My portfolio is a confused jumble at the moment. I currently have cash in my account so I'm off margin. I think I'm going to stay off margin until something negative happens. I'm still looking for that 1000 to 2000 point correction in the Dow. The trick is catching the falling knife but first the knife must fall. I keep seeing the market rise and it scares me. It's like 1987 all over again. All we need is a run on the Yen and a poor M1 money supply report and BOOM 508.12 point loss!Quote: Boz
Finaly hit with True Religion for a nice gain on buyout info. Still not as good as if I would have sold it last year, but still a good profit. Coach is coming back and I just need to pick a sell number and I am done with Luxury Retailers for a while.
You're welcome :)Quote: Beardgoat
Thanks for the info s2dbaker
Yes but I also use myself as a contra-indicator because I am notoriously and consistently wrong when it comes to timing to market.Quote: Beardgoat
Sounds like you think it's a good idea to sit out a while then?
I didn't pull the trigger on this trade. GameStop closed at $38.99 but still has tomorrow and Friday to shuffle about. I'll post a Profit or Loss report after Friday's close. I'm doing this mainly for myself as a learning tool. If I don't write things down, I forget about them.Quote: Me
... GME is at $38.38 ...
1 Wide) The Long Strangle
Buy GME May 18 $39.50 Call @ $0.31
Buy GME May 18 $37.00 Put @ $0.27
Total cost (sans commission and fees ) $0.58 and I make money when it moves beyond the range $36.42 to $40.08
Risk of ruin $0.58 * 1800 = $1044
I could buy 18 with $1044
When I liquidate, it usually lasts about a weekend. I'm pure speculation and in this very bullish market, I've done well. I'm timing the top and I know my timing stinks but like I say and do, I can always buy back on Monday. Who knows, one of these days, I may time it perfectly and be sitting on a wheelbarrow of cash when the market turns nasty, just waiting to jump back in when it gets oversold.Quote: steeldco
s2dbaker, it is interesting that you say that you've liquidated. I have lately been talking myself into, for the first time in my investing experience, possibly liquidating everything also. Even though I'm a long term investor, I feel that there is much better value in the near future. My belief is that the market will soon start anticipating rising interest rates and it ain't gonna be good. I haven't done that yet but.....