rito Posted October 18, 2016 Report Share Posted October 18, 2016 im buying xmi index puts now for jan 2017So much going on hete. Quote Link to comment Share on other sites More sharing options...
MonkeyF0cker Posted October 18, 2016 Report Share Posted October 18, 2016 Can't do that with a 401k. Trying to decide which way to go with my stocks and funds in my vanguard brokerage account. Plenty of people hedge risk in stocks by using options. Quote Link to comment Share on other sites More sharing options...
Cop Posted October 18, 2016 Author Report Share Posted October 18, 2016 The correlatiom makes sense, bit its bad math to suggest something like 80% for prediction, with such limited amount of data Care to make a prediction? Fire up those models and spit out a prediction. Quote Link to comment Share on other sites More sharing options...
rito Posted October 18, 2016 Report Share Posted October 18, 2016 Care to make a prediction? Fire up those models and spit out a prediction.I dont model stocks. I buy and hold. Quote Link to comment Share on other sites More sharing options...
MonkeyF0cker Posted October 18, 2016 Report Share Posted October 18, 2016 If you hold the underlying and you buy puts, you can shield yourself against any downside (at least temporarily). If you buy options, you only lose the option premium if the option expires worthless (out of the money). Quote Link to comment Share on other sites More sharing options...
Cop Posted October 18, 2016 Author Report Share Posted October 18, 2016 Plenty of people hedge risk in stocks by using options. Way out of my league Quote Link to comment Share on other sites More sharing options...
Cop Posted October 18, 2016 Author Report Share Posted October 18, 2016 I dont model stocks. I buy and hold. Me too. I almost never sell. Quote Link to comment Share on other sites More sharing options...
MonkeyF0cker Posted October 18, 2016 Report Share Posted October 18, 2016 Way out of my league Well, you should probably learn it then if you're concerned about your 401k. Probably not a wise idea to start moving around stocks in your 401k without a better understanding of the markets. Quote Link to comment Share on other sites More sharing options...
rito Posted October 18, 2016 Report Share Posted October 18, 2016 Way out of my leagueMaybe ck can teach us. Quote Link to comment Share on other sites More sharing options...
CarolinaKid Posted October 18, 2016 Report Share Posted October 18, 2016 banking stocks is one way to hedge a bad market and stick with the stocks like duke power ect they will hold up Quote Link to comment Share on other sites More sharing options...
CarolinaKid Posted October 18, 2016 Report Share Posted October 18, 2016 rito i started trading stocks when i was 20 yr old and went to the local outlet every day to watch the ticker ect Quote Link to comment Share on other sites More sharing options...
Cop Posted October 18, 2016 Author Report Share Posted October 18, 2016 Well, you should probably learn it then if you're concerned about your 401k. Probably not a wise idea to start moving around stocks in your 401k without a better understanding of the markets. My 401k is just funds. I transferred my s&p and balanced fund to the stable value fund. If I do anything with my stocks in my brokerage account.... I will probably just buy an inverse wtf. Good strategy or no? Quote Link to comment Share on other sites More sharing options...
Timely Hitting Posted October 18, 2016 Report Share Posted October 18, 2016 rito i started trading stocks when i was 20 yr old and went to the local outlet every day to watch the ticker ectI played basketball when i was 12. Doesn't make me good at it. Another market expert who hates obama lol Quote Link to comment Share on other sites More sharing options...
MonkeyF0cker Posted October 18, 2016 Report Share Posted October 18, 2016 My 401k is just funds. I transferred my s&p and balanced fund to the stable market fund. If I do anything with my stocks in my brokerage account.... I will probably just buy an inverse wtf. Good strategy or no? Buying puts has a limit on your exposure and potential losses. You can only lose the premium (which is a fraction of the price of the stock) if the underlying stock price continues to rise. With an inverse ETF, you have the potential to lose a lot more since you need to invest more in it. Takes a much smaller investment to hedge with options. Quote Link to comment Share on other sites More sharing options...
MonkeyF0cker Posted October 18, 2016 Report Share Posted October 18, 2016 If you ask me, the market is due for a correction soon anyway - no matter who is President. We're at historically high P/E ratios in the S&P and the Fed should start raising rates soon. Quote Link to comment Share on other sites More sharing options...
Timely Hitting Posted October 18, 2016 Report Share Posted October 18, 2016 If you ask me, the market is due for a correction soon anyway - no matter who is President. We're at historically high P/E ratios in the S&P and the Fed should start raising rates soon.Don't disagree but predicting the peak is harder than the bottom and can be more costly. Quote Link to comment Share on other sites More sharing options...
MonkeyF0cker Posted October 18, 2016 Report Share Posted October 18, 2016 Don't disagree but predicting the peak is harder than the bottom and can be more costly. Definitely. Although, I think the next correction will be telegraphed with Fed action. There's no place to put money and get a decent return other than equities right now. It's creating another bubble. Quote Link to comment Share on other sites More sharing options...
Cop Posted October 18, 2016 Author Report Share Posted October 18, 2016 If you ask me, the market is due for a correction soon anyway - no matter who is President. We're at historically high P/E ratios in the S&P and the Fed should start raising rates soon. This is my thinking. Feds almost certain to raise rates before the end of the year. Quote Link to comment Share on other sites More sharing options...
Cop Posted October 18, 2016 Author Report Share Posted October 18, 2016 Buying puts has a limit on your exposure and potential losses. You can only lose the premium (which is a fraction of the price of the stock) if the underlying stock price continues to rise. With an inverse ETF, you have the potential to lose a lot more since you need to invest more in it. Takes a much smaller investment to hedge with options. Thanks Quote Link to comment Share on other sites More sharing options...
CarolinaKid Posted October 18, 2016 Report Share Posted October 18, 2016 i luck up yrs ago when i purchase fannie mae........but i lost big time when the gambling biz hit atlantic city and i got down on the casino stocks there Quote Link to comment Share on other sites More sharing options...
FISHHEAD Posted October 18, 2016 Report Share Posted October 18, 2016 Think farmland Quote Link to comment Share on other sites More sharing options...
rito Posted October 18, 2016 Report Share Posted October 18, 2016 i luck up yrs ago when i purchase fannie mae........but i lost big time when the gambling biz hit atlantic city and i got down on the casino stocks there trump been duping you for eyars Quote Link to comment Share on other sites More sharing options...
CarolinaKid Posted October 18, 2016 Report Share Posted October 18, 2016 i still have nightmares about Caesars NJ stock Quote Link to comment Share on other sites More sharing options...
Balco Posted October 18, 2016 Report Share Posted October 18, 2016 If you ask me, the market is due for a correction soon anyway - no matter who is President. We're at historically high P/E ratios in the S&P and the Fed should start raising rates soon.Correction indeed, but believe it's much worst. Quote Link to comment Share on other sites More sharing options...
Balco Posted October 18, 2016 Report Share Posted October 18, 2016 i still have nightmares about Caesars NJ stockI have nightmares about open borders. Quote Link to comment Share on other sites More sharing options...
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