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

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dasherHampton

Platinum Member
Jan 19, 2018
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I picked a random stock and looked at 11/20m puts.

TSLA $100 11/20 puts are asking $140 right now. That might not seem like a lot for a contract worth $10,000 but TSLA closed at $880.

That put should be zero point zero zero.
 
IEC

IEC

Elite Member
Super Moderator
Jun 10, 2004
14,330
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dasherHampton said:
I picked a random stock and looked at 11/20m puts.

TSLA $100 11/20 puts are asking $140 right now. That might not seem like a lot for a contract worth $10,000 but TSLA closed at $880.

That put should be zero point zero zero.
Click to expand...

Agreed. But in 2020, nothing seems impossible any more.
 
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dasherHampton

Platinum Member
Jan 19, 2018
2,543
488
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lol yeah.

The only point of buying a put like that is to fleece whomever sold it. If something happens at TSLA to make it drop like a boulder they might try to panic buy it back at a huge loss.

But the odds...... probably thousands to one at this point.
 
FelixDeCat

FelixDeCat

Lifer
Aug 4, 2000
29,172
2,036
126
...and to think I had 1000 shares of CAR at 11.72 but got shaken out...now its 27.35.

The entire market is acting like nothing has happened.
 
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JEDI

JEDI

Lifer
Sep 25, 2001
30,160
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FelixDeCat said:
...and to think I had 1000 shares of CAR at 11.72 but got shaken out...now its 27.35.

The entire market is acting like nothing has happened.
Click to expand...
well tomorrow will be another reminder that millions of people are out of work.
but it doesnt seem to matter.
no matter what happens the market goes up. (ie: days of riots = no problem)
 
dullard

dullard

Elite Member
May 21, 2001
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FelixDeCat said:
The entire market is acting like nothing has happened.
Click to expand...
1) Economies bounce back, it is just a temporary blip down (although likely to be a few years long).
2) The stock market is not the economy, so it can bounce back faster than the economy.
3) The stock market is still the shiniest turd in the litter box. The wealth is still there and it has to go somewhere.
 
Ken g6

Ken g6

Programming Moderator, Elite Member
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Dec 11, 1999
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ultimatebob

ultimatebob

Lifer
Jul 1, 2001
25,135
2,445
126
dullard said:
1) Economies bounce back, it is just a temporary blip down (although likely to be a few years long).
2) The stock market is not the economy, so it can bounce back faster than the economy.
3) The stock market is still the shiniest turd in the litter box. The wealth is still there and it has to go somewhere.
Click to expand...

Yeah, it seems that the stock market is taking the riots as a signal that the coronavirus lockdown is ending. It's becoming pretty obvious that the police aren't really able to enforce it anymore.
 
FelixDeCat

FelixDeCat

Lifer
Aug 4, 2000
29,172
2,036
126
JTsyo

JTsyo

Lifer
Nov 18, 2007
11,720
878
126
dullard said:
1) Economies bounce back, it is just a temporary blip down (although likely to be a few years long).
2) The stock market is not the economy, so it can bounce back faster than the economy.
3) The stock market is still the shiniest turd in the litter box. The wealth is still there and it has to go somewhere.
Click to expand...
You forgot that the Fed is saying it'll prop up the economy by any means necessary.
 
snoopy7548

snoopy7548

Diamond Member
Jan 1, 2005
8,061
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Almost can't believe it, only 3k points away from this year's high. I sure hope whoever put their investments into cash bought back in like, a month ago at the latest...

I wouldn't bet on the market crashing again.

1591292629591.png
 
Charmonium

Charmonium

Diamond Member
May 15, 2015
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JTsyo said:
You forgot that the Fed is saying it'll prop up the economy by any means necessary.
Click to expand...
We have a winner!

There is almost nothing else that matters as much as liquidity. And right now we've got a biblical flood of liquidity. There's the fed of course which, for better or worse determine monetary policy by how well the market is doing. But the amount of fiscal stimulus has been unprecedented. That money goes directly into the economy and supports consumption.

Just as an aside, you would think that this should goose the velocity of money. Maybe it will eventually but for right now, velocity has been down sharply for all of 2020 (M1 version).

Anyway, liquidity (or its lack) distorts the market. Imagine being able to print all of the money you want but with no fear of inflation. Everything would seem cheap right? That's my best guess for what's going on.
 
FelixDeCat

FelixDeCat

Lifer
Aug 4, 2000
29,172
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Lol I took HTZ off my radar..would have been a nice daytrade. I hope all this new money knows the risks associated with it.
 
dullard

dullard

Elite Member
May 21, 2001
25,065
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JTsyo said:
You forgot that the Fed is saying it'll prop up the economy by any means necessary.
Click to expand...
The fed is part of "the stock market being the shiniest turd". Just about every dollar the fed pumps out goes eventually ends up in the stock market.

The fed doesn't actually have much power in this situation to prop up the economy. They can make a loan as cheap as they want, and individuals still aren't very tempted to take the loan and buy things. Corporations, on the other hand, if they have enough to get through the recession can scoop up massive amounts of the fed money. Either they buy stocks directly, essentially refinance their debt at much lower rates, or even get rid of their junk bonds that has been weighing them down. It all raises the stock market. Thus, the fed essentially is just propping up the stock market.
 
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Ackmed

Diamond Member
Oct 1, 2003
8,477
523
126
We've done pretty well lately. Took what little stimulus check we got, and invested plus a bit more. Boeing and American Airlines mostly. Both have done exceedingly well, and we've almost doubled our money on just those two. Made $50 a stock on Being alone. Wish I had bought it at $92 instead of $119, but its at $184 atm. Either way, just going to let them ride. I dont juggle and chase too much. Instead buy more tried and true companies, and take the slower approach. Not trying to get rich quick.

People complaining about how much the market has come down, yet still above where we were just a few years ago.
 
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