Investment BS Thread - Stocks/Futures/Mutual Funds/Bonds/Commodities/Options/ETFs/401ks/Etc

Only thing is it's an election year and if this virus pops off again who knows how the market could sink ? Was down over 100 k and now just 25 k or so ... thinking about just keeping my blue chips and moving some of the mid-cap ETFs to laddered CDs till after the elections.

Do any historians here know how the markets usually react on Election years?

 

I believe it usually goes down but I could be wrong.

 

So as far as a parachute goes....I just sell deep in the money calls. The Premium is almost equal to the present share value -the amount of your stop loss..SO if the shares go to zero you only lose the same amount of money you would on a stop loss..
For example, HTZ...Let's say you have 100 shares. It closed at $5.50 today. That's $550. Let's say you want a $4.75 stop loss ($475) but you're afraid it wont execute on a crash, and a market sale might execute at $2.50 a share yielding $250 and you miss out on $225..Sell the $1.50 JUNE 26 CALL for $4.80. That means someone gives you $4.80 today for the rights to buy your shares @$1.50 each on June 26. So you get $480 today and $150 on June 26 IF the share price is over $1.50. If it's under $1.50 you keep the $480 and your shares. You notice your stop loss was for $475. You've just guaranteed $480, and a chance to make more if it's below $1.50 and a cap of $630. The worse that can happen is you get BETTER than your safety net price.
Even better than that is if the shares of HTZ drop you can buy back that contract for LESS that what you paid....and keep the difference and sell another to protect your shares...

This is the great benefit of the covered call. I almost always sell covered calls when I have a comfortable profit and am ready to exit a position.

 

I thought it depends on if there is a regime change...and if the Washington Redskins win their first home game...

 

Not sure, but I'm hearing that there's politics influencing things, along with the NFL and recent public statements.

I'm going to watch and bail if necessary.

 

I was looking in to $GAN as well. DraftKings utilizes their servers or software or something. It seemed to be following the same trend as $DKNG though so I opted to stay out.

grabbed a few oil stocks today

 

If I pull out of DKNG, I'll throw everything at oil.

 

I was busy today and didn't pay attention at all

Just logged in

 

Uuggh...It would be 3x digits if I wasn't taking it in the ahem...from these puts I am closing...

 

Ok now that I’ve had a couple beers, I’m back to thinking of pulling $10k from my HELOC and dropping it into NRGU. F it. Go big or go home, right?

 

Last week would have been the better option...

 

i know

 

Just put in a stop loss of 10% or something...It's going to have some red days...but it's going to be better than a casino...

HTZ...WTF??????????????????????

 

Just put it into the Hertz Locker and let it go....

 

I’m still learning... I don’t know how to do the stop loss thingy

 

this shows you how screwed up trading on HTZ is...at the bell today there were PUTS WITH THE SAME ASK AT DIFFERENT PRICES????

 

Did you close all of them? Somethings gotta give in the next 2 weeks. I'm so deep in the hole I've just written them off. I am watching the VIX for any big jumps to offset some of the loss.

No shit. There's something about bankrupt companies today. Check out WLL. They filed bankruptcy last month and went off today too. Like 150% gains. It's nuts.

 

I really think it has to be high volume, small lots...all these millennials with robin hood accounts buying 200 shares...and doing zero DD. I sold 3 of my 5 VXX calls back...@$37...loss of $150 each...I figured I'll eat the other 2 just in case...I also have to close out some garbage $45 JUN 19 TJX puts that I bought when it was trading at $50..I THOUGHT it would start to dip once but noo.....rockets right to $57...

 

Very true but if this goes back up to pre virus levels, it’s still going to be a stupid amount of gain lol