Investing megathread extravaganza

[DaFace]

A place to talk about investing stuff.

[myselff77]

Originally Posted by scho63

For those who want to dip their toes into options, I strongly recommend looking at the Ford (F) June 2023 calls, one year out. They are very cheap and Ford at $12-$13 is a great value.

Low risk with nice upside.

The June 16, 2023 calls for $20 strike are around $53 a contract.

Buying 10 will cost you $530 and I see a 3-4x upside.

I've been eyeing options, trying to figure out if I understand it, but hesitant to jump in.

This is probably an obvious statement, but I want to make sure I understand:
So, basically you are buying call options at a $20 price. So you believe a year from now (or earlier) the price will be above $20. Given the cost of the options, you would make money at any point the stock was above roughly 20.53, correct?

I've held shares of Ford for a long time, I hope you are right, but F hsa never really taken off as I expected.

[scho63]

You can sell at any time between now and June 16, 2023.

If Ford goes back to $16-17 in the next 4-5 months, these options will spike higher by 2-3 times.

Your only risk is what you invest. If they drop down 50%, you could sell and lose 50%.

These are not a bad risk as each contact = 100 shares

[scho63]

At a 4.5 P/E, I see little more downside.

I just bought 15 at $54 for a $810 investment.

I'm going to buy $10,000 of options across 10 different stocks 1 year out.

A lot of value developing.

[lewdog]

S&P bear market officially confirmed.

[scho63]

Originally Posted by lewdog

S&P bear market officially confirmed.

Death by 1,000 cuts

[lewdog]

Originally Posted by scho63

Death by 1,000 cuts

Not since April. It's been a straight downhill move without even a bull trap in sight.

[myselff77]

Originally Posted by scho63

You can sell at any time between now and June 16, 2023.

If Ford goes back to $16-17 in the next 4-5 months, these options will spike higher by 2-3 times.

Can you explain the above? I think this is what I don't understand. Can you re-sell the options before the 1 year date and make money at a price below the $20 call?

[wheeler08]

I’ve got $20k to reinvest. Is Amazon a buy before the split?

[Buehler445]

Originally Posted by wheeler08

I’ve got $20k to reinvest. Is Amazon a buy before the split?

Amazon carries some risk with fuel prices and the unionization push.

It depends on your risk tolerance.

[scho63]

Originally Posted by myselff77

Can you explain the above? I think this is what I don't understand. Can you re-sell the options before the 1 year date and make money at a price below the $20 call?

Yes, options trade daily and you can buy and sell them at anytime.

These options have 1 yr to expire. If Ford gets to lets say $15-16 in the next 3-4 months, the options I bought at $53 a contract will be worth about $250-$300.

The downside will be if Ford goes nowhere or down over the next year and these options will slowly leak oil and expire worthless.

You can literally buy 1 contract for $55-56 and that could be your trial.

You need to read up on options before you risk real money.

If you have a large portfolio, options can be used as a hedge for the downside and lock in some additional money if you write covered calls on the stock you own.

[scho63]

I recommend the book Trading Options for Dummies. It is the best book that explains them clearly

So many other book can be complicated.

If you really still have no understanding, you may want to avoid them.

[Pointer19]

Originally Posted by Hog's Gone Fishin

I just got property tax notices and Holy shit! They are building new elementary schools in my town and they already hit us with a bond that jacked up taxes a year ago. Now they are doing it again. One property had an increase in taxable value of 40%, another 32%, another 29%, several in the 20% range.

I absolutely hate raising rents on tenants and have a past policy of only doing it between tenants but for the second year again I'll have to issue notices. I can't continue to absorb the increases.

For those of you renting out there , understand that landlords are at the mercy of the market just like farmers.

Up here in Washington, all I read on the community Facebook page is "my evil landlord is raising rent again" as if voting to pass endless property tax increases won't come back to bite these tenants.

[ChiliConCarnage]

Originally Posted by lewdog

Between inflation and this insane labor market where we pay people 20-30% more than what a job is worth, these companies are being "squeezed" by their normal standards as the cost of doing business is through the roof on all sides. No way to control costs. Many companies have high valuations still, so we are finally seeing these blue chips being brought down to match the rest of the market.

The day it happened, I saw it was Target's biggest one day drop since the '87 market crash. Two days after Walmarts biggest drop since '87. I'm surprised the companies didn't kind of shoot out a heads up ahead of time

I had been starting to think it might be time to move in as we were nearing 20% down but this has been pretty concerning. Even the recession plays, like the dollar stores got smoked 10% or more. Just carnage

[scho63]

The one interesting thing that may save this market from a flush out is that the retail investor isn't over-leveraged like the 80's and 00's crashes.

If anything, the cash hoard on the sidelines is pretty huge and still growing.

[scho63]

Anything with a YTD big loss today is getting sold off today.

Shit be getting crushed.