Does it mean you were buying for the long term before?
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Pretty bearish right now, bought a few short positions and will probably buy some vxx before close tomorrow. I only have options right now, every position has been closed waiting to buy back in.
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Bought some VXX on the close. Will exit my seasonal (Oct-June) positions in the QQQ, SPY tomorrow. Hanging on to a few favorite stocks for now, as well as a seasonal trade in the utilities and a spec trend trade in oil.
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Over the last 4 years I’ve just been making biweekly payments into a number of funds but for scalping some TSLA. This year I was 70% cash until March 17th when I invested the balance (see my post upthread).
But selling naked options isn’t something I’ve done for a while. It felt good. I bought .10s down to .01 today and made almost $7,500 for 3 days work. Not too shabby.
CHK 60 calls expiring next week are trading for .25…
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Crazy week!
I’ve got a meeting Sunday night with my trading group. Lots to discuss!
Waters definitely look choppy.
CHK 60 calls expiring Saturday are trading for 3 cents. Damn, pissed I missed that one but didn’t want to go back to that well too many times.
Anyone carrying big oil as a long term position or considering?
I’m considering starting a position in Shell. They cut their Q1 dividend, which is baked in the stock price. So there will be a 10% bump when they reinstate the full div Along with the stock still being 50% off highs. Saudi’s bought in. I see crude bouncing back second half 2020.
I’ve held and increased my oil position every dip. OXY, RDS, XOM, CHV, SLB, WLL, CPE and shorted CHK. Early in the pandemic I was in DWT and UWT, but neither of those ETFs are still around.
I bought a new diesel truck partially with earnings from DWT. My wife wouldn’t let me an ‘oil’ related custom plate on it.
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Yeah I bought some CVX and XOM around early April
They both have steady dividends for decades
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I’m buying some out of the money puts in my short term account, and closed a lot of stuff this morning
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Tomorrow is the jobs report. Anyone think we will have a June 8th type pop?
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Just pulled over more cash for deployment. Too many good individual long term opportunities. Some REITs are priced RIGHT.
This market is in a weird place, but there’s just so much long term opportunity.
Tech scares the shit out of me, but that’s not a good reason not to invest. ARKK is growing on me quickly.
And my GNUS popped for 60% Friday + AH and has a big announcement Monday. Thinking about what to do here.
I recommend selling a portion, how much depends
I don’t recommend it based off of anything about the picks in particular, just that you seem to have doubt
If you were looking for 1000% over the years and got 60% in a day, it makes sense to sell a small portion off of the hope you can buy more for cheaper if it falls - and a SMALL portion so that if it doesn’t fall, you still have no regrets. Taking an action like that mostly just to calm the mind has become important to me
If you weren’t looking as long term then I would tend to sell more, possibly still hoping to buy more if it comes back into a range that I would be comfortable with. Key word is comfort
Hope this helps
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Do you have a margin account? If so, you can sell the $5 calls expiring on Friday for 30 cents. If they pop over $5 you’re out 30 cents a share from where you got in earlier this month. If they head back down you make 30 cents a share.
If I were underwater on a volatile stock, I’d buy the puts to protect my downside and pay for it by selling out of the money calls. For instance, you can buy the $2.50 puts and sell the $5 calls and get paid 8 cents to do so. If the stock heads back down your puts will increase in value and if the price goes up your underlying increases in value.
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I don’t partake in options or use margin.
I have to keep this stuff as simple as possible otherwise it consumes me — I have to leave my mind power for my day job. So I buy and hold mostly. The GNUS pick was just a one-off spec play after some friends and I discussed.
So…
I’m about to deploy $200K as such:
- AT&T - $40K
- SPG (high end REIT) - $30K (add to current position)
- O (monthly div REIT) - $30K
- SPHD (diversified monthly high div ETF)- $30K
- ARKK - (disruptive tech) - $20K
- QYLD (high dividend ETF via covered calls - good in volatile markets - Averages 11% dividend)- $20K
- BRK-B - $15K
- RDS-B - $15K
I’ve been working on this list since Monday after I convinced my wife keeping money in our dwindling yield (1.1%!) online savings account was next level stupid.
This list hits all my marks. High dividends, room for SP growth, diversified, good risk/reward profile, good valuations. All averaged — some better than others obviously.
All of these are new positions for me minus SPG and RDS-B. I know a lot of people hate AT&T, but it’s a simple dividend play with 30%+ room for growth. Plus my wife is very risk adverse, so the pick is for her mostly.
If you’d be willing, let me know what you think about these picks. I may change around the dollar distribution, but if you have input there also I’d gladly listen.
This has been a good buy for me so far. I like it a lot.
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I don’t have any thoughts about the individual stocks you’re considering however, just some general thoughts:
Are you purchasing these stocks in a tax-advantaged plan?
How will the above purchases skew your overall portfolio?
You have high exposure to high dividend stocks, what happens to your portfolio if the tax treatment of dividends changes?
The investment in T represents 20% of your investable dollars, are you over-weighted in one name relative to your overall portfolio?
How will you go about purchasing these shares? All in one fell swoop? Dollar-cost averaging? Downside buy targets?
I’m not trying to intrude but these are all questions I’d ask myself if I were in a position similar to yours.
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This is something I’ve been thinking about hard. Meter it in with a predetermined plan, say 20% per month for 5 months, which would get me through the election. Or one fell swoop, doesn’t seem like the smartest play, but I like current prices on several of the picks (SPG, T, O, BRKB). Perhaps just meter it all in on down days over the next 30 days. DCA has always been my preferred method.
Thank you, very helpful. I have given most of these items considerable thought. My answers above. Thoughts?
I appreciate your time and comments.
Here’s where I’m at now. Going over list with wife tonight to make sure she’s comfortable with the picks.
- AT&T - 40K
- SPG (high end REIT) - 30K
- O (monthly div REIT) - 30K
- SPHD (diversified monthly high div ETF)- 30K
- ARKK - (disruptive tech) - 20K
- QYLD (high dividend ETF via covered calls - good in volatile markets - Averages 11% dividend)- 30K
- BRK-B - 20K
If anyone cares, I’ll provide monthly updates to this portfolio and include screenshots of the account. Might help some people (and myself) learn.
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Sorry, the format of that response sucks but with this screwed up website I’m afraid of trying to edit it all.