Trading the stockmarket (NO Referrals)

dowie · 21 Apr 2022 at 12:57

kakarott said:
How was this guy able to make a killing with Netflix?

https://www.reddit.com/r/wallstreet..._put/?utm_medium=android_app&utm_source=share

By buying puts.

kkelly said:
Put calls? He’s bet the price will tank

Those are two different things you're conflating there.

A put confers the right (but not the obligation) to sell at a specific price a call confers the right (but not the obligation) to buy at a specific price.

tlrBeta said:
Betting against it when it was at the high? It's possible in the US, not in the UK.

Nope, that's false, what makes you think that?

413x said:
Ugh I always forget about shorting.

Nah it's an options trade, it is a short position but it's via a put. Shorting a stock involves borrowing it then selling it with an obligation to buy it back and return it later.

Buying a put is buying the right to sell the stock at a specific price - in this case at $290

He bought the puts (25 of them) when they were out of the money for what looks like $2-ish per share (each put is for 100 shares) by the close of that day they were worth $2.66 per share and as of the time of his post they're worth $44.10 per share. The screenshot was from circa 9:30am yesterday when the share price was around $245 so his position is worth even more now - more like $160k -ish.

edit - actually he's apparently already closed out the positon, still a pretty nice profit to make from a 5k bet

tlrBeta · 21 Apr 2022 at 14:28

dowie said:
Nope, that's false, what makes you think that?

Didn't realise it was legal again in the UK - never done it myself so never really looked back into it

dowie · 21 Apr 2022 at 14:40

tlrBeta said:
Didn't realise it was legal again in the UK - never done it myself so never really looked back into it

Again? When wasn't it?

Are you maybe thinking about temporary bans on short positions in bank stocks during the financial crisis?

tlrBeta · 21 Apr 2022 at 15:22

dowie said:
Again? When wasn't it?

Are you maybe thinking about temporary bans on short positions in bank stocks during the financial crisis?

Probably!

KiNgPiN83 · 22 Apr 2022 at 09:57

dowie said:
edit - actually he's apparently already closed out the positon, still a pretty nice profit to make from a 5k bet

I saw this pop up on Reddit yesterday but i don't really understand it... Obviously he's won in this case but what happens if it goes wrong? I take it he'd somehow owe more than the original 5k?

mid_gen · 22 Apr 2022 at 10:11

KiNgPiN83 said:
I saw this pop up on Reddit yesterday but i don't really understand it... Obviously he's won in this case but what happens if it goes wrong? I take it he'd somehow owe more than the original 5k?

It's just another instrument for gambling on whether a stock price goes up or down. If the price had shot up, he'd have lost a lot of money.

silversurfer · 22 Apr 2022 at 17:05

If its US traded options, he cant lose more then his original premium I thought that was the advantage to that type of trade.

Takes a lot of homework to do, just own IGG , CMCX would be simplier to do.

CRM pulling back, its in an air pocket chartwise I think is the characterisation now doesnt mean the company itself is altered prospects too much but market has its own mood. I think we do have a pullback occuring in many highly geared things, imo its positive to add during lower prices though I've no idea how long we are negative or how low it goes.
AAL pulled back quite a bit, got a bit too hyped vs its results but again I think its valid long term so I had sold some, hope to scale back in

booyaka · 26 Apr 2022 at 13:44

First time in over 30 years - Extremely rare market event occurs as both stocks and bonds fall simultaneously in 2022....

living in some weird times

Bald-Eagle22 · 26 Apr 2022 at 13:57

Right o I’m up for a punt £54.24 left in my trading account where’s the best place for it ?

silversurfer · 26 Apr 2022 at 19:40

https://twitter.com/x/status/1518684950698016768

https://twitter.com/charliebilello/status/1518684950698016768

alexakasloth · 28 Apr 2022 at 11:31

Does anyone use Freetrade or similar and could recommend it? T212 is still not currently accepting new registrations, i'm looking for a trading platform for UK/ US stocks.

I've been using HL, good platform but would like lower cost fees.

mid_gen · 3 May 2022 at 22:11

Took a punt and shifted some funds into AMD this morning....looks like I got the roll of the dice on that one. Figured the bad results were already half priced in from Intel's gloomy news about semiconductor supply.

dowie · 3 May 2022 at 23:30

KiNgPiN83 said:
I saw this pop up on Reddit yesterday but i don't really understand it... Obviously he's won in this case but what happens if it goes wrong? I take it he'd somehow owe more than the original 5k?

mid_gen said:
It's just another instrument for gambling on whether a stock price goes up or down. If the price had shot up, he'd have lost a lot of money.

Sorry didn't see these earlier but no, he'd only have lost the premium he paid initially.

He has the right but not the obligation to sell at a particular price so if the price rises he can just let the options expire worthless.

silversurfer said:
If its US traded options, he cant lose more then his original premium I thought that was the advantage to that type of trade.

Doesn't matter if it is American or European but yes if you buy either type of option you don't have an obligation, you have a right to buy or a right to sell and your max loss is the premuim.

JamesH85 · 6 May 2022 at 08:10

Anyone else keeping a very close eye on things this week? I sold up nearly all of my portfolio on Tuesday, with Impending doomsday forecasts.

There are some ridiculous dips atm, however I feel like there maybe a further downswing on some of the particular stocks on my watchlist(NIO, big fears of being delisted on SEC, hence the -15% yesterday, RR is sub 80p for the first time ever?)

Ideally I'll be able to get in at the bottom of the dips, the 2 year covid period was unbelievable for getting value at the bottom, feel like this could be great if you've got cash waiting.

leezer3 · 6 May 2022 at 08:16

alexakasloth said:
Does anyone use Freetrade or similar and could recommend it? T212 is still not currently accepting new registrations, i'm looking for a trading platform for UK/ US stocks.

I've been using HL, good platform but would like lower cost fees.

Freetrade is acceptable assuming you want to buy FTSE100 or similar.

The premium plan IMHO & general direction for that is iffy. I can see what they're trying to do with simplicity, but it's bundling too much stuff at the wrong price point.

The app looks and feels far better than 212's, but at the cost of being far more basic.

Avoid Shares.io like the plauge though- Crap social network masquerading as a stockbroker....

Gangster · 7 May 2022 at 18:26

dowie said:
By buying puts.

Where can you do this, in the UK? I always see these posts use Robinhood etc but what about us in the UK?

moon man · 7 May 2022 at 18:47

booyaka said:
First time in over 30 years - Extremely rare market event occurs as both stocks and bonds fall simultaneously in 2022....

living in some weird times

I put over 50k into vanguard lifestrategy 40 (60 percent bonds) so i believed the blurb about bonds been the safe option but didnt do my own research ,lost 1k that i have since clawed back on etfs but had i kept them would be much more of a loss ,i know things like this are long term but when stocks and bonds tank together its phytologically hard to stomach

booyaka · 7 May 2022 at 20:34

moon man said:
I put over 50k into vanguard lifestrategy 40 (60 percent bonds) so i believed the blurb about bonds been the safe option but didnt do my own research ,lost 1k that i have since clawed back on etfs but had i kept them would be much more of a loss ,i know things like this are long term but when stocks and bonds tank together its phytologically hard to stomach

sit tight - if you don't need the money.

"Time in the markets, is better than timing the markets....."

moon man · 7 May 2022 at 21:04

booyaka said:
sit tight - if you don't need the money.

"Time in the markets, is better than timing the markets....."

Yeah I agree ,as I said I sold at a loss but am holding on to my ETFs through good and bad times
My sell transaction on vanguard just to show I'm not some sad case who makes it all up

Steampunk · 8 May 2022 at 09:36

moon man said:
I put over 50k into vanguard lifestrategy 40 (60 percent bonds) so i believed the blurb about bonds been the safe option but didnt do my own research ,lost 1k that i have since clawed back on etfs but had i kept them would be much more of a loss ,i know things like this are long term but when stocks and bonds tank together its phytologically hard to stomach

Something like that should be looked at as a five to ten year investment at a minimum.