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

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FelixDeCat said:
Lots of bargains out there, but are at a bottom? I rebought NYMT, a mortgage reit.
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Bottom no, possible the bottom could be after earnings which would be like in a month. But that would mean that the lockdowns would have to end then which seems pretty unlikely.
 
jpiniero said:
Bottom no, possible the bottom could be after earnings which would be like in a month. But that would mean that the lockdowns would have to end then which seems pretty unlikely.
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Yeah I would wait until earnings at minimal.

I'm not saying that is going to be the low point, but that will definitely be lower than it is now...
 
Artorias said:
Yeah a complete collapse is not out of the realm of possibility. This is global and happening all at once.
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'Things will never bottom out'
Said the last newspaper blowing around in the zombie apocalypse.

Everything is in the realm of possibility, and there's a first time for everything.
 
I'm glad I started buying options. Might load up on some more before the end of the day. Let the falling knife make money for you on the way down...
 
[DHT]Osiris said:
'Things will never bottom out'
Said the last newspaper blowing around in the zombie apocalypse.

Everything is in the realm of possibility, and there's a first time for everything.
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Most things are possible. Is it likely? No. You play the odds. And the odds heavily favor the world isn't going to collapse.

snoopy7548 said:
I'm glad I started buying options. Might load up on some more before the end of the day. Let the falling knife make money for you on the way down...
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So you're buying puts? Which ones? I'm doing the opposite and shorting and selling the puts. But I'm not doing anything today other than watching because today's triple witching.
 
I'll be surprised if this closes green. I can't see anyone wanting to long on a Friday when we're set for a case explosion this weekend.
 
ponyo said:
So you're buying puts? Which ones? I'm doing the opposite and shorting and selling the puts. But I'm not doing anything today other than watching because today's triple witching.
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I'm completely new to this and starting slow, but last night I bought five 4/17 $5 SPCE contracts. Already up $25 on top of the $225 premium, and I'm certain SPCE will tank over the next few weeks.

Also bought Gamestop.

I'm thinking about buying more before the end of the day. Just not sure which companies yet.
 
[DHT]Osiris said:
Gamestop just announced that they're trying to consider themselves 'essential services' to stay open. I could be wrong, but that tells me they're operating at a knife's edge, and they know that even a brief closure on stores could put them under.
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Exactly why I bought puts on them. Their business is failing and they're being complete idiots about this whole ordeal.
 
snoopy7548 said:
I'm completely new to this and starting slow, but last night I bought five 4/17 $5 SPCE contracts. Already up $25 on top of the $225 premium, and I'm certain SPCE will tank over the next few weeks.

Also bought Gamestop.

I'm thinking about buying more before the end of the day. Just not sure which companies yet.
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I'm kind of confused about your statement on puts of SPCE. Can you clarify? First, options don't trade afterhours. Only during the open market hours 9:30 am to 4:00 pm. So how did you buy SPCE puts last night? Second, I checked the graph of 4/17 $5 SPCE put option. I'm not seeing any trades as low as $0.225 at all on yesterday's 5 minute chart. 4/17 $5 SPCE puts were more expensive yesterday than today so you should be down and not up if you bought the put.

I looked at GameStop puts today as well when I read the ridiculous story about them staying open because they consider themselves essential business. I laughed and quickly pulled up their put option chain. I entertained the idea of buying GameStop puts but decided against it because they're already so beaten down and everyone is buying puts and shorting them. Their market cap is really low. Everyone already expect them to go bankrupt.
 
ponyo said:
I'm kind of confused about your statement on puts of SPCE. Can you clarify? First, options don't trade afterhours. Only during the open market hours 9:30 am to 4:00 pm. So how did you buy SPCE puts last night? Second, I checked the graph of 4/17 $5 SPCE put option. I'm not seeing any trades as low as $0.225 at all on yesterday's 5 minute chart. 4/17 $5 SPCE puts were more expensive yesterday than today so you should be down and not up if you bought the put.

I looked at GameStop puts today as well when I read the ridiculous story about them staying open because they consider themselves essential business. I laughed and quickly pulled up their put option chain. I entertained the idea of buying GameStop puts but decided against it because they're already so beaten down and everyone is buying puts and shorting them. Their market cap is really low. Everyone already expect them to go bankrupt.
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I bought 5 contracts, and it was $0.45/trade at the time I bought. I put the order in last night and it was executed at open this morning. Sorry.
 
Tweak155 said:
What happens when you buy puts on a company that goes bankrupt? Do you still get a payout or what happens?
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Whoever sold you that put have to fulfill that contract and buy the stock at your put price. So you gain the maximum payout possible.

snoopy7548 said:
I bought 5 contracts, and it was $0.45/trade at the time I bought. I put the order in last night and it was executed at open this morning. Sorry.
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OK. That makes more sense. So you bought the puts for $0.45 or $45 each. So you paid $225 total for 5 contracts. Mark to market is about $0.45 right now as bid is $0.35 and ask is $0.55. You've made $0 so far.
 
It's my opinion novice people who are jumping in to buy puts right now are late to the game and lot of the meat is already off the bone. IV is through the roof so puts are very expensive right now. Risk/reward is not very favorable for buying puts at the moment. Before the potential payoff was like 1,000% or more because the puts were so cheap. Now puts are so expensive, the market and the stocks have to fall very far very quickly for you to just breakeven let alone make 2x or even 3x. It's more likely than ever the house is going to win. Which is why I'm shorting puts rather than buying it. I rather play house. Just IMHO.
 
I just check my mutual fund, it is down about 30% as of today, still less than 2008 (50%). Full speed ahead on my dollar average plan.
 
ponyo said:
It's my opinion novice people who are jumping in to buy puts right now are late to the game and lot of the meat is already off the bone. IV is through the roof so puts are very expensive right now. Risk/reward is not very favorable for buying puts at the moment. Before the potential payoff was like 1,000% or more because the puts were so cheap. Now puts are so expensive, the market and the stocks have to fall very far very quickly for you to just breakeven let alone make 2x or even 3x. It's more likely than ever the house is going to win. Which is why I'm shorting puts rather than buying it. I rather play house. Just IMHO.
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Agree but the market will likely fall very quickly once earnings season starts from the heavy hitters.
 
This ain't nothing yet guys. As jpiniero stated, wait until the earnings start to trickle in from the big guys.

Ouch!
 
[DHT]Osiris said:
Gamestop just announced that they're trying to consider themselves 'essential services' to stay open. I could be wrong, but that tells me they're operating at a knife's edge, and they know that even a brief closure on stores could put them under.
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Essential services? lol, oh that's great. When are video games essential services?
 
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