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Originally Posted by bruce negro
Don't many people just use options to hedge their risk? I could definitely see where being aggressive with options could do serious damage, but does anyone have experience with using them to hedge? I'm talking like, you buy a put option on AAPL, allowing you to sell at $340 in order to minimize your risk in case of a market crash. Has anyone gone about trying to create and initiate these types of contracts?
DaJoka004 wrote:
You don't like making money? I'd be interested to hear your reasoning behind why it's not a good investment right now.
Too bad I couldn't get an options account. I wanted to buy the March 505 calls when they were below $1 in January. Now sitting above $40.
I didn't say it wasn't a good investment, depending on your time frame and strategy it could turn out great for you. It's not MY type of investment
since I'm more of a contrarian and there is clearly a speculative bandwagon going on with AAPL. Any type of market correction, which I believe is overdue, and
AAPL will fall the hardest and fastest due to it's speculative rise.
At 20 times 2011 earnings it seems a bit expensive. I'm not sold that AAPL's best years are ahead of them but that is clearly how the market is pricing
it's stock. Smartphones are already a mature market and tablets will soon be as well. I don't see how they are going to meet their growth estimates with
the current product lineup. I'd need to see some proof of the piles of innovation they are supposedly sitting on before buying in long term.
If you are bullish on the market then AAPL would seem like a sure thing. I'm more bearish at this point.
As far as your options account, I called my broker after being denied and in so many words he told me to apply again and lie about my income
and experience. I've been trading options for a few years now.
FrankMatthews wrote:DaJoka004 wrote:
You don't like making money? I'd be interested to hear your reasoning behind why it's not a good investment right now.
Too bad I couldn't get an options account. I wanted to buy the March 505 calls when they were below $1 in January. Now sitting above $40.
I didn't say it wasn't a good investment, depending on your time frame and strategy it could turn out great for you. It's not MY type of investment
since I'm more of a contrarian and there is clearly a speculative bandwagon going on with AAPL. Any type of market correction, which I believe is overdue, and
AAPL will fall the hardest and fastest due to it's speculative rise.
At 20 times 2011 earnings it seems a bit expensive. I'm not sold that AAPL's best years are ahead of them but that is clearly how the market is pricing
it's stock. Smartphones are already a mature market and tablets will soon be as well. I don't see how they are going to meet their growth estimates with
the current product lineup. I'd need to see some proof of the piles of innovation they are supposedly sitting on before buying in long term.
If you are bullish on the market then AAPL would seem like a sure thing. I'm more bearish at this point.
As far as your options account, I called my broker after being denied and in so many words he told me to apply again and lie about my income
and experience. I've been trading options for a few years now.
TTM is 15.44.
But good call on the options account info.
SMH at thinking that you can predict the exact price of a stock 6 months out and that this type of position isn't speculative. (Unless you have insider information)Originally Posted by LazyJ10
Options are totally worth the risk...IMO
Unless you're clearly being speculative, then you have to be willing to lose it all.
If you believe a company will be at XXX.xx and have done your homework to back up your theory, there's a lot less capital outlay for buying calls. Assuming you're buying OTM with a decent time horizon (i.e - expiration 6 mo's out).
With volatility, obviously that impacts the price, but at the same token, on a depressed day, you could buy your calls or double-down.
Originally Posted by cguy610
SMH at thinking that you can predict the exact price of a stock 6 months out and that this type of position isn't speculative. (Unless you have insider information)Originally Posted by LazyJ10
Options are totally worth the risk...IMO
Unless you're clearly being speculative, then you have to be willing to lose it all.
If you believe a company will be at XXX.xx and have done your homework to back up your theory, there's a lot less capital outlay for buying calls. Assuming you're buying OTM with a decent time horizon (i.e - expiration 6 mo's out).
With volatility, obviously that impacts the price, but at the same token, on a depressed day, you could buy your calls or double-down.
Originally Posted by DaJoka004
I'm assuming my income level. I'm still a student for another year. I'm sitting on a fully invested $40k right now and I can't buy options? +%!@++!%.Originally Posted by freakydestroyer
You didn't get approved? What was wrong?Originally Posted by DaJoka004
You don't like making money? I'd be interested to hear your reasoning behind why it's not a good investment right now.
Too bad I couldn't get an options account. I wanted to buy the March 505 calls when they were below $1 in January. Now sitting above $40.
Originally Posted by LazyJ10
My insight for airlines is to never buy them.
Originally Posted by cguy610
What's ya'll take on the overall direction of the market. I'm about to come into a little extra cash to invest however, I am concerned about oil prices causing a drop in the market. It's going to go into two companies that aren't really hurt by a slowing economy but the entry point is still crucial (DLTR- Dollar Tree and CMG- Chipotle Mexican Grill)
This is typically the time when gas prices go crazy through Memorial Day. If we see $4.50-5.00 for regular, we will see a HUGE drop in the market.
I never pay much attention to gas prices. I feel like there is a constant threat of rising prices. If it has affected me in the past, I haven't noticed.Originally Posted by aztec06jr
How's everyones portfolio performance lately?
Any concerns about rising gas prices?
Morgan Stanley now pricing AAPL stock near a $1000 bull valuation
Damn! Up to $582 today.