It's sort of counter-intuitive. It's like, I trust my analysis enough to write puts but at the same time let me throw some cash away just in case I screw the pooch. I'll spend some time modeling some ideas this weekend. I guess the way to look at it is as catastrophic event insurance. My initial thought is the insurance premium won't pay for itself unless things go totally fucky.
Unicorn list. Possible PSTH targets. I am really surprised SpaceX only has a 25b valuation.
The Complete List Of Unicorn Companies
A unicorn is a private company or startup with a valuation over $1 billion. Check out our updated list of every unicorn company around the globe, their top investors, and more.www.cbinsights.com
The good research ones all require you to pay up.
Blazin
has mentioned the one he pays for I think but I forgot what it was.
Motley Fool issues rare triple buy! This stock could be like owning Amazon at $18! This is the stock investment brokers don’t want you to know about! Nine rules to follow to outperform the market!
I fell for that ONCE. They talked about this shit and I am like. Okay, sounds good. What is the fucking company? An hour later they're still cliffhangering it and I realized my mistake. I guess it gets a lot of people to actually buy their shit tho.
Marketwatch used to be semi decent for news and then they went all "you must pay to read this article shit". Fuck em. I still use them for looking up company financials because I like how they lay the page out but for articles, I dont bother.
Some research later, FTEC (Fidelity's tech sector ETF) uses a different index to mirror (MSCI USA IMI Information Technology 25/50 Index) than the XLK. It has a much larger basket of holdings and includes a lot of smaller tech companies. It has a smaller net expense, a slightly lower exposure to the big 5 at the top (AAPL, MSFT, V, NVDA and MA) and outperformed the XLK over the last year buy about 3.5%. Neither the XLK or the FTEC have enough liquidity in the options market to trade them week in and week out, but FTEC may be my go-to as a portfolio long term hold for the tech space. QQQ still outperforms FTEC by about 2-3% due mainly to the QQQ having big chunks of GOOG, GOOGL and FB. But of course my objective is to eliminate them from my portfolio.
I can't find a model that makes sense (to me) to use this spread. The best I found was writing the QQQ $303 (1/15 expiry) for 67 cents and buying the $295 for 41 cents. That is writing a 5% drop and buying a 7.5% drop for protection. The worse case scenario has it closing at $295.01 and the insurance expiring worthless. The net result is a paper loss of $7.73 a share. Alternative, you just write the 50 DMA at $298 for 49 cent premium. Since the crash QQQ has only broken the 50 DMA twice. Using the same scenario above and the QQQ breaks down to $295.01, the net paper loss this way is $2.50. For the spread to breakeven (loss of $2.50) with the 50 DMA write, QQQ would need to crash to $289.78 on Friday. That is a 9.17% loss from Friday's close. The above assume assignment and not getting lucky buying/selling the options at the 11th hour on Friday.
