What Did You Buy Today?

[ChadR]

Fenders, speaking of T, I added to them this morning.

[fenders53]

(04-03-2020, 10:03 AM)ChadR Wrote: Fenders, speaking of T, I added to them this morning.

I own them too.  I'm a little slow but I have learned to not touch them unless they are way down near the bottom of their trading range.  They look pretty good here and thankfully they don't dare buy anything now lol.

[fenders53]

(04-03-2020, 10:02 AM)Otter Wrote:

(04-03-2020, 09:58 AM)fenders53 Wrote:

(04-03-2020, 09:48 AM)stockguru Wrote:

(04-03-2020, 09:39 AM)fenders53 Wrote:

(04-03-2020, 09:23 AM)Otter Wrote: Merger/spinoffs left a bad taste in my mouth after the disaster that was Dow and DuPont merging and then splitting into three companies. I will probably never make my money back on that one. 

I don't think that'll be an issue with RTX, as their board doesn't appear to be staffed with crooks.

I've had mixed results with spin offs.  I usually sell them because I only have a few hundred dollars in shares if that.  YUM comes to mind.  I received some YUM shares valued at about $12 IIRC (PEP spinoff long ago).   That would have been a good hold despite their recent troubles.  United didn't spin off junk.  Those are solid market leading brands.  Not telling anyone to buy them, but it isn't trash, just an attempt to focus the new merger.

Dow and Dupont were a failure waiting to happen.  Those are dead markets there in. Dupont is a dinosaur. UTX and RTN are a good marriage and the CEO is very good. I'm not worried about that at all. RTN has contracts going out years and they will continue to excel. UTX brands will take some time to come back. But at $50 a share I can wait. This will be over $100 at some point.  And please don't put IIRC is the same sentence as RTN.  I can name a lot of mergers that have gone well. I dont dwell on the bad ones 

Chemicals have not gone out of style.  Manufacturing depends on them.  We just don't need any manufacturing right now lol.  

Large CAP mergers require considerable skill.  They usually struggle for a year or more.  Then there is T.  You heard of them lol?  I cringe every time they buy something.  CSCO used to be the king of M&A.  They figured out you just buy anyone that threatens you while they are tiny.  I swear they used to buy 10 companies a year.  Integrate 2/3rds, flush the other 1/3 and make them go away.   

Let's not forget the bigliest large cap merger wealth creator of all time . . . AOL TimeWarner. LOL

And who bought that mess?  I forget.  

Anyone follow DOCU? I am still techless.

[DividendGarden]

(04-03-2020, 09:58 AM)fenders53 Wrote: Then there is T.  You heard of them lol?  I cringe every time they buy something. 

Yes!!!  Stop buying companies and pay the debt down for a few years.

[fenders53]

(04-03-2020, 10:43 AM)DividendGarden Wrote:

(04-03-2020, 09:58 AM)fenders53 Wrote: Then there is T.  You heard of them lol?  I cringe every time they buy something. 

Yes!!!  Stop buying companies and pay the debt down for a few years.

I am hoping this is a wake up call.  They will get through this and probably even be able to refinance some of their debt at lower rates. If you head into these times from a position of strength, then you can  go shopping.  They are years away from that.

[stockguru]

(04-03-2020, 10:02 AM)fenders53 Wrote: Guru

Polaris is down 15% in a sideways market since you asked about it several days ago.  You buy any yet or are you still skeered?  See, my bearish comments are not always worthless.  

Seriously though, wait for the market to pullback which may still happen.  Probably a good buy at a true bargain price.  It it doesn't happen we move on right?

I didn't buy yet. Good thing I walked away before I hit the buy button lol

But I may be now 

I added a few names that I already owned today AEP, O and RSG

[stockguru]

Question about PUTS

Was thinking of buying PUTS in XOM. $37 strike price

I never bought options in my life lol. How does this worK?

I would like to buy XOM at $37. So looks like the 5/1 is going for $6.00

So my cost would be 100 x $6.00 = $600 correct?

And if the stock were to trade below $37 I would be in the money? If it goes under $37 before the expiration can I still sell for a profit?

What is a buy open, or sell open??

How do I profit from puts ??

Sorry I'm a rookie lol

[Binary]

Added a few shares of OMC just before the closing bell. 5.25% yield, wow!

[Otter]

(04-03-2020, 02:39 PM)stockguru Wrote: Question about PUTS

Was thinking of buying PUTS in XOM. $35 strike price

I never bought options in my life lol. How does this worK?

I would like to buy XOM at $37. So looks like the 5/1 is going for $6.00

So my cost would be 100 x $6.00 = $600 correct?

And if the stock were to trade below $37 I would be in the money?  If it goes under $37 before the expiration can I still sell for a profit?

Sorry I'm a rookie lol

Those are pretty risky put options (weeklies). Given the short expiry, you could get absolutely destroyed by IV-crush and theta (time decay destroying the value of an option) if the price of oil and XOM continues to moon in the short-term. 

In the most general terms, you can typically make money re-selling a put option contract if the share price has declined below the point it was at when you purchased the contract. HOWEVER, this is where IV-crush and theta can wreck your plans. Imagine a scenario where you buy 5/1/20 XOM 35 Puts today, while XOM is at 37. If XOM suddenly plunges down to 36.50 tomorrow, you should be able to re-sell the option for a decent profit. Alternatively, there could be a scenario where XOM goes up to 40 in the next few weeks, then slowly declines to 34.90 by April 29, with a market expectation in the options market that it will be jumping back up in price soon (implied volatility, where the IV in IV-crush comes from). In that scenario, even though you are under the strike, your option is not profitable. After taking into account the premium you paid for the option, the two days remaining to expiry, market expectation of XOM rebounding (implied volatility), your option is worth less than you paid for it. There are a nearly limitless number of potential scenarios, and a large number of them result in those weeklies becoming worthless in a hurry.

[fenders53]

(03-30-2020, 06:02 PM)DividendGarden Wrote:

(03-30-2020, 05:36 PM)fenders53 Wrote:

(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.

(04-03-2020, 02:39 PM)stockguru Wrote: Question about PUTS

Was thinking of buying PUTS in XOM. $37 strike price

I never bought options in my life lol. How does this worK?

I would like to buy XOM at $37. So looks like the 5/1 is going for $6.00

So my cost would be 100 x $6.00 = $600 correct?

And if the stock were to trade below $37 I would be in the money?  If it goes under $37 before the expiration can I still sell for a profit?

What is a buy open, or sell open??

How do I profit from puts ??

Sorry I'm a rookie lol

I will send you a PM. Basic options are not rocket science but market volatility adds to the complexity now.  I am not an options genius but I have traded well over 500 since I joined this forum and I am not broke yet lol.

[divmenow]

(04-03-2020, 03:06 PM)fenders53 Wrote:

(03-30-2020, 06:02 PM)DividendGarden Wrote:

(03-30-2020, 05:36 PM)fenders53 Wrote:

(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.

(04-03-2020, 02:39 PM)stockguru Wrote: Question about PUTS

Was thinking of buying PUTS in XOM. $37 strike price

I never bought options in my life lol. How does this worK?

I would like to buy XOM at $37. So looks like the 5/1 is going for $6.00

So my cost would be 100 x $6.00 = $600 correct?

And if the stock were to trade below $37 I would be in the money?  If it goes under $37 before the expiration can I still sell for a profit?

What is a buy open, or sell open??

How do I profit from puts ??

Sorry I'm a rookie lol

I will send you a PM. Basic options are not rocket science but market volatility adds to the complexity now.  I am not an options genius but I have traded well over 500 since I joined this forum and I am not broke yet lol.

I recommend not doing options. If you don't understand it, stay away lol

But if you want to go that route buy PII and then write a  protect put as it goes down to $25 

[fenders53]

(03-30-2020, 06:02 PM)DividendGarden Wrote:

(03-30-2020, 05:36 PM)fenders53 Wrote:

(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.

(04-03-2020, 02:39 PM)stockguru Wrote: Question about PUTS

Was thinking of buying PUTS in XOM. $37 strike price

I never bought options in my life lol. How does this worK?

I would like to buy XOM at $37. So looks like the 5/1 is going for $6.00

So my cost would be 100 x $6.00 = $600 correct?

And if the stock were to trade below $37 I would be in the money?  If it goes under $37 before the expiration can I still sell for a profit?

What is a buy open, or sell open??

How do I profit from puts ??

Sorry I'm a rookie lol

(04-03-2020, 03:13 PM)divmenow Wrote:

(04-03-2020, 03:06 PM)fenders53 Wrote:

(03-30-2020, 06:02 PM)DividendGarden Wrote:

(03-30-2020, 05:36 PM)fenders53 Wrote:

(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.

(04-03-2020, 02:39 PM)stockguru Wrote: Question about PUTS

Was thinking of buying PUTS in XOM. $37 strike price

I never bought options in my life lol. How does this worK?

I would like to buy XOM at $37. So looks like the 5/1 is going for $6.00

So my cost would be 100 x $6.00 = $600 correct?

And if the stock were to trade below $37 I would be in the money?  If it goes under $37 before the expiration can I still sell for a profit?

What is a buy open, or sell open??

How do I profit from puts ??

Sorry I'm a rookie lol

I will send you a PM. Basic options are not rocket science but market volatility adds to the complexity now.  I am not an options genius but I have traded well over 500 since I joined this forum and I am not broke yet lol.

I recommend not doing options. If you don't understand it, stay away lol

But if you want to go that route buy PII and then write a  protect put as it goes down to $25 

Do you trade options?