Author Topic: What are you buying today?  (Read 1043056 times)

boilermaker75

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Re: What are you buying today?
« Reply #3300 on: October 10, 2018, 03:02:49 PM »
Any comments on how things would have worked out differently if you were to hold cash and waited for lower prices than the shares you were put to?

The wait part is the same for writing puts or buying positions outright. It is always better waiting for lower prices!

What about the premiums that you collected while you wait versus the lower prices that you would've got??

I would not have gotten lower prices. Once I determine where I want to buy a stock it doesn't matter if I write a put at that strike price or put a limit order to buy the stock at that strike price. I own the stock either way at about the same basis.

Edit: I didn't know the market was going lower. I was getting put to at prices that I thought were good values, which they eventually were. So if I was going to buy the stock through a limit order I would have done it at the same price as I was being put to.

There was a fund that blew up around the 2008/2009 time frame.  I think the key difference between you and that fund is that you viewed your position size as the amount that you would be put to as the total margin was only 25% at its peak.  He had written puts that were 2-3x his fund's exposure.  When he got put to in 2008/2009 and the positions subsequently decline, he was basically carried out on a stretcher.

Even though my exposure was 25%, I was never more than about 5% on margin and by writing covered calls I was able to get off of margin.


Spekulatius

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Re: What are you buying today?
« Reply #3301 on: October 10, 2018, 03:35:42 PM »
On the topic of this Thread, I bought some FDX and TOL today. I also added a bit of NXPI. TOL trades for 1.05x tangible book, If I see this correctly. I think that actually lower than during the financial crisis when they were making losses.

I am also tempted buying some FCAU or EXOR Holding stock.
To be a realist, one has to believe in miracles.

Lance

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Re: What are you buying today?
« Reply #3302 on: October 10, 2018, 07:09:10 PM »
TIP and TLT

Thanks
Lance

Cigarbutt

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Re: What are you buying today?
« Reply #3303 on: October 10, 2018, 07:34:04 PM »
TIP and TLT
Thanks
Lance
Looking at this now.
Could you please, in a few words, explain why you bought these two, in the context of buying them at the same time?

frankhkii

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Re: What are you buying today?
« Reply #3304 on: October 11, 2018, 04:53:46 AM »
WHR looks very cheap on cash flow - almost at 4x...

BG2008

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Re: What are you buying today?
« Reply #3305 on: October 11, 2018, 07:48:47 AM »
WHR looks very cheap on cash flow - almost at 4x...

Is that 4x EBITDA, 4x FCF?  I'm backing into the numbers and I just don't see the 4x valuation.

atbed

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Re: What are you buying today?
« Reply #3306 on: October 11, 2018, 08:27:51 AM »

Cardboard

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Re: What are you buying today?
« Reply #3307 on: October 11, 2018, 03:26:59 PM »
WCP-T

Best in class, cheap, CEO owns a lot.

Cardboard

nkp007

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Re: What are you buying today?
« Reply #3308 on: October 11, 2018, 06:28:57 PM »
More valium.

Lance

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Re: What are you buying today?
« Reply #3309 on: October 11, 2018, 07:08:25 PM »
TIP and TLT
Thanks
Lance
Looking at this now.
Could you please, in a few words, explain why you bought these two, in the context of buying them at the same time?


Hi Cigarbutt - I bought TLT thinking that the move in rates seems like itís a bit overdone, lots of people are short long bonds and after hearing Trumpís comments about the Fed thinking that they might reverse course or at least lighten up on the raises.  Took a bit off today when it moved up.

Regarding TIP it was more of a diversification move/buying fire insurance before the fire, etc.

Added to ABBV, BNS, KHC and KIM.  Started a position in BPR.

Thanks
Lance