Money and Investing (formerly Pfizer Stock prices)

[trader1]

I'm certainly not one to say I told you so .. BUT.. I did say this to you in post 19 when you were talking scared...

During the past 6 months there were plenty of times you could of made the case that scary news is coming and Market is too high .
Each time you'd of lost big time buying puts and this is no different .

I cannot disagree...
I am stubborn.

I’ll be tossing in the option towel should we move up another 2-3%, but will consider reducing shorter term taxable equity exposure ( but keeping IRA positions the same)

I would think that any talk of cap gain tax increases or corporate tax changes would result in some downside movement..

And as @genius said, from where that happens, no one knows

 

[pokler]

I cannot disagree...
I am stubborn.

I’ll be tossing in the option towel should we move up another 2-3%, but will consider reducing shorter term taxable equity exposure ( but keeping IRA positions the same)

I would think that any talk of cap gain tax increases or corporate tax changes would result in some downside movement..

And as @genius said, from where that happens, no one knows

Did you ask FA about structure notes?
You can get the protection you need and get upside you'd be happy with. Come back here with one or two offerings and I'll be happy to explain the risk, reward , pros, cons .

 

[OSMonger]

Did you ask FA about structure notes?
You can get the protection you need and get upside you'd be happy with. Come back here with one or two offerings and I'll be happy to explain the risk, reward , pros, cons .

Having worked in the inside for companies offering structured notes, my feeling was always that they are built to benefit the issuer, not dissimilar to a sports book and parlays. Not saying to avoid, just understand that the issuer isn’t building this for the buyers benefit.

 

[trader1]

Did you ask FA about structure notes?
You can get the protection you need and get upside you'd be happy with. Come back here with one or two offerings and I'll be happy to explain the risk, reward , pros, cons .

Many years ago I did purchase a structured note ( through a discount brokerage firm) . The underwriter was A large financial institution— I am going to say the return was 30-40,percent after the 3 year holding period..Thinking these investments were a no brainer, I purchased another one underwritten by Lehman Brothers..The position still sits in my account, worth appx $0.03 on the dollar.

I will certainly do my diligence going forward and ask for guidance..
Ty

 

[pokler]

Having worked in the inside for companies offering structured notes, my feeling was always that they are built to benefit the issuer, not dissimilar to a sports book and parlays. Not saying to avoid, just understand that the issuer isn’t building this for the buyers benefit.

To the average person they can look a little casino like. Once you understand them they have a place in the portfolio. Of coarse the issuer benefits. A typical fee is 2%. If I buy a note with 8% payout and 30% protection then that's what I get . If fee was zero it'd pay 10%. No layout on my part. And I'm happy bank gets 2% to incentivize them to issue .
It's virtually impossible to create on your own using option s.

 

[mord]

My S&P put option purchased a few weeks ago looks like shit- lost 1/2 it’s value...

I’ll be first to admit my timing sucks, but I still think a correct is coming...

From where though..?
The million dollar question.

I’m letting my positions run and just selling calls

 

[The Exiled]

GameStop is giving the market a black eye. A garbage stock being moved by social media.

 

[trader1]

GameStop is giving the market a black eye. A garbage stock being moved by social media.

Trading above 200.00 after hours..
There are some who are making a lifetime of money and the hedge funds tossing it the towel, covering shorts.

 

[pokler]

Trading above 200.00 after hours..
There are some who are making a lifetime of money and the hedge funds tossing it the towel, covering shorts.

I wonder what the price/sales is ?

 

[trader1]

I wonder what the price/sales is ?

My abacus does cannot count that high

 

[Slinky Bender]

Trading above 200.00 after hours..

There are some who are making a lifetime of money and the hedge funds tossing it the towel, covering shorts.

And now double that.

I predict the quote which will best describe 2021 will be:
"The market can stay irrational longer than you can stay solvent."
John Maynard Keynes.

 

[judge_holden]

HOLD

 

[trader1]

I wonder how many fortunes were made in the past few days.. ( GameStop/AMC and the like)... I remember Alan Greenspan’s famous quote
“Irrational Exuberance”

 

[OSMonger]

I wonder how many fortunes were made in the past few days.. ( GameStop/AMC and the like)... I remember Alan Greenspan’s famous quote
“Irrational Exuberance”

More like “irrational collusion!”

 

[genius]

I wonder how many fortunes were made in the past few days.. ( GameStop/AMC and the like)... I remember Alan Greenspan’s famous quote
“Irrational Exuberance”

And I wonder how many fortunes were lost in the past few days.
After all, this was all about a short squeeze.

Another question is for those who are buying at the high prices hoping to sell higher can do so when the music stops.

Classic greater fool theory of stock pricing.

 

[trader1]

And I wonder how many fortunes were lost in the past few days.
After all, this was all about a short squeeze.

Another question is for those who are buying at the high prices hoping to sell higher can do so when the music stops.

Classic greater fool theory of stock pricing.

From my reading, many of the big hedge funds took massive losses in GameStop for example .. I am sure there were a significant number of ‘ moms and pops’ that are licking their wounds as well... I did inquire about going short earlier this week, but my firm would not allow it....
AS for the hedge funds, those massive losses will trickle down too

 

[genius]

From my reading, many of the big hedge funds took massive losses in GameStop for example .. I am sure there were a significant number of ‘ moms and pops’ that are licking their wounds as well... I did inquire about going short earlier this week, but my firm would not allow it....
AS for the hedge funds, those massive losses will trickle down too

From what I read more than the total of all outstanding stock was shorted. I don't understand how that is possible (and don't care as I don't short stocks.)

Just imagine the guy who shorted 1000 shares at 10, putting up $5000 on margin and getting a margin call when the stock hit 450 saying he needed to put up another $220,000. All this on (and at most if the stock went bust) a 10 point bet.

Sort of Darwinian selection of stock market speculators in real time.

 

[trader1]

From what I read more than the total of all outstanding stock was shorted. I don't understand how that is possible (and don't care as I don't short stocks.)

Just imagine the guy who shorted 1000 shares at 10, putting up $5000 on margin and getting a margin call when the stock hit 450 saying he needed to put up another $220,000. All this on (and at most if the stock went bust) a 10 point bet.

Sort of Darwinian selection of stock market speculators in real time.

So the poor guy puts 50% margin ( your example) and now he owes 220,000?

I am not familiar with these rules and regs, but what happens if he cannot pay it?
Or does the brokerage firm automatically liquidate the position when the 5k threshold is met...
OTOH
The person who bought 1000 shares at 5, fell asleep and woke up to see 500,000 in his account—

I’ll never have that luck

 

[pokler]

If you had been long GameStop the trade is to sell covered calls. Take in huge premiums. If it gets called away who gives a shit since it's gonna evaporate anyway .

 

[genius]

So the poor guy puts 50% margin ( your example) and now he owes 220,000?

I am not familiar with these rules and regs, but what happens if he cannot pay it?
Or does the brokerage firm automatically liquidate the position when the 5k threshold is met...
OTOH
The person who bought 1000 shares at 5, fell asleep and woke up to see 500,000 in his account—

I’ll never have that luck

I don't know about you or the securities worth of some of the traders (from what I read the ones who were shorting the stock were hedge funds, traders associated somehow with those HFs and other (and I use the term loosely) professionals, but I have a lot more than 220K in my portfolio that could be used to collateralize shorts. Even if they didn't have 220K they could still loose everything else in their portfolio used to cover the shorts. No?

No such problem for those buying on margin (unless caught in a large dip - trading was very volatile).

I don't intend to look up the various rules on this stuff as I never intend to trade that way and really don't care. I'm just putting some ideas out there and maybe some experts here can clarify.