I see long puts as "insurance" against a correction while keeping the stocks I love and trust, the same way you insure your house against a fire. If the fire doesn't happen, you don't really get mad about it!
I am going to weather the storm in my long positions. Historically, I sell too early into a loss and then a few days later the asset pops and makes money.
Bonds are still seen as a "safe asset" (no clue why, but that's beside the point), so if the yields decrease to a reasonable level (I'd say lower than 1.17), it means that people still have confidence in the american market and the bull run is not over. That's my best guess anyway.
If stocks fall & 10 yr yield falls = money is moving out of stocks and going into bonds (safe haven). If stocks fall & 10 yr rises = money sitting on sidelines waiting for buying opportunities??? I do not understand
I am not an expert and have been in Cryptos for about a year but what I did is set up in Coinbase 1st , then transfer them to Coinbase Pro (less fee and you can place limit orders) so buy and sell at the prices you want - Then when you just want to hold set up atomic wallet and put everything in there (Safe)
At a massive loss for GM trades ORCL, AAPL, INTC, AXP. Not enough funds to hedge all of these, don’t want to sell at a loss...I guess I will have to wait it out. Any thoughts?
I made a list of my positions myself on paper with the reasons why i own each position. . Yield, gambling, herd following, etc. I put stops on everything I dont hold specifically for yield. Just an idea.
"Let us say for example that a swing trader just bought OTM calls on company XYZ which do not expire for three months- a typical swing trading strategy. What this means is the trade has time to play out. A trader can hedge this position simply by buying an ITM put which expires out say a week to ten days. I will break down a hedged trade here. A trader buys calls on company XYZ which do not expire for three months, the cost of the option was $1,000 This same trader can simultaneously hedge his position by buying puts on company XYZ which expire in seven days at 1/10th the total cost of his call option. So, in this case the total cost of the put options hedge is $100, or 1/10th the cost of the main trade. A good strategy to follow when hedging is the 1/10th rule. The cost of the hedge should be 1/10th of the price paid for the main trade."
Apple has been my biggest loss, I've been averaging down and hoping for a bounce.
i would hate to hedge now and then lose more on both puts and calls
I see long puts as "insurance" against a correction while keeping the stocks I love and trust, the same way you insure your house against a fire. If the fire doesn't happen, you don't really get mad about it!
also, when would you buy a long put - now when the market has taken a dip? or when it was riding high? i hesitate to do it now as it may turn back up
how far out do you go? i may sell a long dated put instead
I went for July, but I plan to close it as soon as 10Y yield and DXY drop to reasonable levels
even in the red?
I am going to weather the storm in my long positions. Historically, I sell too early into a loss and then a few days later the asset pops and makes money.
Yeah I can gather that. It’s so volatile. Up and down in a flash.
same. and aapl is my biggest loss too
whats the rational for buying opportunities if the 10 yr yield falls along with stocks? can someone please explain that to me?
Bonds are still seen as a "safe asset" (no clue why, but that's beside the point), so if the yields decrease to a reasonable level (I'd say lower than 1.17), it means that people still have confidence in the american market and the bull run is not over. That's my best guess anyway.
If stocks fall & 10 yr yield falls = money is moving out of stocks and going into bonds (safe haven). If stocks fall & 10 yr rises = money sitting on sidelines waiting for buying opportunities??? I do not understand
i think if the 10 yr falls down to an acceptable level, it may mean more stability for stocks.
Looking to invest in crypto. Where do you suggest I go Greg.
Been investing in crypto's for almost 4 years now. If you need any help just reply & I could give you some Ideas. Good luck
Thanks. I’m looking to invest small. Just to find my feet.
Cool Russell, that's how I start until I got more comfortable & started to trade.
I am not an expert and have been in Cryptos for about a year but what I did is set up in Coinbase 1st , then transfer them to Coinbase Pro (less fee and you can place limit orders) so buy and sell at the prices you want - Then when you just want to hold set up atomic wallet and put everything in there (Safe)
I have asked gm about this 3 months ago, no response. Find a young person that has a crypto accounts, celsius, paxos and or trust token.
It is difficult to get set-up. Very confusing so don't try it on your own.
Gm probably hired a specialist to set him up, most wealthy persons do.
Many hours invested by me finally setup.
Got a neighbour that’s into it but he’s like a hermit. Never see him. Just need to knock louder.
Till he,she answers listen toalit of youtube interviews on crypto.
Alex machinski, celsius. Salor, etc
Jeff Gundlach folded on Gold today. He is no longer a gold bull
Does anyone still hold ORCL and NFLX? I have a huge loss so far and wonder if I need to add more positions.
At a massive loss for GM trades ORCL, AAPL, INTC, AXP. Not enough funds to hedge all of these, don’t want to sell at a loss...I guess I will have to wait it out. Any thoughts?
Don't sell or hedge. Option out 4-6 months you should be ok. Random drift with upward bias. Gm is a 2 handed economist at this time. No clarity.
If they're dated long enough, you can hold. If these are options that expire in a week that's a different issue.
mine are dated june
Sure hope so, thanks!
i wonder what will be the Third T will be... Trump, Texas, and T____.. Pausing, indeed..
Holding on Greg !
Thanks Greg
Good 🌅 gm.
Sounds like you're a 2 handed economist.
Thinking about pulling out of the market and taking the losses.... not liking what I see
Thats what I just did 10Y up , DXY up , Oil Down
I made a list of my positions myself on paper with the reasons why i own each position. . Yield, gambling, herd following, etc. I put stops on everything I dont hold specifically for yield. Just an idea.
for you to pull out and take a loss, does that mean you think any pull back will go on for awhile?
Thank you!
Hedging with put is OTM correct? I need to go look at the book but don’t have my laptop with me
IMO it's ITM. Here's frm the "GM bible" :
"Let us say for example that a swing trader just bought OTM calls on company XYZ which do not expire for three months- a typical swing trading strategy. What this means is the trade has time to play out. A trader can hedge this position simply by buying an ITM put which expires out say a week to ten days. I will break down a hedged trade here. A trader buys calls on company XYZ which do not expire for three months, the cost of the option was $1,000 This same trader can simultaneously hedge his position by buying puts on company XYZ which expire in seven days at 1/10th the total cost of his call option. So, in this case the total cost of the put options hedge is $100, or 1/10th the cost of the main trade. A good strategy to follow when hedging is the 1/10th rule. The cost of the hedge should be 1/10th of the price paid for the main trade."
Perfect. So helpful. Thank you!!