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+---- Thread: Protection (/showthread.php?tid=9219)
Re: Protection - Vanraw - 08-07-2011
We are truly screwed as a nation.
Re: Protection - Breand - 08-08-2011
it's buying time! :mrgreen:
Re: Protection - Grieve - 08-08-2011
But is it buying time here or 2000 points lower...
Re: Protection - Vanraw - 08-08-2011
Breand Wrote:it's buying time! :mrgreen:
That's what I said Friday
Re: Protection - Breand - 08-08-2011
OK, so looking to buy my first option here.:
AAPLApple IncNASDAQ $357.58-16.04(-4.29%)
Bid $357.48 Ask $357.73Volume
AAPL Sep 17 2011 $375 Call $11.85-5.69(-32.44%)
So a Sep 17th call of $375
So I am guarenteed to make money as long as the price is above 369.43 (sum of current price plus contract price) before Sept 17th?
Re: Protection - Grieve - 08-08-2011
Well, you are a braver man than me to buy that right now.
But if the market bounces back, you could make out like a champ.However, bear in mind a $11.85 call actually costs $1185. And if you hold it to expiration, and the stock is below $375 at that time, you will lose your entire stake. At that point the stock would have to be above $386.85 (the cost of the option plus the strike price) for you to make a profit (not counting commission).
Now...if the stock went up before then, the value of the option would go up as well, and you could sell for a profit (if you were nimble). But if Apple dropped another $20 the day after you bought it, you'd probably be in trouble.
Most of my Apple option spreads expire Jan 2012, so I'm hoping for the market to bounce back by then. If it doesn't...this will NOT be a good year for my portfolio.
I do think Apple is a steal at this price, though.Man, what a week it's been. Never thought we'd see all this again so soon after 2008.
Re: Protection - Vanraw - 08-09-2011
Grieve Wrote:Man, what a week it's been. Never thought we'd see all this again so soon after 2008.
No shit. And there doesn't seem to be any strong rhyme or reason. Not like 2008 where everyone was watching the mortgage crisis creep up for 2 years.
Re: Protection - Zirak - 08-09-2011
I'm curious why you would say there were no strong rhyme or reason. It seems to me that the whole debt ceiling thing with the horrible deal the Rebuplicans made is a good enough reason for the market to tank. What was it I heard one commentator say recently regarding the deal - something to the effect that with the new spending authority given to the president by the deal, Obama spent more money in one day then will most likely be saved by this deal over the next 10 years. Good job guys - way to crash our economy.
Re: Protection - Breand - 08-09-2011
What Vanraw (I think) is saying is the market is reacting based on fear and not rational thinking. It's not looking at the fundamentals of the economy but is instead reacting based off of political announcements, and a credit agency that has about as much credibility as Sammy "The Bull" Gravano.
Anyways, I chickened out and just bought more shares of Apple instead.
Re: Protection - Vanraw - 08-09-2011
Breand Wrote:What Vanraw (I think) is saying is the market is reacting based on fear and not rational thinking. It's not looking at the fundamentals of the economy but is instead reacting based off of political announcements, and a credit agency that has about as much credibility as Sammy "The Bull" Gravano.
Anyways, I chickened out and just bought more shares of Apple instead.
Yep....
Re: Protection - Breand - 08-09-2011
yesterday is day I wish I was rich. How much easy money could have been made by simply dumping as much money as possible into a reliable stock and collect a nice 4-5% bump a day later?
Re: Protection - Vanraw - 08-09-2011
Yea when the market goes down, cash is king, not only for the protection but the ability to take advantage of the bounces.
On the same note, I wonder WTF the fed is going to say this afternoon. All the news channels are reporting investors are waiting on the fed to tell everyone one what they are going to do??? I think the Press is 80% of the cause of volatility.
Re: Protection - Breand - 08-09-2011
well they basically said rates will be near zero for another two years and that seemed to have worked, heh.
I bought shares of my own company today, CVC. I don't understand what the crap is going on with the huge dip, but the stock is very undervalued right now.
Re: Protection - Grieve - 08-10-2011
Taking the family to Hershey Park next week, but who needs roller coasters with this market?
Down we go again...
Re: Protection - Breand - 08-10-2011
Grieve Wrote:Taking the family to Hershey Park next week, but who needs roller coasters with this market?
wow, really? what days? there's a good chance we are going on the 20th-22nd.
Re: Protection - Grieve - 08-10-2011
I think the schedule is Dutch wonderland on the 16th, chocolate factory on the 17th, and Hershey 18th/19th. We may still be there on the 20th - have to check with my wife.
I couldn't resist...bought some options today. Apple 365/375 jan call spread, and BAC $10 Jan call. Although things have worsened since then already...
Re: Protection - Vanraw - 08-10-2011
Where the hell did a french downgrade risk come from? I thought I read a couple of day;s ago that both moody and S&P said France was ok, and now in risk of losing AAA.
Re: Protection - Grieve - 08-10-2011
Rebalancing - if US is the safest in the world, and it's AA+, everyone else needs to be pushed down a notch too.
Re: Protection - Vanraw - 08-10-2011
Then we are truly screwed because we have a rating agency that is purposely making and breaking the market.
Re: Protection - Vanraw - 08-18-2011
Here we go again..... http://www.chicagotribune.com/business/breaking/chi-wall-street-20110818,0,5113097.story
Re: Protection - Grieve - 08-18-2011
Urgh...just got off a roller coaster, but looking at stocks on my phone is doing far worse things to my stomach...
I swear the bears with their fears of a double dip/depression are going to turn it into a self-fulfilling prophecy...
Re: Protection - Slamz - 08-20-2011
Any thoughts on Monday?
My silver is up 18% since I bought it (half of that was gained on Friday). At some point I should dump it and throw it into stocks but I'm not sure if this is a short term lull or the beginning of the cruise to 7500 on the Dow. Been on vacation and haven't really kept up with the news over the last week.
Re: Protection - Grieve - 08-20-2011
I'm wondering the same about my silver call spreads. I feel like I should sell before the economic news improved, but I'm starting to wonde if there IS going to be any good news. It's all pretty bad right now...
Re: Protection - Vanraw - 08-20-2011
I think (perhaps Hope is a better word) that this is the low end of the channel. Over all though I think that we are going to be bouncing around between dow at high 10k's to high 11k's perhaps low 12k.
But then I look and wonder if we wont see 8k again...
I think if you move to stock, make sure you spend the money to protect on the possibiliy of a slide into nasty nasty....
All it would take right now is a italy default.....
Re: Protection - Grieve - 09-05-2011
Tomorrow could be interesting. Dow futures down 200+, gold over $1900, silver at $43...