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Anyone buying puts on tech stocks?


Lance
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Hello, I'm short the Russell 2000 via 2016 $120 puts (and via my Fairfax shares), but have been reluctant to buy puts on any individual names.  I've considered buying AMZN, NFLX and TSLA puts, but have not pulled the trigger. 

 

Was curious if anyone had any thoughts on price levels they would need to reach before you'd buy puts (or perhaps CRM, LNKD, TWTR, etc.).

 

Thanks,

Lance

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I own lots of CRM puts and a handful of WDAY and LNKD puts. Also had some puts on some others but those are either sold or expired worthless.

 

I'm already well in positive territory but expect these names to ultimately trade at a fraction from where they are now.

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I have been using a basket approach for my puts (expiring Jan 15 or 16) on high flying tech/social media stocks since late 2013 and early 2014 ( I have around 8-9 stocks in my basket).

 

My highest conviction picks are YELP, LNKD, DDD and P and expect them to trade much lower in one year ( but then again, knowing that this madness can last longer, I cannot say for sure). I missed the boat on ANGI and really regret it, as I was very close to buying puts when it was in the 20s. I have been short AMZN for almost 2 years and bought some 2016 puts when it was trading in the $350-$360 range, although frankly AMZN is the only one that makes me wonder if my decision to short 2 yrs back was correct. The others I expect to be in a decent shape when I close my positions.

 

 

Btw, I am not short FB, TWTR or NFLX though but I might be tempted.

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