What did you trade today and why?

[Rhythm Method]

A little portfolio housekeeping today.

Yesterday I sold my position in RLTY. It has done reasonably well, but I continue to move toward fewer holdings and a simpler portfolio.

Today I added a decent chunk to ADX, which serves as my primary S&P 500 proxy. With both gold and international stocks under pressure recently, I also added to SGENX and put a little into FWWFX as a global large-cap growth holding.

I'm still holding about 18% cash and am in no hurry. Patience remains part of the allocation strategy.

Take care out there.

 

[Fishmasterdan]

One good thing about CC. When there is a bad day like today you can sell and rebuy for profit several times. I bought back NVDA then sold another CC lower then bought that back both for 60% profit on the primum. Now sitting in the 190 range for cost basis on NVDA. This was from today as the market was dropping if anyone is curious how this works.

 

[dickoncapecod]

Sold a lot of PDI for a profit on the theory that it ain't gonna run away to the upside given the current market narrative.
Regards, Dick

 

[GoBirds]

Kid
2 NVDA at 208
1 TSLA at 400

Me
2 VTI at 365
VWELX $2500

 

[YellowSubmarine]

- BRK/B sold half of position in Roth as sell limit reached. ..small gain

 

[Montecfo]

nibbled on what was down most: AVGO, BE, SNDK, MRVL

 

[NW-Bound]

A brutal day. I am still waiting for some MF reporting, but already counted -1.75% loss today on a stock AA of 54%, compared to the S&P at -2.64%. And I have some stocks going up today, such as stocks in energy, consumer staples, and the financial sector.

The reason for losing more than the S&P than is commensurate with my stock AA is the OTM puts on semi stocks, despite me having sold much of the stocks quite a while back.

Here's an example. When MU was as high as 1080 just a few days ago, I sold an MU put at 930 for a premium of $550, expiry today. MU opened at 944, which meant the put was headed towards worthlessness, and I would keep the $550 free and clear. But MU kept dropping, and at some point, I bought it back for $1878, and rolled it to a put at 860 expiry next Friday for $2878. It meant I got a net credit for $1000, with the obligation to buy MU a lot lower.

Ran some errands, and came back to see MU closed at 864. It ended near the strike price of 860, and the put is now worth $4790. This meant I lost $2382 on paper ($4790 minus $2878). On the original put, I already lost $1,378 ($1878-$550).

Now, this is just one OTM put that I sold. And I sold quite a few more on other stocks, which I will not bore you with. All the losses on OTM puts turning ITM cost me more than $50K today. But then, I have made more than that selling puts in the past month, so it's quite OK.

PS. After-hour, MU now rose to 870. If it holds above the strike price of 860, my put becomes worthless, and I gain $2878. Counting all other puts, my $50K loss today will turn into a gain. It's not free money without risk, as the cash to secure these puts adds up to about $850K.

PPS. If MU holds above 860 by next Friday, the put that I sold today for $2878 will become worthless. My net gain is just $1500, after counting the $1378 I lost on the original put.

A potential gain of $1500 on a cash amount of $86K to secure the put works out to 1.7% in 2 weeks, counting the original put. Is it worthwhile? Yes, but only if it works out.

 

[dickoncapecod]

A brutal day. I am still waiting for some MF reporting, but already counted -1.75% loss today on a stock AA of 54%, compared to the S&P at -2.64%. And I have some stocks going up today, such as stocks in energy, consumer staples, and the financial sector.

The reason for losing more than the S&P than is commensurate with my stock AA is the OTM puts on semi stocks, despite me having sold much of them quite a while back.

Here's an example. When MU was as high as 1080 just a few days ago, I sold an MU put at 930 for a premium of $550, expiry today. MU opened at 944, which meant the put was headed towards worthlessness, and I would keep the $550 free and clear. But MU kept dropping, and at some point, I bought it back for $1878, and rolled it to a put at 860 expiry next Friday for $2878. It meant I got a net credit for $1000, with the obligation to buy MU a lot lower.

Ran some errands, and came back to see MU closed at 864. It punched right through the strike price of 860, and the put is now worth $4790. This meant I lost $2382 on paper.

Now, this is just one OTM put that I sold. And I sold quite a few more on other stocks, which I will not bore you with. All the losses on OTM puts turning ITM cost me more than $50K today. But then, I have made more than that selling puts in the past month, so it's quite OK.

Instructive for all, thanks.
Regards, Dick

 

[Old Dog Seeks New Tricks]

for reasons that defy understanding, i placed an order to buy in the ipo some SpaceX at 135. in all these years i had never had a chance to 'get involved' in an ipo -- it's possible that others like me will do the same / fools travel in packs perhaps / i have never been a fan of mr musk but he has built a company that lands rockets back safely and gets satellites to get to where they need to go / maybe my kids will say something nice when it is in their hands / or have a good laugh / either way, i'm fine with it / and so it goes...

 

[dickoncapecod]

for reasons that defy understanding, i placed an order to buy in the ipo some SpaceX at 135. in all these years i had never had a chance to 'get involved' in an ipo -- it's possible that others like me will do the same / fools travel in packs perhaps / i have never been a fan of mr musk but he has built a company that lands rockets back safely and gets satellites to get to where they need to go / maybe my kids will say something nice when it is in their hands / or have a good laugh / either way, i'm fine with it / and so it goes...

A couple fun observations.....I really have no opinion:
1. Morningstar that is supposed to be okay on stock stuff asserts a reasonable value for SpaceX is about half the IPO price. (But it will no doubt soar to start.)
2. Although a large 30% will be allocated to retail, you are unlikely to much or any of your order. (If you get 100%, look out!)
Regards, Dick
PS. Think how exciting it will be when a big IPO comes for a company that can make money!

 

[NW-Bound]

Instructive for all, thanks.
Regards, Dick

A bit more about this OTM 930 put that I sold and lost money on (so far). When MU got as high as 1085, who would have thunk it would drop that much that fast in 2 days? That's 15% drop (930/1085) in 2 days. It turned out to drop 20%!

So, as of yesterday when MU was on the way down, it still closed at 967. I had a chance to close out the put at $1.5, and gain $400. However, I would not think MU would have another big drop today, and boy was I wrong.

In all, MU dropped 20% in 2 days. My loss of a few $K is not that much compared to a guy who bought MU 2 days ago at its peak. And of course there were always buyers/sellers at any price. On Wed, 40 million shares of MU changed hands. That's $40 billion worth of shares changing hand. Buyers lost a combined total of $8B.

 

[NW-Bound]

I am irrationally happy that some air is finally being let out of bitcoin tires (sorry if some of you are still in that). Crypto just bugs me for some reason.

There are some stocks that bug me more, but I shall refrain from mentioning them here.

 

[COcheesehead]

Futures look interesting in a craptastic way.

 

[COcheesehead]

Futures look interesting in a craptastic way.

Never mind, forgot it was Friday. Been on the road for two days. Lost track of time. Ain’t retirement grand?

 

[surprising]

A bit more about this OTM 930 put that I sold and lost money on (so far). When MU got as high as 1085, who would have thunk it would drop that much that fast in 2 days? That's 15% drop (930/1085) in 2 days. It turned out to drop 20%!

So, as of yesterday when MU was on the way down, it still closed at 967. I had a chance to close out the put at $1.5, and gain $400. However, I would not think MU would have another big drop today, and boy was I wrong.

In all, MU dropped 20% in 2 days. My loss of a few $K is not that much compared to a guy who bought MU 2 days ago at its peak. And of course there were always buyers/sellers at any price. On Wed, 40 million shares of MU changed hands. That's $40 billion worth of shares changing hand. Buyers lost a combined total of $8B.

I'm trying to get out from under a couple buy/write CC that went south. The stock is down about $16K but I've made about $7K on the CCs so far, so net 9K loss. Currently just holding the stock, as I bought back all the CCs by end of day yesterday. Trying to figure out the best way to approach this. I could write CCs closer to ITM for higher premium but risk the chance of the stock rallying and end up selling the stock at a loss. Or, I could write CC closer to my original buy price and collect smaller premium, but also capture stock gains if we get a relief rally. What would you do in this scenario?

 

[PaulR888]

Yesterday was a real time portfolio stress test. My portfolio has 18 individual plays.

8 had positive gains: regulated utility (NEE), big pharma (LLY, MRK), health care (UNH), REITSs (VICI, NHI, CTRE) and a high market volatility play (VIRT).

My BDCs (HTGC, CSWC) were negative along with another individual 8 plays I own.

Edit: I noted yesterday Staples had gains. I looked at them to see if I wanted to add to my portfolio long term. IYK caught my eye. But more I thought I decided I prefer my regulated utility over the staples play long term.

 

[Fermion]

What are you guy's thoughts on AVGO (Broadcom)? I won't hold you to any opinion but is it getting into reasonable territory for a buy (or not yet)?

 

[finnski1]

Wednesday after hours I thought Mu was a possible buy as it went down 7% on the Broadcom news and other reasons. Well 2 days later it close down almost another 40%! Yikes.

 

[Fermion]

Wednesday after hours I thought Mu was a possible buy as it went down 7% on the Broadcom news and other reasons. Well 2 days later it close down almost another 40%! Yikes.

MU went down 40%?

 

[Montecfo]

What are you guy's thoughts on AVGO (Broadcom)? I won't hold you to any opinion but is it getting into reasonable territory for a buy (or not yet)?

I added to a large position. But there is some controversy given the software business was a bit disappointing(but the company pushed back on that) they did not update their forecast and they did not spend much of their buyback.

OTOH, it had a huge runup into earnings which was largely what was erased in the selloff. It also sold off after the last report. They beat on revenue (just barely though) and earnings. And they booked $30b of AI orders which was far more than expected.

On forward earnings it has gotten pretty cheap.

So there you have it.

 

[finnski1]

MU went down 40%?

No sorry, I meant the double MU ETF, symbol MUU.
MU was "only" down 20 % in 2 days.

 

[Qs Laptop]

What are you guy's thoughts on AVGO (Broadcom)? I won't hold you to any opinion but is it getting into reasonable territory for a buy (or not yet)?

I own it. They had a decent earnings beat and forward guidance exceeded market expectations.

However, there was one area of their business that disappointed some investors. They focused on the fact that Broadcom did not lift their artificial intelligence sales forecast for Q3 over their previous forecasts. Consider their previous guidance was 200% year-over-year from last year's Q3. When they didn't raise that number investors decided to punish the stock. <sigh>

They did $10.8B in AI semiconductor revenues in Q2, which was 143% Y-O-Y, and expect to do $16B in Q3 which would be 200% Y-O-Y. That was not good enough, I guess. It was enough of an excuse for others to take profits across the AI landscape and drag down other AI stocks.

While Broadcom has had some nice gains I believe they've been taking a back seat to the really big gainers. I think their turn to really grow some big gains is in the near future. I advised my sister to buy AVGO yesterday and I'd buy more if I had some free cash to invest.

 

[NW-Bound]

No sorry, I meant the double MU ETF, symbol MUU.
MU was "only" down 20 % in 2 days.

You made me look. MUU mistracked MU badly on Thursday. Near market close on 6/5, MUU jumped up big to almost its ATH, while MU was still down. It obviously had a surge of late orders to cause this mistrack. People who piled in for FOMO got hurt bad the next day.

About semi stocks in general, they had been my favorite sector, and I liked them a lot better than the AI hyperscalers of which I owned none. The semi guys are apolitical for lack of a better word. Their job is to make bigger, badder, meaner chips, whatever the applications require. And they are doing a good job. My son who is working for one said that they make chips with 20,000 to 30,000 pinouts. What the heck? To connect the chips with so many pins to a PCB is a severe engineering challenge. Recall that the latest CPUs used in common PCs have about 1,800 pins, and that number is already astounding to me.

Anyway, the market is so saturated, and there are talks of the hyperscalers running out of cash to build these AI centers that they browbeat each other about. The huge back orders that the semi guys have may just get cancelled. I dunno about the terms of these deals, but I recall orders getting cancelled back in the days of the dot coms.

So, I will continue to low-ball the semi stocks by selling OTM puts. But first, I have to wait to see what happens next week on the OTM puts I rolled over from yesterday to next Friday. I may have to buy several $100K worth of stock already. I don't have the stomach for more, even though I still have lots of cash. I like my cash, even if it earns me only 3.5%.

 

[Sojourner]

I sold three NVDA puts near market close yesterday ($200 strike, June 18 expiration) for a total of $1,290. Will be interesting to see if the semiconductor stocks continue their plunge or if the sentiment turns to "oversold" next week and we get some recovery. I'm certainly hoping for the latter. It would be nice, though, to see NVDA bottom out around $195 so my puts get assigned, facilitating some juicy CC sales.

 

[finnski1]

You made me look. MUU mistracked MU badly on Thursday. Near market close on 6/5, MUU jumped up big to almost its ATH, while MU was still down. It obviously had a surge of late orders to cause this mistrack. People who piled in for FOMO got hurt bad the next day.

About semi stocks in general, they had been my favorite sector, and I liked them a lot better than the AI hyperscalers of which I owned none. The semi guys are apolitical for lack of a better word. Their job is to make bigger, badder, meaner chips, whatever the applications require. And they are doing a good job. My son who is working for one said that they make chips with 20,000 to 30,000 pinouts. What the heck? To connect the chips with so many pins to a PCB is a severe engineering challenge. Recall that the latest CPUs used in common PCs have about 1,800 pins, and that number is already astounding to me.

Anyway, the market is so saturated, and there are talks of the hyperscalers running out of cash to build these AI centers that they browbeat each other about. The huge back orders that the semi guys have may just get cancelled. I dunno about the terms of these deals, but I recall orders getting cancelled back in the days of the dot coms.

So, I will continue to low-ball the semi stocks by selling OTM puts. But first, I have to wait to see what happens next week on the OTM puts I rolled over from yesterday to next Friday. I may have to buy several $100K worth of stock already. I don't have the stomach for more, even though I still have lots of cash. I like my cash, even if it earns me only 3.5%.

MUU hit its new high on 6/3 at 3:30 pm of $1081.71 at the exact same time MU hit its new high of $1089.29.
I'm not seeing what you described?