Anyone Buying Into Today's Dip?

[aja8888]

Looks like it was a big day in the market.

 

[NW-Bound]

Nasdaq is down pre market. Rotation out of tech due to anticipated higher rates.

Tech stocks were down, but as the day wore on, they climbed back some to join the Dow.

The dichotomy of tech stocks vs. old boring stocks reminds me of what happened in March 2000, when the tech stock bubble showed sign of deflating.

This time, I hold only tech stocks with low P/E and hate to sell them now. For example, AMAT trailing and forward P/Es are 23 and 18, vs. 25 and 21.5 for the S&P. Those of MU are 16 and 7.6.

 

[COcheesehead]

Tech stocks were down, but as the day wore on, they climbed back some to join the Dow.

The dichotomy of tech stocks vs. old boring stocks reminds me of what happened in March 2000, when the tech stock bubble showed sign of deflating.

This time, I hold only tech stocks with low P/E and hate to sell them now. For example, AMAT trailing and forward P/Es are 23 and 18, vs. 25 and 21.5 for the S&P. Those of MU are 16 and 7.6.

I have a healthy dose of tech too. I guess everyone has some, but I also have an equal amount of value - large, mid and small cap. I am not a genius to know which group will pop or drop.

 

[NW-Bound]

This time, I hold only tech stocks with low P/E and hate to sell them now. For example, AMAT trailing and forward P/Es are 23 and 18, vs. 25 and 21.5 for the S&P. Those of MU are 16 and 7.6.

Just to clarify, I meant my tech stocks all have low P/E. It does not mean I don't have non-tech stocks. I also own shares of agricultural, mining, pharma, healthcare, energy, financial, industrial companies, etc...

I am not interested in IPOs or companies that sell promises instead of real products. Same as in 2000, we have seen many "hot" companies that do not even have sales, let alone earnings. These companies are not for me.

The NASDAQ lost 2/3 of its value after the 2000 bubble bust. It took 15 years for it to recover.

 

[Christine]

I bought some ARKG yesterday.


I have no idea if Santa thinks the market has been naughty or nice this year - but ARKG has been down for months now and since I believe Genomics I might as well buy.

Probably will buy some more months from now.

 

[Sunset]

I bought some ARKG yesterday.


I have no idea if Santa thinks the market has been naughty or nice this year - but ARKG has been down for months now and since I believe Genomics I might as well buy.

Probably will buy some more months from now.

Great timing

 

[NW-Bound]

The market goes nuts today, particularly tech stocks.

I am approaching my own past personal high watermark, despite having lowered my stock AA.

I am looking to sell more OTM covered calls.

 

[aja8888]

The market goes nuts today, particularly tech stocks.

I am approaching my own past personal high watermark, despite having lowered my stock AA.

I am looking to sell more OTM covered calls.

I looked for call candidates today and didn't find one attractive. Yesterday, I sold a JNJ 12/17 call @ 167.50.

I'm not selling options on my energy stocks as I believe they will move up soon.

 

[steelyman]

I haven’t bought or sold anything in a while but learned a relatively new Roth IRA account (Fidelity) has been approved for “limited margin” trading.

I’ve had standard margin in a taxable account for a while and used it for options but not a lot.
It’ll be nice to have this feature available in Roth, limited or not.

[ADDED] Here’s Fidelity’s summary about what limited margin is:

https://www.fidelity.com/learning-center/trading-investing/trading/limited-margin-trading-IRA

 

[Archman]

I bought some ARKG yesterday.


I have no idea if Santa thinks the market has been naughty or nice this year - but ARKG has been down for months now and since I believe Genomics I might as well buy.

Probably will buy some more months from now.

My advisor bought ARKG at it's peak, and it's down 40%. She also bought some other ARK funds at the peak ,too. Arrrrgh.

 

[Sniggle]

Lately I have been dipped, spun and turned about by the market....and after today it looks like I will be slightly ahead after the last 2 weeks, although my portfolio is full of dead money right now (covered calls in the money).

I did sell a bunch of puts on Monday when the techs crashed, and those have all worked out very well......so far.

On Friday, the way it looks now, almost every position I have will be gone, either as the option goes to zero or as a result of being assigned. Kinda fun, because next week I will have a big bank roll to invest

 

[Sunset]

I got impatient and the following happened:

Nov 30: I sold a Put on QQQ for $4.10 strike price $392 QQQ was about $393 at the time as it had dropped, so I wanted to get it cheap if it sank a bit.

Dec 1: QQQ dropped to about $388 , so I would only end up buying at roughly market price.
Dec 2: QQQ up few dollars, so I'm back in the $$ and will get assigned, at a deal price.
Dec 3: QQQ drops a bunch, so I get assigned at a NET price of ~$388 over paying by $6 / share as QQQ is $382

Dec 7: QQQ is $398 so I'm up about $10 per share from my cost

I wanted QQQ as a long term holding, but somehow it still feels nicer when it's already $$ in the bank.

 

[stephenson]

Yesterday and early today, nibbled at:

- DM
- T
- ARKK
- SILK
- BFLY

 

[aja8888]

Added to my pile of SCHB.

Sold a covered call on JNJ - 12/17/21 @ $167.50 (300 shares)

Peanuts in the grand scheme of things.

 

[Born2Fish]

Bought and flipped BA, OXY.

Bought NCLH a little early, waiting to flip.

I also bought some PYPL - thanks to the discussion here a few days/week ago.

Added to BX, AAPL long positions.

At an all time high on today's close.

 

[NW-Bound]

I looked for call candidates today and didn't find one attractive. Yesterday, I sold a JNJ 12/17 call @ 167.50.

I'm not selling options on my energy stocks as I believe they will move up soon.

I have not sold calls on my energy stocks either.

I still have quite a bit of semiconductor stocks, and I write a few OTM calls on them.

I believe in the long-term prospect of semi stocks, but when people bid them up like crazy, I try to help them out by promising I will sell the shares to them at even higher prices, if they give me some cash up front right now. I am such a nice guy. When they change their mind, I will promise to buy back from them at lower prices, by selling them puts. I always try to sell people something.

Added to my pile of SCHB.

Sold a covered call on JNJ - 12/17/21 @ $167.50 (300 shares)

Peanuts in the grand scheme of things.

Eh, don't badmouth peanuts. They can be fattening, them option premiums.

My pile of option peanuts added up to more than $300k last year. This year, I slacked off, and have collected only $256k so far, and there are only a couple of weeks left.

PS. I have not figure the above out. Last year, I have less in stocks, and less in cash. This year, I have more stocks to write OTM calls on, and more cash to write OTM puts on. Yet, I make less.

I think the option premiums are lower this year than last. I will not know until I sit down and download all the transactions to compute the average premium per contract. It may be simply that I am not as active this year, even though I remember telling myself I would try to beat my own record.

 

[DrRoy]

I did not buy the dip, but I did a portion more of my Roth IRA conversion. Should have done more earlier in the year.

 

[VanWinkle]

I did not buy the dip, but I did a portion more of my Roth IRA conversion. Should have done more earlier in the year.

I've been waiting all year to see where my income falls and hopeful the market is down when I do the conversion. I, like you, should have done it early in the year. Now I'll likely pull the trigger between Christmas and New Years.

 

[NW-Bound]

See how treacherous this market is?

Yesterday, Wed 12/15, the market was slightly in the red, waiting for Powell to come out of the Fed meeting. What he said was nothing unexpected, yet the market rallied so darn strong. Why?

Good thing in the morning yesterday, I already closed out several call options, as I already had decent gains with them.

And then, today, just as I planned to rewrite these covered calls for the next expiry and at higher prices, the market tanked. Why?

But look closely, and you will see tech stocks, particularly the high P/E ones took a real drubbing, while defensive stocks like pharmas, consumer staples, utilities, and energy stocks soar. I don't have enough of these defensive stocks, so end up with a day loss, but it still helps.

Looks like today may be another buying opportunity...

No, I am not buying, and not even selling OTM puts like I normally did on a market down day.

Instead, I managed to sell 5 OTM call contracts on some ETFs that managed to be up early in the day, before they suddenly turned tail and followed the rest of the market heading south. The contracts expire next Friday. Made a measly $690, but that's $690 in cash I would not have otherwise. Every bit helps.

The above posts were on Nov 30. Some of the stocks I lightened up on via assigned options are at lower prices now, and I found it hard to resist. So, I bought back some.

 

[aja8888]

I'm losing out on a covered call big time as the stock went up over 5% in the last week and past my strike point. I'll have to let it go now but made good money, just left some for someone else. It's too late to buy back the call as it woud do me no good.

 

[kgtest]

PRGTX down 25% in ONE DAY. One more reason to stay diversified. If you held this one, You went from being up 33% to being down 17%. OUCH! My DF had this one in his folio and caused a nice 3% drop of total return.

 

[COcheesehead]

PRGTX down 25% in ONE DAY. One more reason to stay diversified. If you held this one, You went from being up 33% to being down 17%. OUCH! My DF had this one in his folio and caused a nice 3% drop of total return.

It was the result of a distribution. When there are big drops this time of year, always look for a distribution as the cause. Wait a few days.

 

[Car-Guy]

The above posts were on Nov 30. Some of the stocks I lightened up on via assigned options are at lower prices now, and I found it hard to resist. So, I bought back some.

Bought and sold several times since then and have made money... Won some, lost some but I'm ahead. Buying again this morning.

 

[SecondCor521]

It was the result of a distribution. When there are big drops this time of year, always look for a distribution as the cause. Wait a few days.

And it seems this year the December distributions are larger than usual, so there will probably be a more panicked feel to the posts about "Why did my fund drop X% today when the market was up 0.Y%?!?"

 

[MichealKnight]

Self-Admitted Novice here. (Not experienced in stocks, and though I'm now vested, I frankly think 50% of it is WWF entertainment).

But Microsoft, Apple, Google.....these companies own the human race. They have more money than some major countries. The world's people - use these companies as much as they use their lungs. People can't go to the bathroom without taking these companies into the stall with them. If a government investigates them - the government would be using their products to do so. With all that money, and so many investors that gobbled up their debt and bonds at nothing-rates recently.....I always wonder why...... a whopping 2% higher interest rate vis going to hurt these entities so much. They were doing well before Covid, when rates were higher. Yes the Fed-candy helps but really 1-2% higher - I don't see how that hurts MSFT software and cloud, or Google ad revenue (what, are businesses gonna advertising in the local newspaper?) and apple - the world's peoples will whine about a $50 co-pay for a doctor, but they'll line up for the newest phone or download the app or buy the music.