What are you buying today?

[MattR]

6 hours ago, formthirteen said:

 

Interesting that LMT is down 11.80%, should be a good cash substitute. I owned TPB for a while, but had no conviction and sold. NTDOY is interesting, but I'm skeptical of "the next Disney" thesis, maybe I need to dig deeper. I have no conviction in the INTC turnaround, maybe we don't even need one to profit.

It's not the next disney, it's Nintendo. Loved Franchises (Super Mario, Pokemon, Zelda, Metroid....). I would say that their IP is even stronger than something like Mikey Mouse.

[Gregmal]

Trimmed some MSFT, bought some APTS April 2022 $10 calls, added some VIX November $25 calls. 

[Lance]

Added to MO and V.  Wrote puts on MO.

 

Thanks

Lance

[rkbabang]

Sold my Jan $12.50 APTS calls (over 90% gain) and bought Apr $10 calls (safer and more time).

 

[Dave86ch]

Added FB

[E. Nashton]

29 minutes ago, Lance said:

Added to MO and V.  Wrote puts on MO.

 

Thanks

Lance

 

V as well for me. 

[Gregmal]

Grabbed a little more JOE, shorted some MO puts, and laughed a little at AMZN and AAPL. 

[JRM]

27 minutes ago, Gregmal said:

Grabbed a little more JOE, shorted some MO puts, and laughed a little at AMZN and AAPL. 

 

I was looking at puts on MO today, but the IV is so low the premiums didn't seem great.

[fareastwarriors]

added some APTS. 

[Gregmal]

21 minutes ago, JRM said:

 

I was looking at puts on MO today, but the IV is so low the premiums didn't seem great.

Got a few Jan 2022 42.5s for ~$1.2. If I get put the shares it's "good enough". The biz is inflation resistant and basically a royalty/call option on prosperity/wage increases  for the poor people. 

[KJP]

Altice USA June 2023 $15 calls in non-taxable account.  After wash-sale period, I will sell Altice USA common in a taxable account for a loss.  In the meantime, I've got double the exposure.

Edited October 29, 2021 by KJP

[ANP301191]

Added to AMZN, TTM (Tata Motors ADR) today

[Spekulatius]

12 hours ago, ANP301191 said:

Added to AMZN, TTM (Tata Motors ADR) today

@ANP301191 What is your thesis on TTM?

[Lance]

Wrote puts on BTI

 

Thanks

Lance

[boilermaker75]

On 10/28/2021 at 5:26 PM, Gregmal said:

Got a few Jan 2022 42.5s for ~$1.2. If I get put the shares it's "good enough". The biz is inflation resistant and basically a royalty/call option on prosperity/wage increases  for the poor people. 

 

It is almost like getting paid for putting in a limit order.

[Gregmal]

12 minutes ago, boilermaker75 said:

 

It is almost like getting paid for putting in a limit order.

Haha its exactly that. This sort of thing applies to a lot of investing. You really just have to wrap your head around the intended purpose and objective of what you're doing, and then its really easy and for the most part stress free. I have had so many convos with people about selling puts over the years and it always initially came back with some iteration of "yea but if the stock goes down a lot you get screwed"....but then its like....well, you might get screwed, but you get screwed less than if you just bought the shares. And if you arent interesting in owning the shares, why would you short the put? And then theres a eureka! moment. 

[Spekulatius]

56 minutes ago, Gregmal said:

Haha its exactly that. This sort of thing applies to a lot of investing. You really just have to wrap your head around the intended purpose and objective of what you're doing, and then its really easy and for the most part stress free. I have had so many convos with people about selling puts over the years and it always initially came back with some iteration of "yea but if the stock goes down a lot you get screwed"....but then its like....well, you might get screwed, but you get screwed less than if you just bought the shares. And if you arent interesting in owning the shares, why would you short the put? And then theres a eureka! moment. 

While this is correct, you are getting screwed if bad news comes out subsequent to selling the put and the rock falls a lot. You are also getting screwed if the stock goes straight up, since you only get the meager put premium and nothing else.

Edited October 30, 2021 by Spekulatius

[Gregmal]

I don’t think I’ve ever felt screwed when a stock goes up that I don’t own.  Here you are just committing to buy it at price that’s currently below market. You’re getting paid not to own it. If you like it enough right now you should just be buying it. 
 

I mean think about it, how many times do you see folks go “I’ll buy the dip”…”can’t wait to buy more at lower prices”…then the dip comes and they shit their pants and freeze up and do nothing. 

Edited October 30, 2021 by Gregmal

[boilermaker75]

6 hours ago, Spekulatius said:

While this is correct, you are getting screwed if bad news comes out subsequent to selling the put and the rock falls a lot. You are also getting screwed if the stock goes straight up, since you only get the meager put premium and nothing else.

 

But not as screwed as if you bought the stock at the higher price. So you do this only if you don't mind owning the stock. 

 

It is like you are selling insurance, no different than BRK's main business, except "paying a claim" is actually buying a stock you want to own but at a better price. It is better than the insurance business if done right. Something Buffett used to do often.

[IceCreamMan]

9 hours ago, Gregmal said:

Haha its exactly that. This sort of thing applies to a lot of investing. You really just have to wrap your head around the intended purpose and objective of what you're doing, and then its really easy and for the most part stress free. I have had so many convos with people about selling puts over the years and it always initially came back with some iteration of "yea but if the stock goes down a lot you get screwed"....but then its like....well, you might get screwed, but you get screwed less than if you just bought the shares. And if you arent interesting in owning the shares, why would you short the put? And then theres a eureka! moment. 

 

Maybe it depends on whether you see the glass as half full or half empty.

 

If the stock goes up a lot, you miss out on all of the upside except for the put premium and would've been better off buying the stock. If the stock goes down, you suffer all of the decline minus the put premium and would've been better off doing nothing.

[competitive-advantage]

On 10/27/2021 at 7:08 PM, MattR said:

It's not the next disney, it's Nintendo. Loved Franchises (Super Mario, Pokemon, Zelda, Metroid....). I would say that their IP is even stronger than something like Mikey Mouse.

Thanks - I agree.

I go to a console café and Nintendo games are still some of the most popular ones decades after their publication.

And I also see younger people with Nintendo Switch etc.

Nintendos R&D is increasing, so the future may look bright:

https://www.google.dk/amp/s/www.tweaktown.com/news/79368/nintendo-gearing-up-spending-for-next-gen-hardware-tons-of-games/amp.html
 

If I shall mention something negative I found out that the usability is lacking when changing to Switch OLED and that there is some issues with being offline because the system needs to control if the user have bought the game legally. I found this info in some Youtube videos.

Edited October 31, 2021 by competitive-advantage

[bargainman]

On 10/30/2021 at 12:29 PM, Gregmal said:

I don’t think I’ve ever felt screwed when a stock goes up that I don’t own.  Here you are just committing to buy it at price that’s currently below market. You’re getting paid not to own it. If you like it enough right now you should just be buying it. 
 

I mean think about it, how many times do you see folks go “I’ll buy the dip”…”can’t wait to buy more at lower prices”…then the dip comes and they shit their pants and freeze up and do nothing. 

 

Oh I've certainly done this.   Several cases where selling credits (either short puts or covered calls) have been some of the 'worse' financial decisions.  I've learned to never go all in on credit selling.  I'll always have some unlimited upside left open, mostly for psychological reasons, but also because if you cut off all your unlimited gains you'll likely greatly limit your returns over time.  Plus it's easier to buy a leap and get unlimited (in theory) gains vs sell credits over 16-30ish months and manage those positions.  Especially if you're busy

[Gregmal]

You guys are entering the trade for the wrong reasons then. @boilermaker75 not surprisingly has it down 100% right.
 

I don’t really give a shit whether i own the stock or not, I’m really just selling insurance to folks on stuff that I can deal with owning at that price/valuation. If MO at 41.30 cost does me in, so be it. But I’d wager(as I am) that I either make money on the put sale or can make money from that basis. I don’t care if it gets bought for $50000 a share tomorrow. If it goes to $25 I should’ve been more selective obviously in hindsite, but that’s always a risk in the market anyway. 
 

People love to complicate the heck out of things which is what I think is going on here. Every stock can go up or down a lot. That’s not a risk specific to selling puts. 

[bargainman]

On 10/28/2021 at 9:19 AM, Dean said:

 

V as well for me. 

 

What happened to make V and MA drop?  Any thoughts on impact short or long term?

[Gregmal]

I mean another iteration of the benefit is if you want to go long sell a shorter dated put and buy a longer dated call and unless YOU ARE WRONG you never even have to take money out of your pocket.