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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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52-80

52-80 19,379

Posted
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1 minute ago, Wally Fairway said:

Not if you are playing in the short side of the market.

i closed my short on SPX and NDX at a scratch, and flipped long on SPX right when i thought everything was turning around.

Then SPX dropped 60 and NDX 400 points.  So not only did I miss out on those movements, i got raep on the opposite direction.

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Wally Fairway

Wally Fairway 5,664

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48 minutes ago, Anastasis said:

I'm going to bite off some chunks today of SPY and few other positions that have been hit hard, which probably means that this shit in Ukraine gets totally out of control and the stock market will be lucky to live through it. 

I'm looking at BA, they are off the war machine and could generate orders, it is about 40% of their revenue

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BevoSwag

BevoSwag 272

Posted
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To me this seems like a perfect opportunity to sell covered calls except I do not know how to do it! :).

If you want to protect your shares in AAPL, COST, CVX or LYV where do you set the futures price.  Above the current price or below a few spots from the current price assuming three months out?

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Blotto

Blotto 23,974

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39 minutes ago, BevoSwag said:

To me this seems like a perfect opportunity to sell covered calls except I do not know how to do it! :).

If you want to protect your shares in AAPL, COST, CVX or LYV where do you set the futures price.  Above the current price or below a few spots from the current price assuming three months out?

If the  price of the underlying stock is above the strike price of the call option at the expiration date, you would have an obligation to sell your shares to the holder of the option at the strike price. I would make sure you fully understand your obligations when selling covered calls. 

https://www.investopedia.com/articles/optioninvestor/08/covered-call.asp

 

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Wally Fairway

Wally Fairway 5,664

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2 hours ago, Blotto said:

If the  price of the underlying stock is above the strike price of the call option at the expiration date, you would have an obligation to sell your shares to the holder of the option at the strike price. I would make sure you fully understand your obligations when selling covered calls. 

https://www.investopedia.com/articles/optioninvestor/08/covered-call.asp

Or takes a while, and some cash you can lose, to really understand how options work and how they are priced.

Yesterday I sold some of me expiring SPY puts to early and the market feel late in the day; today I didn't sell my 2/28 expiry early enough.

My best advice is to take gains, and cut losses, and whatever you do don't hold to expiration unless you are covered. 

I've almost got caught holding some calls that looked like they would expire out of the money. I'm the last 1/2 hour the stock went up so they were pennies in the money. Had I not caught that move and sold at about 2 minutes before the end of the trading session I was about to buy $45,000 at a price $300 under  market value. Except I don't have 45G's just laying around (not Surly 1%er).

Proceed with caution

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Blotto

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Posted (edited)
53 minutes ago, Wally Fairway said:

Or takes a while, and some cash you can lose, to really understand how options work and how they are priced.

Yesterday I sold some of me expiring SPY puts to early and the market feel late in the day; today I didn't sell my 2/28 expiry early enough.

My best advice is to take gains, and cut losses, and whatever you do don't hold to expiration unless you are covered. 

I've almost got caught holding some calls that looked like they would expire out of the money. I'm the last 1/2 hour the stock went up so they were pennies in the money. Had I not caught that move and sold at about 2 minutes before the end of the trading session I was about to buy $45,000 at a price $300 under  market value. Except I don't have 45G's just laying around (not Surly 1%er).

Proceed with caution

Yesterday at market close, I bought some 400p/440c SPY strangles expiring Friday for $.29. Sold the puts this morning not too long after market opened at $1.20 and obviously the calls arent really worth shit. Also bought some Monday $400p for $.45 and sold a quarter of them at $2.30 to get my original investment out, but rest of them are heading back to the original purchase price. I guess I'll hold onto them as downside protection at least through Friday. The old me would still be holding every one of those contracts thinking I had a few days to go. 

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txduck87

txduck87 1,020

Posted
Posted
One hell of a rollercoaster 
DOW went from down nearly 900 to up 90
NASDAQ down 300 to up 435
S&P down 90 to up 65
Oil was up to $100 at one point and closed just $1 higher at $93.
Gold went from $1910 to $1973 to $1904

It’s almost like you shouldn’t try to trade markets and just stick with long term asset allocation plan.

#retiredoldguy


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52-80

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7 minutes ago, XYZ said:

How the fuck is the stock market up on a day like today? Is this the doings of the “plunge protection team”?

1 explanation could be short-covering.  some people been short since start of year buying-to-close (=covering) to take profit.  other people piled on the shorts (too late) on the basis of the war, and caught offside in the squeeze up, and were forced to cover.

 

lots of different dynamics, this can be 1 of them.

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Wally Fairway

Wally Fairway 5,664

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12 minutes ago, 52-80 said:

1 explanation could be short-covering.  some people been short since start of year buying-to-close (=covering) to take profit.  other people piled on the shorts (too late) on the basis of the war, and caught offside in the squeeze up, and were forced to cover.

 

lots of different dynamics, this can be 1 of them.

That fit in with my scenario, where Putin has been shorting the market and now he has to cover to take his games to pay for his war.

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Wally Fairway

Wally Fairway 5,664

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3 hours ago, Blotto said:

Yesterday at market close, I bought some 400p/440c SPY strangles expiring Friday for $.29. Sold the puts this morning not too long after market opened at $1.20 and obviously the calls arent really worth shit. Also bought some Monday $400p for $.45 and sold a quarter of them at $2.30 to get my original investment out, but rest of them are heading back to the original purchase price. I guess I'll hold onto them as downside protection at least through Friday. The old me would still be holding every one of those contracts thinking I had a few days to go. 

Not so fast my friend!

It looks like you may be able to get some value out of those calls after all

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txduck87

txduck87 1,020

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Ok dad. 
 
but in all seriousness I might be closer to retirement sticking to that plan. But dat dopamine rush doh. 

Yep. I totally get it. Did my dopamine rushes in my 20’s and 30’s. Spent most of my money on women and wine. And the rest just pissed away.Then Quit dicking around in my 40s thinking I was smarter than the market . Retired at 55.


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Blotto

Blotto 23,974

Posted
Posted (edited)
35 minutes ago, Wally Fairway said:

Not so fast my friend!

It looks like you may be able to get some value out of those calls after all

I sold the calls in the afternoon for .15 (entry price was .14 per contract) as I dont expect SPY to approach anywhere close to 440 tomorrow. So the net trade was really just the puts side which was a .15 entry and 1.20 exit. Not too shabby.

Gotta hit a few 10 baggers to pay for the ones that go sideways. And I have plenty of those as well. 

 

 

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52-80

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Posted
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12 minutes ago, Superhero said:

Up 7% so far. Looking at the chart, it looked like it started dropping when the troop build up started.

Any reason not to dip my toe into it at some time?

i did that on the chinese stuff (kweb, baba, jd bidu, etc) and got blasted.  and they werent even in a war.

my bad though - it did take a NICE bounce but i was greedy and held for more before it continued plummeting

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