Dammit, where's the correction?

4/29/2010 2:57:22 PM

Quote :

"Jan 20th-Feb 5th?? "

Anyway, if you're wanting to catch a correction and you're going to buy at least 100 shares of a company, you could sell a put at the strike you'd like to own it at if you're insisting on longing stock at a certain price when the correction you want to see happens. If we keep going up, pocket the premium, otherwise you get the stock at the price you're willing to own it at.

hope all yall AAPL folks on the sidelines got in at 260 recently. 300 when they unveil on the CDMA network, mid-late summer.

[Edited on April 29, 2010 at 4:14 PM. Reason : .]

4/29/2010 4:10:07 PM

Are you saying long stock, short put? You're gonna lose your face if that thing goes down.

4/29/2010 10:54:08 PM

^ Theduke was commenting on how he is anticipating a correction to swoop in and buy a stock, or stocks. I suggested to short an out of the money put as a hedge if he's buying at least 100 shares, this will obligate him to buy the stock at the strike he is comfortable owning, minus premium, or collect the premium if the price of the underlying is above the short strike. By your post, you've indicated you have no idea what I'm talking about, and this is a single leg option trade, nothing complex.

[Edited on April 30, 2010 at 1:16 AM. Reason : .]

4/30/2010 1:13:36 AM

1) short put is not a hedge for a long stock position
2) the premium on your way out of the money put is going to be immaterial
3) from your post, you've indicated you have no idea what you're talking about and your post structure of block paragraphs is mildly offending


In other news, the AFL-CIO and other unions marched up here against "Wall St bringing Main St down" They even made it into JPMs lobby. Did they already forget about destroying the auto industry?

Hell, the NYC doormen union almost went on strike last week (struck a midnight deal with landlords). I can't imagine there aren't thousands of unemployed people that would gladly open my door and sign for my packages for $50k/year...

[Edited on April 30, 2010 at 7:44 AM. Reason : union whining]

[Edited on April 30, 2010 at 7:44 AM. Reason : .]

4/30/2010 7:26:20 AM

Really tempted to get some GS.

4/30/2010 10:57:18 AM

Shorting a Put is like a double negative. This is a bullish trade. If you are bearish but to hedge. Why not Short some shares; than buy ITM call options.

If the stock goes up at least your you can execute your call, settle your short, and are only really out of your a fraction of the premium you paid for your ITM calls.

[Edited on April 30, 2010 at 12:31 PM. Reason : 2]

[Edited on April 30, 2010 at 12:31 PM. Reason : z]

4/30/2010 12:28:31 PM

Quote :

"1) short put is not a hedge for a long stock position"

Uh, yea. I didn't mean it's a hedge against long stock. I suggested that in place of longing stock at today's price(s) and worrying about a correction subsequently after, just short an out of the money put and collect the premium if the market rises, or, own the stock at the out of the money strike which he planned to do if the market dips/corrects. He wanted to get in on a dip, but was concerned the market may rise anyway leaving him on the sidelines. The short put is a hedge against the rising market rather than sitting on the sidelines waiting on the correction because you at least capture the premium should the market continue to rise.

Quote :

"3) from your post, you've indicated you have no idea what you're talking about and your post structure of block paragraphs is mildly offending"

Traded options for 3 years now, and not just shorting/longing calls/puts, I'm not into wasting my time convincing you, feel free to think otherwise. Offensive, or rather laughable, is a male over the age of 12 using an emoticon in your previous post to show your displeasure with an opinion of another peer. TheDuke commented that he wanted to get in on a dip, and I offered a way to get in at a cheaper price than what the market currently offers, while also making some money if the market continues to rise while he's on the sidelines. You came fists ready, and it's not really making any sense to me, but no harm done.

4/30/2010 4:07:50 PM

Exxon (XOM) really dipped at the end of the trading day. I tried to grab 50 shares of it, but the market closed before I got the order placed. Oh well, if it opens flat or down on Monday, I'll prob get some.

Might get some SHY if the market rebounds and SHY pulls back a little.

Right now, my beer & pizza money account just has a pile of cash, and Verizon (VZ), FL Power & Light (FPL), and Progress Energy (PGN). Will buy in more if and when the correction comes...again, mostly with safe and stable dividend payers (in this account, at least)...with $10-20k left to short-term trade stuff like SSO (playing volatility--buying on dips, then setting a trailing stop).

4/30/2010 4:07:55 PM

Quote :

"I suggested to short an out of the money put as a hedge if he's buying at least 100 shares,"

Quote :

"Uh, yea. I didn't mean it's a hedge against long stock. "

EMOTICON HUR is saying the same thing above MORE EMOTICONS

Quote :

"Traded options for 3 years now, and not just shorting/longing calls/puts"

What, you learned a short straddle in your beginning options book and are shorting vol?

I am not coming fists up, simply asking you to not to give my NC State peers terrible investment advice.

4/30/2010 8:52:21 PM

Quote :

"Dammit, where's the correction?"

i'm waiting for the same thing - can't help but think there will be one this month of 10% or more.

...in the meantime DNDN keeps tearing it up. got lucky... got to credit lady luck when she helps you out. if you mistake luck for skill, it will bite you later on.

also, one of the biggest regrets of my investment life has been to exit all my BIDU at $200, and never re-enter. BIDU had always been good to me - i still can't figure out why i sold

5/3/2010 11:21:16 AM

bought 50 shares of Exxon (XOM) and 50 shares of SHY (treasury ETF)

I think I'm done until the markets pull back some, unless I day trade SSO.

5/3/2010 11:42:43 AM

who has the balls to buy BP?

5/3/2010 12:08:57 PM

hehe it crossed my mind

5/3/2010 12:55:15 PM

lol

5/3/2010 1:25:35 PM

You could buy in right now at $49.73 and sell Jun $50 calls at ~$2.68 and get an immediate 5% return. Of course, it could continue to drop and leave you sitting on it for months to come.

[Edited on May 3, 2010 at 3:51 PM. Reason : actually more like 7% if you hold it for the next dividend]

5/3/2010 3:48:27 PM

Fuck it. I pulled the trigger on some.

I haven't rolled the dice like this in a while. We'll see how it works out for me.

5/3/2010 4:00:43 PM

What trading site do yall recommend for trading? Ive had ameritrade for a couple of years, but was thinking about switching.

5/3/2010 5:47:06 PM

I could see BP getting some serious punitive damages laid on them... remember before the banks were the scorn of the universe it was the oil companies...

And with a profit hating crowd in office they could definitely make an example out of BP.

That being said, I think they're a decent buy at these levels I just think they'll be lower at some point in the near future (2-4 weeks)

5/3/2010 7:22:24 PM

agreed

5/3/2010 8:02:27 PM

i thought the same. i'll probably sell some calls tomorrow.

though i read today that their max liability is around $8 billion and their stock price drop represents much more than that.

5/3/2010 8:31:30 PM

^ yeah im not arguing on them being a good buy at these prices for buy & hold for sure.

If you want to play the trade though I think they'll drop further from here though.

Could be wrong and miss the snap back, or I could be right and you could miss the boat.

Just personal opinion no professional knowledge or justified reason to even state my opinion haha.

5/3/2010 8:39:49 PM

Looks like all of my stuff is way down.

Except for BP.

haha

5/4/2010 11:18:40 AM

Duke's correction has come

5/4/2010 11:46:30 AM

We'll see. This is mostly just nervousness over the Greece thing. Someone pointed out that not nearly enough investors are shorting for this to be a major correction.

Sold May $52.5 calls on just over half of my BP. Should be a fun stock in the short term as fundamentals and facts are thrown out the window and the price is completely dictated by oil spill rumors.

5/4/2010 3:56:06 PM

Maybe.

Part of me wants to let it rip with SSO on this dip, figuring that at least somewhat of a bounce will come in the next day or two...but I'm scared, in case this really is the start of a major correction. A trailing stop won't do much good if it opens significantly lower tomorrow and keeps going.

5/4/2010 3:58:50 PM

Holy titty fucking shit. I had no idea that the volatility index (VIX) had an option chain.

I think I found my next wacky fiscal adventure.

5/4/2010 4:08:05 PM

Quote :

"Someone pointed out that not nearly enough investors are shorting for this to be a major correction."

Which is exactly why it may just be a major correction.

Quote :

"I had no idea that the volatility index (VIX) had an option chain."

I haven't looked into VIX options but I've heard the premiums on them are really expensive.

5/4/2010 8:24:04 PM

VIX options are settled in cash if you hold until expiration, no exercising I don't think.....yea you can trade the amount of fear in the market among other things.

5/4/2010 8:35:17 PM

sucks to be a euro this week

5/5/2010 9:43:54 AM

jesus christ i almost just had a heart attack

i haven't checked my portfolio the last week or so. FAS split 3:1 this morning and my portfolio tracking software didn't account for it and was showing i was down 70%

5/5/2010 10:01:29 AM

Quote :

"A trailing stop won't do much good if it opens significantly lower tomorrow and keeps going"

I do not quite understand how trailing stops work.

I know about limit stops and normal stop orders but how do trailing stops work? What is teh advantage?

5/5/2010 11:02:44 AM

with a trailing stop, you have a better chance at locking in profits

for example, if you buy a stock at $10 with a 25% trailing stop, and it goes up to $20 but then starts to fall, the trailing stop will trigger if it goes below $15, so you still end up with that $5 gain. if you had used a normal stop, it would have gone up to $20 and fallen all the way down to $7.50 before selling it, and you end up with a loss

[Edited on May 5, 2010 at 12:45 PM. Reason : .]

5/5/2010 12:44:36 PM

Sold NUE May 48 calls at 0.46 on Monday
Bought NUE May 48 calls at 0.26 on Tuesday
Sold NUE May 48 calls 0.55 on Wednesday

5/5/2010 1:14:39 PM

Bought NUE May 48 calls at 0.40 on Wednesday

5/5/2010 3:19:46 PM

picking up some DGP soon...

5/5/2010 3:41:24 PM

Well, I'd say we can definitely call this a correction.

Where do you guys plan on buying in again, and where do you think it'll bottom?

5/6/2010 11:57:56 AM

i have never invested in stocks in usa but i was listening on NPR how greek economy is bringing european and asian markets down.....i see this happening to a lot of countries in asia!

[Edited on May 6, 2010 at 12:16 PM. Reason : i still invest in india]

5/6/2010 12:15:50 PM

5/6/2010 1:30:40 PM

^^^ a correction in response to excessive run-up in the US market, or a "correction" in response to Europe?

5/6/2010 1:47:03 PM

Does it really matter what caused it?

5/6/2010 2:44:51 PM

sure, a little bit

either the US market overinflated itself again, or it was caused by a new market moving event

kinda like AAPL correcting itself because the hype drove the price up too high, vs BP "correcting itself" because of the oil spill

[Edited on May 6, 2010 at 2:48 PM. Reason : .]

5/6/2010 2:47:20 PM

jesus. down over 800 points.

5/6/2010 2:47:29 PM

holy crap. dow took quite the nosedive there

[Edited on May 6, 2010 at 2:50 PM. Reason : .]

5/6/2010 2:50:05 PM

holy crap

wow. i think i found a bug in my trading platform. for a second there it was showing me as being down $500,000,000.

[Edited on May 6, 2010 at 2:52 PM. Reason : .]

5/6/2010 2:50:59 PM

i boycott Gyros!

5/6/2010 2:52:05 PM

http://www.aftonbladet.se/webbtv/nyheter/utrikes/article7086788.ab

That's a live feed of the riots in Greece. Markets freaked right about the time the protesters and riot police started going at it.

5/6/2010 2:52:38 PM

Its obviously automated selling going on. A whole lot of people put in automated sell orders. I suspect a big correction up tomorrow, as this is way overdone.

5/6/2010 2:53:00 PM

Wow. The intraday range for AAPL is $199-$258.

5/6/2010 2:55:20 PM

HOLY SHIT, I went to go grab some dinner and noticed that the Dow broke 9900!!! Damn, too bad I couldn't have bought there.

I'm about to buy $20,000 worth of SSO and put a uber-tight trailing stop on it.

5/6/2010 2:58:49 PM