Investing General Discussion
- Thread starter Furious
- Start date
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100 percent of my “fun money” account is in CPUH.U. Not even another SPAC.
Been too busy at work to day trade lately, and it looks like I picked a damn good time the past few weeks not to bother.
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Don't take this the wrong way bro, but you are the board's living example of why trading on margin is no bueno. Thoughts and prayers, brother.
Arden
Blackwing Lair Raider
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Only thing going up on my ticker is MO, SH, and PSQ. Holding PLTR because I planned on holding that long regardless of what happens in the short term. Aside from that I'm sitting on an overbought SINO that I hope will bump back up if BTC rises again and ITRM, which, who the fuck knows about that one. I've got several SPACs sitting around NAV.
Obviously lots of talk about a big pullback. Possibly something mirroring the .com bust in 2000 with tech stocks.
Obviously lots of talk about a big pullback. Possibly something mirroring the .com bust in 2000 with tech stocks.
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Thats why I am as transparent about it as possible, so all the lurkers can get different experiences. I'm still way ahead overall, but the longer this goes on more chances the "house" gets to win. I have a "plan" to be margin free by mid April though, and I am making progress.
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I added a little bit today. Added some more CRM, NVDA, WMT and QQQJ. My standard strategy is to buy a half position when I go long on a stock that is being added to my buy and hold stuff. Usually thats around 2.5% of my portfolio. From there, over time I look for times to add to my positions up to my max of 5%. Some strategies just have you buying a full position if you like the stock enough to buy it, but I prefer this method. My puts I wrote are bleeding red right now, but I have weeks for them to correct themselves. Only 1 is currently in the money. All the rest are meaningless losses unless they expire in the money. Time decay is on my side. I dont worry about paper losses.
I will say for those hording cash waiting for the "great crash", we may not see one. We very well could bleed 0-2% for days at a time, especially as the liquidity dries up at the close. We saw this a year or two ago and it lasted a while. You could set your watch by the 3:51pm crash. Look for targets you like at prices you like. If it hits a price you like, buy it. Don't decide to "wait for tomorrow" so it will be cheaper. Tomorrow may never come. Set your levels to buy (be they the 50, 100 or 200 DMA) and if it hits the target pull the trigger. If you are buying to hold it for 20 years, a percent or two doesnt make a difference at the entry.
Or maybe we do see a big crash and y'all score big like last year. The problem is we just dont know. My personal feeling is Janet Powell is not going to allow us to have a major crash. The Fed and the current Govt doesnt give a shit about the future. They care about the next election cycle. Period. Its shitty, but that doesnt make it any less true.
I will say for those hording cash waiting for the "great crash", we may not see one. We very well could bleed 0-2% for days at a time, especially as the liquidity dries up at the close. We saw this a year or two ago and it lasted a while. You could set your watch by the 3:51pm crash. Look for targets you like at prices you like. If it hits a price you like, buy it. Don't decide to "wait for tomorrow" so it will be cheaper. Tomorrow may never come. Set your levels to buy (be they the 50, 100 or 200 DMA) and if it hits the target pull the trigger. If you are buying to hold it for 20 years, a percent or two doesnt make a difference at the entry.
Or maybe we do see a big crash and y'all score big like last year. The problem is we just dont know. My personal feeling is Janet Powell is not going to allow us to have a major crash. The Fed and the current Govt doesnt give a shit about the future. They care about the next election cycle. Period. Its shitty, but that doesnt make it any less true.
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Uber Uberest
rdr^2
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"buying bearish puts as a strategy". Now where have I heard that before?
Be Like Warren Buffett. Use This Options Strategy. -- Barrons.com
DOW JONES & COMPANY, INC. 6:29 AM ET 3/4/2021
Warren Buffett is no stranger to risk. He famously said that investors should be fearful when others are greedy and greedy when others are fearful.
He has applied that investment discipline in many different situations, such as when he took over Salomon Brothers in 1991 after a bond-trading scandal, and during and after the 2007-09 financial crisis. In 2011, for example, he boldly invested in Bank of America(BAC) when many people thought the company was doomed.
Now, however, at a time when so many investors are greedy, the 90-year-old CEO of Berkshire Hathaway (BRK.A) is anything but. Buffett seemingly has no idea how to deploy his $138 billion cash pile at a time when many investors are half-drunk with greed ahead of an expected $1.9 trillion stimulus program.
In his recent annual shareholder letter, Buffett essentially told investors that he sees the most compelling value in buying more of what he already owns. Berkshire spent $24.7 billion repurchasing its own stock in 2020.
"The math of repurchases grinds away slowly, but can be powerful over time. The process offers a simple way for investors to own an ever-expanding portion of exceptional businesses," he wrote.
Few commentators seem to juxtapose what Buffett does against the larger market. They tend to treat him as if he exists in a financial snow globe hermetically sealed by his financial genius. His buyback decision tends to be overlooked as a potential market indicator that investors need not always be chasing the loudest, shiniest equity knickknacks. Sometimes, the best move may be to focus on what one already owns.
The critical question is how best to acquire more of what one owns. The answer is complicated when stock valuations are elevated. Goldman Sachs portfolio strategists recently told clients that the S&P 500 index's forward price/earnings ratio of 22 is at the 99th historical percentile since 1976, ranking behind only the peak of the dot-com bubble in 2000. The firm remains bullish, however, as the dividend discount model implies an equity risk premium that ranks only in the 28th percentile.
The easiest way to buy more stock is buying more stock, but selling bearish put options positions investors to buy the stock at a potential discount to its market price. Investors almost always overestimate the likelihood that stock prices will decline, and they often pay too much to buy bearish puts, especially index options, to hedge. Sellers of those puts can often profit by collecting the fear premium.
An added benefit of cash-secured put sales -- the money to buy the stock is set aside in a cash account -- is that they often offer attractive returns on invested cash if the stock remains above the put strike price.
Consider Microsoft(MSFT) , widely held and keyed to the growth of cloud computing. With the stock at $227.56, an investor could sell the April $210 put for about $3.65.
If the stock is above the strike price at expiration, investors keep the premium, earning a 1.76% return over 45 days on the $21,000 needed to secure the sale of the April put. The return is figured by dividing the put premium by the strike price minus the put premium.
Should Microsoft's(MSFT) stock be below the strike price at expiration, investors can buy the stock or adjust the put in the options market to avoid assignment. Since the goal was buying more stock, sticking with the plan is often a good idea. Of course, only sell puts on stocks you are willing to own.
The ultimate goal is "time arbitrage," a strategy that entails selling short-term options to buy blue-chip equities that can be held for many years. The options premium is intended to supplement the compounding of dividends and stock returns over time.
As Buffett noted in his shareholder letter about buying back stocks, quoting Mae West: "Too much of a good thing can be...wonderful."
Be Like Warren Buffett. Use This Options Strategy. -- Barrons.com
Be Like Warren Buffett. Use This Options Strategy. -- Barrons.com
DOW JONES & COMPANY, INC. 6:29 AM ET 3/4/2021
| Symbol | Last | Price Change |
|---|---|---|
| BAC | 36.24
| 0 (0%) |
| MSFT | 227.56
| 0 (0%) |
| QUOTES AS OF 04:10:00 PM ET 03/03/2021 |
Warren Buffett is no stranger to risk. He famously said that investors should be fearful when others are greedy and greedy when others are fearful.
He has applied that investment discipline in many different situations, such as when he took over Salomon Brothers in 1991 after a bond-trading scandal, and during and after the 2007-09 financial crisis. In 2011, for example, he boldly invested in Bank of America(BAC) when many people thought the company was doomed.
Now, however, at a time when so many investors are greedy, the 90-year-old CEO of Berkshire Hathaway (BRK.A) is anything but. Buffett seemingly has no idea how to deploy his $138 billion cash pile at a time when many investors are half-drunk with greed ahead of an expected $1.9 trillion stimulus program.
In his recent annual shareholder letter, Buffett essentially told investors that he sees the most compelling value in buying more of what he already owns. Berkshire spent $24.7 billion repurchasing its own stock in 2020.
"The math of repurchases grinds away slowly, but can be powerful over time. The process offers a simple way for investors to own an ever-expanding portion of exceptional businesses," he wrote.
Few commentators seem to juxtapose what Buffett does against the larger market. They tend to treat him as if he exists in a financial snow globe hermetically sealed by his financial genius. His buyback decision tends to be overlooked as a potential market indicator that investors need not always be chasing the loudest, shiniest equity knickknacks. Sometimes, the best move may be to focus on what one already owns.
The critical question is how best to acquire more of what one owns. The answer is complicated when stock valuations are elevated. Goldman Sachs portfolio strategists recently told clients that the S&P 500 index's forward price/earnings ratio of 22 is at the 99th historical percentile since 1976, ranking behind only the peak of the dot-com bubble in 2000. The firm remains bullish, however, as the dividend discount model implies an equity risk premium that ranks only in the 28th percentile.
The easiest way to buy more stock is buying more stock, but selling bearish put options positions investors to buy the stock at a potential discount to its market price. Investors almost always overestimate the likelihood that stock prices will decline, and they often pay too much to buy bearish puts, especially index options, to hedge. Sellers of those puts can often profit by collecting the fear premium.
An added benefit of cash-secured put sales -- the money to buy the stock is set aside in a cash account -- is that they often offer attractive returns on invested cash if the stock remains above the put strike price.
Consider Microsoft(MSFT) , widely held and keyed to the growth of cloud computing. With the stock at $227.56, an investor could sell the April $210 put for about $3.65.
If the stock is above the strike price at expiration, investors keep the premium, earning a 1.76% return over 45 days on the $21,000 needed to secure the sale of the April put. The return is figured by dividing the put premium by the strike price minus the put premium.
Should Microsoft's(MSFT) stock be below the strike price at expiration, investors can buy the stock or adjust the put in the options market to avoid assignment. Since the goal was buying more stock, sticking with the plan is often a good idea. Of course, only sell puts on stocks you are willing to own.
The ultimate goal is "time arbitrage," a strategy that entails selling short-term options to buy blue-chip equities that can be held for many years. The options premium is intended to supplement the compounding of dividends and stock returns over time.
As Buffett noted in his shareholder letter about buying back stocks, quoting Mae West: "Too much of a good thing can be...wonderful."
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Fogel
Mr. Poopybutthole
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Sold my KMPH, will probably buy back in if it gets back to around or under 10 as I think it can go back up either on the short interest or a potential buy out. BCRX is another bio play I want to buy in as they have a big data announcement on 3/22 but who knows with either of these in current market conditions so playing it safe for now and only buying in the 9-10 range.
Jimbolini
Semi-pro Monopoly player
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No. It has a net expense of 0.75 basis points AND it is going to rebalance monthly. The stock churn on this fucker will be mind-numbing and chunks of the profit will end up going to pay taxes and fees on all the transactions. Also trying to rebalance that often will lead to lots of buying high and selling low chasing "sentiment". Or I am totally wrong.
tldr: The fund managers will make bank on the expense ratio and trading fees and the investors will be screwed.
swayze22
Elite
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its a meme ETF. it can fundamentally have some success but the volatility will be stupid because its the same tards from the same sector of the internet that like barstool. I try to stay away from all that. (not saying you can't make any $$)
Hateyou
Not Great, Not Terrible
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I can’t imagine how it would be successful either. The meme stocks have spikes and crashes that happen within days or hours. Trying to rotate out of those to keep on top of them seems ridiculous as abusiness model.
It seems like they would be more successful if they were just a sub based website/app that just shows the top hitters in their algorithm live. This way meme chasers could use it to day trade.
I’m pretty much wrong about everything though so this probably means it will be wildly successful.
Furry
WoW Office
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Marketwatch is practically the Nostro-messiah of investing, so better buy now. They've literally never been wrong.
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OCGN is at a nice entry point. missed a couple chances to scalp but its set to go up considerably. for reference theyre a pennsylvania based biotech company with distribution deal with bharat biotech for covid vaccine covaxin, phase 3 interim data just came out yesterday with 81% efficacy, safe, easily adapted for future variants, ships in ready to use liquid form without extreme cold storage etc. plenty more promising DD, just awaiting FDA EUA down the road. should be aware of a shareholder vote march 16 to increase shares from 200 to 295 million to raise funds for manufacturing and distrubuting and a bright future to change the world blah balh.
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