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re: Tomorrow could be a rough one
Posted on 2/8/18 at 1:57 pm to stout
Posted on 2/8/18 at 1:57 pm to stout
Forgive me, but could you read that from left to right. I understand how shorts work but this logic doesn't make sense to me. It would be greatly appreciated.
This post was edited on 2/8/18 at 2:00 pm
0
Posted on 2/8/18 at 2:02 pm to LSURussian
Yes, Schwab.com....intermittent issues on my end
Posted on 2/8/18 at 2:18 pm to southernelite
Essentially he bought the option to sell 700 shares (7contracts) for Snap @ 19. The price was 1.36 per option, so a total of $952. If he held till expiration his break even would be snap @17.64. However, if he sold it now around the time of that screenshot and there was a buyer at that price of 1.63 per contract he would make ~$189.
If he holds to expiration and the shares are over $19 he would let them expire and his put options would then be worthless.
If he holds to expiration and the shares are over $19 he would let them expire and his put options would then be worthless.
Posted on 2/8/18 at 3:00 pm to HYDRebs
DJI -1,035.02
Posted on 2/8/18 at 3:01 pm to stout
Holy god that was a bad afternoon lol
Posted on 2/8/18 at 3:02 pm to stout
I don't do that. Multiple reasons. VXX doesn't always accurately reflect VIX, and it is an ETN among the reasons. VXX is almost a derivative, of a derivative of a derivative.
I personally buy the equity options on the index (VIX). The settlement is tricky, usually another symbol depending on whatever brokerage you use. VIX is an index, and really only accessible to most through future's contracts and/or options, or equity options.
Since I am conservative, and purchase for portfolio protection, I don't play with ETF's or ETN's. The mean, median and average VIX has historically been around 18 (not recently however). When I trade around my long calls (insurance), such as I'm doing now, I merely place a bear put spread, which is covered, or even double covered since I'm always long VIX at 18 or higher.
People make fun of me and down vote me. Maybe becuase I keep paying premium to insure my portfolio and they think that is throwing money away. But when VIX blows up, it blows up big, and almost always drops quickly. So in the last 5-6 trading days, in addition to my cash position, I now have an extra six digit insurance settlement that will allow me to buy a long term stock hold at some point in the future when I think it is time to enter another long term long. In the long run I've paid more premium than I have received benefit. But even that isn't as obvious as it would seem. In the long run when I've collected the insurance settlement, it has allowed me to buy at near market lows, or at a minimum, lower lows. It worked perfectly during the great recession, and the bull market that followed.
I personally buy the equity options on the index (VIX). The settlement is tricky, usually another symbol depending on whatever brokerage you use. VIX is an index, and really only accessible to most through future's contracts and/or options, or equity options.
Since I am conservative, and purchase for portfolio protection, I don't play with ETF's or ETN's. The mean, median and average VIX has historically been around 18 (not recently however). When I trade around my long calls (insurance), such as I'm doing now, I merely place a bear put spread, which is covered, or even double covered since I'm always long VIX at 18 or higher.
People make fun of me and down vote me. Maybe becuase I keep paying premium to insure my portfolio and they think that is throwing money away. But when VIX blows up, it blows up big, and almost always drops quickly. So in the last 5-6 trading days, in addition to my cash position, I now have an extra six digit insurance settlement that will allow me to buy a long term stock hold at some point in the future when I think it is time to enter another long term long. In the long run I've paid more premium than I have received benefit. But even that isn't as obvious as it would seem. In the long run when I've collected the insurance settlement, it has allowed me to buy at near market lows, or at a minimum, lower lows. It worked perfectly during the great recession, and the bull market that followed.
This post was edited on 2/8/18 at 3:07 pm
Posted on 2/8/18 at 3:10 pm to stout
quote:Nah, it was only down -1,032.89. Feel better now?
DJI -1,035.02
Posted on 2/8/18 at 3:13 pm to LSURussian
Getting close to buying time...I want to let this week finish up and I'll add to my SSO, BMY, and JPM/FITB positions. Going to let the Transport stocks ride with no adds.
Posted on 2/8/18 at 3:20 pm to stout
Been a very volitile couple of weeks
Posted on 2/8/18 at 3:26 pm to tiger perry
I maxed my Roth the first week of Jan. Put in 401k every two weeks obviously. Besides upping 401k %, anything else worth looking into to buy the dip?
Posted on 2/8/18 at 3:32 pm to jimbeam
So with the fall today, we basically get to purchase two months worth of strong economic data, tax reform, and solid earnings for free? Nice.
Posted on 2/8/18 at 3:41 pm to tiger perry
quote:The last time the Dow Jones closed lower than today's close was November 28.
Been a very volitile couple of weeks
So with all the panic talk on the business channels, we've actually only given up two months and a couple of days of gains over the past week.
Listening the talking heads on CNBC after the market closed, you'd think the Apocalypse just occurred.
To put this pullback into perspective, see the graph below: (And, yes, today's close is included in the graph.)
Link to the graph's source
Posted on 2/8/18 at 3:48 pm to LSURussian
Not sure if we hit bottom yet but I averaged down some positions today.
Posted on 2/8/18 at 3:50 pm to stout
quote:
Not sure if we hit bottom yet but I averaged down some positions today.
When you're sure, let us know.
Posted on 2/8/18 at 3:51 pm to slackster
quote:That's a good way to put it.
So with the fall today, we basically get to purchase two months worth of strong economic data, tax reform, and solid earnings for free?
Posted on 2/8/18 at 3:55 pm to slackster
quote:
When you're sure, let us know.
Bastard
You know what I meant
Posted on 2/8/18 at 4:02 pm to stout
quote:Yesterday in after hours trading JPM nosedived. I bought and then sold those shares in pre-market trading this morning. Made about a thousand $.
but I averaged down some positions today.
When the market opened and JPM's price fell to below where I bought it yesterday afternoon I bought it back. Damned if it didn't go down ANOTHER $3.00/share after I bought it back turning me into a long-term investor.
This post was edited on 2/8/18 at 4:15 pm
Posted on 2/8/18 at 4:07 pm to LSURussian
I do wonder how retail investors will respond to this correction, but I don't want to get greedy waiting for further drops. I think I'll rebalance soon and increase my equity exposure another 10% here.
Posted on 2/8/18 at 4:18 pm to slackster
quote:If my gut feeling is accurate that we saw capitulation in the last hour of trading today, many of those types got flushed out this afternoon.
I do wonder how retail investors will respond to this correction,
I see several of my stocks are up fairly nicely in after hours trading. :fingerscrossed:
Posted on 2/8/18 at 4:22 pm to LSURussian
Anyone making any moves in fixed income?
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