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Markets still falling like whoa

Llano Estacado

By Llano Estacado
in Business and Markets

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Eastwood
Eastwood

That's why I'm out. There is no end game, IMO. This has to be fixed outside of the market and I got too nervous about what that entails for retail investors. They will always be last on the list, if o

Rusty Shackelford
Rusty Shackelford
Eastwood
Eastwood

I'm not a financial advisor. This is not financial advise. I don't work in finance. I do not have a degree in finance. Actually, I have a BA and I'm bad at math past Cal I. I won't apologize for the l

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bernorange

bernorange 8,362

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Quote

...
On the Fed’s asset purchases and lending programs., Powell said he didn’t see the central bank as an elephant running through the corporate bond market. He also denied the central bank was monetizing U.S. debt.
...

https://www.marketwatch.com/story/powell-testifies-to-senate-on-economic-outlook-live-blog-2020-06-16

Uh huh.

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TonyTexas

TonyTexas 10,517

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Posted (edited)
31 minutes ago, Fudge Nuggets said:

To bad AAPL doesn’t have any way for people to buy their crap online.  They should work on that.

The Apple stores are all about service and demo. Those places stay packed. I’ve never bought anything there but have probably been 10 times for other things. 

Edited by TonyTexas
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Anastasis

Anastasis 23,477

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19 minutes ago, Wally Fairway said:

Thinking about betting on the Fed Friday power hour - buying some calls before the end of week push occurs.
What does surly thing good idea, great idea or hell yeah #stonk idea?

I'm buying some 3xleveraged index etfs for the power hour dopamine rush. 

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Harrison Stafford

Harrison Stafford 3,335

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44 minutes ago, Wally Fairway said:

Thinking about betting on the Fed Friday power hour - buying some calls before the end of week push occurs.
What does surly thing good idea, great idea or hell yeah #stonk idea?

Today is option expirations day which means the market shouldn't swing dramatically one way or the other as it's usually pinned to screw option holders.  If the market gets -150, there's a good chance the market swings the other direction.  Buy the calls in this area and good luck.

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bernorange

bernorange 8,362

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FYI folks... The Fed's balance sheet report yesterday claims the balance sheet actually shrunk $74B over the last week.

Quote

There have been endless announcements by the Fed that they will add this and that to their asset-purchase programs. The media jumped all over these announcements, how the Fed is going to get into the junk bond market and ETFs with hundreds of billions of dollars. Each time, all kinds of hoopla broke out in the markets with stocks soaring and junk-bond ETFs soaring, and everything soaring – despite the worst economy in memory, despite 30 million people on unemployment insurance, and despite shocking earnings reports heading our way.

The Fed has set up an alphabet soup with 10 of these programs so far – and it has been buying some of the assets it said it would buy, but it also has been shedding alphabet-soup assets it had bought in March and April, while whittling down its purchase programs of Treasuries and MBS for the past two months. And repos unwound, and dollar liquidity swaps unwound, and now total assets on the Fed’s balance sheet for the week ended June 17, released this afternoon, actually shrank by $74 billion:

This $74 billion decline in total assets during the week was powered by a plunge in repo balances and foreign central bank liquidity swaps, while some alphabet-soup programs also unwound. And the junk-bond and ETF buying program stalled.

And there is a big shift happening: The Fed has started lending to entities, including states and banks, under programs that channel funds into spending by states, municipalities, and businesses, rather than into the financial markets. These types of programs are propping up consumption – not asset prices. That’s a new thing. I don’t think the hyper-inflated markets, which have soared only because the Fed poured $3 trillion into them, are ready for this shift.
...

More:  https://wolfstreet.com/2020/06/18/fed-ends-qe-total-assets-drop-liquidity-injection-ends/

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Wally Fairway

Wally Fairway 5,565

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1 hour ago, Harrison Stafford said:

Today is option expirations day which means the market shouldn't swing dramatically one way or the other as it's usually pinned to screw option holders.  If the market gets -150, there's a good chance the market swings the other direction.  Buy the calls in this area and good luck.

Thanks - if you buy (play) SPY options, almost everyday is options expiration day. 
Today is a good example of why it is difficult to be a trader when you have a "regular" job, I did buy some SPY $310 calls earlier in the day, they slowly went up and then I got called into a short meeting around 3:30, and they were back down by the time I got back to my desk about 3:55. Thankfully I don't play same day expiry, as there is too much risk of having an in the money exercise (and that can cause some problems), so I'm sitting on them over the weekend, hoping to get a short term swing, as they expire 6/24. 
Thankfully it isn't a lot at risk, just hoping to skim some cash off the volatility.

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Blotto

Blotto 23,559

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1 hour ago, Anastasis said:

Pretty wild.  DOW almost went green, and then the bottom fell out.  

Yeah around 2PM I picked up some 305 and 300  SPY puts expiring Monday and  then jumped on a conference call. Was pleasantly surprised when I checked the close. I expect a decent move one way or the other Monday, and I'm guessing down. Typical entertainment wager nothing too heavy.

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52-80

52-80 19,183

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2 hours ago, Wally Fairway said:

Thanks - if you buy (play) SPY options, almost everyday is options expiration day. 
Today is a good example of why it is difficult to be a trader when you have a "regular" job, I did buy some SPY $310 calls earlier in the day, they slowly went up and then I got called into a short meeting around 3:30, and they were back down by the time I got back to my desk about 3:55. Thankfully I don't play same day expiry, as there is too much risk of having an in the money exercise (and that can cause some problems), so I'm sitting on them over the weekend, hoping to get a short term swing, as they expire 6/24. 
Thankfully it isn't a lot at risk, just hoping to skim some cash off the volatility.

Sell OTM options and let somebody else worry shoulder the worries

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52-80

52-80 19,183

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7 hours ago, Wally Fairway said:

They are only OTM until the market moves, or if you sell far OTM options there isn't much value to be had. 
I did it for a while and you still have to watch the market moves.

It ain't much, but it's honest work

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BottleRocket

BottleRocket 647

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20-Year-Old Robinhood Customer Dies By Suicide After Seeing A $730,000 Negative Balance.  

Like so many others, Kearns took up stock investing during the pandemic, signing up with Millennial-focused brokerage firm Robinhood, which offers commission-free trading, a fun and easy-to-use mobile app and even awards new customers free shares of stock. During the first quarter of 2020, Robinhood added a record 3 million new accounts to its platform. As the Covid-19 stock market swung wildly, Kearns had begun experimenting, trading options. His final note, filled with anger toward Robinhood, says that he had “no clue” what he was doing. 

In fact, a screenshot from Kearns’ mobile phone reveals that while his account had a negative $730,165 cash balance displayed in red, it may not have represented uncollateralized indebtedness at all, but rather his temporary balance until the stocks underlying his assigned options actually settled into his account.

https://www.forbes.com/sites/sergeiklebnikov/2020/06/17/20-year-old-robinhood-customer-dies-by-suicide-after-seeing-a-730000-negative-balance/#72d305d71638

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nycHorn

nycHorn 3,037

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20-Year-Old Robinhood Customer Dies By Suicide After Seeing A $730,000 Negative Balance.  

Like so many others, Kearns took up stock investing during the pandemic, signing up with Millennial-focused brokerage firm Robinhood, which offers commission-free trading, a fun and easy-to-use mobile app and even awards new customers free shares of stock. During the first quarter of 2020, Robinhood added a record 3 million new accounts to its platform. As the Covid-19 stock market swung wildly, Kearns had begun experimenting, trading options. His final note, filled with anger toward Robinhood, says that he had “no clue” what he was doing. 

In fact, a screenshot from Kearns’ mobile phone reveals that while his account had a negative $730,165 cash balance displayed in red, it may not have represented uncollateralized indebtedness at all, but rather his temporary balance until the stocks underlying his assigned options actually settled into his account.

https://www.forbes.com/sites/sergeiklebnikov/2020/06/17/20-year-old-robinhood-customer-dies-by-suicide-after-seeing-a-730000-negative-balance/#72d305d71638

 

Robinhood with changes to the platform because of it.

http://www.forbes.com/sites/sergeiklebnikov/2020/06/19/robinhood-founders-respond-to-alex-kearns-death-by-suicide-with-major-trading-platform-changes/#338a71fb7985

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Anastasis

Anastasis 23,477

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On 6/19/2020 at 6:16 PM, Fudge Nuggets said:

Cleaned up $3,000 in more fake money on fake WTI contracts trading.  If I get laid off this should be my fall back plan.  There is literally no downside to wagering my kids’ college tuition plans on this.

Bwahahahaha, I wish it was that easy.

can you speak english motherfucker cause I would like 3g fake money too. 

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Fudge Nuggets

Fudge Nuggets 19,206

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9 hours ago, Anastasis said:

can you speak english motherfucker cause I would like 3g fake money too. 

The Thinkorswim trading platform has a feature called 'Paper Money' which is a fully-functional demonstration account funded with $200K in virtual dollars.  You can use said account to practice trading on the platform to get familiar with it without fear of losing real dollars.

I used said 'Paper Money' account to practice trading the /CL (WTI oil futures) contract for three days and made gobs of fake money.  Previous posts were very sarcastic in nature because I implied big wins in this fake account prove I am ready for the big time and can take my mad skills over to my real account and reap the rewards with real dollars. 

Since I was undefeated using the fake money I sarcastically implied I should go all in and YOLO on WTI futures with all my real funds in order to make serious bank.  Said previous posts also had an underlying tone that things are likely different with real money on the line and thus the decision making process hence returns would not be the same in reality.

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52-80

52-80 19,183

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25 minutes ago, Fudge Nuggets said:

The Thinkorswim trading platform has a feature called 'Paper Money' which is a fully-functional demonstration account funded with $200K in virtual dollars.  You can use said account to practice trading on the platform to get familiar with it without fear of losing real dollars.

I used said 'Paper Money' account to practice trading the /CL (WTI oil futures) contract for three days and made gobs of fake money.  Previous posts were very sarcastic in nature because I implied big wins in this fake account prove I am ready for the big time and can take my mad skills over to my real account and reap the rewards with real dollars. 

Since I was undefeated using the fake money I sarcastically implied I should go all in and YOLO on WTI futures with all my real funds in order to make serious bank.  Said previous posts also had an underlying tone that things are likely different with real money on the line and thus the decision making process hence returns would not be the same in reality.

i made looney amounts of paper money trading on ToS specifically with oil contracts and oil derivatives.  With realistic-sized bets.  But.... luck and timing and that saying: "the first one's free".

It's a great platform for testing options and futures and other less mainstream strategies

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BehoId, The Underminer!

BehoId, The Underminer! 11,669

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PBT was getting to 3.80 of and on for the last month and I was getting annoyed with it.  it was at 3.78 at Thursday and put in a limit sell at 3.80.  2 cents difference.  surely some random vibration any second will trigger it.

 

i click on it later in the day and immediately after i put the sell in it plunges 20%. i probably won't ever see 3.80 again. 

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Wally Fairway

Wally Fairway 5,565

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6 hours ago, Anastasis said:

8/21 305 puts in the bag. 

I hope you puts faired better than mine today - lots of erosion, more than can be attributed to theta and a small uptick in the S&P, it looks like pricing bias is shifting away from reducing downside exposure.
(which may mean it is time to buy downside exposure (aka puts) but with a mid to long term expiration, other than some puts I bought in late March/early April that expire in 10 days or less, everything else I have is 9/30, 11/20, 3/21 (offset by my small call positions on 6/18 strikes at 370 and 400, which I bought as a reminder that stonks only go up brrrrrr)

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Anastasis

Anastasis 23,477

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37 minutes ago, Wally Fairway said:

I hope you puts faired better than mine today - lots of erosion, more than can be attributed to theta and a small uptick in the S&P, it looks like pricing bias is shifting away from reducing downside exposure.
(which may mean it is time to buy downside exposure (aka puts) but with a mid to long term expiration, other than some puts I bought in late March/early April that expire in 10 days or less, everything else I have is 9/30, 11/20, 3/21 (offset by my small call positions on 6/18 strikes at 370 and 400, which I bought as a reminder that stonks only go up brrrrrr)

mine got beat up. So I added 310 strikes with same expiration. 

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Incredulity

Incredulity 11,675

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56 minutes ago, Okie State said:
3 hours ago, Fudge Nuggets said:
It's pretty much free money.  Nothing could ever go wrong.

I think we're all worried he'll put up their house as collateral to cover a margin call.

It’s, “seats on the exchange”’that are put up for margin.  Come on, do you even Beeks?

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