/biz/ - Business & Finance

>>20891594
I would advise you to be cautious
It's good that you have a basic understanding of how options work, and which options might be "cheap" or "expensive", but that won't necessarily translate into successful gains.
Especially right now, for the last year or so we've had so many externalities flying left and right at the market that it is very easy for anyone who tries to get "clever" and make a bunch of money to end up wiped.

if you don't absolutely need to take on more risk to achieve your investment goals, I would advise against anything significantly risky in the current state. if you have some russian debt collector coming after you in a month, then sure, go ahead. but otherwise, don't put your whole stack into option strategies.
put maybe 10% of your account into the tastyworks, then use only 20% of that on any given trade at a specific time. Then even if you make some early missteps you will still have plenty of money to continue on. If you do very well at the beginning, don't get too greedy!
you (probably) have many decades of investing ahead of you to make gains. as long as you don't blow your money and use the time ahead of you to your advantage, you will do very well.

>>19236418
> the return seems less worth it

Making money when stocks go down is pure euphoria, those are the sweetest gains. To be making money while good stocks are getting cheaper feels so fucking good, because it means that you can buy way more stocks for the turnaround. In its healthy form, making money on downswings or bear markets is based in a genuine love of stocks.

Making money when everything is up is okay, but everyone else is making money too, so it isn't special, and stocks aren't getting cheaper so that you can buy more of them. That's why making money on the down days can be so tantalizing.

But sometimes something happens, the person turns into a bear, and their motive changes. Instead of making money on the down moves for money in order to buy great stocks, they are obsessed with things going down, down, down forever. They come up with all kinds of reasons that stocks are overvalued and should crash into the ground, so on and so forth. And if they never escape that point of view, the results can be really unfortunate.

>>18761010
>Agreed. I think from a high level policy and leadership perspective, their hands are essentially tied regarding the view that they have to publicly express. It's the finer details that come out in brief moments that are much more illuminating.
yes


>His answer regarding markets attempting to price in the unknowable and the the emphasis time and time again on the short term uncertainty, as opposed to providing any solid forward medium-to-long term guidance, was also pretty telling.

nah that's pretty much standard for what everyone is saying
even people who are doctors with years of experience, and having seen months worht of data, don't know exactly what this thing is going to look like over the next few months

> I'm concerned that people aren't taking the full weight of what was said into account, and are misconstruing Fed monetary policy for something that it isn't.
bro welcome to /smg/. we've been having many posters spam threads about secret repo crashes for moths now, even before the corona thing happened

>>18761089
the market usually gets hyped from short term dovishness and then re-assess in the next couple of sessions (historical examples from the past two years)

>>18490065
If we include those, we also need to include things like reverse splits and a million other things that new posters ask about every thread
even if we put a link, no one would read it, and even if they did read it, they might not really understand it
it's a tough problem, but as things are we just have to accept (especially in times like these) that we will have a lot of thread discussion by people who don't understand the basics. There really is no perfect solution, the best solution IMO is just trying to encourage people to search for information and learn themselves, instead of wasting tons of time trying to correct them (while they argue with you...)
I think it was Yeats or someone who said "Education is not the filling of a bucket, but the lighting of a fire". You're not going to be able to help very many people by trying to spoonfeed them financial information little by little, it's completely sisyphean.

>>18327360
ah the point is: if you find a stock that you KNOW is going to moon (compared to the IV that the options market is pricing in) you buy calls
it's not better to sell covered calls on a stock that is going to PUMP or going to crab from your perspective, you just want to make sure it doesn't go down.
If it moons, it's fine, but just sub-optimal. If it goes down, that's the issue.

options are complex because of the two extra variables: time and strike.
the way to simplify it is to try and think on both sides of the trade: what value is the buyer getting, what value is the seller getting.
Options as an instrument were meant for hedging and positioning originally, not for wild leveraged speculation. if you make options buying/selling the main thrust of your strategy, you had better know what you're doing ! much better to make buying stocks your main focus and use options as a side project (if at all) IMO

>>18109582
they make gas stuff
Fun story, when the first ascent of Everest happened, the British had brought along O2 equipment made by British companies and also some made by Draeger. For the ascent climb, they ended up using the Draeger equipment because it was less likely to fail in the freezing temps
https://www.draeger.com/Corporate/Content/the_history_of_draeger_1.pdf

>>17793010
I agree

>>17201383
when did you buy it?
when you bought it, what was your plan at that time (how long did you expect to hold, when did you expect to sell)?

>>16984195
>Most of China is medieval tier in sanitation
from a technological standpoint, they are far behind the Romans and medieval Europe in sanitation. It's not really an apples-to-apples comparison, that is just an outcome of their population density and cultural norms. Very hard to have a sanitary population of 10M people in a single city, all taking buses and trains and airplanes... Medieval Europe and Romans didn't have the same challenges.

>>16984212
Future uncertainty doesn't just disappear because last quarter's earnings were good. That is not a realistic viewpoint and I want to strongly urge you to re-consider it. The only thing that matters now is how certain or uncertain people feel about the future. Earnings season is sort of "cancelled", meaning past performance is massively less important than it was pre-CoronaVirus

futures are coming in a couple hours
but besides the hours and the numbers on the chart, there are some times that no one knows how hot the fire is burning
check this out for a little example of true heat (around 10 minutes in):
https://www.youtube.com/watch?v=E57ZLHd5g_g

>>16183696
I think your communication skills could be improved.
People here don't really buy something just because someone keeps posting "hey everyone you should buy ____".
You should consider this a potential learning opportunity for yourself. If you want people to really be interested in a stock, you need to ignite their curiosity and really get them interested.

>>16184195
$6.0

>>16102695
"no"

>>16102706
I usually don't worry about it unless it keeps happening
we're on day 2-3 now, so I'm just gonna stay clean and eat well the next couple days. Water, no pills. If I'm still seeing red in the toilet on Sunday I'll start to get worried; if not, I've got a bottle of tequila waiting.

It's probably all the pills though. Heavy drinking alone never made me shit blood, I just don't want to pour anything flammable on my liver if it's already smoking ya know

>>15960665
Imagine a man, full of positive energy and excitement about stocks. Imagine a pure and incorruptible enthusiasm for buying shares of companies, so much that you can't help but tell everyone.
You come to a fun internet website full of nice friends; not to brag, not to deceive others, not to try and scrounge for information, but merely to shout out to the world how excited you are about your future retirement prospects.
That's about as well as I can describe it. But just lurk around and you'll get it eventually. The T-babies poster is everything that people involved in the stock market should be. He basically just buys stocks that he likes and comes here and posts about it...

>>15785257
"joe trader" can sell or buy options and the "monied elites" can buy or sell them.
either of these hypothetical actors you have conjured up can take either side of the trade. the marketplace is not at fault. if one of the actors doesn't do their proper diligence before entering the trade, the other party of the trade IS NOT at fault (ethically or otherwise).
it's a marketplace, and both sides are in agreement to exchange a contract at a given price.
If a certain "joe trader" outperforms "the elites" on a regular basis in the options market, does that make him unethical (from your point of view)? is the ethics of the situation determined by who has more money, or who ""wins"" the trade? (we can come back to the ""winning"" the trade part of things if we need to, which is a completely hypothetical construct and simplification, I've had to go over it with several anons before)

>>15587230
I constantly shill for KNG
I don't get anything if you buy KNG, in fact (as I have discussed at length a few months ago) it's actually worse for my position if a buy-write trade gets crowded. but I like buy-write strategies and KNG is currently best-of-breed. It's not exciting. it's basically a damped SPLV in terms of price movement but it pays twice as much yield.

In an abstract sense, the things that you want are:
yield growth (>>> yield)
yield
growth (of stock price)
stability
tax advantage (or, 'no tax disadvantage', depends how you want to see it)
time advantage

growth and yield growth come from earnings growth.
KNG does a good job of providing yield and yield growth. It is basically NOBL (dividend aristocrats underlying, cap weighted) with a flexible covered call strategy on top to get 3% higher div yield than the overall SP500.

there are many other ways to get this strategy.

for you:
1. if you're trying to play options, cut it out. market is unpredictable . premiums (vix synthetic) are unpredictable. Don't worry about it
2. grab safe yields. look for companies with solid earnings streams and reasonable debt levels.
3. that's it really. You can just buy ETFs instead if you want

what have you been in the past month? this month has been good for me, the previous month not so much :/ I'm more mid-cap/small cap/value right now, haven't bought or sold much since July

>>15091747
it depends what the stock is (some didn't exist) and what online tool you are using to look at the stock chart. Sometimes long term charts can also be impacted by other events (M&A, splits, etc.) and so even if you can see it, it might be displayed in an unreliable way.

If you know the stock existed since a certain date, you may have to check multiple sources to get the whole chart.

Even then, it isn't really malicious. Each of the online websites (or trading tools, or data APIs...) you see wants to have the highest quantity and quality of data to try and get the most users. It's just a difficult task for every online tool or website to get all of the numbers right for every stock forever.

You can trust me because I'm not part of the secret stock price obfuscation syndicate (SSPOS).

>>15080445
I begged these threads for weeks to buy NWL under 14
I hope some people did
Road to $20 is short

>>15050631
ya
plenty of opportunities to do that

https://www.youtube.com/watch?v=IIhqTxvB2Ek

>>14680480
buy under $40 is success
I wouldn't sell below $50, but certainly not under $45. In fact I haven't sold any since like $52.
Just be a tiny bit patient. If you have some kind of ADD or something that is causing you to be this compulsive with buys and sells, just self-medicate: try different drugs until one or two 'click' with you. (Not weed, weed isn't for stock markets.)
drugs and patience = money

>>14614556
you should know everything
if you don't know everything, start learning

also don't trust anyone; they are the enemy

how many of our threads will die this weekend... we will see

>>14448057
the most important thing to understand is the concept of an order book
https://www.investopedia.com/terms/o/order-book.asp
an order book exists for all things that are bought or sold in the marketplace: options, shares, futures, etc...

basically there will always be a price you can sell something valuable for ($0), and there will always be a price that you can buy something (infinite $)

but for most options or shares in a market, there will be some orders for buying and selling at certain prices in an order book. the distance between the open buy and sell orders is the spread.

Now spreads are very important, but most people who just buy shares might not understand the concept, because when buying shares of high volume stocks the spread is usually on the order of $0.01. for lower volume shares and options the spread is usually larger.

a large spread has an important connotation: it means that if you market buy into a position and then market sell out, even ignoring fees, you lose a noticeable amount of money.

>If I'm selling covered calls, is it guaranteed that someone will buy them and I will get the premium?
for a certain price, someone will buy them. the important part is to get someone to buy them for a good price, a price that makes you good money.

>What happens if there's no buy interest?
you can always lower the price until someone buys (unless the call is super OTM). but then you're getting a worse deal.

>>14266875
Hey we kind of need to re-write the OP to have a better entry point for comments like yours

but basically you want to trade with TA based on stock price movement?
There is a lot to it, it's stock, sector, cycle, timing dependent.
there is no strategy that you could describe in 10x as many words that will always give you good returns, it's just more complex than that. ti's the biggest game in town, lots of nerds playing and they all want to win

as far as brokers, strategies, whatever, the most important thing to know first is what is your country? approx what is your stack size and investment goal?

>>13971417
>visiting Ch*na
they'd deserve it
Imagine how much of a hassle it would be to imprison and deport all the Chinks AND Mexicans in the US


>>13971277
further reading ~
https://www.cnbc.com/2019/05/13/china-is-raising-tariffs-on-60-billion-of-us-goods-starting-june-1.html
https://www.scmp.com/economy/china-economy/article/3012779/beijing-warns-us-farmers-may-lose-china-market-good-plays
https://www.usatoday.com/story/money/2019/06/02/tariffs-china-blame-u-s-escalation-trade-war-china-says/1319985001/

>>13928152
Trump might just try and get a political win out of it like this:

no matter WHAT Mexico does, Trump will say: "we've looked at what they're doing. They stopped the people coming in from their side. They paid for it. We're lifting sanctions."
Then he gets a little bump in the markets and the segment of his supporters who only read headlines can rejoice: "we didn't even need a wall! what a genius! We did it! we solved immigration!"

the problem is, it doesn't really solve the problem.


But 99.9999% that is how I see this playing out.
because the whitehouse is the one who can say when Mexico has done its part to 'stop the flow of illegals', he can even play the 'We did it!' card at ANY time in the campaign cycle.

just think of any of the nutty banned cards from early MtG or Yu-gi-Oh