What are you buying today?

[gjangal]

ADBE, DG and UNH. Not exactly cheap but they are just good companies to have for the long term. Will add more if any dips happen

 

[SafetyinNumbers]

It’s been almost a year since the below post and I’m still waiting for Uranium to get moving.

 

I bought some NXE, CCO, and EFR.DB today.

 

This second half of this podcast by Mike Alkin who is a former hedge fund manager and now runs a Uranium dedicated fund sums up the bull case quite well.

 

http://themikealkinshow.curzioresearch.libsynpro.com/stop-looking-at-your-stock-screens-for-great-ideas-do-this-instead-ep-60

 

 

I bought some EFR.DB-TSX yesterday.

 

It’s a pretty interesting piece of paper to have access to a potential Uranium bull market while getting paid to wait. Maturity is Dec 2020, strike is C$4.15. Implied vol of the outstanding warrants is over 60% while the debs trade at par.

 

The debt issue is also a small part of the capital structure and I don’t think they will have a problem raising money but of course I think the debs could be a multibagger.

 

So from what I can tell, the interest rate on the debs varies between 8.5-13.5%, depending on the (weekly) spot market price of uranium oxide. Management doesn't expect the price to exceed 54.99 by 2020, the price above which the interest rate increases (and price is currently at 22.75$, from Google).

 

Any reason to be optimistic about a bull market in uranium?

 

Yes, I think so. The current Uranium spot price is too low for anyone to make money. Most producers locked into long term contract pricing much higher than spot which are expiring over the next few years. In response, Cameco and other large producers have decided to cut production and use existing inventory and buy in the spot market to fulfill production in order to preserve their resource for higher prices. Utilities will have to negotiate contract pricing soon and it will likely come in well above current prices. It’s a classical deep cyclical play that is complicated by an opaque market, two tiered pricing and extremely long lead times.

 

I bought more yesterday with the stock surging higher and a holder of the debentures being forced to sell for what I can only assume are liquidity reasons.

[Spekulatius]

GOOG - what caused the inexplicable weakness yesterday and this AM and the even less explicable sudden jump this morning?

[KCLarkin]

GOOG - what caused the inexplicable weakness yesterday and this AM and the even less explicable sudden jump this morning?

 

There seemed to be plenty of optimism about new ad units being released. Could that explain the price jump? I was going to buy more this morning but decided to buy something else once GOOG jumped.

[Gregmal]

GOOG - what caused the inexplicable weakness yesterday and this AM and the even less explicable sudden jump this morning?

 

There seemed to be plenty of optimism about new ad units being released. Could that explain the price jump? I was going to buy more this morning but decided to buy something else once GOOG jumped.

 

Yea I had an order ready to go right before the close yesterday as 1120 seemed excessive. I ultimately convinced myself to hold off because I'd deployed a fair amount of cash elsewhere recently and todays move is what I get for being a pussy. Google I find tends to overreact often. More times than not it is to the downside but there is no reason to be buying a stock like this on a +4% day.

[SmallCap]

I did something new for me:

 

I wrote some WY puts that expire in 2 days:

WY 05/17/2019 24.50 P - price when i wrote the puts was 24.85 and I sold the puts for $.10

 

My reasoning was that I was seriously thinking about adding to my WY position and when I checked the options I saw the OTM options with a bid for $.10 so I just went for it knowing that if I am put to in 2 days then I will get it $.45 less then todays price, which I can live with. My profit on expiration is a whopping $80.

 

Tell me if my thinking is stupid and i am picking up pennies in front of a steam roller.

[Spekulatius]

I did something new for me:

 

I wrote some WY puts that expire in 2 days:

WY 05/17/2019 24.50 P - price when i wrote the puts was 24.85 and I sold the puts for $.10

 

My reasoning was that I was seriously thinking about adding to my WY position and when I checked the options I saw the OTM options with a bid for $.10 so I just went for it knowing that if I am put to in 2 days then I will get it $.45 less then todays price, which I can live with. My profit on expiration is a whopping $80.

 

Tell me if my thinking is stupid and i am picking up pennies in front of a steam roller.

 

The problem with the strategy is that if the stock goes straight up, you just get 10c/ share.

[Lakesider]

MU, riding the 13Fs

[sleepydragon]

I did something new for me:

 

I wrote some WY puts that expire in 2 days:

WY 05/17/2019 24.50 P - price when i wrote the puts was 24.85 and I sold the puts for $.10

 

My reasoning was that I was seriously thinking about adding to my WY position and when I checked the options I saw the OTM options with a bid for $.10 so I just went for it knowing that if I am put to in 2 days then I will get it $.45 less then todays price, which I can live with. My profit on expiration is a whopping $80.

 

Tell me if my thinking is stupid and i am picking up pennies in front of a steam roller.

 

The problem with the strategy is that if the stock goes straight up, you just get 10c/ share.

 

Plus you have to pay short term capital gain tax, and tie up the cash in the account until put is expired. Like Warren said, if you like the stock, just buy it.

[Spekulatius]

GOOG - what caused the inexplicable weakness yesterday and this AM and the even less explicable sudden jump this morning?

 

There seemed to be plenty of optimism about new ad units being released. Could that explain the price jump? I was going to buy more this morning but decided to buy something else once GOOG jumped.

 

Yea I had an order ready to go right before the close yesterday as 1120 seemed excessive. I ultimately convinced myself to hold off because I'd deployed a fair amount of cash elsewhere recently and todays move is what I get for being a pussy. Google I find tends to overreact often. More times than not it is to the downside but there is no reason to be buying a stock like this on a +4% day.

 

I flipped some of my FB sales proceeds from a while back in my IRA’s into GOOG. I feel the stock is reasonably valued and much more safe than any of these other tech plays.

 

On MPC, I still have some more work to do, since I haven’t looked at refiners for a while. What I think Mr. market is missing (or at least underestimating) is the cash flows that these companies are getting from their midstream operations, which by now exceed the cash generated from the refining business itself. Then they have these captive MLP which allow them to monetize assets around 9-10x EBITDA when their stocks trade at <6x EBITDA (at Times) which is a great arbitrage.

 

Best in class PSX also looks cheap and they are even further down the road to be a midstream player.

[boilermaker75]

I did something new for me:

 

I wrote some WY puts that expire in 2 days:

WY 05/17/2019 24.50 P - price when i wrote the puts was 24.85 and I sold the puts for $.10

 

My reasoning was that I was seriously thinking about adding to my WY position and when I checked the options I saw the OTM options with a bid for $.10 so I just went for it knowing that if I am put to in 2 days then I will get it $.45 less then todays price, which I can live with. My profit on expiration is a whopping $80.

 

Tell me if my thinking is stupid and i am picking up pennies in front of a steam roller.

 

Not stupid at all. Think of it as placing a limit order that you get paid for if it doesn't execute. Yes it may never trade down to your desired purchase price, but I find it works 9 times out of 10 to eventually get the stock at your desired price. It builds in the patience to wait for your purchase price.

[Gregmal]

I did something new for me:

 

I wrote some WY puts that expire in 2 days:

WY 05/17/2019 24.50 P - price when i wrote the puts was 24.85 and I sold the puts for $.10

 

My reasoning was that I was seriously thinking about adding to my WY position and when I checked the options I saw the OTM options with a bid for $.10 so I just went for it knowing that if I am put to in 2 days then I will get it $.45 less then todays price, which I can live with. My profit on expiration is a whopping $80.

 

Tell me if my thinking is stupid and i am picking up pennies in front of a steam roller.

 

The problem with the strategy is that if the stock goes straight up, you just get 10c/ share.

 

Plus you have to pay short term capital gain tax, and tie up the cash in the account until put is expired. Like Warren said, if you like the stock, just buy it.

 

Eating like a chicken yet shitting like an elephant... Not my cup of tea.

[boilermaker75]

I did something new for me:

 

I wrote some WY puts that expire in 2 days:

WY 05/17/2019 24.50 P - price when i wrote the puts was 24.85 and I sold the puts for $.10

 

My reasoning was that I was seriously thinking about adding to my WY position and when I checked the options I saw the OTM options with a bid for $.10 so I just went for it knowing that if I am put to in 2 days then I will get it $.45 less then todays price, which I can live with. My profit on expiration is a whopping $80.

 

Tell me if my thinking is stupid and i am picking up pennies in front of a steam roller.

 

The problem with the strategy is that if the stock goes straight up, you just get 10c/ share.

 

Plus you have to pay short term capital gain tax, and tie up the cash in the account until put is expired. Like Warren said, if you like the stock, just buy it.

 

You don't have to wait till expiration, you can buy the put back to free up the cash. I do that on occasion.

 

Also, Buffett may say that but he has written about $5 billion of put options over the years.

[meiroy]

I did something new for me:

 

I wrote some WY puts that expire in 2 days:

WY 05/17/2019 24.50 P - price when i wrote the puts was 24.85 and I sold the puts for $.10

 

My reasoning was that I was seriously thinking about adding to my WY position and when I checked the options I saw the OTM options with a bid for $.10 so I just went for it knowing that if I am put to in 2 days then I will get it $.45 less then todays price, which I can live with. My profit on expiration is a whopping $80.

 

Tell me if my thinking is stupid and i am picking up pennies in front of a steam roller.

 

The problem with the strategy is that if the stock goes straight up, you just get 10c/ share.

 

Plus you have to pay short term capital gain tax, and tie up the cash in the account until put is expired. Like Warren said, if you like the stock, just buy it.

 

You don't have to wait till expiration, you can buy the put back to free up the cash. I do that on occasion.

 

Also, Buffett may say that but he has written about $5 billion of put options over the years.

 

Buying it back depends on the spread and liquidity.  May I ask what market data are you using for these?

[Spekulatius]

 

Eating like a chicken yet shitting like an elephant... Not my cup of tea.

 

LOL, I like this mental image better than picking up nickels in front of a steamroller

[boilermaker75]

I did something new for me:

 

I wrote some WY puts that expire in 2 days:

WY 05/17/2019 24.50 P - price when i wrote the puts was 24.85 and I sold the puts for $.10

 

My reasoning was that I was seriously thinking about adding to my WY position and when I checked the options I saw the OTM options with a bid for $.10 so I just went for it knowing that if I am put to in 2 days then I will get it $.45 less then todays price, which I can live with. My profit on expiration is a whopping $80.

 

Tell me if my thinking is stupid and i am picking up pennies in front of a steam roller.

 

The problem with the strategy is that if the stock goes straight up, you just get 10c/ share.

 

Plus you have to pay short term capital gain tax, and tie up the cash in the account until put is expired. Like Warren said, if you like the stock, just buy it.

 

You don't have to wait till expiration, you can buy the put back to free up the cash. I do that on occasion.

 

Also, Buffett may say that but he has written about $5 billion of put options over the years.

 

Buying it back depends on the spread and liquidity.  May I ask what market data are you using for these?

 

Just the data provided by Schwab—quotes, volume, open interest.

 

I've never had an issue trading options on stocks such as WFC, BRKB, AMGN, BAC, GILD, BK, etc. my usual suspects.

[meiroy]

I did something new for me:

 

I wrote some WY puts that expire in 2 days:

WY 05/17/2019 24.50 P - price when i wrote the puts was 24.85 and I sold the puts for $.10

 

My reasoning was that I was seriously thinking about adding to my WY position and when I checked the options I saw the OTM options with a bid for $.10 so I just went for it knowing that if I am put to in 2 days then I will get it $.45 less then todays price, which I can live with. My profit on expiration is a whopping $80.

 

Tell me if my thinking is stupid and i am picking up pennies in front of a steam roller.

 

The problem with the strategy is that if the stock goes straight up, you just get 10c/ share.

 

Plus you have to pay short term capital gain tax, and tie up the cash in the account until put is expired. Like Warren said, if you like the stock, just buy it.

 

You don't have to wait till expiration, you can buy the put back to free up the cash. I do that on occasion.

 

Also, Buffett may say that but he has written about $5 billion of put options over the years.

 

Buying it back depends on the spread and liquidity.  May I ask what market data are you using for these?

 

Just the data provided by Schwab—quotes, volume, open interest.

 

I've never had an issue trading options on stocks such as WFC, BRKB, AMGN, BAC, GILD, BK, etc. my usual suspects.

 

Thanks.

[sleepydragon]

I did something new for me:

 

I wrote some WY puts that expire in 2 days:

WY 05/17/2019 24.50 P - price when i wrote the puts was 24.85 and I sold the puts for $.10

 

My reasoning was that I was seriously thinking about adding to my WY position and when I checked the options I saw the OTM options with a bid for $.10 so I just went for it knowing that if I am put to in 2 days then I will get it $.45 less then todays price, which I can live with. My profit on expiration is a whopping $80.

 

Tell me if my thinking is stupid and i am picking up pennies in front of a steam roller.

 

The problem with the strategy is that if the stock goes straight up, you just get 10c/ share.

 

I disagree. I think boilermaker’s method is totally sound. The only risk is sell too much put without the cash ready to buy, otherwise it certainly lower your cost of purchase of a stock if you will be buying it over time. Boilermaker has said he doesn’t do this for all stocks, which will be dumb. He only do it for a few stocks that are his long term holdings which he plans to buy more in the long term.

 

 

 

 

Plus you have to pay short term capital gain tax, and tie up the cash in the account until put is expired. Like Warren said, if you like the stock, just buy it.

 

Eating like a chicken yet shitting like an elephant... Not my cup of tea.

[james22]

FNMA @ $2.75

FMCC @ $2.65

FNMAS @ $12.25

FNCKJ @ 12.00

[Gregmal]

GOOG

[SmallCap]

FNMA @ $2.75

FMCC @ $2.65

FNMAS @ $12.25

FNCKJ @ 12.00

 

What did you do, grab value line book and start in the 'F' section?

[SmallCap]

I did something new for me:

 

I wrote some WY puts that expire in 2 days:

WY 05/17/2019 24.50 P - price when i wrote the puts was 24.85 and I sold the puts for $.10

 

My reasoning was that I was seriously thinking about adding to my WY position and when I checked the options I saw the OTM options with a bid for $.10 so I just went for it knowing that if I am put to in 2 days then I will get it $.45 less then todays price, which I can live with. My profit on expiration is a whopping $80.

 

Tell me if my thinking is stupid and i am picking up pennies in front of a steam roller.

 

The problem with the strategy is that if the stock goes straight up, you just get 10c/ share.

 

Plus you have to pay short term capital gain tax, and tie up the cash in the account until put is expired. Like Warren said, if you like the stock, just buy it.

 

Eating like a chicken yet shitting like an elephant... Not my cup of tea.

 

Update: the day of expiration the stock dropped 2.5% and so I got the stock at a lower price then I would have expected when I sold the put.

unfortunately today it has gone down another 2.2%

[james22]

FNMA @ $2.75

FMCC @ $2.65

FNMAS @ $12.25

FNCKJ @ 12.00

 

What did you do, grab value line book and start in the 'F' section?

 

It was the 1,245th page in the ten-bagger thread that finally convinced me.

[Jurgis]

FNMA @ $2.75

FMCC @ $2.65

FNMAS @ $12.25

FNCKJ @ 12.00

 

What did you do, grab value line book and start in the 'F' section?

 

It was the 1,245th page in the ten-bagger thread that finally convinced me.

 

You're way behind. It's on the 1249th page now and boy that has improved the arguments.

[SnarkyPuppy]

FNMA @ $2.75

FMCC @ $2.65

FNMAS @ $12.25

FNCKJ @ 12.00

 

What did you do, grab value line book and start in the 'F' section?

 

It was the 1,245th page in the ten-bagger thread that finally convinced me.

 

You're way behind. It's on the 1249th page now and boy that has improved the arguments.

 

My favorite way of investing is to determine quality of investment by anchoring to COBF page count.