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re: What's your opinion of GE at this point ?
Posted on 6/29/18 at 2:26 pm to bayoubengals88
Posted on 6/29/18 at 2:26 pm to bayoubengals88
quote:
Why not buy dirt cheap Out of the Money Call LEAPS?
I didn't have it on a watchlist, so I didn't see it get into the mid $12's a few days ago. If I had, I'd have probably sold some long dated OTM puts, with a strike where it wouldn't hurt my feelings if it got assigned - probably around $9 or so. When it had a 12 handle, I suspect the Jan 2019s were around .60? Yeah, I'd have probably done that.
Nothing wrong with your OTM call strategy. The time decay wouldn't get to you for quite awhile. And even the uptick that we've seen from the 12 to the 14 range over the past week would have given you some nice profits already. You just have to be prepared to watch the price action fairly frequently, if it's your desire to trade for a profit, and not just wait it out til 2020.
Sounds like you're learning more and more about options. Over the years I've found that by employing a tightly risk managed options strategy, you can REALLY magnify your portfolio gains (and losses too, if you're not careful). If your trades are risk defined going in (like don't screw around with naked call selling), you can really take it to another level.
Good luck with that. Keep chiming in about how you're doing too. B-rab also employs options in his trading activity.
1
Posted on 6/29/18 at 6:16 pm to tiger81
Find a better company to invest in or just invest in a broad market ETF or mutual fund with low cost structure
Posted on 6/30/18 at 4:01 pm to cave canem
I bought a ton of it right before it tanked, it’s worth less than half of what I paid in just a short time. 
I did it because it was at a 5 year low and the rest of the market was just taking off. Instead of climbing it tanked and I’m about 49k in the hole.
Bought 90k at 30.23 Now it’s around 13
What advice would you give me?
I did it because it was at a 5 year low and the rest of the market was just taking off. Instead of climbing it tanked and I’m about 49k in the hole. Bought 90k at 30.23 Now it’s around 13
What advice would you give me?
This post was edited on 6/30/18 at 4:22 pm
Posted on 6/30/18 at 4:13 pm to Old Sarge
quote:
I bought a ton of it right before it tanked, it’s worth less than half of what I paid in just a short time. I did it because it was at a 5 year low and the rest of the market was just taking off. Instead of climbing it tanked and I’m about 60k in the whole. What advice would you give me?
Get rid of the GE and buy something else, waiting for a stock to recover just to try and get even is a suckers game, the money could be in other stocks that are growing in value. I held a lot of GE back around 2002, it was just lagging behind the market I sold it and bought other stocks that seemed to have good growth potential at the time.
Posted on 6/30/18 at 4:16 pm to EA6B
It would be a huge loss, why not just hold it?
Posted on 6/30/18 at 4:20 pm to Jag_Warrior
Yeah man it’s fun to really understand the leverage that options can provide.
I’m currently sticking to simple calls and puts...minimum 6 months out.
I might make a $50 gamble on earnings every now and then. Like if I would have bet on NKE last week or against STZ...
Thanks for the encouraging post
I’m currently sticking to simple calls and puts...minimum 6 months out.
I might make a $50 gamble on earnings every now and then. Like if I would have bet on NKE last week or against STZ...
Thanks for the encouraging post
Posted on 6/30/18 at 4:52 pm to Old Sarge
quote:
It would be a huge loss, why not just hold it?
Because you could be missing the opportunity to be regain your lost equity, and even making some money by selling the GE and investing in something that has a greater chance of growing than GE, just my opinion which is not worth much.
This post was edited on 6/30/18 at 4:54 pm
Posted on 7/1/18 at 1:46 am to EA6B
quote:
Stephen Tusa, an industrials analyst at J.P. Morgan whose reports have moved the stock before, expects GE's dividend cut will be in the "30 percent plus range."
"It's going to get cut, like let's be very clear about that," Tusa told "Fast Money Halftime Report." "Now that's not going to happen tomorrow. But make no mistake, as you exit 2019 or sometime in 2019, essentially, that dividend is going to go down precipitously."
30% plus dividend reduction, after cutting in half 7 months ago
Posted on 7/1/18 at 7:03 am to TigerintheNO
The pain keeps coming
Posted on 7/1/18 at 8:32 am to Old Sarge
buy some 18 month puts. profit is what that sounds like
Posted on 7/1/18 at 7:30 pm to oklahogjr
underperformer with recent ugly earnings misses...and they've cut dividends for 1st time in almost 10 years. (actually halved)
major acquisitions in declining industries(alstom energy) shout poor judgement at the helm..
no thanks
major acquisitions in declining industries(alstom energy) shout poor judgement at the helm..
no thanks
Posted on 7/2/18 at 7:17 pm to mrgreenpants
GE's current dividend is 48 cent per share,
quote:
JPMorgan estimated the post-restructuring "RemainGE" dividend at 20 cents next year
Posted on 7/2/18 at 8:23 pm to Old Sarge
quote:
What's your opinion of GE at this point ?
I bought a ton of it right before it tanked, it’s worth less than half of what I paid in just a short time. I did it because it was at a 5 year low and the rest of the market was just taking off. Instead of climbing it tanked and I’m about 49k in the hole.
Bought 90k at 30.23 Now it’s around 13
What advice would you give me?
Not sure if this is a serious post because $30 is about the 5 year high instead of low but I would definitely hold at a minimum if not buy more around $13. It's hard to predict how the stock will perform short-term but GE will bounce back in the long run and there are a slew of insiders that agree.
This post was edited on 7/2/18 at 8:57 pm
Posted on 7/2/18 at 9:20 pm to Crapshoot
quote:
Not sure if this is a serious post because $30 is about the 5 year high instead of low
He did not give a time frame, after a 3:1 split in 2000 or 2001 GE reached a high of around $65 after 9/11 it dropped into the $30 range, and as the OP stated never really recovered.
Posted on 9/26/18 at 6:07 pm to EA6B
quote:
It would be a huge loss, why not just hold it?
quote:
Because you could be missing the opportunity to be regain your lost equity, and even making some money by selling the GE and investing in something that has a greater chance of growing than GE, just my opinion which is not worth much.
I forgot that I had this thread bookmarked until I saw GE in the news again.
Seems like your advice was spot on. What's it down now, another 12% or so since your post?
This isn't so much about GE, and it's certainly not to rub salt in the wounds of people who are sitting on big losses in GE (or any other stock). But in another thread, we were discussing the need for rules when it comes to trading and investing. And on another board, someone asked about the IBD 8% Sell Rule. I posted it there, so while I was at it, I figured I'd drop it in here too. Maybe it'll be a guide or at least a reference for people who want to avoid emotion based purchase/sale decision making. Here's the short version of the basis for the rule.
IBD 8 Sell Rule
An investor who buys a stock without having a clear sell strategy is courting danger.
There's no guarantee that any stock will keep rising after it breaks out of a proper base, no matter how strong its fundamentals or how solid its chart pattern.
That's why the 8% sell rule helps keep losses small and preserve capital. The rule is applied when a stock falls 8% below your purchase price, no matter what.
But if the action immediately after the breakout is clearly negative, it's even better to sell early.
"The whole secret to winning big in the stock market is not to be right all the time, but to lose the least amount possible when you're wrong," wrote IBD's founder William O'Neil in "How to Make Money in Stocks."
Remember, the bigger the loss, the harder it is to recover. An 8% drop requires only an 8.7% gain to get back to break-even. But a 25% loss requires a 33% profit the next time. And a stock that plunges 50% must double to get back to break-even.
"You must sell without hesitation — no waiting a few days to see what might happen; no hoping that the stock will rally back; no need to wait for the day's market close," O'Neil wrote.
If you still like the stock, wait for it to form a new base with a new buy point. In the meantime, it's best to search for other leading stocks breaking out of bases.
Posted on 9/26/18 at 7:00 pm to Jag_Warrior
Thanks for posting the 8% rule, I am not a big trader, just dabble in a few areas that interest me, and deciding when to sell on the downward slope is always been my worst call, will keep this in mind.
Posted on 9/26/18 at 8:45 pm to tiger81
quote:
Take a chance here ?
The GE stock is killing me right now. I thought it had bottomed out at $14 and change...I was wrong
Posted on 9/26/18 at 9:36 pm to Jag_Warrior
Why 8%?
Posted on 9/27/18 at 8:39 am to leoj
quote:
Why 8%?
Did you not read what he posted? Up until 8% you basically need a 1% gain to gain back your 1% loss, after that it starts a negative exponential drop to gain your losses back.
So essentially after 8% you are better off selling and reinvesting in something else. Take your mind off the loss and move on.
Posted on 9/27/18 at 4:35 pm to baldona
does the 8% rule include the dividend?
If over the course of the year the stock price drops 10% from your purchase price, but the stock pays a 5% dividend, is the 8% rule in play?
If over the course of the year the stock price drops 10% from your purchase price, but the stock pays a 5% dividend, is the 8% rule in play?
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