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What are you buying today?


LowIQinvestor

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So I was thinking of adding some more SD any my usual pattern is to put in a limit order and see if it gets filled.

 

This time I looked at the PUT options, particularly the put options for Oct. Someone check me on my thinking about this but what I ended up doing was selling some 2.50 Oct cash secured puts (ira) at .80 - the current share price is 2.06. the way I looked at it there are two possible outcomes.

 

1. share price stays low and i would have picked up the shares at an effective price of 1.70 a 17% discount on todays price.

2. the share price goes up and they expire worthless. my return would be 75% annualized return on the cash that is held for the cash secured put.

 

So either I get the shares at 17% discount or I make 75% annualized return if they expire worthless.

 

My risk is that I could be missing a multi bagger.

 

What are your thoughts, is this a smart way of going about it?

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Whisky and perhaps something to smoke(old habits...). What a fucking week. Felt like I grabbed a lot of good stuff. Just have to get all the shards of glass out of my hands.

 

You fuggin' said it. What a week.

 

Yeah, what a week. But you always have the opportunity to get even in weekends! - Every Saturday & Sunday is flat - get even!

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Bought a basket of airlines, mostly Southwest but also Delta, Spirit, Jet Blue and Alaska. Interesting that airlines went down and everything else exploded up. If shit hits the fan with this virus is the market expecting only airlines to be affected??

 

Airlines have high operating and financial leverage, so the likelihood of bankruptcies is high even with modest traffic declines. The basket you have is safe though.

 

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