Discussion ***Official*** 2020 Stock Market Thread

[s0me0nesmind1]

Which means helicopter money will continue. And plain conservative bank savers will get punished by the low near 0% interest rates and rising inflation. Cash will continue to be trash. So you have to stay invested in the stock market and real estate to generate any kind of meaningful return whether you like it or not. I highly suggest people start learning how to sell options to generate steady returns if you don't already know how. That's going to be one of the keys to surviving, beating, and thriving in this near 0% interest rate environment.

Yar.

Hell, I felt good just knowing I made a 2% CD before rates plummeted. Now I just need to find out what the hell to do with the money after the CD expires damnit.

This is definitely weird - because usually with these 0% rates were at stock market lows..... except were at all time highs....


Something tells me by 2023 that is going to massively change....

 

[nisryus]

I almost jump in to SNOW today, but its too hot, and not enough money to really to buy much.

Anyone checked out JFrog? We use their software and I didn't know until today that they had an IPO. Thought it would be hot but it didn't gone up as much as SNOW.

 

[Svnla]

A single person who bet on Snowflake 8 years ago is up 12 billion USD (for now).

https://www.cnbc.com/2020/09/16/snowflake-investor-sutter-hill-holds-11point6-billion-after-ipo-pop.html

 

[FelixDeCat]

Ok the market has not gone back up past $300 QQQ. It has accepted it was overvalued and now likes $280.

Either we are range bound or make a run for QQQ $242.

Better have those puts ready. I might write some call spreads (short QQQ calls above $280).

 

[Scarpozzi]

I'm not touching NKLA even though I know it's fraud. That short trade is so crowded that any kind of buying will cause massive short covering. You can't short NKLA because the borrow rate is insanely high. Seriously, borrow interest rate on NKLA is like 10,000%. It's impossible to short the stock because of the insane broker borrow rate. And you don't want to buy put option because the IV on NKLA is 270%. For reference, TSLA which is crazy volatile stock with daily moves over $200 a day pre-split price has IV of 109%. It's hard to make money buying options when IV is 270%. That's when you sell options and join Theta gang. But who wants to sell puts on a scam company like NKLA and actually risk getting assigned shares in this fraudulent company? Not me. Sometimes, the best play is to not play at all. So I won't touch NKLA even though I know it's 100% scam and knew for very long time. Way before this report came out.

The Yahoo finance author is a retard and don't know crap about Nikola or Tesla.

You heard GM just dumped a bunch of money in NKLA?

 

[dasherHampton]

I bought another 1000 shares of GE on the positive cash flow news.

Fuck me. I'm an idiot.

 

[ponyo]

You heard GM just dumped a bunch of money in NKLA?

That's exactly what NKLA wants you to think. Above is proof that people are stupid and stupid money is propping up NKLA. Read the terms of the deal. GM didn't put a cent in but gets potential billions from NKLA.

 

[Scarpozzi]

That's exactly what NKLA wants you to think. Above is proof that people are stupid and stupid money is propping up NKLA. Read the terms of the deal. GM didn't put a cent in but gets potential billions from NKLA.

I just saw it on the news after reading the bad PR they got and your post agreeing with how scammy they are. I don't doubt it's the same as any other tech vaporware that is still an idea in development.

 

[KB]

I bought another 1000 shares of GE on the positive cash flow news.

Fuck me. I'm an idiot.

Or a glutton for punishment. GE has been a serial disappointment and this comes from a guy who has tried to bet on GE in the past. Of their three major business only one is doing well, Health care. Power has been barely profitable for quite some time and now aviation is struggling.
I don't think GE will ever succeed until they get rid of their huge pension obligations.

 

[dasherHampton]

Or a glutton for punishment. GE has been a serial disappointment and this comes from a guy who has tried to bet on GE in the past. Of their three major business only one is doing well, Health care. Power has been barely profitable for quite some time and now aviation is struggling.
I don't think GE will ever succeed until they get rid of their huge pension obligations.

Well, I kind of overstated my self loathing a bit. I'm not looking to make $10,000 on 1000 shares of a $7 stock (It would be nice). I wish I had bought earlier.

I turned around and sold calls at $9 for abut $500. That was part of my thinking. So I've already made 7% on my $7000 investment. If they get exercised It would shoot up to 35%. That's one way I like to play options.

Look's like SRNE will get called away. I'm a little surprised.

 

[FelixDeCat]

Too bad I was tempted back into another Covid stock today. I was planning to avoid them.

I bought 1100 shares of VXRT at $6.60 at the open. Shorted $6 call when the stock was $8, covered and dumped the shares 9/15.

I also picked up 1000 SAVA @ 7.00. Added 500 more SAVA.

Oh lawd, SAVA up 40% today. Sold the 1500 shares @ $9, bought 15 7.50 Oct calls @ $2

 

[ponyo]

Sold some TSLA Sept 25 $500 covered calls. Also opened TSLA Sept 25 $500/505 bear call spreads.

 

[dasherHampton]

My SRNE is gone again.

lol It's hard to let go of something that's been so good so I'm going to sell puts. I don't want to buy it above 5 so I checked on the 5 puts. 10 contracts on 12/18 is worth $1000. Jan is a bit more, $1200.

I'm sure I'll get burned eventually but I'm just going to keep on riding the train for now.

 

[FelixDeCat]

Sold some TSLA Sept 25 $500 covered calls. Also opened TSLA Sept 25 $500/505 bear call spreads.

TSLA continues to defy gravity while Apple is approaching a 20% correction. People appear to be selling big tech but buying the dips in Tesla despite its massive gains so far this year. $500 a share by next Friday seems unlikely but with that stock almost anything is possible.

 

[FelixDeCat]

My SRNE is gone again.

lol It's hard to let go of something that's been so good so I'm going to sell puts. I don't want to buy it above 5 so I checked on the 5 puts. 10 contracts on 12/18 is worth $1000. Jan is a bit more, $1200.

I'm sure I'll get burned eventually but I'm just going to keep on riding the train for now.

I started watching and trading SAVA back in January and mentioned it in this thread. It was a low volume loser stock chasing one of Holy Grails of biotech - Alzheimers. They are in the early stages of their drug and have a very long way to go. Most biotech stocks like this one have incredible runs and even bigger crashes.

I have some October calls and might cash in if the stock gains much more. I dont want to speak of the potential of the stock because with biotechs you never really know until the cake comes out of the oven. . You have to be ready for big disappointment with small cap biotechs.

One of the few bright spots is insider buying so they do have faith in their efforts. Current market cap is $200M. I would love to see it reach $1B but they have a very long way to go and will face challenges like a peer review of their findings, and bigger stages of testing and development which will require large dilutive share offerings. I plan to take profits and sit on the sidelines if it goes up much more.

The company has already dropped the ball once this year and the stock fell 80% in one day. They have since oddly recovered by reanalyzing the same data. That could attract a short attack on the stock by the usual suspects.

 

[FelixDeCat]

Hard to say what the overall market does next week. China has announced possible sanctions against American tech companies in retaliation for the TT/WC ban:

https://www.washingtonpost.com/world/china-threatens-us-companies-with-sanctions-following-trumps-wechat-ban/2020/09/19/08c4a0d8-fa55-11ea-89e3-4b9efa36dc64_story.html

The last trade on QQQ was $266. I think $242 might come to pass, but you never know. It may go back to or above the 50 DAY MA of $273:






The ironic thing about the TT/WC ban is China has been banning American social media for a very long time because they do not allow unfettered free speech like we do since they are a communist dictatorship.

The biggest potential target of sanctions is Apple according to the article. China is unlikely to cripple Apple (just sanction it) since China would be more impacted and Apple is already trying to diversify its manufacturing outside China knowing they are vulnerable.

 

[dasherHampton]

I started watching and trading SAVA back in January and mentioned it in this thread. It was a low volume loser stock chasing one of Holy Grails of biotech - Alzheimers. They are in the early stages of their drug and have a very long way to go. Most biotech stocks like this one have incredible runs and even bigger crashes.

I have some October calls and might cash in if the stock gains much more. I dont want to speak of the potential of the stock because with biotechs you never really know until the cake comes out of the oven. . You have to be ready for big disappointment with small cap biotechs.

One of the few bright spots is insider buying so they do have faith in their efforts. Current market cap is $200M. I would love to see it reach $1B but they have a very long way to go and will face challenges like a peer review of their findings, and bigger stages of testing and development which will require large dilutive share offerings. I plan to take profits and sit on the sidelines if it goes up much more.

The company has already dropped the ball once this year and the stock fell 80% in one day. They have since oddly recovered by reanalyzing the same data. That could attract a short attack on the stock by the usual suspects.

For me the biggest worry about SRNE is bankruptcy. There were rumblings in May or June that they didn't have the cash to properly do their COVID trials. But then, out of the blue, they announced that all financial obligations had been met and everything was go.

And I believe they just acquired a minor company. That doesn't sound like a firm going belly up.

Still - holders are willing to pay $1000 to insure $5000 worth of shares? It just sounds a little too good to be true.

 

[dasherHampton]

Yup, something's definitely up with SRNE.

I checked the March $4 puts and 10 contracts are worth $1100. So people are willing to pay me $1100 for backing up $4000 worth of SRNE shares? That's really high for a stock with that potential valuation.

Sure, it's 6 months out but something ain't right here. But my max loss would only be $2900 if the company goes to zero. It's safer than putting $4000 on red.

I'm still going to need to do plenty of digging before I place that order.

 

[dasherHampton]

Zynga is interesting as a buy and hold.

 

[Tweak155]

Trevor Milton resigning from Nikola:

https://finance.yahoo.com/m/593d56fc-906c-3e3b-8c98-17fe07468a2a/nikola-founder-and-executive.html

$NKLA hit $21.52 so far in pre market, slightly rebounded near $24-$25 range right now.

 

[bigi]

You heard GM just dumped a bunch of money in NKLA?

I read elsewhere that GM has until December to finalize the "deal". They can drop it until then.

Tomorrow is TSLA battery day. Per many, the biggest even in TSLA history. Also, TSLA is about to hit the biggest Q in terms of deliveries.

The stock should react. Usually the proper reaction is delayed as "analysts" need time to digest the info.

 

[FelixDeCat]

How about that stock market.

 

[FelixDeCat]

The recovery to the 50DMA on the QQQ of $273 has been reached. I would love to see some stability for now.

 

[ultimatebob]

So, are Tesla's new wonder batteries going to make us all rich?

It was nice of Elon to make a special $140,000 e-peen edition Model S for all those people like Ponyo who are now millionaires because they held onto their Tesla stock

 

[FelixDeCat]

So, are Tesla's new wonder batteries going to make us all rich?

It was nice of Elon to make a special $140,000 e-peen edition Model S for all those people like Ponyo who are now millionaires because they held onto their Tesla stock

So far it looks like a classic "buy the rumor, sell the news" event. Run the shares up in anticipation of a scheduled "big news" event and sell like hell after everything comes out.

The dip is probably buyable.

Probably.