What are you buying today?

[bargainman]

56 minutes ago, Gregmal said:

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. 

There are many options variations and enough greeks to shake a stick at.  You do generally want to sell short term and buy long term, but even that has exceptions.  Usually I buy LEAPs fairly ITM on long term solid companies and hold enough cash where I'm not overly leveraged.  Were I to sell puts I'd probably become leveraged.  I know folks who oversold puts and got wiped out a couple of times cause they weren't careful.  Just cause there's no money out of your pocket doesn't mean there couldn't be.  That said, I'm probably too conservative at times

[E. Nashton]

1 hour ago, bargainman said:

 

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

 

If I had to pick a narrative I would point to V's guidance released during the Q report and the overhang of more probes. As for short-term - no clue. Longer-term - well I'm willing to purchase shares at these levels and to add to my position if it drops even more. I don't think it's screaming cheap but I also don't think I'll lose money on this position in the long run. Bottom line, I think I can meet my hurdle rate with this over time and I welcome cheaper prices. It's a quality toll booth company and yes there's coming competition from new entrants but IMO V/MA will continue to chug along at surprisingly good growth rates (absolute not relative or comps) and unless it completely gets rerated in the long term, it's a fine position.   

[Gregmal]

48 minutes ago, bargainman said:

There are many options variations and enough greeks to shake a stick at.  You do generally want to sell short term and buy long term, but even that has exceptions.  Usually I buy LEAPs fairly ITM on long term solid companies and hold enough cash where I'm not overly leveraged.  Were I to sell puts I'd probably become leveraged.  I know folks who oversold puts and got wiped out a couple of times cause they weren't careful.  Just cause there's no money out of your pocket doesn't mean there couldn't be.  That said, I'm probably too conservative at times

Yea I mean look, everyone needs to find their comfort zone. I've found over time, finding a comfort zone is sometimes facilitated by stepping out of ones comfort zone just a little bit and testing out new stuff or stuff that one might "perceive" as risky. Just this year alone Ive probably generating a double digit return from put sales. Gotten exercised less than 15% of the time. Almost everything that was put to me was later sold at a profit. Pick your spots. Stick with stuff you like, or stuff you think is too good to pass up(IE GME March $20 puts for $1.50 when the stock is at $300 in February LOL)...Never risk ruin...period.

 

I just think too often people spend so much time assigning these absurd probabilities or risks to things that just dont warrant it. I still cant get out of my head all the "yea but covid killed retail, malls are dead" nonsense last year back when Simon was at $60. At some point its just like.....really????? Why even invest if at this sort of slam dunk opportunity you still talk yourself out of it? Even if you bought it the day before the covid decline at $140(I did, in addition to a shit ton of LEAPs at $50)...you ended up being fine not even 12 months later. So just sometimes, I try to encourage folks to step outside the vacuum because the world doesnt exist in one. Framing things in an unconventional way often helps change your perception. @boilermaker75 example is brilliantly put. Its selling insurance, the best type, with the lowest risk, and only at your discretion. If done correctly, its very, very, hard to lose.

[ANP301191]

On 10/30/2021 at 10:34 PM, Spekulatius said:

@ANP301191 What is your thesis on TTM?

 

1) Generally the rising case of "consumerism" in India added with the lower rate of financing of any long-term purchase (home/car/etc.) versus inflation/sd means that people will buying a ton of cars in India at least amongst the middle classes. As a side point, I genuinely believe that the Indian middle class will come out of the pandemic with a huge pent up demand as most people in the services businesses saw wages jump over the past two years and no one was spending on anything other than the bare essentials.

 

2) Green-ifying indian infrastructure - Tata Motors is one of several companies working with local and state governments to add greener buses/build up the green infrastructure to support the EVs.

 

3) Management - there are a few companies working on the green-tech side of the Indian infrastructure business, but I trust Tata more than them all. Granted Tata Motors has been a blackhole of money since they went around the world buying assets (definitely not a fan of their purchase of the Range Rover purchase), but at least they tell you when they burn cash, other Indian companies find very interesting ways of hiding it on the balance sheet. Additionally, management seems to have realized that their competitive advantage is India, and being one of the best automotive businesses in India is probably going to be sufficient in the next decade - a lot of their recent investment (purchasing Ford's factories in India earlier last month) are in India.

 

Do think that you should have a very, very strong view on growth in India to buy it at these prices though, seems a bit euphoric if you look at the charts. My last purchase was like a 5% top up of my position and was less than 0.5% of my portfolio, the large part of my position was built in around the 350INR price for full transparency.

 

 

[WFF]

Bought some APTS April 10 Calls

[Red Lion]

I sold APO $65 1/20/23 puts for $6.50

[rkbabang]

Another Black Swan purchase:  AAL Jan 2023 $10 Puts.  Thanks @Gregmalfor the idea.

 

Edited November 1, 2021 by rkbabang

[boilermaker75]

I wrote some BRKB 280-strike Nov 12 expiration puts for $1.61 per share this morning. I would not mind getting these put to me, it would be like buying BRKB today at $278.39. Although it would put me on margin and I would then write some 280-strike covered calls, effectively the same thing as the original put sale. If BRKB closes out of the money I pocket the insurance premium. It is a little like being on margin, but getting paid instead of paying.

 

Edit: I have been doing this for about 25 years.

Edited November 1, 2021 by boilermaker75

[abcd]

I am curious on how the brokerage house charges interest, when you sell puts without having the cash balance in the account to support it, meaning you will have to use your margin to honor the put, when it is time.

[Dinar]

RELX PLC - RELX is the ticker

[LC]

2 minutes ago, Dinar said:

RELX PLC - RELX is the ticker

 

I've owned RELX (and its component companies) in the past. I am curious why you think it is attractive at this moment. 

[boilermaker75]

1 hour ago, abcd said:

I am curious on how the brokerage house charges interest, when you sell puts without having the cash balance in the account to support it, meaning you will have to use your margin to honor the put, when it is time.

 

No charge till you are put to. Only then are you on margin and charged interest. (Edit: It is like putting in a limit order to purchase a stock that will put you on margin. No interest charged till the order actually executes.)

 

When it is getting close to expiration and it looks like I might get put to, I will buy the put back and sell a further out put at the same strike price. This picks up additional premium and delays going on margin. till hopefully the put expires worthless. This works very well with BRKB. I have been writing puts on BRKB ever since the B shares became available and I have never had a trade where I have lost money. 

Edited November 2, 2021 by boilermaker75

[Dinar]

11 minutes ago, LC said:

 

I've owned RELX (and its component companies) in the past. I am curious why you think it is attractive at this moment. 

Growth on the top-line is accelerating, as the transition from print to digital is basically over, the hit to exhibitions business from Covid-19 is in the rear view mirror, and the main division - risk is growing.  So from 4% on the top line, to 5-6% on the top line, 6-7% on operating income and low double digit EPS growth between leverage and buy-backs.   Why did you sell?

[kab60]

$ABG and $MO

[thepupil]

starter position in CLI. Rumored 400K lease w/ $AMZN at previously out of service office building is the kick in the pants to get me involved. along w/ some other developments/lease ups AND most importantly the fact that it's clearly up for sale / restructuring.

 

small position. I'd be bigger if

 

a) the gap b/w price and NAV was larger

b) the multifamily was not encumbered/levered w/ the preferred JV structure 

c) i had a more precise view of office NAV 

 

BTIG fluff piece says $25-$30, that's kind of where I think things shake out, so only really interesting if corporate event w/i say a year or so. 

Edited November 2, 2021 by thepupil

[Red Lion]

Sold puts on FISV 1/20/23 $95 strike price for $11.20. 

 

I'm selling some LEAP puts on margin in my taxable brokerage account on positions that I would like to add to over the next year anyway. 

[Gregmal]

2024 OPEN puts $10 strike. In a way I didnt even appreciate at first, it kind of hedges a lot of different things for me. On top of making sense on a simple level. 

[Lance]

BTI

 

Thanks

Lance

[ICUMD]

Googl

[rkbabang]

Wrote some cash backed Jan $55 ZG puts.  That seems like a good price for Zillow, I don't want to pay $70 and if I don't end up getting put to I keep the premium.

 

[LC]

21 hours ago, Dinar said:

Growth on the top-line is accelerating, as the transition from print to digital is basically over, the hit to exhibitions business from Covid-19 is in the rear view mirror, and the main division - risk is growing.  So from 4% on the top line, to 5-6% on the top line, 6-7% on operating income and low double digit EPS growth between leverage and buy-backs.   Why did you sell?

 

I sold around COVID to buy what I thought were more volatile companies that would bounce back harder.

 

I never rebought for a few reasons - concerns over the exhibitions biz (my question was, 'would it return post-COVID, and if so how much?') and I felt the publications biz is ripe for disruption given how much they were/are charging. 

[Lance]

Wrote puts on EPD

 

Thanks

Lance

[Red Lion]

Late to the party... I bought $10 4/14/22 CALLS on APTS. 

[fareastwarriors]

added some CLPR this morning before the big pop. NYC is looking bright(er).

 

 

[thepupil]

On 11/2/2021 at 1:58 PM, thepupil said:

starter position in CLI. Rumored 400K lease w/ $AMZN at previously out of service office building is the kick in the pants to get me involved. along w/ some other developments/lease ups AND most importantly the fact that it's clearly up for sale / restructuring.

 

small position. I'd be bigger if

 

a) the gap b/w price and NAV was larger

b) the multifamily was not encumbered/levered w/ the preferred JV structure 

c) i had a more precise view of office NAV 

 

BTIG fluff piece says $25-$30, that's kind of where I think things shake out, so only really interesting if corporate event w/i say a year or so. 

 

NYC is back and so is New Jersey! 

 

https://twitter.com/thepupil11/status/1456013721067786240?s=20