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Stock Thread (43 Viewers)

Quality companies are green, those on the shopping lists. They'll all fall victim to the tape today, but you can see where money wants to go. 

AAPL, JPM, FB, AMZN, etc... 

 
Can't believe people were in inverse VIX trades. Volatility was so low that you knew that would go bad. Though obviously couldn't predict last two days. 

Those types of instruments are really just for hedging other trades and for 99.9% of folks it is not something you should be doing. 

 
Guessing there are still some folks that will want to cash out so we may not of seen the bottom yet imo.  However, it was a good sign that we officially hit a 10% correction and bounced right back up.  Let's not forget that 81% of S&P 500 companies have reported earnings so far and 81% have beaten, which is the highest in 7 years.  75% have increased their forecasts.

First 10% correction in at least a year when they normally occur annually.  Heck, first 5% correction in 400 days yesterday.  

Stay the course!

 
Redwes25 said:
Can't believe people were in inverse VIX trades. Volatility was so low that you knew that would go bad. Though obviously couldn't predict last two days. 

Those types of instruments are really just for hedging other trades and for 99.9% of folks it is not something you should be doing. 
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Seriously.  I didn't even know these things existed.  I was reading some articles about them.  Some Target manager who had 500k in his account had grown it to 12M by waking up every morning and trading the inverse VIX trade.  That's great until the inevitable spike comes (which is absolutely 100% GOING TO HAPPEN at some point)  I think once I doubled or tripled my money I'd feel fortunate and be outta there, but easy money is like a drug and they couldn't stop.

 
Premier said:
Just went from .25 to 1.25% in a matter of seconds. 
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Pretty nuts... Amazon is a good hedge IMO - if the market falls 5%, Amazon will fall like 3% - then when it rebounds, Amazon will outpace any rebound by 1.5x.

*There are always dip buyers for them, and why not? They dominate retail, they're making a big push into groceries, their cloud business is best in class, and they've got some new joint healthcare venture with JPM and Berkshire (who knows what it does, but anytime they venture into a business, they mean business).

 
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TripItUp said:
:rolleyes:
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Okay guy, they only blew out every single line item on the top and bottom - their YoY growth was 38%... 38 ####### percent - those are numbers you expect from an early stage startup, not one of the biggest companies on Earth. Furthermore, with wage increases and tighter employment taking shape in 2018, how do you think that'll impact their growth?

There is a reason they fall less and go up more.

I took some profits before their earnings, and as soon as I saw the report, I knew I wanted a lot more.

ETA: & I've been given the opportunity to buy it for less than before their earnings... I'm confident that there are a lot of funds that feel the same way. Wait for the nerves to die down from this correction, this will be over $1,500 before the end of the quarter, IMO.

 
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Lost in the shuffle, my favorite company reports after the bell. If you've never listened to a TSLA earnings call, it is wildly entertaining - at points it is just Elon Musk having conversations with himself. 

 
shader said:
Seriously.  I didn't even know these things existed.  I was reading some articles about them.  Some Target manager who had 500k in his account had grown it to 12M by waking up every morning and trading the inverse VIX trade.  That's great until the inevitable spike comes (which is absolutely 100% GOING TO HAPPEN at some point)  I think once I doubled or tripled my money I'd feel fortunate and be outta there, but easy money is like a drug and they couldn't stop.
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Hogs get slaughtered 

 
shader said:
Seriously.  I didn't even know these things existed.  I was reading some articles about them.  Some Target manager who had 500k in his account had grown it to 12M by waking up every morning and trading the inverse VIX trade.  That's great until the inevitable spike comes (which is absolutely 100% GOING TO HAPPEN at some point)  I think once I doubled or tripled my money I'd feel fortunate and be outta there, but easy money is like a drug and they couldn't stop.
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Those numbers don't add up. Margin requirements are tight on those things to begin with (prob for reasons like yesterday), so let's assume be bought around $35 - at most with margin, he prob would've had $3 - $4MM near the top. I call shenanigans on his story.

 
Confused on something on call options, maybe someone can tell me what I'm missing.

Right now, TWTR Feb 16th $17 calls at $7.45.  That makes the breakeven $24.45.  Stock is trading at $25.15.

Why wouldn't someone just buy 100 contracts for $74,500 and then exercise?  You end up with 10,000 shares at $17 and then sell them at $25.15 for $81,500.  You just made $7,000 in 5 minutes.  I have to be missing something, or else the prices of the calls aren't updating in real time.

 
I'm guessing that price is somewhere between the bid and ask and if I place a limit order for an option contract that's already in the money, it simply won't fill at that price?  I don't remember this coming up in series 7 training and internet searches either just tell you how to calculate a BEP (if you don't know how to do that, please raise your hand and Tommy will come hit you on the head with a hammer because you are a MORON) or tell you that such contracts/prices don't exist.

 
Evilgrin 72 said:
I'm guessing that price is somewhere between the bid and ask and if I place a limit order for an option contract that's already in the money, it simply won't fill at that price?  Correct I don't remember this coming up in series 7 training and internet searches either just tell you how to calculate a BEP (if you don't know how to do that, please raise your hand and Tommy will come hit you on the head with a hammer because you are a MORON) or tell you that such contracts/prices don't exist.
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Also, worth checking when earnings are, if they're upcoming, prices get wonky.

 
fantasycurse42 said:
Also, worth checking when earnings are, if they're upcoming, prices get wonky.
Click to expand...
Will an order for a call option already well into the money ever fill at that price?  In theory, you could exercise all this in a few minutes if you have the capital to purchase the amount of shares controlled at the strike price and then you could simply dump them on the market.  Seems too good to be true.

 
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