Originally Posted by lewdog:
I think the light bulb finally clicked fully today. Thanks!
So naked call writing is so dangerous because you own nothing to start. If you placed a strike on X at let's say $32, but the stock actually hits $40, you'd have to go and purchase the stock at $40 on the open market and sell it for $32 right? Thus taking a huge hit because your gains/losses cannot be capped like a covered call on stocks you actually own?
Correct again! It's UNLIMITED loss exposure... [Reply]
Originally Posted by BigBeauford:
We are looking finding a new credit card and possibly bank/checking account. The best credit card i could find id through USAA that gives 2.5% cashback, but i am open to suggestions. What about best checking or savings account?
Originally Posted by petegz28:
My Capital One savings account is paying .75%. They have a Money Market that will pay 1.3% on $10k or more. Maybe not the best but definitely better than a lot. And the CapOne Checking account pays .20%....again, not bad
I'm with Fideltiy in terms of credit card -- auto cash back deposited into my brokerage cash management account.
For spare cash, I'm also with Capital One. I've had cash or CDs with them for well over a decade. Their interest rates are always very competitive. [Reply]
Originally Posted by lewdog:
Steel Stock (X) closed above $30 today. I'm up 42% on this and debating when I sell it all. It's only been above $40 once in the last 5 years and for only a few months.
Just Closed at 33.23 , up over 4% today , some people are saying $50 and they think it will get a boost after Trumps state of the Union speech. I just don't see it taking a nose dive soon.
It seems a lot of the "big boys" are pulling money out of tech and putting it back into building and financials.
I picked up some (ALLY) the other day.
Also, BTW , I'm wrong 50% of the time. The other 50% I've been right half the time. [Reply]
Originally Posted by Hog's Gone Fishin:
Just Closed at 33.23 , up over 4% today , some people are saying $50 and they think it will get a boost after Trumps state of the Union speech. I just don't see it taking a nose dive soon.
It seems a lot of the "big boys" are pulling money out of tech and putting it back into building and financials.
I picked up some (ALLY) the other day.
Also, BTW , I'm wrong 50% of the time. The other 50% I've been right half the time.
Yea, it looks poised to move pretty high. I'll keep holding. I don't have a ton of money in my brokerage account (fairly small positions as we focused on maxing our ROTHs this year) and I don't have 100 shares of X to do covered calls like Scho recommended.
And honestly, some of your stuff has been good information. People can laugh but I bought X stock based on some of your posts.
I didn't take your information on buying PNOW stock though. :-) [Reply]
Speaking of covered call on stocks that have some room to grow (slowly) but always pay out a nice dividend. Ford Motor fits that category for many investors. Was googling some information and this game up. Nice summary.
The Investor Ideas video creates a glimpse into the future of AI with thoughts from Steve Wozniak, Amazon, Square, Morgan Stanley and HSBC. There is also a recently released video from emerging IoT company Gopher Protocol Inc. (OTCQB: GOPH), that is using artificial intelligence (AI) to create what is believed to be the world's first "Smart Drone.
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X Trade
News 32.84 -0.16 DJ A Red Hot U.S. Steel Trade -- Barrons.com
Dec 13, 2017 13:54:00 (ET)
By Steven M. Sears
U.S. Steel's stock is a bit like the products it sells: heavy and hard to move. Shares are up about 1% this year, and yet the shares might suddenly get red hot on Feb. 16.
That's when the U.S. Department of Commerce is expected to finalize a preliminary ruling against Chinese steel makers redirecting steel to Vietnam to circumvent U.S. import laws and sell products without paying import taxes.
"The ruling brings formal action against Chinese steel producers circumventing duties, such as import taxes, carries punitive implications for buyers of those imports and provides a more favorable macro backdrop for U.S. steel producers," Shawn Quigg, a JPMorgan derivatives strategist, recently advised clients.
To position for U.S. Steel's stock (ticker: X) to rally, Quigg told clients to buy the company's February $33 call option and sell the $28 put option. When he recommended the trade, the stock was at $31.11, and the risk reversal -- that is, selling a put and buying a call with a higher strike price but the same expiration -- cost 58 cents.
Quigg's trade positions investors to benefit from a stock rally. If U.S. Steel's stock is at $37 at expiration, the call is worth $4, and the put would be worthless. Should the stock be below $28 at expiration, investors are obligated to buy the stock at the strike price, or to cover the put.
The stock has edged higher since Quigg first made his recommendation. The stock now trades around $32.50 and is seemingly stalled, though JPMorgan steel analyst Michael Gambardella calls for the stock to trade at $48 by the end of 2018 due to a combination of Washington support for the steel industry and increased spending to improve U.S. infrastructure.
Investors can adjust Quigg's trade to reflect the higher strike price by selling the February $29 put and buying the February $36 call. Over the past 52 weeks, the stock has ranged from $18.55 to $41.83.
Quigg's trade basically lives or dies by the mid-February ruling. If the government finalizes the preliminary ruling, steel stocks could rally. U.S Steel's recent incremental advance shows that investors have bid shares slightly higher in anticipation of good news.
Of course, the opposite is true if the government's final ruling reverses course, which is why Quigg's low-cost, potentially high-return trade is worth considering.
STEVEN SEARS is the author of The Indomitable Investor: Why a Few Succeed in the Stock Market When Everyone Else Fails.
So I'm wanting to play around with a low-price stock which is currently sitting at $0.75 ...but the ask price is almost $2. Is that just because its expected to go that high? Do they ever sell below their ask price? [Reply]
Originally Posted by kepp:
So I'm wanting to play around with a low-price stock which is currently sitting at $0.75 ...but the ask price is almost $2. Is that just because its expected to go that high? Do they ever sell below their ask price?
What's the bid price showing ? If people are bidding it up you can possibly expect it to go up some. But yes they will come down iif people are not buying the asking price. [Reply]
Originally Posted by kepp:
So I'm wanting to play around with a low-price stock which is currently sitting at $0.75 ...but the ask price is almost $2. Is that just because its expected to go that high? Do they ever sell below their ask price?
This is the wild west scam of penny stocks. Market makers don't want to hold these so they have a very wide bid and asked to make tons of money.
You invest $2000 and it's instantly worth only $750.......no thanks! :-) [Reply]
Originally Posted by scho63:
This is the wild west scam of penny stocks. Market makers don't want to hold these so they have a very wide bid and asked to make tons of money.
You invest $2000 and it's instantly worth only $750.......no thanks! :-)
