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

TSLA puts where a very bad idea. Dumped them and got calls this morning. lol

 

I'm also adding NAIL 5 shares at a time as it drops...Did $49.75, 49.50, 49.25

 

Ok..Time for puts

Don't bet against TSLA, AAPL and DIS....they just do not follow reason

 

never bet against the rat

 

Ive been considering picking up more also. Why do you value them over CVX at this point?

 

I have an equal (contribution amount) in both. And ENB, no other energy.

 

Makes sense, I’m still sitting on my dividend cash from all 3 of those and trying to decide where to put it. Since I only added cvx last time I’m considering xom, I am thinking the dividend cut is possible, but I also believe they’ll be very quick to restore it when things start picking up.

 

If they cut, I’m leaning towards just hanging on and maybe buying more when it goes down. I think it would come back too.

 

puts puts puts babbbyy

stocks only go down

 

Look at what F is doing...Spikes to $7.00+ (buy puts) falls to $6.80...Close puts for $200 profit...Repeat...Do this 4x and the puts are now free.

if you want a REAL Fun ride...if F opens over $7 tomorrow buy the $7 18SEP20 puts for like $0.08...buy 100 of them for $800...Ford falls to $6.80 tomorrow you'll make $2,000....

 

If this is the case, and they briefly cut the dividend in about half, it’s still an awesome yield and I might really start buying:

https://seekingalpha.com/news/3614409-options-traders-pricing-in-exxon-dividend-cut-analyst-says

 

Yea, that’s similar to the article I referenced a little while back. And I agree, I won’t be walking away from it

 

Yessss

 

so if ford doesn’t dip below $7 am I just out $800?

 

This is what scares me about options. I’m afraid I’d do something, and then get “assigned” a million dollars worth of Ford stock that I can’t afford.

 

Yes and no...The contracts are good until close of the market on 9/18. So you have 3 days Wed/Th/Fr for them to hit, and can close them at a loss if you're not getting movement. If Ford doesn't dip you're going to at most lose $800...or more likely around $600..You're going to have fun if you like betting on sports and yelling that it's rigged!!!

Basically once you buy them you immediately set them to sell for like $0.20 so if it hits at any time they go. You need a lot of open interest and volume (Which Ford options have) to do something like this. If your doing with options that only have 100 or so open interest then that means you hold most of the contracts and will have to take a discount to offload them.

F stayed at $7.04 after hours...no dip...

Again. this is literally gambling...but it's a rush

 

Sell to close before the market closes on the day they expire. This is why sometimes you have to offload the contracts at a 'discount'. They might be FORD $7 puts and Ford is trading at $6.79 and so they should be worth $0.21 each..but you can't get that price. You have to sell to close at like $0.19...that way someone who WANTS Ford stock can get it at a discount of $2 per 100...If your buying $10,000 shares it's worth it....
and when it comes to money...It's always worth it to someone!

Again...this is why you do this with HIGH volume/open interest options...Those Puts have over 100,000 people buying and selling them...plenty of volume for your 100 puts

 

TSLA options are a fun gamble. Lost a bunch on puts yesterday. Made a bunch on calls today. I also sold those calls for profit so I don't wake up to a nasty surprise. 30% return in 6 hours wasn't to bad though. lol

 

I was a bit skittish of Options as well but have been recently getting my feet wet. Has definitely been fun and interesting so far, and like @TreeFortRichard said a lot like gambling which is quite exciting(if you're into that kinda stuff lol)

 

For everyone who owns SPHD, they’ll drop their payout too if XOM cuts, they hold it. It’s only 2.48% of the fund, so it shouldn’t affect it much at least.