies involved are Boeing and BAE, so keep a sharp eye out for their stock performance.  

Boeing, BAE to Build 'Laser Machine Gun'

Published July 27, 2011

Like peanut butter and chocolate, the U.S. Navy thinks machine guns and lasers are two great tastes that taste great together. They hope the combination of old school lead with new school "pew" will better protect their ships from attack by smaller boats.

BAE Systems, a British defense firm, already makes the giant machine guns that protect warships from approaching watercraft. Tuesday, Boeing announced that it will team up with BAE Systems to develop a solid-state laser that would work in tandem with the already potent weapon.

"Boeing is committed to developing this directed energy system that will significantly enhance ship defense," said Michael Rinn, Boeing DES vice president. "Combining BAE's engineering expertise with the proven directed-energy proficiency of Boeing's DES division creates a team uniquely qualified to integrate directed-energy technology into the Navy's shipboard armaments."
BAE won the contract to develop the laser, which the Navy envisions as a countermeasure against small drones, tiny boats and anything else that gets too close a Navy surface vessel. Now, Boeing has joined the team to develop the prototype weapon.
It's anybody's guess what kind of threat a machine guns or lasers can't defeat on their own (Mothra? Decepticons? Kraken?). But now that 19th century ballistic technology has teamed up with 21st century ray gun tech, whatever that enemy may be will think twice about messing with a U.S. Navy warship.

Monday, July 25, 2011

The Black Scholes smiling graph.

As you are probably familiar with, the Black-Scholes model is the basis for Binary Trading, a new form of derivative investment that enables you to make money based on your accurate prediction of how the market will perform.

dV=\left(\mu S \frac{\partial V}{\partial S}+\frac{\partial V}{\partial t}+\frac{1}{2}\sigma^{2}S^{2}\frac{\partial^{2} V}{\partial S^{2}}\right)dt+\sigma S \frac{\partial V}{\partial S}\,dW.
This means that you can make good money by accurately predicting that a stock or other investment will go down in price, will remain the same, or will reach or drop to a certain level. While in the past, stocks would only be of use to an investor if they performed well (or in the example of a short sale, performed poorly) - but the Black Scholes model allows for "Binary Trading" meaning that you can hedge the market based on all-or-nothing positions, meaning you make 85% (or so) profit if you are right and loose 100% if you are wrong.

\Delta S = \mu S \,\Delta t+\sigma S\,\Delta W\,
\Delta V=\left(\mu S \frac{\partial V}{\partial S}+\frac{\partial V}{\partial t}+\frac{1}{2}\sigma^{2}S^{2}\frac{\partial^{2} V}{\partial S^{2}}\right)\Delta t+\sigma S \frac{\partial V}{\partial S}\,\Delta W.


With the way the market has behaved in the recent years, it became critical for investors to be able to make money using their knowledge of the market, without having to wait YEARS for the bull market to return.

Basically, if you can look at a graph and predict where it will go next, then binary options trading is right for you.