(03-30-2020, 10:06 AM)fenders53 Wrote: I didn't expect an up day.
Same here. I was hoping for another buying opportunity, still have plenty of cash. In the mean time I sold some JNJ on the good news.
This is my third dance with a terrified market. It really is different this time. The media and some bears with internet access will have you believe the S&P will certainly be at 1500 in a month. That could happen, or maybe not. It is far from certainty. The FED is all in on protecting this market. They might as well tell us where the bottom is short-term lol. My long positions are fat healthcare-UTEs-Defense stocks. Everything else is for sale at the right price. For better or worse that's my plan. I don't want to lose all my dividends for a year.
Didn't expect an UP day myself... invested 10K in a UIT (FGSQWX) in the Leisure & Entertainment industry with the hopes that it will increase by the maturity date (06/28/21)
Fact Sheet attached... What do u think ?
(03-30-2020, 03:01 PM)DividendGarden Wrote: Bought a SPY put right before the close, seconds ago. $262 strike price. I just don't see how the markets can keep rising.
Probably a good move. I would be pleased if my puts expire worthless because it would likely mean my port is doing well. It is hard to imagine we don't have some big down days soon though.
(03-30-2020, 03:01 PM)DividendGarden Wrote: Bought a SPY put right before the close, seconds ago. $262 strike price. I just don't see how the markets can keep rising.
Probably a good move. I would be pleased if my puts expire worthless because it would likely mean my port is doing well. It is hard to imagine we don't have some big down days soon though.
Yeah, I've got two and a half weeks until the 17th when it expires.
That will probably work out but it is usually much less risky to buy with a much longer expiration and out of the money some. We would be happy to explain it on the options thread. If yours gets profitable I would sell it and regroup.
(03-30-2020, 07:50 PM)stockguru Wrote: Most every stock is in a V shape and has the same chart. They will all correct and the market is about to test near the lows. Just have patience.
Buying a PUT on SPY is a smart idea
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
Frankly, the premiums on SPY put options are getting silly, and this is quite clear from volatility figures, even on light-volume 4% up days like today. SPY puts are becoming a very crowded trade, and the premiums compared to six weeks ago reflect this. I think there will still be a brief window to make everything down through maybe 220 strikes rather profitable in the next 30 days, but adding to my SPY puts is not my number one priority.
There are other severely dislocated assets out there. Dollar is very strong, despite the Fed increasing its balance sheet by 25% of GDP in a week. Crude is at 20-year lows. The cheaper option premiums are in places other than SPY.
For the record, my DGI stuff is all intact, except for Boeing and Ford. They violated my rule of not cutting dividends or being at severe risk of doing so.
Will keep future discussion of risky side-bets to the appropriate threads.
(03-30-2020, 07:50 PM)stockguru Wrote: Most every stock is in a V shape and has the same chart. They will all correct and the market is about to test near the lows. Just have patience.
Buying a PUT on SPY is a smart idea
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
Guru- PII as in Polaris? The valuation looks good, the debt a little rough but just about everything else was or will be. I take it you have a Polaris product? I've always wanted to add some shares of Yamaha.
Otter- It's not just puts, premiums are crazy on about everything I look at. 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. Why do I even worry about the dividend yield lol. Lets not try to scare Dividend Garden out of his put. I do want to talk him out of the 17 day expiration though. It's an ATM so I'm sure it was pricey. This market could be optimistic for another week. It shouldn't but you know how that goes. My puts are SEP20 and JAN21. I think 90 days would be the absolute shortest DTE so I can get half of that time in hedging before I get overly concerned about selling it. Not certain if he understand the SPY does not have to hit the strike to be a good hedge and be sold for a profit?
Now back to the options threads with us so we can chat the subject up if he likes.
