What Did You Buy Today?

[EricL]

(03-30-2020, 07:50 PM)stockguru Wrote: One question and its only a small one.. Thoughts on PII

Stock has consistently raised its dividend and is now a its 2011 levels. PE 9 and yield of 5.13%

This is a stock I have always wanted to own

I owned PII for a few years but sold early last year after I got tired of its under-performance. Management has made several questionable decisions in recent years like unprofitable investments in India, its Victory motorcycle failure, and miss-steps in manufacturing capability and quality.

I think they made too many cuts over the years that caught up with them. Also increased debt substantially, going from $107M in total debt in 2012 to $1.8B today.

With an ongoing weak farm economy, and now a crashing oil & gas sector along with the overall recession, I'm not too excited about its near-term prospects.

[NilesMike]

[/quote]

.  I think I mentioned I was getting a 2% return for 24HRs of call premium on boring stocks like DOW or one of my sorry airlines lol.  I do it every Thursday on 4 or 5 positions.  I have no idea why anyone would pay that and lose almost every time.   
[/quote]

The reason is because the options are priced perfectly. Your win rate is what it is "supposed to be" as is the buyer of those options. You get small wins XX% of the time and they get small losers XX% of the time. They get big wins X% of the time and you get big losses X% of the time.

There is no inherent edge to selling or buying options, it works out to be the same over a large number of trades. The edge relies on one's ability to be right. Right on direction of underlying price or volatility. That provides an option trader 2 things to focus on and provides leverage over just outright stock trading.

[fenders53]

.  I think I mentioned I was getting a 2% return for 24HRs of call premium on boring stocks like DOW or one of my sorry airlines lol.  I do it every Thursday on 4 or 5 positions.  I have no idea why anyone would pay that and lose almost every time.   
[/quote]

The reason is because the options are priced perfectly. Your win rate is what it is "supposed to be" as is the buyer of those options. You get small wins XX% of the time and they get small losers XX% of the time. They get big wins X% of the time and you get big losses X% of the time.

There is no inherent edge to selling or buying options, it works out to be the same over a large number of trades. The edge relies on one's ability to be right. Right on direction of underlying price or volatility. That provides an option trader 2 things to focus on and provides leverage over just outright stock trading.
[/quote]
I'm sure they have a different goal. (day trading leverage).   They may be riding this for two hours or less.  I am usually taking it to expiration for an expire out of the money.  The difference now is just the premium of course.  I'm not selling 1-2 day covered calls when volatility is down.   It's usually not worth doing it at all.  I'll take it for now.

[fenders53]

DGIers, don't be shy, you can take this thread over anytime you like.    

Obviously a number of us are into options to some extent.  It's not for everyone and it is NOT our intent to change the theme of the forum.  We have our own threads for this conversation. We are all DGIers as well though it may not sound like it sometimes.

[stockguru]

Hmmm looks like the market wants to head straight up again lol. I guess all those shorts and puts are going to hurt people. Better start to get long here lol

ITA bought that ETF today. I like the holdings and its like $100 off its highs lol

[divmenow]

Bought WM and added a big position in STOR

Added to IRM and RTN

[stockguru]

(03-31-2020, 09:31 AM)divmenow Wrote: Bought WM and added a big position in STOR

Added to IRM and RTN

I really like the buys you made. Those are all quality names that have come down and haven't rallied like others.

I took a look at IRM and STOR and I really like those companies so bought some myself 


Oil seems to be rallying as well. RDS.B, EOG and CVX were all nice buys. Do you see that continuing? Seems to be the 1 sector that if any good news comes will rally.

I have no position in XOM but looks like to be making a bottom

Look at MO, PM and BTI go.... All those that said it was dead.. Hmmm good thing I didn't listen to those naysayers on here

[Binary]

Added a bit of O

[fenders53]

(03-31-2020, 09:52 AM)stockguru Wrote:

(03-31-2020, 09:31 AM)divmenow Wrote: Bought WM and added a big position in STOR

Added to IRM and RTN

I really like the buys you made. Those are all quality names that have come down and haven't rallied like others.

I took a look at IRM and STOR and I really like those companies so bought some myself 


Oil seems to be rallying as well. RDS.B, EOG and CVX were all nice buys. Do you see that continuing? Seems to be the 1 sector that if any good news comes will rally.

I have no position in XOM but looks like to be making a bottom

Look at MO, PM and BTI go.... All those that said it was dead.. Hmmm good thing I didn't listen to those naysayers on here  

Is there even one person here that doesn't own MO? I think that's a no lol.

[stockguru]

Added some SBUX and new position in STAG

Mine as well add to SBUX. I go there every morning lol. I realize it could come down some but this is a name you buy on weakness. The drive throughs are still packed.

[DividendGarden]

Markets were going up today, so I sold my put for a loss about an hour ago. Right on queue, the markets started heading South...

[fenders53]

(03-31-2020, 09:31 AM)divmenow Wrote: Bought WM and added a big position in STOR

Added to IRM and RTN

Has it been a couple weeks already lol.  I don't believe your lies anymore.  I don't believe mine either.  Had to work today. Can't trade