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What are you buying today?


LowIQinvestor

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49 minutes ago, rkbabang said:

Jan 2023 $250 TSLA puts.  Probably a total loss, but in the event of a market crash in the next year or the unlikely event that people coming to their senses about TSLA it could pay off.

 

These are great sort of trades. High leverage ways to cover your ass if the music stops. In a certain sense its funny because folks think this is a bad idea because if the music doesnt stop you will certainly lose money. Even if it kinda stops, you can lose money. The most likely outcome is in fact a write-off. And this is true. But how many of those same folks have home insurance? I bet you none of them look at their annual renewal notice and say to themselves "terrible trade John. Just lost 100%. If such as such happens that policy premium is another write off! Doh' and now they want 20% more money for the same contract as last year!?!"...

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2 hours ago, Gregmal said:

These are great sort of trades. High leverage ways to cover your ass if the music stops. In a certain sense its funny because folks think this is a bad idea because if the music doesnt stop you will certainly lose money. Even if it kinda stops, you can lose money. The most likely outcome is in fact a write-off. And this is true. But how many of those same folks have home insurance? I bet you none of them look at their annual renewal notice and say to themselves "terrible trade John. Just lost 100%. If such as such happens that policy premium is another write off! Doh' and now they want 20% more money for the same contract as last year!?!"...

 

 

Exactly.  Everyone should have a few black swan positions.

 

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1 hour ago, bargainman said:

@ERICOPOLY why these particular strikes and expiration? If you don't mind sharing 🙂

 

I've said before that I'm no options expert.  But I went with shorter term $140 strike at-the-money for some because I don't want to be cut too badly if the stock dropped below that level and because it takes less capital to do so.  Plus by going shorter term I'll lose less premium if there is a large move away from strike.  

 

The deeper ones are where I picked up some 2024 although some of those are also shorter term because let's face it if the stock takes off to $300 I won't want to be so heavily concentrated in it anymore so why put so much premium at risk.

 

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10 hours ago, Spekulatius said:

Remember the fallen….FinTwit favorites.

I also bought. Growth is still solid, sharebuybacks are increasing and with current share price would be 6,8% of the company. Including the dividend it's a 7,5% yield for a year. Seems decent.

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10 hours ago, Spekulatius said:

Starters: TPB, INTC

Adds: LMT, NTDOY

 

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.

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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.

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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. 

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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 by KJP
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