Investing megathread extravaganza

[DaFace]

A place to talk about investing stuff.

[Discuss Thrower]

Be me.

Open an iron condor trade yesterday.

Underlying stock closes within all four strike prices of the iron condor, out of the money on the expiration date. Don't close the position thinking, logically, that since all four strikes are out of the money, nobody will exercise my short put and call positions.

Wake up this morning: someone had exercised the short call after the market closed yesterday.

For about an hour, I assumed I had just lost 50% of my net worth to pay back the hundreds of shares of the underlying I found myself holding short in an appreciating market.

[lewdog]

Originally Posted by Hog's Gone Fishin

Why do you say that?

$5 yesterday.

$4.60 today.

[Buehler445]

Originally Posted by Discuss Thrower

Be me.

Open an iron condor trade yesterday.

Underlying stock closes within all four strike prices of the iron condor, out of the money on the expiration date. Don't close the position thinking, logically, that since all four strikes are out of the money, nobody will exercise my short put and call positions.

Wake up this morning: someone had exercised the short call after the market closed yesterday.

For about an hour, I assumed I had just lost 50% of my net worth to pay back the hundreds of shares of the underlying I found myself holding short in an appreciating market.

That's not exciting. I presume you got out?

You're tougher than me. I was naked on a hedge last year and got crunched on some margin.

Grand scheme of the whole thing, it was fine. I still had gods plenty of the physical and the margin money wasn't significant. But sure had me freaking out at the time. ****ing weather market.

I couldn't imagine having that exposure.

[Discuss Thrower]

Originally Posted by Buehler445

That's not exciting. I presume you got out?

You're tougher than me. I was naked on a hedge last year and got crunched on some margin.

Grand scheme of the whole thing, it was fine. I still had gods plenty of the physical and the margin money wasn't significant. But sure had me freaking out at the time. ****ing weather market.

I couldn't imagine having that exposure.

I wouldn't be posting today if I didn't get out.

Cost me all of my recent trading gains and over $1,000 to get back above margin requirement.

[Buehler445]

Originally Posted by Discuss Thrower

I wouldn't be posting today if I didn't get out.

Cost me all of my recent trading gains and over $1,000 to get back above margin requirement.

Sorry man. That sucks.

I've never dicked with an option strategy like that. What would have happened if one side got filled during business hours?

[Discuss Thrower]

Originally Posted by Buehler445

Sorry man. That sucks.

I've never dicked with an option strategy like that. What would have happened if one side got filled during business hours?

If you asked me yesterday, I'd assume that either a) the brokerage automatically would close out the position on the contracts or b) exercise a contract in order to meet the shares.

In either case, I'd assumed that would mean I either gain or lose money as the economic value of the options are changed into cash with the most likely outcome being that I lose money.

The real headscratcher is why the asshat exercised the call to begin with.

[philfree]

Originally Posted by Rain Man

Are we trying to hit a home run? Or would this be a realistic thing where we're managing risk and reward? I'm content with a lower reward and lower risk if it's real money.

If I was trying to hit a home run, I'd go with a cruise line or with an REIT. They're going to bounce back strong or go under. I've got some REITs that have been sodomized for the past month like TWO. TWO might be my play if I wanted to hit a home run and not worry about risk.

If I was putting it all in one stock and I cared about risk, I'd probably go AMZN. It'll go up with market increases and won't get nailed as bad if the market tanks.

So if this is a game, I'll put my money in AMZN.

I own several stocks but AMZN isn't one of them. It's so close to it's 52 week high but I'm pretty sure it's going to keep going up. My thought is to be able to make big gains early as the pandemic subsides and then ride it higher over the next several years.

[patteeu]

Originally Posted by Rain Man

Are we trying to hit a home run? Or would this be a realistic thing where we're managing risk and reward? I'm content with a lower reward and lower risk if it's real money.

If I was trying to hit a home run, I'd go with a cruise line or with an REIT. They're going to bounce back strong or go under. I've got some REITs that have been sodomized for the past month like TWO. TWO might be my play if I wanted to hit a home run and not worry about risk.

If I was putting it all in one stock and I cared about risk, I'd probably go AMZN. It'll go up with market increases and won't get nailed as bad if the market tanks.

So if this is a game, I'll put my money in AMZN.

I’m not a hands on investor. All of my savings have always been in mutual funds, largely index funds, that I picked years ago and haven’t changed since. A couple of years ago, after having a bunch of cash sit idly in a regular savings account watching the bull market from the sidelines for a year or two, I decided to invest it.

I picked AMZN because I used them a lot and they didn’t seem likely to go away. So far, I think they’ve outperformed most/all of my mutual funds. This makes me think I’m an investing expert now.

[neech]

Originally Posted by philfree

I own several stocks but AMZN isn't one of them. It's so close to it's 52 week high but I'm pretty sure it's going to keep going up. My thought is to be able to make big gains early as the pandemic subsides and then ride it higher over the next several years.

If you have any mutual funds my guess is you own some Amazon.

[philfree]

Originally Posted by neech

If you have any mutual funds my guess is you own some Amazon.

No I don't have any mutual funds.

[philfree]

I also moved my 401k to a stable value fund after shit hit the fan and I lost about $20,000.00. It's held fast but I'm getting ready to move it into a more aggressive investment but I don't want to do it to soon. Is it to soon?

[RunKC]

I’m seriously just consider buying now. I don’t see this economy cratering again like it did in March. Could be wrong but doubt it

[Hammock Parties]

Great day. Fearing the S&P 500 drop to 140 though. Any day now.

[Nightfyre]

Originally Posted by Discuss Thrower

Be me.

Open an iron condor trade yesterday.

Underlying stock closes within all four strike prices of the iron condor, out of the money on the expiration date. Don't close the position thinking, logically, that since all four strikes are out of the money, nobody will exercise my short put and call positions.

Wake up this morning: someone had exercised the short call after the market closed yesterday.

For about an hour, I assumed I had just lost 50% of my net worth to pay back the hundreds of shares of the underlying I found myself holding short in an appreciating market.

What security was it on?

[lewdog]

Originally Posted by philfree

I also moved my 401k to a stable value fund after shit hit the fan and I lost about $20,000.00. It's held fast but I'm getting ready to move it into a more aggressive investment but I don't want to do it to soon. Is it to soon?

You possibly just sold at the bottom.

I lost $25k in my modest 401k on the drop. I’m not worried.

Timing the market to buy back in is the $1000 question. If we all knew the answer, we’d be rich.