Nibbling along the edges?

[NYEXPAT]

Ok, put me down for another 60k today.

 

[Fedup]

I’m waiting to see where it goes toward closing time. Could be lower.

 

[kgtest]

I have never had the FAANG stocks (Facebook, Apple, Amazon, Netflix, Google). The earning I am waiting to see is that of Lam Research, to be released shortly after market close today.

If LRCX does badly, there will hell to pay in the semiconductor shares that I own. Micron Technology capex is something close to $10B. Intel capex is even higher. What cash Tesla needs is peanuts compared to what these semi guys spend on their factories.

PS. Tesla never made money, but Micron P/E is less than 4. Take that, Musk.

10% of my portfolio is AAPL
6% AMZN


Surpisgingly no NFLX Shoulda bought that years ago. meh.

 

[kgtest]

Set a limit for $333 to expire for next 30. I won't tell how many shares though lol. A gentlemens call. That's another 4% drop or so. I hope this one doesn't fill lol.

 

[Fedup]

Set a limit for $333 to expire for next 30. I won't tell how many shares though lol. A gentlemens call. That's another 4% drop or so. I hope this one doesn't fill lol.

Which stock, NFLX.

 

[NYEXPAT]

I initiated a position in IQ (China's Netflix) yesterday and also on NIO (Tesla Killer).

 

[NW-Bound]

Set a limit for $333 to expire for next 30. I won't tell how many shares though lol. A gentlemens call. That's another 4% drop or so. I hope this one doesn't fill lol.

Assume that you are talking about NFLX, it popped from 347 to 372 after the good earning report, then drops back to 348 as of this writing.

I saw that the put option at 330, expiry Oct 16, was close to $10. So, if I sold that put, and it drops to that price, it would be the same as buying it at 320. If it does not drop that low, I pocket the $10.

Sounds easy, but I wrote a put option like that for a stock at 150, and will have to pay that price at expiry today, while it is at 120. Ouch!

 

[Fedup]

I’m thinking of buying put on NFLX, after good earning release it only went up to $366. But today it dropped $10, so I’m not sure it’s good to buy put. Not selling put, oh no, too risky.

 

[NW-Bound]

Me think selling an out-of-the-money put (with strike price well below current price) is less risky than buying the stock outright. The potential gain is of course limited, in exchange for the lower risk.

 

[Fedup]

I did that with VTI last week, I did make some money. I knew it’s safe to hold VTI if it’s assigned to me.

 

[NW-Bound]

Yes, holding broader market long-term is safer than holding any individual stock, which could go bankrupt. The reward is also reduced accordingly. Ain't no free lunch.

 

[copyright1997reloaded]

Assume that you are talking about NFLX, it popped from 347 to 372 after the good earning report, then drops back to 348 as of this writing.

I saw that the put option at 330, expiry Oct 16, was close to $10. So, if I sold that put, and it drops to that price, it would be the same as buying it at 320. If it does not drop that low, I pocket the $10.

Sounds easy, but I wrote a put option like that for a stock at 150, and will have to pay that price at expiry today, while it is at 120. Ouch!

The price action on NFLX (up strongly on the earnings report only to give it all back and then some) is negative and helps me to keep away from it. Having said that, I am likely one of the few to have lost money on NFLX.
Bought xxx NFLX @ 85.83 on 10/11/2011
Sold xxx NFLX @ 95.391 on 1/13/2012 for a profit of $9.56/share
Bought xxx NFLX @ 87.8398 on 4/24/2012
Sold xxx NFLX @ 73.4001 on 10/8/2012 for a loss of $14.43/share

NFLX had a 7 for 1 split in 2015, making those shares I bought on 4/24/12 have a cost basis in terms of today's shares of $12.55, which means at today's price I would have made about 26 to 27 TIMES my initial investment had I held the shares.

Given that, never mind on my price action comment.

 

[Fedup]

I read somewhere last year, starting with $1000 invested in each of FANG stock since their IPOs, some goes back to 1980s for Apple, NFLX shareholder ends up with $50k, vs $10K-12k for the rest of the FANG stocks. Business insider for an article June, 2018.

 

[NYEXPAT]

Bought more SPY today, now about 60% finished with my nibbling!

 

[NW-Bound]

The market has been so darn bearish, the pop with positive earning outlook did not last long with LRCX and NFLX, which is obvious to people who follow the market.

I stopped nibbling before that, and have been trying to sell call options but opportunities to do that have been rare. Darn!

If I did not have such high stock AA already, would be buying but a guy needs to limit his risks.

No more nibbling as I am already full. Try to avoid indigestion at this point.

 

[Hamlet]

The market has been so darn bearish, the pop with positive earning outlook did not last long with LRCX and NFLX, which is obvious to people who follow the market.

I stopped nibbling before that, and have been trying to sell call options but opportunities to do that have been rare. Darn!

If I did not have such high stock AA already, would be buying but a guy needs to limit his risks.

No more nibbling as I am already full. Try to avoid indigestion at this point.

It's hard to for me to be positive on NFLX, given that they are burning through about $800 million per quarter right now. It's easy to show massive growth when you are selling dollars for 80 cents, but it sure isn't a business I'd want to own.

 

[Al18]

As of today, the S&P 500 is 8% off it's yearly high. I think it will go into correction (10% below high) soon.

 

[HFWR]

No DMTing here, but VGK tripped the 10% down alarm, so I bought enough to bring it back to even.

BIV, VG’s intermediate bond fund, tripped a few months back. I hesitated until the Sept rate increase, feeling a bit paranoid buying into the rising rate scenario. But, though it’s only reacted slightly upward as the equity market has swooned, it’s now at almost 5% on the upward side of the 10% band, and is, thusly, doing its job.

 

[NW-Bound]

It's hard to for me to be positive on NFLX, given that they are burning through about $800 million per quarter right now. It's easy to show massive growth when you are selling dollars for 80 cents, but it sure isn't a business I'd want to own.

I never have NFLX, and rather have LRCX which I do not own recently. I look at stocks that I do not own to have a feel for the market sentiment. That's what a market timer does.

And the market looks ahead. Even when earnings are still climbing, investors worry about what's over the hill top. Maybe the gloomy outlook is self-fulfilling.

 

[dvalley]

Bought a little VTI, VXUS, VFIAX and VGT - about $9k in all, so a nibble indeed.

 

[NW-Bound]

Nibbling is good. Better save stomach for more tasty dishes coming later.

Too bad I am already full.

 

[dvalley]

Ha! I have some more dry powder left but the challenge is always knowing when to use it...sigh.

 

[NYEXPAT]

I caught both the low/high today (bought the dip/sold the rally) S&P position is back under 40% again.

 

[HMMY]

Tax loss harvested int'l on Monday. First opportunity for me to TLH since 2016 since all my bonds are in tax deferred. Nothing else to do since I haven't hit my 5% bands. It's nice to have rules.

 

[JJpop]

Well.....

I retired from the stock market pretty much in 2009.I decided to depend on my own earning power through my very small business.It turned out fine.I just retired at 65 last year from my business and have been about 65 pct CDs with the rest in Ibonds,a couple high quality GO muni’s and a few high quality Corp bonds.Throw in a few vanguard bond funds and a dash of Wellesley which is my only stock holding.Right now that portfolio is yielding about 47,000 per year and I sleep like a baby.No real regrets about missing the bull because that is hindsight.It could have been much different.