XTO grades out of several screens well, and I like the location of assets (N America). They are in an industry that I do not see diminishing in demand at any time in the near future. A combination of technical and fundamental reasons, although I see what you are saying as well. ROE is fine.
By the way I note STP in after market trading (or pre market, today).Wish I have bot yesterday LOL.
I will look at the ones you mention. DRYs has an attractive P'E to me, been aware of it for some time (thanks to you among others). I also have DSX in the same industry...but their P/E is twice what DRYs is...
I am scared of homebuilders and financials.I will settle on a solar (scared of the bubble like valuations) aside from HOKU, and it will most likely be STP, but I move slowly.Perhaps too slowly at times.
Like the back and forth here! Keeps me on my toes that is for sure.
What do you think is likely in macro terms this year and next? I am beginning to think wemay get saved (only temporarily) by the Fed actions and the fiscal stimulus, then melt down again after the election.
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Wall:
XTO grades out of several screens well, and I like the location of assets (N America). They are in an industry that I do not see diminishing in demand at any time in the near future. A combination of technical and fundamental reasons, although I see what you are saying as well. ROE is fine.
By the way I note STP in after market trading (or pre market, today).Wish I have bot yesterday LOL.
I will look at the ones you mention. DRYs has an attractive P'E to me, been aware of it for some time (thanks to you among others). I also have DSX in the same industry...but their P/E is twice what DRYs is...
I am scared of homebuilders and financials.I will settle on a solar (scared of the bubble like valuations) aside from HOKU, and it will most likely be STP, but I move slowly.Perhaps too slowly at times.
Like the back and forth here! Keeps me on my toes that is for sure.
What do you think is likely in macro terms this year and next? I am beginning to think wemay get saved (only temporarily) by the Fed actions and the fiscal stimulus, then melt down again after the election.
Well, i have bought my first option contracts. I have bought 17 March $45.00 puts on LEH for $1.20. The March $50.00 puts would have been safer, but i'm going for gold, nonetheless.
LEH heading down down down. trading at $1.25 now, feels good to be in the green, even though it is quite early.
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Well, i have bought my first option contracts. I have bought 17 March $45.00 puts on LEH for $1.20. The March $50.00 puts would have been safer, but i'm going for gold, nonetheless.
LEH heading down down down. trading at $1.25 now, feels good to be in the green, even though it is quite early.
Not great unless you have the economy to handle it Vermeer..
Gunners..sorry but I dont like that trade. Stock has to drop 20% plus in one month in order for you to make money. This is like playing a teaser/parlay in sports betting..you are not going out enough in time or deep enough for my liking.
My last option trade was to buy some DRYS 60 options, at the time the stock was 3-4 pts lower than the strike which isnt good, but I bought out till January..so even though I was out of the money, I went out enough in time to make it work out.
In the short term when I first bought, it didnt go my way, but now it is working fine.
I would rather see an options investor try to hit 10-20-30% returns and buy the contracts which give you the greatest chance to win on the trade versus swinging for the fences and turn the odds against you.
Hitting home runs sure is fun, but you need some major destruction in a short time to make it work.
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Not great unless you have the economy to handle it Vermeer..
Gunners..sorry but I dont like that trade. Stock has to drop 20% plus in one month in order for you to make money. This is like playing a teaser/parlay in sports betting..you are not going out enough in time or deep enough for my liking.
My last option trade was to buy some DRYS 60 options, at the time the stock was 3-4 pts lower than the strike which isnt good, but I bought out till January..so even though I was out of the money, I went out enough in time to make it work out.
In the short term when I first bought, it didnt go my way, but now it is working fine.
I would rather see an options investor try to hit 10-20-30% returns and buy the contracts which give you the greatest chance to win on the trade versus swinging for the fences and turn the odds against you.
Hitting home runs sure is fun, but you need some major destruction in a short time to make it work.
i am expecting some major destruction in LEH. They wouldn't have to drop 20% for me to make money, i would have a winning position if they just drop 5%, wouldn't I? i wasn't planning on waiting until it hit 45 to sell.
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i am expecting some major destruction in LEH. They wouldn't have to drop 20% for me to make money, i would have a winning position if they just drop 5%, wouldn't I? i wasn't planning on waiting until it hit 45 to sell.
There definitely could be some destruction in LEH, but you only benefit if it happens in the next 6 weeks.
The financials still have considerable unwinding to go through, and more write-offs (I believe), but I dont know how much further along we will be in 6 weeks.
Best of luck though
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gunners,
There definitely could be some destruction in LEH, but you only benefit if it happens in the next 6 weeks.
The financials still have considerable unwinding to go through, and more write-offs (I believe), but I dont know how much further along we will be in 6 weeks.
I always look at worst case for when I buy an option.
Like in the case of the DRYS..even though it was a year out in time, I calculated my break even assuming it took time to get there, that is how I look at EVERY options trade.
I probably blew through 10k or more in my early years buying either OTM options or not enough in time. Now unless I feel the reason for the trade is immediate (say a stock is getting murdered due to the market) then I always buy out 3 months at least and near or in the money..
I hope it pans..my comments are based on experience and that I want you to succeed.
As for the 5% drop, the premium will be eroded as the stock trades lower..you paid FULL premium, there is no intrinsic value to the option curently..so the increase in value will be very slow, plus you are working against a one month window for the move.
I would rather have spent the 2k buying 3-4 contracts either out in time more or in the money.
Not trying to rake you..just that the odds are against you.
Remember rollmaestro? He bought some 17.50 options on a stock that was at 11 or so, even with the time he went out, the options expire soon and now he is holding and hoping.
It is tough, but when using the leverage you are with options I suggest being ultra conservative with how you buy.
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Gunners,
I always look at worst case for when I buy an option.
Like in the case of the DRYS..even though it was a year out in time, I calculated my break even assuming it took time to get there, that is how I look at EVERY options trade.
I probably blew through 10k or more in my early years buying either OTM options or not enough in time. Now unless I feel the reason for the trade is immediate (say a stock is getting murdered due to the market) then I always buy out 3 months at least and near or in the money..
I hope it pans..my comments are based on experience and that I want you to succeed.
As for the 5% drop, the premium will be eroded as the stock trades lower..you paid FULL premium, there is no intrinsic value to the option curently..so the increase in value will be very slow, plus you are working against a one month window for the move.
I would rather have spent the 2k buying 3-4 contracts either out in time more or in the money.
Not trying to rake you..just that the odds are against you.
Remember rollmaestro? He bought some 17.50 options on a stock that was at 11 or so, even with the time he went out, the options expire soon and now he is holding and hoping.
It is tough, but when using the leverage you are with options I suggest being ultra conservative with how you buy.
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