the Stock Market
- Thread starter Mac J
- Start date
Help Support Van Living Forum:
I been watching SLB. If it wasn't for Thanksgiving week, I'd probably be buying a .96Puts or be safe and buy a Strangle. I think this is not a good week for Weekly Options. There has been alot of money made on SLB the last several weeks.
caseyc
Well-known member
I think awhile back, I threw in AAPL into the mix. Bought it at 96. Currently near 118. The irony is that I can't stand Apple products, hah!
If I would have bot. that 96 Put at the close of the market yesterday @ $0.34. , today at 12:00 noon central SLB was down over $2.00 and its 96 Put was $1.13. That would be a profit of $0.79 X 100= $79.00 per contract.
I usually buy 5 or 10 contracts on a stock
10 X $34.00 = $340.00 + $19.50 commission = $359.50 invested
10 X $113.00 = $1130 - 19.50 commission = $1110.50 profit
Not bad for 3 1/2 hours
If I would have bot strangle, probably would have made around $500 profit.
Excuse me I gave the gross profit of $1110.50.
The total profit after would be $751.00. That's still good for a half a days work..
That's over 200%..
I usually buy 5 or 10 contracts on a stock
10 X $34.00 = $340.00 + $19.50 commission = $359.50 invested
10 X $113.00 = $1130 - 19.50 commission = $1110.50 profit
Not bad for 3 1/2 hours
If I would have bot strangle, probably would have made around $500 profit.
Excuse me I gave the gross profit of $1110.50.
The total profit after would be $751.00. That's still good for a half a days work..
That's over 200%..
caseyc
Well-known member
I too enjoy buying long puts and calls, usually at 1 or 2 strike prices away for lower pricing, and usually within 2 to 3 weeks expiration. I figure if I'm going to be right based on technical charting breakouts (upside or downside), I only need a short amount of time to make whatever profit I can achieve. I don't ever do short (naked) puts/calls, as the equity requirement is too high. Nor do I do shorting of shares, since that requires margin maintenance, plus short sale pre-approval.
HarmonicaBruce
Well-known member
I think SLV is a good buy right now. That's an electronically traded fund for silver. It closed today at $15.98. One can buy it at $15.98 and sell a covered call, say $16 expiring Feb 20, for .81. That's about 4% for 3 months. It could go down, but it can't keep going down because silver is something.
I been watching SLV for sometime now also. I can see why someone would sell a covered call on it. By my charts and indicators it looks as if it might be topping out for the short term, in a few days. It's getting near the upper Bollinger band.
Also been watching LVS, Thansgiving week stopped me from buying some Puts on it.
Also been watching LVS, Thansgiving week stopped me from buying some Puts on it.
As for the stock market, it did great this year. If you go to bigcharts.com and click on one of two, DJIA or Nasdaq mini charts. You'll get their one year chart, then click on a 5 year chart and you'll see its true performance. A lot of Mutual Funds didn't do all that great. Blame that on the Fund manager.
I remember back in the late 80s and early 90s. That's when I started trading in the market. I would buy an equity mutual fund and when it would make a good profit, I'd switch into the money market and in a couple weeks buy another equity fund. I got kicked out of quiet few mutual funds institutions. Because I traded em like the stock market. They want you for the long run and I can understand that now. I know a lot of people that diversifies mutual funds. I don't know why because it's already diversified. You might want to go 10% in metals or offshore or etc. If you diversify with to many funds, your profits might be low or nothing at all. One have a positive earnings and one might have negative earnings.
I remember back in the late 80s and early 90s. That's when I started trading in the market. I would buy an equity mutual fund and when it would make a good profit, I'd switch into the money market and in a couple weeks buy another equity fund. I got kicked out of quiet few mutual funds institutions. Because I traded em like the stock market. They want you for the long run and I can understand that now. I know a lot of people that diversifies mutual funds. I don't know why because it's already diversified. You might want to go 10% in metals or offshore or etc. If you diversify with to many funds, your profits might be low or nothing at all. One have a positive earnings and one might have negative earnings.
Seraphim
Well-known member
- Joined
- Mar 12, 2011
- Messages
- 2,610
- Reaction score
- 0
gojo said:
After all was said and done we ended up in mutual funds. Easy, successful and boring lol. I don't use blended funds, but 54% total stock index fund, 8% international stock index fund, 10% in total bond index, and the rest in stable value accounts (read as cash) which provide the same income returns as 10 year treasury yields without the concern of value loss.
Bonds surprised me - over 5.5% YTD - equities tracked the index, as they were supposed to (somewhere about 10% YTD, last I checked). International is down slightly YTD, about -1%. But all of these funds are designed to track the index, holding assists that match the makeup of the market they follow. Vanguard is excellent about their designs.
Constant buying and selling is too much work anymore. Too much guesswork, and too many risk factors to work around.
Time to go paddling...
I like your setup. Once you're retired and on fixed income, you have to be careful with you investments. That's if you want a comfortable life style.
Me, I started saving a little late for my retirement. I love what I do, trading stock options. To be honest I hate to see weekends. I can't wait for Mondays. Wonder how many will agree with me, LOL...
I noticed when reading your reply, I see my message also. How do I go about doing that ?
Me, I started saving a little late for my retirement. I love what I do, trading stock options. To be honest I hate to see weekends. I can't wait for Mondays. Wonder how many will agree with me, LOL...
I noticed when reading your reply, I see my message also. How do I go about doing that ?
caseyc
Well-known member
I agree. Trading stock options are a blast, especially long puts against crappy dot com companies with no revenues on the cusp of collapsing. I like turning a few hundred dollars of leveraged funds into thousands in a matter of days sometimes. Only drawback is that whenever I'm long a position, I'm usually glued to the screen staring at real time 5 minute intraday bar charts trying to gauge technical patterns for upside or downside breakouts, and calculating the resultant profit potential. Hard to get anything else done whenever my eyes are glued to a freakin monitor all trading day, haha.
gojo said:
HarmonicaBruce
Well-known member
Ouch! SDRL suspended the dividend, and the stock is down 20% on huge volume. I just bought some (at 16.30), since I'm a "bottom feeder" who likes to catch falling knives. But I just think the market over-reacts to news, and it will pop back up some. Then I'll sell covered calls, which will be up when the stock bounces back.IGBT said:
Seraphim
Well-known member
- Joined
- Mar 12, 2011
- Messages
- 2,610
- Reaction score
- 0
gojo said:
Just below the post you want to reference, there's a 'quote' button. Hit that, and a message editor pops up with the post 'quoted'. Just type in your reply beneath.
HarmonicaBruce said:
Yea - the day to day and week to week ups and downs are caused by the speculators, trying to bail at the hint of bad news or trying to hrab assets they will rise based on recent good news. Like Fed announcements *sigh*. One needs to research a stock more deeply, and keep monitoring their actions, cash flow sheets, etc, to get a real picture of the company's potential future. What the market does day by day is no indicator of a company's stability or profit margin.
Yea - my son's catching that bug. He saw some nice returns this year on a small inheritance I helped him invest. Now he wants to buy And sell and make big money *head shake*. He doesn't get that it's kind of like gambling. It's fun, if you can afford to lose as well as win. When he has enough returns, I'm going to introduce him to the bond market, and see what kind of stomach he has for a falling market when interest rates rise next year... *grin*caseyc said:
Seraphim
Well-known member
- Joined
- Mar 12, 2011
- Messages
- 2,610
- Reaction score
- 0
Not at all Gojo. Morningstar does much the same with its star and medallion rating systems. Their overview of each stock includes a recommended buy/sell price. They even post reports about which stocks are undervalued and might be considered for purchasing. As investors, we can't know everything, and very, very few of us has the ability, or time, to pour over the numerous comfy reports to make an informed decision.
Better to refer to a source which provides unbiased info than follow trends, listen to friends who know as little as we, or to guess.
Better to refer to a source which provides unbiased info than follow trends, listen to friends who know as little as we, or to guess.
caseyc
Well-known member
I have Level 2 quotes at work. Plus real time charting.
I also like trading DIA (Dow Jones Index) and SPY (S&P 500 Index), I trade the options which are cheaper, not the shares which are too high in price.
I also like trading DIA (Dow Jones Index) and SPY (S&P 500 Index), I trade the options which are cheaper, not the shares which are too high in price.
HarmonicaBruce
Well-known member
I don't think it would help to read all those reports, I think they're basically useless. I invested in AMZN because I figured Jeff Bezos knew what he was doing. A great stock for me has been SHLD (Sears), which is a really bad company, but they're controlled by Eddie Lambert, and fast Eddie doesn't own all that stock so he can lose money. Alibaba (BABA) was a no brainer, Chinese internet company that's making money? They've all been good stocks. If you really like mutual funds, take a look at FCISX. They've been around since 1995, but beware. When you sell, they keep a 1% back load.Seraphim said:
