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Stock Thread 2018

zanshin said:
Stock positive announcement out of the Fed. I'm in calls.
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Are options (calls and puts) an easy concept to understand, not necessarily make money on.

I here a lot about them. Read some about them and still don't get it 100% My dad claims they are better than stocks because you don't 'own' the stocks and I think he assumes less $$ is put upfront. BUT can't you lose more with options?
 
Dubbington said:
Are options (calls and puts) an easy concept to understand, not necessarily make money on.

I here a lot about them. Read some about them and still don't get it 100% My dad claims they are better than stocks because you don't 'own' the stocks and I think he assumes less $$ is put upfront. BUT can't you lose more with options?
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Think of it like this. About 90% of options traders lose money. They use options to bet on movements for profit.

About ten percent use them as insurance. They tend to possibly make money.

Here's the deal. It's called time premium. You pay for time premium.

If the stock is selling at $100, a $100 Call that expires tomorrow might be trading for fifty cents. ($50 total cost plus commission). An option that expires in a year for the same call might be trading at $4. ($400 total cost plus fees).

Each stock is different. Options on Google, Amzn, Tesla and other volatile stocks are quite expensive. Options on ETF's like SCHD are pretty cheap.

Yes, you have less money exposed. However, if the option expires out of the money, you have nothing and lose your premium. If you buy the stock and it goes nowhere, you still have the stock.

Think of an option as a promise. If you give me $100, I promise to buy 100 shares of XYZ from you on a given date at a given price (put). Or sell you 100 shares on a given date at a given price. (Call)

That's all they are. Promises to make trades in the future based on payments today.
 
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scratchpad said:
If youre trying to maintain a % balance between funds, like he suggests, is their a certain time of year thats generally best to rebalance?

My company match is provided in stock. I want no part it. I think the money would be better served elsewhere. Best to reallocate every month or once a year?
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i think you answered your own question. you don't trust your company's stock for whatever reason. so all you need to do is make an investment transfer as soon as you see the matching contribution in your balance (quarterly?) and you should be able to tsf in $s or %. transfer 100% out of your employer's stock and divy it up to the funds that you want to add to.


you don't need to reallocate your current balance or future contributions as frequently as monthly. it depends on what kind of information surfaces that would cause you to want to change your asset allocation.
 
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Dow 14,000!!!

Bitcoin 0!!! GS had a great research comment on bitcoin yesterday that I agree with 100%.
 
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Fear and panic are self fulfilling. The media hypes the fear, its what they do, it sells.

Every time there has been a major correction a lot of people make a bundle buying companies on sale. Like the housing markets, if you're always stretched so thin you can't take advantage of good deals you end up watching the market pull away, leaving you to complain about high prices.

A steady investment plan means never having to wake up early to panic over market news nor being stressed out all day watching tickers tick.
 
Schnellbandit said:
Fear and panic are self fulfilling. The media hypes the fear, its what they do, it sells.

Every time there has been a major correction a lot of people make a bundle buying companies on sale.
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:laughing

Are you kidding? The financial media fawns over the investment 'gurus' who constantly push equities even when the market is collapsing. Talking heads with massive conflicts of interest are far more common than fear mongers these days.

BTW, this isn't even remotely a correction yet, given how ridiculously overvalued equities are and how far they've risen based on almost zero fundamentals other than cheap money. This market could drop 20 percent and it would still look a little somewhat rich relative to fundamentals. This entire bull market has been phony, fueled by cheap money. Aging population, flat productivity, oh but let's give everyone money at 1 percent and drive bond yields into the ground so we can prop up equity markets.

But as I said before, idiots will buy on these small dips thinking they're getting a bargain, because they have no concept of fundamentals or valuation.
 
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I'm such an idiot. Took a couple positions today..
 
Reli said:
Market just passed below Monday's low, so no thanks. Another 5-10% to go, IMO.
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It would be at least 20 percent if the market was rational, but it's not. So who knows these days. Here's hoping today's decline snowballs into a minor panic and the market takes a much bigger drop tomorrow.
 
afm199 said:
I'm such an idiot. Took a couple positions today..
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Fingers crossed for you. :thumbup

On a positive note, it's good news for me that the AUD has been taking a dive.
 
AwakeNAlive said:
my observation is, both this stock thread and the zero credit thread are morphing into similar predictions of doomsday scenarios. pessimism is the best thing to post at the moment because it feeds into peoples anxieties already. thank you very much for that.

no discussion with the few doomsayers is the best prescription
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one person's perception of "pessimistic doom and gloom" and/or "tin foil hattery" is another person's exhaustive, veil-shattering due diligence.

when it comes to the Keynesian-economics-promoting federal authorities, popular media and ivory tower academicians: it is wise to "believe none of what you hear, and only half of what you see". hell, not even half.
 
afm199 said:
I'm such an idiot. Took a couple positions today..
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Riiiiiiight........ You sir seem like one of the more sage and educated investors on the board. Sage = :afm199 after all!

Your posts are always interesting, entertaining and educational. Thanks for that.
 
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