Investing megathread extravaganza

[DaFace]

A place to talk about investing stuff.

[Munson]

Originally Posted by Discuss Thrower

Seriously people you're gonna want to get in on this.

RAD just went through a reverse split so they wouldn't be delisted on the NYSE, and they're down 10% today.

I think the only way it skyrockets is if they get bought out.

[Munson]

Originally Posted by Nightfyre

Y'all suck. I am in for Boeing puts at 360. I went full r/wallstreetbets. Send me those good vibes.

I'm still trying to understand how options work, so let me ask this:

Let's say I buy 1 put contract today at $X amount of dollars, at a strike price of $360 for 4/26/19. And on that day, let's say the stock price ends up at $370.


Would I only lose the amount I invested ($X), or would I lose more than that?

Would I be forced to buy the 100 shares since my bet went the wrong way?

[Munson]

Originally Posted by Discuss Thrower

A long put has positive economic value where the Strike Price is lower than the Underlying Market Price.

For example, if underlying market price is $370, you can exercise the put option and sell the underlying security at the strike price ($360). You can immediately buy it back on the market for $370, realizing a profit of $370 – $360 = 10 per share, or $1,000 per option contract. With initial cost of $X, total result of the trade is $1000 – X= $???? profit.

Ok, now I'm more confused. I thought if you buy a put, the only way to make money is if the current price of the stock is lower than the strike price.

[RunKC]

Originally Posted by Discuss Thrower

Seriously people you're gonna want to get in on this.

Wow good call. Up over 1,000% yesterday.

How did you know?

[Discuss Thrower]

Originally Posted by Munson

Ok, now I'm more confused. I thought if you buy a put, the only way to make money is if the current price of the stock is lower than the strike price.

Disregard what I said.

Use This as a test to get an idea of what your puts are worth.

That blurb I copy, pasted and edited from here which has a much more clear guide to determining what your puts are worth in building a quick model in Excel.

A put has worth if its strike is higher than the underlying if you are long that put. If you're short the put or have leveraged up you could have a bad time.

[Nightfyre]

Originally Posted by Munson

I'm still trying to understand how options work, so let me ask this:

Let's say I buy 1 put contract today at $X amount of dollars, at a strike price of $360 for 4/26/19. And on that day, let's say the stock price ends up at $370.


Would I only lose the amount I invested ($X), or would I lose more than that?

Would I be forced to buy the 100 shares since my bet went the wrong way?

You would be out the cost of the contracts. So I buy 20 BA puts with a strike of 360 for 2.77, I am in for 20x100x2.77 or 5,540. if the stock doesn't go below the strike, I am out that cost. If it goes to 350, I have the right to sell 20x100 shares of BA at 360. Which would net 20x100x(360-350) or 20000 minus 5,540. I would likely sell the options to close the position rather than exercise them, however.

[eDave]

Originally Posted by Buehler445

The ****? What bank?

Check out online savings accounts. I got a bunch in various accounts making right at that. Not sure if that beats inflation. Don't care. It's cuts into it at least when you want liquidity with a portion of your financial inventory.

[Nightfyre]

The more I try, the less I think I understand the market. Oh well. Haha

[ChiliConCarnage]

Originally Posted by Nightfyre

The more I try, the less I think I understand the market. Oh well. Haha

I saw they pulled guidance and cut the buyback and it was up a bit. Maybe the 3 billion in estimated costs for paying off families and airlines for damages was less than the market was expecting. dunno

Thermo Fisher beat top and bottom estimates and made a small raise to 2019 fiscal guidance and it's down 1%+ too

200+ earnings reports today and tomorrow. Looking for Visa, Lam, and Paypal this afternoon. Not sure if I want to trim my PYPL position before close or not. Probably won't.

[Munson]

I bought some shares of Disney (DIS) earlier this week hoping for a nice run up with Avengers 4 coming out tomorrow, and the earnings report coming on May 8th.

And today the news comes out that they're trying to buy Comcast's 30% stake in Hulu, when Disney already owns 60%.

Combined with Disney's own streaming service which will come out in November, I think this stock will go balls out for the rest of the year.

[Rain Man]

Originally Posted by Munson

I bought some shares of Disney (DIS) earlier this week hoping for a nice run up with Avengers 4 coming out tomorrow, and the earnings report coming on May 8th.

And today the news comes out that they're trying to buy Comcast's 30% stake in Hulu, when Disney already owns 60%.

Combined with Disney's own streaming service which will come out in November, I think this stock will go balls out for the rest of the year.

I just sold 70% of my Disney, so it's pretty much assured to keep rising.

I've owned it for several years and it's been a dog the whole time. Then this year it shot up to a 20 percent profit for me, which is my signal to sell enough of my holdings that I'm only leaving profit in. (It's an element of my "Rain Man Fee-Free Mutual Fund" strategy.) I was debating breaking that rule to keep the stock since it seems to be having a great run. I probably should have.

[Amnorix]

Originally Posted by eDave

Check out online savings accounts. I got a bunch in various accounts making right at that. Not sure if that beats inflation. Don't care. It's cuts into it at least when you want liquidity with a portion of your financial inventory.

I've done well over the years with Capital One as my online bank. Their money market account is at 2.00%. I, of course, am only in their 360 savings/checking account which is at 1.00%. Will need to look into whether I should be switching or what, as that's a significant difference (obviously).


https://www.capitalone.com/earn500/?...79_241726040_0

[Buehler445]

I read today that Microsoft topped a trillion dollars in market cap.

Holy balls.

[lewdog]

IQ still sucks.

[Hammock Parties]

Originally Posted by lewdog

IQ still sucks.