re: What are your trading strategies?

My trading strategy is that I don't trade. Long term passive investment 4 lyfe

it works great i also sold a ton of 2018 apple $75 puts for $6 today. Im really honing in on a monster apple position if I can get all these shares from $60-75 with the added premium in 2 years. I know its hard to judge 2 years out but with the way apple is buying back stock and lifting the dividends, it may not be that 20% a year growth play of the past, but apple is turning into a great dividend growth stock and I want a ton of it to replace the PM and MO I had in my portfolio and recently sold.

quote:

---

IPI

---

you bastard! Bought at $1.12 and watched it hit $1.47 without doing anything! Sold for a loss.
I just can't trade. I've got far too many emotional long term thoughts.

Tried getting into options today with Ameritrades "paper money" platform...I've NEVER been so confused in my life.

Bayou Bengals I posted this in another thread yesterday when someone asked me

quote:

---

on apple what I did was I sold the $60s, why the $60s bc thats where I dont mind stealing apple, honestly $75 and lower I dont mind but for the sake of it all I went with $60. In order to purchase 100 shares at $60 my cost would be $6,000. I received $2.65 in premium so x 100 shares $265 per contract. So if god forbid apple was below $60 by this date in 2018, my purchase price would be $57.35. Would you buy apple at $57.35 today, you damn right you would mortgage your house and do so lol.

So in reality if jan 2018 rolls around and apple is $60.01 or greater I take my profit which is $265 per contract and move on to the next trade. Is that a big money trade, no not really I make 4.4% based on $265 made per $6000 risked, but in reality its higher bc the trade requires 10% margin so you make $265 per $600 risked. Thats actually a 50% cash on cash return. If apple hits $60 in 2018, theyre gonna have like $40/share in cash by then and the buyback on full tilt so by all means the SPY would have to be in full crash mode for that to occur, just my opinion but who knows maybe somehow this iphone 7 is a total flop, but I wouldnt mind bc Berkshire Hathaway just paid $109/share.

Anyways I currently typically take names i like, like apple at its levels and sell puts weekl/monthly at levels I want. Why would I pay full price for apple at $94 today when I can sell a contract and get it for $92 next week or profit. Ya get my drift? From there lets say I get apple shares at $92, I get my premium another say 50 cents a share and my basis is $91.50. I would turn around and sell say $92.50 calls for the following week and hope to get called away or profit and lower my basis.

Selling cash covered puts and covered calls every week is like getting 52 dividends a year and dictating a price you're willing to be a buyer at, its definitely a recipe for a great return on your portfolio annually. Currently im not a big fan of where the market is, there are too many macro events globally from chinese credit issues to venezuela to an election here that Im not really wanting to buy anything so im selling puts on names I like with a little more cushion to the downside.

Give me a few months out and my sold puts on googl at $600, Apple at $60, TSLA at $140, FB at $80 and Im a happy man if I can buy those there.

---

The puts are indeed covered by cash, ive liquidated my entire MO position after 20 years and half my PM position after the same time frame recently bc theyve run to incredible levels and yield very low % relative to the growth theyre seeing. Im holding basically just apple,facebook,google,PNQI,SBUX,V and am trying to remove some of the safer dividend names of the past like PM,MO,Mcdonalds,Coke out of my book and roll into the tech names of the future. Its riskier for sure, but I personally believe apple,facebook,google will dominate the tech world for the forseeable future.

I dont know what level you need to be but im level 4 on etrade, it allows naked puts.You have to own the stock to sell covered calls. I sell naked calls if I wanna get short, like IE you dont like Amazon but dont wanna short $700 you can sell $800 calls 6 months out and get short there if it gets there.

No, I watched it go all the way back down to $1.06 and sold. I'm either too greedy or too impatient!
Are you using RH?

Thanks DBF

quote:

---

No, I watched it go all the way back down to $1.06 and sold. I'm either too greedy or too impatient!
Are you using RH?

---

Not yet. I was supposed to have an account, but it's fricked up.

You could have been in and out of this stock almost every day over the last week and made 5% each day.

I trade on the greediness of others.

What vehicle are folks trading in?

The reason I'm asking is - My sense is that it's smart to limit the number of positions in a Roth due to the contribution limit. Ie. If you have 10 holdings in your Roth, and want to increase your holdings in any real way annually, $5,500 per year won't really allow you to do so. Up to this point, my only investment vehicle is my Roth. (26 years, only been investing for 3 years)

I'm self employed and am considering opening a SEP or simply a cash account in order to start doing some real damage in terms of accumulating significant positions. Leaning towards a SEP because of the tax advantage and I don't already have a 401k through work.

Any reason a cash account would be more advantageous than a SEP? Feel free to shoot down anything I said above.

I guess.

I'm up so far.


ETA: for real though. I don't like investing in the whole market. I like investing in sectors that I think have 10 year upsides. My two market segments right now are energy and technology.

quote:

---

Thanks. I'm trying to trade off human emotion.

---

Better hope nobody at Goldman Sachs thinks of this.

Index funds. Look for stocks that are oversold due to bad news (ex. BP after the oil spill, oil ETFs recently, banks after '08).