10-08-2020, 08:57 PM
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Good info.
TBH, I didn't know what the hell was really going on. My biggest problem with oil is my inability to understand what actually drives the price. My thesis is it's headed towards being a dying industry in my lifetime so I don't have the motivation to get truly informed. So small trades and it's just gambling I suppose.
How stressed would you be if you got in a little deep in KO and it dipped $5 suddenly? Probably the same as me, I wouldn't lose a minutes sleep. I'll wait a few months if necessary and sell covered calls against it until I die lol.
Probably sounds like I am justifying bad initial decisions, but my rationality is usually thoughtful. A year from now I will have a stronger opinion on the subject. For now it's just don't defend a position without a reasonable expectation it corrects itself soon. I am probably defending one position per week since I sell a lot of options for just a few weeks. I just rolled a TLT option forward today. Dropped the strike a bit and a little new premium. Certainly not as good as a new TLT position but still beating a dividend premium.
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My son is in oil and the freakout was a lack of storage, so futures had nowhere to go if you accepted delivery, thus the collapse.
KO, HD, MCD etc. dropping isn't a concern as you've said.
Your initial decisions are good, based on what you perceive, sometimes the follow up that comes can no longer be supported by the original thesis. It becomes a new and different trade. Not necessarily a bad trade but nay times people think it is continuation of the original trade. It is not.
Regarding beating the dividend, I base my performance on my goals and needs not if it beats the market or anything else for that matter. It has to work for ME, that's it.
I hope some others are gleaning a thing or two from these tomes-LOL
Good info.
TBH, I didn't know what the hell was really going on. My biggest problem with oil is my inability to understand what actually drives the price. My thesis is it's headed towards being a dying industry in my lifetime so I don't have the motivation to get truly informed. So small trades and it's just gambling I suppose.
How stressed would you be if you got in a little deep in KO and it dipped $5 suddenly? Probably the same as me, I wouldn't lose a minutes sleep. I'll wait a few months if necessary and sell covered calls against it until I die lol.
Probably sounds like I am justifying bad initial decisions, but my rationality is usually thoughtful. A year from now I will have a stronger opinion on the subject. For now it's just don't defend a position without a reasonable expectation it corrects itself soon. I am probably defending one position per week since I sell a lot of options for just a few weeks. I just rolled a TLT option forward today. Dropped the strike a bit and a little new premium. Certainly not as good as a new TLT position but still beating a dividend premium.
[/quote]
My son is in oil and the freakout was a lack of storage, so futures had nowhere to go if you accepted delivery, thus the collapse.
KO, HD, MCD etc. dropping isn't a concern as you've said.
Your initial decisions are good, based on what you perceive, sometimes the follow up that comes can no longer be supported by the original thesis. It becomes a new and different trade. Not necessarily a bad trade but nay times people think it is continuation of the original trade. It is not.
Regarding beating the dividend, I base my performance on my goals and needs not if it beats the market or anything else for that matter. It has to work for ME, that's it.
I hope some others are gleaning a thing or two from these tomes-LOL