What are you buying today?

[Lance]

$120 strike 2016 IWM puts.

Thanks,
Lance

[tombgrt]

Today I bought $120 strike 2016 IWM puts.  Maybe that will help me calm down.

Today I bought $120 strike 2016 IWM puts.  Maybe that will help me calm down.

And half the board just went into panic mode selling everything not nailed down.

$120 strike 2016 IWM puts.

Thanks,
Lance

 


I bought more CRM puts a few days ago tho, all OTM long duration.

[stahleyp]

Wait they backward adjust the calls for dividends?

Nah,

Dividend $1.72 and compound that at 8% over 2 year is about $2 per share. If the yield of the stock is stays consistent at 5% (like it is now), that equates to a $40 per share stock price.

The Jan 2016 $30 calls are about $3.84. If the stock trades at $40, they'll be worth $10 (or more depending on time). That's about 160% return.

Thanks for clarifying for me.

No problem man. haha

[Palantir]

Anybody buying GCI?

[sethatk]

Thinking about adding GCI and buying ACS again, but I would have to sale something, because I am all in...mulling over saling MSFT.

[blainehodder]

Bought OGZPY and RSX calls. 

Crazy dumping on ALSK and GNCMA. Lather, rinse, repeat seems like a reasonable idea.

[ERICOPOLY]

Tactical error...

I need to change that trade.

I bought IWM puts.... if those become hugely profitable at expiry, I'll have to take a painful tax hit.

Instead, I need to rework the trade by dumping those puts, shorting IWM directly, and purchasing calls to hedge.  That way, I can keep the short position open forever without a tax consequence. 

Let's say for example the market drops 50% and I want to dump the hedge.  Well, I don't want to dump the hedge literally because I would be stuck paying the capital gain.  Instead, I should just keep the IWM short position open (at a large gain) and buy an offsetting amount of depressed stocks.  Then over time the gain on the IWM short will unwind and I'll have an offsetting gain on the stocks I purchased.

No realized gains that way.  Keep the assets for myself.

[ItsAValueTrap]

Shorted FB  Can't find much to buy...

Geez.  While I am shorting a bunch of stocks and trade against other people on this board (ATPG, PRXI, SD, etc.)... I would never short Facebook.  Facebook and Google advertising works and is extremely compelling to advertisers.  Affiliate marketer run blogs where they talk about how much money they make.  Some of them advertise on Facebook and make a lot of money on it.

On a cash flow basis, Facebook doesn't look overvalued at all.  I wish you the best of luck on your short.

[hyten1]

+1  I like

Tactical error...

I need to change that trade.

I bought IWM puts.... if those become hugely profitable at expiry, I'll have to take a painful tax hit.

Instead, I need to rework the trade by dumping those puts, shorting IWM directly, and purchasing calls to hedge.  That way, I can keep the short position open forever without a tax consequence. 

Let's say for example the market drops 50% and I want to dump the hedge.  Well, I don't want to dump the hedge literally because I would be stuck paying the capital gain.  Instead, I should just keep the IWM short position open (at a large gain) and buy an offsetting amount of depressed stocks.  Then over time the gain on the IWM short will unwind and I'll have an offsetting gain on the stocks I purchased.

No realized gains that way.  Keep the assets for myself.

[buylowersellhigh]

Tactical error...

I need to change that trade.

I bought IWM puts.... if those become hugely profitable at expiry, I'll have to take a painful tax hit.

Instead, I need to rework the trade by dumping those puts, shorting IWM directly, and purchasing calls to hedge.  That way, I can keep the short position open forever without a tax consequence. 

Let's say for example the market drops 50% and I want to dump the hedge.  Well, I don't want to dump the hedge literally because I would be stuck paying the capital gain.  Instead, I should just keep the IWM short position open (at a large gain) and buy an offsetting amount of depressed stocks.  Then over time the gain on the IWM short will unwind and I'll have an offsetting gain on the stocks I purchased.

No realized gains that way.  Keep the assets for myself.

How are you buying depressed stocks w/o realizing profits on the IWM short? Are you assuming some unencumbered cash?