Crypto thread

I really don’t understand the “currently at $4.10” number. 

And that is THE number. That’s what is making this entire thing rather uneasy. 

That is how it works. For example, look back at whatever chart you have for HD and pull up the chart for this put.  See back on Mar 19 this particular put traded as high as 44.60 then fell off like crazy to 1.61 yesterday.  But back on Mar 19 the stock price itself was around $142. Now the stock is up to $197 and this put is at 4.10.  There can be huge swings with options with a much smaller movement in the stock price. 

Yes. The last trade of that particular put was 4.10

It is not so uneasy if you automatically put your sell in after you purchase it.  Makes it much easier on you. 

Raiders. In your short time here, you have added immense value to this area. Thanks for that. 

I do agree with Detox that HD is overvalued given the fact that stores will be mostly empty for several more months, if not the remainder of the year.

However, the one thing that I have noticed when driving about, is that roofers and construction workers are still out there working. Houses are still being built. My neighborhood has seen a ton of action this past month with roofers and construction all over the place. I doubt all of this activity is sustainable if this mess carries on as long as expected though. 

I can’t find this put chart that you speak of 

Breaking: Skydiver who forget parachute dies of coronavirus 

I dont know if it is a great idea to buy a near term option at or out of the money with so little time, the odds are not with you. Id rather see you paper trade and figure out the ins and outs before just jumping in, especially like this.

Do you have a chart for the stock itself?

 I don’t know the platform you are using.  Then you should be able to select a particular call/put and it will have a chart option also.  I would recommend always having the RSI indicator open with it.  That way you can have some idea of what is going on with it.  

But basically you want to plan to have a graph in your mind of with an axis of the stock price flow and one with the option profit and loss  — where the two intersect should be where your ‘strike price’ is.  This would help you determine how profitable and where your breakeven point should be.

Then it helps you with figuring the probability of it being profitable.  You have to factor in ‘implied volatility’ and the amount of the ‘premium income’.  

Just as WSC mentioned above — this is a very short play.  You are looking for this stock to turn in your favor very soon!  By the end of next week.  

It is a good one to practice with — and it is much better to paper trade first.  

But you have got to place your sell orders!

Paper trading isn’t for me. 

Can’t I wait for the price to dump and then go sell it? Or should I place the sell order now so it gets hit when it dumps? 

This thing is going to $175 before close Thursday.

What do you think I should put the sell order in for? 

I am using Robinhood 

Yes. Construction going on all over.  I guess they are ‘essential workers’.

Sure — you can say it is overvalued — you can say the whole market is overvalued.  I can’t disagree — simply because people usually rely so much on PEG to do it.  But you still have to look at a lot of other factors. Steady earnings, the management, interest rates, dividend discount, market efficiency, etc.  And a big one  that people sometimes discount — a particular stock’s perception.  

But you also have to take into the longterm seasonality of HD — and do you feel this will change.  For example, last 20 years HD gain frequency in March of 65%, April 70% then down in summer 50-55-55-45 then up again in Oct - Dec 60% - 65 - 60 etc. 

So yes, it may fall soon.  But would that be part of its normal movement or would it be because it normally falls?  Or would it be because the overall market falls? Because as I pointed out earlier, generally, HD goes as the market goes also.

Then you have to decide if they are better than LOW, et. al.   

But the effects of the shutdown and whatever economical things we see will be a lagging effect as they always are.  

Will building, home repairs, etc. slow down as the year continues on?

I think way too much of this is too dependent on factors we don’t know yet.  So, I think you have to have very good reasons to think that HD is more overvalued than the overall market itself is overvalued — if that is what you think.

I am just a longterm UP guy but not necessarily an individual stock guy.  But to me, initially, HD looks too solid to be a down stock.

Never looked at Robinhood.  I know some guys that use it and they seem to be okay with it.  

I would for sure have a stop in place.  Unless you are okay potentially losing all of the money when it expires next Friday.  

Since you are so new. Put it in around say around 20% lower than the low of today so far.    Around say 1.25 or so.  And I would be a limit in at around 50% above the high so far for today. Say 6.50 or so.  I mean 2 days ago it was trading at that. 

But whatever you do don’t put a just a market sale in. That would just sell it at whatever the current price is.  

Also make sure you make it a GTC good-til-cancel order  — or whatever Robinhood calls it.  Otherwise you have to put the order in everyday. 

You can change it everyday if you feel different.  You can change during middle of day.  

But essentially, it is up to you on the prices you choose.  Because you are limited on time premium.  

You can put the order in as a LIMIT at whatever price you want.  This is called a sell limit on the position you own and if you put it in force for the day then it will expire today if you place it as a "good till cancelled" then it will expire in like 30 days I think...but you can alter it at any time. But if you place a limit order for the day and then forget and think it is still an open order it will not be after close of trading today.

And...yes... you can wait all the way up until the 17th til close of market to sale.  It is just not too safe.   Unless you see it making a phenomenal run in exactly the direction you choose.  

Then you can still sale and repurchase more at longer dates etc.   

There are many, many strategies with these things.  But start carefully.  

 Exactly and I advise him to have stops in place no matter the amount to potentially lose.  

Maybe emphasize this to him.  

Mare you familiar with Robinhood?  Maybe you can tell him exactly how to place the sell orders if so?

No I am not a member of that site, but I am sure it is a simplistic order system and if someone were familiar with things it wouldnt be too complex.

I dont know about a stop order...that is going to confuse the crap out of him and he will potentially place two orders which either they will not allow or it could throw him into a short trade....meaning a stop is in for if the trade goes against him, a sell stop and if he places that and then tries a sell limit well thats just a mess to explain and describe.

Stops for someone watching as close as he are not really going to be needed and a high majority of people dont have a clue about what they are or the process of entering one...including many brokers.

Sold it 

+$58 

Bought at $200, sold at $196 

These prices are definitely coming down from where they are. This seems too easy. Am I missing something? 

sold it?  I’m confused. You only made $58 on it?

it is still at 3.50 and climbing?

what didn’t you sale it for?

The whole market AND HD has been falling since lunch.  

No it’s around 2.10 

I’m hopping in again at 2.10 this time going to be more patient. I got a little freaked out but now I understand the process at least a little bit. 

Market orders

When you place an order "at the market," you'll receive the current price at the time your order is presented for execution. You're essentially saying, "I'll take whatever the going price is when my turn comes up."

Limit orders

In contrast to market orders (which generally guarantee execution but not price), limit orders allow you to set the price - either the maximum amount you're willing to pay (for a buy order), or the minimum amount you're willing to receive (for a sell order). Execution of a limit order is not guaranteed. 

Of course, if the stock is selling higher than your sell limit order, you'll be filled at your limit price or higher as shares are available. If the stock's ask price is lower than your buy limit order, it will be filled at your limit price or lower. 

For a buy limit order:
Refer to the quoted ask price, which represents the lowest price at which someone is willing to sell a security at a given time. Set the limit price as the maximum price at which to buy a security. Your order will execute at or below your limit, in full, in part, or not at all. 

For a sell limit order:
Refer to the quoted bid price, which represents the highest price at which someone is willing to buy a security at a given time. Set the limit price as the minimum price at which to sell a security. Your order will execute at or above your limit, in full, in part, or not at all.