What Did You Buy Today?

[divmenow]

(06-08-2020, 11:39 AM)fenders53 Wrote:

(06-08-2020, 11:17 AM)kblake Wrote:

(06-08-2020, 10:49 AM)fenders53 Wrote:

(06-08-2020, 10:04 AM)divmenow Wrote:

(06-08-2020, 09:57 AM)fenders53 Wrote: Couldn't agree more with Divmenow.  You have to do the risk reward thing at these levels.  I'm probably about to go short something with a protected option spread.  Maybe buy some JNJ.  I sold shares higher so why not?

Exactly Fenders.  At least JNJ is basing here for the next leg up. JNJ and BMY basing. 2 stocks I can feel comfortable owning after the market realizes this move up in stocks is bonkers lol

I realize nobody who posts this thread engages in my strategy, but I like to share just to keep my self honest.  I've never lost even once doing this but that day will come eventually.

This is my boat account I feel the need to hedge a bit against the market since I intend to spend the money next year.  If these trades are a fail, almost certainly my long positions went much higher and I wasted a one month rally.  I'll be about even for the month if that happens and I can live with that outcome.  The more likely outcome is the market pulls back some in the next month, I chicken out and run off with 60%+ of the money.  Anyway these are JUL 17 trades ...........

Shorted DE yet again with an option spread that limits my downside.  Not like gong straight up short where I could be crushed.  If DE shoots up to $182 and stays there I lose.  That's a pretty big run from here as it is at $168.  

Shorted WEN again.  If it runs to 24.50 and stays there I start to lose.  

$877 credit to my account today.  I'll find a place to put that money long in the next week or so.

WEN is a dangerous short. They are going to do very well. The stock sold off because it got caught in the storm. But they are on of the few companies that have been well over the last 3 months. I can see the stock going to $30. Their breakfast is a big hit in my area and I'm sure nationwide. Lets just hope it goes down for you, before it goes up lol. I see the $24 puts are going for $1.50. Good luck

If I truly saw it as dangerous I would not have done it.  I use option spreads so there is no mathematical possibility any of my shorts are particularly dangerous.  So far I only short stocks I have followed for years.  I intend to keep it that way.  It's DEFINITELY nothing personal against the targeted companies.  I have been long as well in DE and WEN quite recently and will be again in the future.  WEN looked real good at sub $10 and I bought lots of shares.  You can see the stock going anywhere you want.  If you think it is going to $30 with any real conviction you should buy a lot more shares today.  That is a 25% run from a high RSI base, at the top of the stocks historical chart range.  Balance sheet is hurting but that will not likely have any bearing on my trade.

WEN is not going to $30. Save your money and buy the value meal for a week instead lol