Author Topic: What are you buying today?  (Read 1462714 times)

wachtwoord

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Re: What are you buying today?
« Reply #3350 on: October 26, 2018, 03:05:46 PM »
"Beware of he who would deny you access to information, for in his heart he dreams himself your master"


Spekulatius

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Re: What are you buying today?
« Reply #3351 on: October 26, 2018, 05:52:59 PM »
Bought some MHK (falling knife) and added to FDX.
Life is too short for cheap beer and wine.

frommi

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Re: What are you buying today?
« Reply #3352 on: October 26, 2018, 10:31:40 PM »
https://en.wikipedia.org/wiki/Sell_in_May

But why sell the German index specifically?

This is my personal anti-home bias. According to https://papers.ssrn.com/sol3/papers.cfm?abstract_id=76248 Italy would work best, but i don`t think there is an active option market for that index. But when you look at the DAX holdings there are a lot of awful, overleveraged and cyclical businesses in it. The best is that no professional investor will ever use this effect, most investors i know laugh about it or dismiss it as a statistical fluke. (Should this change, i will probably reduce my position size)

Spekulatius

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Re: What are you buying today?
« Reply #3353 on: October 27, 2018, 06:05:25 AM »
https://en.wikipedia.org/wiki/Sell_in_May

But why sell the German index specifically?

This is my personal anti-home bias. According to https://papers.ssrn.com/sol3/papers.cfm?abstract_id=76248 Italy would work best, but i don`t think there is an active option market for that index. But when you look at the DAX holdings there are a lot of awful, overleveraged and cyclical businesses in it. The best is that no professional investor will ever use this effect, most investors i know laugh about it or dismiss it as a statistical fluke. (Should this change, i will probably reduce my position size)

The DAX has been traditionally much more volatile than the US stock market. I think some future traders like trading the German Dax futures because of the high volatility, the time difference and the relatively high liquidity. The old saying still goes that when wall streets gets a cold, Frankfurt gets a pneumonia.
Life is too short for cheap beer and wine.

gjangal

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Re: What are you buying today?
« Reply #3354 on: October 28, 2018, 08:04:47 PM »
Added to FB , TCEHY

sold out of UBNT

I just found something interesting about tencent. TCEHY owns 48% of Epic games ( Now valued at 15bn) , which launched Fortnite.

boilermaker75

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Re: What are you buying today?
« Reply #3355 on: October 29, 2018, 08:07:14 AM »
Boilermaker,

I just hope that you - some day in the future - will share your experience over time with these kind of trades here on CoBF. I bet it'll be educational!

John,

Nothing profound about what I am doing.

I am a LTBH investor.

First, I use writing puts to enter positions. All my current positions were entered that way. It gives me the discipline to wait for my price. I donít have that patience with just limit orders. Besides I get paid while waiting to be exercised, probably why I am more patient, and it lowers my basis by the put premium. A criticism would be not acquiring a position because you donít get put to. This has only happened to me once. I wanted to acquire some MCD at $50 and was never put to. So, I missed out on a three-bagger so far.

Secondly, I use puts to do some trading. Usually stocks I already own and at prices I would not mind if I were put to. 80% of my positions are written when the expiration is a few days to about a month out. For the other 20% the expiration is 1-2 months out when I write the put. I am selling insurance and collecting very nice premiums, but unlike insurance, if I have to pay a claim I end up with a stock I donít mind owning at the price I am put to.

Third, it is also a way to be margined in the sense if I would be exercised on all my outstanding puts I would be on margin. From 2008-2016, if I were put to on all my outstanding puts, I would have been around 25% on margin. I only ended up slightly on margin a couple times and by writing covered calls (equivalent to writing a put) I was quickly off of margin. Since about January, I have been writing puts where I would be just slightly on margin if put to on everything. Currently I am short puts on BRKB with strike prices of 200, 205, 207.50, and 210; BK with strike prices of 50; WFC with strike prices of 54; BAC with strike prices of 29, 29.50, and 30; and GILD with strike prices of 70.

Fourth, I also like to write puts to play risk arbitrage. For instance, when BRK was acquiring BNI I was writing at-the-money puts on BNI. If I outright bought BNI, I would have to wait till the acquisition closed to know my return. By writing puts I was setting the date when my play would be completed and what my return would be. I then followed an expiration with writing more puts. I did this till BRK closed on BNI.

Mike

If I did not already have too many open put positions, I would use writing puts to play the IBM all-cash acquisition of RHT. (I probably will after some of my open puts get past expiration.)

For instance, this morning you could have written RHT 170-strike puts with expiration this Friday for $1.50 per share.

Then on Friday you can decide what your play is for the next week.

JRM

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Re: What are you buying today?
« Reply #3356 on: October 29, 2018, 09:18:16 AM »

If I did not already have too many open put positions, I would use writing puts to play the IBM all-cash acquisition of RHT. (I probably will after some of my open puts get past expiration.)

For instance, this morning you could have written RHT 170-strike puts with expiration this Friday for $1.50 per share.

Then on Friday you can decide what your play is for the next week.

As long as you're picking up pennies in front of the steam roller, why not just sell $190 strike puts against RHT (2020 expiration)?  Surely the deal won't fall apart.  Seems like less work.

Sharad

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Re: What are you buying today?
« Reply #3357 on: October 29, 2018, 09:43:42 AM »

If I did not already have too many open put positions, I would use writing puts to play the IBM all-cash acquisition of RHT. (I probably will after some of my open puts get past expiration.)

For instance, this morning you could have written RHT 170-strike puts with expiration this Friday for $1.50 per share.

Then on Friday you can decide what your play is for the next week.

As long as you're picking up pennies in front of the steam roller, why not just sell $190 strike puts against RHT (2020 expiration)?  Surely the deal won't fall apart.  Seems like less work.



Does China have to approve the deal? If so, then I suspect there is a lot of risk...
"If we are not able to ask skeptical questions, to interrogate those who tell us that something is true, to be skeptical of those in authority, then we are up for grabs for the next charlatan - political or religious - who comes ambling along."
- Carl Sagan

FiveSigma

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Re: What are you buying today?
« Reply #3358 on: October 29, 2018, 10:15:18 AM »
Why would China have to approve this deal?

james22

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Re: What are you buying today?
« Reply #3359 on: October 29, 2018, 10:17:41 AM »
BAM, BRK, VEMAX (Emerging Markets)
BRK, BAM l SV, EM l Fannie Mae, Freddie Mac l Stable Value, Cash Value