/smg/ Stock Market General

How about using $2000 to speculate then do research and invest smartly for the the other 18k?

I have way more than $20000

I invested into $MJ, $AMZN, $AMD, $AIEQ and all of those so far outperformed the total US stock market (10% YTD)

get cucked

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I forgot, I bought $MU at $44.45 average just now, hopefully it will have some good returns over the next two years or so

buy GALT

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RATE HIKE WED
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youtube.com/watch?v=teonOcW_m20

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What are the highest risk/reward options strategy? naked puts?

Naked OTM puts.

ELIR

You can't buy stocks over the weekend

because it's going to be the weekend forever and ever

So in the event of a recession how do you make money? Do you focus on inverse ETF's as the market goes down? Focus on consumer cyclical and defensive? Gold?

I was in my early naive 20's when the '08 crash happened so all I saw were the end results of the crash and then the subsequent shiftiness of the job hunt when I graduated into recession. I just want to be prepared when things go tits up.

What are you all doing to gear up for the next market down turn? What should a newbie keep his eye on so he doesn't get flatted? Suggestions are appreciated.

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You buy bonds, fed slashes rates and you make an easy 10%

if the recession doesn't come, you make an easy 3%

Kneepads
It's going depression this time not recession

Normies are so bad with money it physically annoys me

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b-b-but muh luxuries

no you don't need those gucci sandals
npcs were a mistake

How are they bad with money?

Bond do seem to pose a safer investment, but are there any opportunities to be had when like the S&P 500 drops? I'm right now building a list of companies I'd like to buy into but ideally I'd figure out a way of making money on the way down in order to pick up those companies with house money.

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What is stopping me from just dumping everything in VTSAX.

Inability to save
Living paycheck to paycheck.
Not being able to see a month ahead of them.

Why is the canadian stock market so good? I've invested in Canopy and Aurora in mid 2017 and I've made so much cash so far. I'm able to pay for my studies and an appartment with this + the XRP pump from friday without working

Is this really true? I thought this was just a Jow Forums meme.

the ‘08 crash was kind of a perfect storm of bullshit it’ll always be hard to predict something like that happening

I mean anyone couldve told you that housing prices were too high but no one couldve told you they were about to literally implode and drop -50% to -75% or more overnight because it had all been propped up by millions of loans that were more or less illegal

then lehman brothers collapses because they borrowed 600 billion dollars to bet on the housing market, nobody even really knew they were doing this because they fudged the numbers on their balance sheets, they file for chapter 11, suddenly theres a 600 billion dollar fucking hole in the US economy which is like getting hit with a fucking nuclear bomb

it’s hard to imagine something like that happening again and even if it did it would be pretty fucking hard to predict given how much crucial information was just straight up misrepresented

LOL

thinking of buying wti crude when the market opens, anyone else?

>Why is the canadian stock market so good?

First economically relevant country to federally legalize the dude weed. That's all. Speaking of which, it appears weed sector may have one final push before October 17th (legal sales day). Some news and biz news sites have put fucking countdown to legalization timers on their page. Once the dust settles i will return to weed biopharma and then next year look in to whichever companies seem to be best positioned to capitalize on the delayed edibles roll out.

Coca Cola is poised to get their stocks up if the weed drink is real along with aurora

>it appears weed sector
oh god it’s its own sector now?

I did well with NBEV last week. Played with it four times, failed to stay long enough or leave in time each trip, but still came out ahead each time. Is anybody still holding/planning on buying back in tomorrow?

Yes, they really do spend money on consumer shit, fashion, go on shitty package holidays/cruises, and take 30k loans for new cars
t. have a normie family that does this shit, fucking infuriating

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I made a shittone of money this two last years in crypto, just bought some calls on btc and im out.

I wanna get into institutional options trading (just copypaste them), but cant find much on the subject, im not the average biztard, what do? Something on blocks buys/sells and why they arent show into the vol charts? How to track TnS properly?

You're absolutely right, but with market so red hot right now, unemployment low but most importantly wages stagnant and debt rising, I'm getting a little anxious which is why I'm trying to position myself now because as nice as it is to see the market going up and up we will see a correction. It's like singing a note, beautiful as it is you can only hold it for so long before you need to take a breath.

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Best memes are probably NLST and NBEV, Netlist winning a settlement for 100M from Hynix would cause a giant move and Coke or Pepsi buying NBEV to make Cannibus beverages and Marley drinks, also a huge gain. Arguably, NBEV could go down further so be careful.

>I'm getting a little anxious which is why I'm trying to position myself now because as nice as it is to see the market going up and up we will see a correction
sure you’ll see a correction but you shouldn’t be buying bonds just because you think there’s going to be a market correction

it takes a looooot of pressure for interest rates to go down relative to how easily they go up. Just because the market dips doesn’t mean the fed is going to slash rates. The next market downturn will probably be more akin to the dot com bubble which A was predicted by economists but went ignored because a bunch of zoomers thought the old boomers didnt understand the internet and B killed off a bunch of IPO memestocks just looking to milk market hype but AMZN AAPL and MSFT and other, yknow, actual buisnesses all dipped in value at first but recovered quickly.

yup

>went ignored because a bunch of zoomers thought the old boomers didnt understand the internet
Sounds like crypto.

I've made a pretty penny from weedstocks but it seems the sector is slowing down. Should I invest take my winnings and get into options or cryptos?

Plan for the week is to slowly average in to Canopy Rivers. I started Friday afternoon with small orders and have a series of limit buys set at low increments. Low clue whatsoever about where the low will be other than somewhere above the private placement price of 3.50. It closed at 7.75 on Friday, i have another small order at 7.00, medium sized orders at 5.00 and 6.00, and a monster long haul freight trailer sized one at 4.00.

Price target for this swing is 9-10 bucks. 10 was the inflated opening price on listing day so there will be resistance there. It should head that direction on technicals alone. With exceptionally good news, maybe brief peak of 13-15 buck (short term).

Hope you're right, I still have a few shares of RIV at 9.5

Crypto looks somewhat bullish at the moment. Acreage Holdings will list on CSE probably a few days after November 6th (that's final vote day on their RTO). I think Canopy Rivers will make a move but, as noted above, it needs to establish a low support first. RTI had strong buy volume Friday afternoon so something might be up with them, news wise.

LABU LABU

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Im thinking of quitting my shit job and trading full time.
So far its only something Ive been doing on the side for extra income.
Ive missed out on some serious gains since I can only trade during my 30 minute lunch break though.
How many of you trade professionally?
sounds pretty kickass to work from home.

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I think part of the blame is on the school system for not accurately teaching generations how to manage money, invest in it properly for returns, understand how interest rates and work for AND against you, and responsible spending habits. This is the elementary stuff they need to teach starting in high school, the average Joe probably couldn't even tell you how the stock market works.

>It takes a looooot of pressure for interest rates to go down relative to how easily they go up.
That's actually a fairly good point I didn't think about. Right now my general focus is very basic just investing in low cost index funds through my 401k plan, if I have any money I put a little into my Roth IRA but it's just figuring out where it specialize the allocations for best return which is tricky. I'm starting to get to the point where I'm not so sure so I'll be switching to 70/30 (save/invest) so that when there is a dip I can position myself well. Just trying to manage being defensive while capitalizing on an opportunity it kind of confusing, I guess I really have to focus things a bit more instead of wildly throwing cash around, I just don't' want to miss an opportunity or get blindsided.

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i don't even know how to successfully trade, what do you trade?

Ideally you should have like 100k in boomer dividend stocks and use your job income to also help you grow. Throwing everything in to just trade has ruined many.

Terrible idea
You need multiple streams of income, and you probably arent a good enough trader to keep it up for decades

>This is the elementary stuff they need to teach starting in high school

Agreed. There was one single semester class i took in highschool that so much as broached the topic, and even then it was extremely basic stuff like how to budget. Thin coverage of tax and essentially nothing on inveating. Economics in current day practical sense (rather than a history of...) should be a mandatory series of classes in grades 9-12.

Now im imagining a bunch of 18 year olds realizing that they can trade options and that its basically blackjack.

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I am part-time trader and part-time wageslave for the time being. At wageslavery posting on phone right now. Goal is eventually full-time trading with some more or less passive side hustles to shore up the safety net.

im not feeling good.

where's your mind?
maybe it's in the gutter
where you left your lover
what an expensive fate
your v is for vendetta
you that thought that you'd feel better
but now you got a bellyache

da dum dum boom bada dum dum boom.

I'm the guy you are quoting from that thread. The highest risk/reward aren't exactly typical risk/reward like in stocks where you buy some really volatile stock and if you get lucky it pops. Options have a variety of mix/reward profiles due to the 2 types of contracts and the ability it to buy/sell in combination with their greeks. On one end, you have higher probability strategies with very low reward like selling naked calls or puts far OTM. Usually nicknamed "picking up pennies in front of a steam roller". Pretty much earning a baby amount of credit and hope you don't get blown out by your obligation if the stock makes some huge move against you. The other end you have high gamma, close to expiration buying of OTM calls and puts. Usually their theta is maxed, and if you put in a lot of money into them, usually it's going to evaporate. But if you get lucky, they absolutely explode and you'll see 100s or even 1000s% returns in a day. If I recall, wall street bets calls this FD (faggot's delight).

Whatever has potential at the moment.
Right now that happens to be weed stocks.
That could easily change as soon as monday.

You guys are probably right.
Im still tempted to do it though.
Probably gonna quit soon anyways because it feels like im going to die before 40 at this rate.

I would do both if I could, like if I had an office job or something where I could keep an eye on the markets during work.
We cant have our phones on us while on the factory floor, so it makes it kinda hard.

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>30k loans for new cars
That sounds painful.

I'd like to build up to a safety net of 1 to 2 year's expenses, then get my stack tall enough that it reaches a floor level such that a conservative estimate of my average gains is 2x what I need to live comfy and then take the plunge. That's the dream for me.

Thanks. a bit too risky for me but good to know.

Yeah, you don't need to gravitate towards just those two. Somewhere in the middle, and you can still use options safely. That's why it's important to have a fundamental knowledge how all the basics and their greeks, so you can shape the profile of the trade exactly how you want. People in this board just use options have free leverage, but they don't realize that even though they aren't on margin and there is no interest, the leverage doesn't come for free.

>FD (faggot's delight)

Cute.

Is it a bad strategy to Buy To Close contracts that have a long expiration date but a low strike price? Would that be better to run with if I think the strike price is going to be significantly lower than market price at the expiration date?

If you are buying to close, that means you had a contract that was sell to open and are exiting that contract. And your question depends on what kind of contract you are asking. So I'm going to make some assumptions:
I'm assuming you meant buy to open.
I am assuming from your question you are talking about puts, effectually far OTM PUTS.

So after those two assumptions, what I (think) you are asking is:
is it a bad strategy to buy to open long dated (or potentially LEAPs) puts that are far OTM (out of the money) if I think eventually the stock will bleed out significantly over time?

So your question is interesting. On one hand, going with a long date (aka far away expiration) put would make your theta lower, and give you more time. However, on the other hand, being OTM means you have less delta/gamma starting with, so the bleed out you describe better be significant. So if it doesn't bleed out enough/fast enough enough, your theta may nor may not overpower the move. At the beginning theta will probably not hurt too bad, but as things move forward, it might get dicey. So I can't say for certain, though I will say that most people that do this strategy don't go for far OTM because it is still a lower probability strategy. IF you happen to be right in these respects, you'll see some good returns though. Most people would go further ITM so they already have some of the greeks helping them out and thus increase their probability of success, even if the potential return on capital would be lower.

I will say for the sake of answering your question, I completely left out implied volatility out of the equation, but that is also another HUGE factor that could impact profitability. Honestly, I'd say it's the biggest one that causes new people to lose money because even though they understand the idea of delta and theta, they forget that IV heavily shapes the prices of options. (I'm going to stop here because I'm at the char limit).

Weekend Survey

What company owns your shampoos and bodywash?

For me: Suave, Dove (Unilever) and for bodywash a Softsoap (Colgate palmolive)

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Just sitting here waiting for futures to open.

I don't think the China tariffs and China cancelling trade talks were priced in.

It's going to be an interesting week.

How is the market red hot? Earnings are the highest they've ever been across the entire industry. Nothing speculative about it. If you ignore FAANG, growth has actually been lower than would be expected under these conditions. We just had a significant correction of 10% in February. The last one of that magnitude was two years prior, so you're beating yourself up over nothing.

With the questions about options, let me just say this: it isn't anything profound, but for the newbies that are excited about options now that RH has opened them up: you should really understand all these terms and the mechanics of options before hopping in. It seems obvious, but options aren't like stocks. Stocks are pretty easy. You hop in, type in a ticker, hopefully buy for a cheap price and sell for a high price, and shorting is borrowing to sell at a high price and buying back for a cheap and keeping the difference minus any interest. Barring a few terms like limit vs market order, stop loss, it is really easy to dive in and get a trade going and at least understand a bit of what's going on. With options, you guys really need to be careful. You should understand the foundation of how these contracts work, what the greeks are and how they impact prices, and what implied volatility is and how it impacts option price. I've lurked Jow Forums for a long time and when I saw RH release options, I watched /rhg/ or I guess /smg/ now, and I've seen the way people talk about their contracts here, and some of the way they think about things is absolutely wrong and places them into a vulnerable position. Ideally, you should be able to calculate break evens of multiple option strategies without the broker showing you, give me your opinion on implied volatility of the stock (or at the very least, tell me what IV movement would benefit your position), tell me how the greeks impact your trade if the stock moves a certain way or how time will impact your trade. There is a lot of opinions of how to trade options and if you are educated enough, you can tease out good from the bad.

high ridge brands
cheap and gets the job done.

I must not fully understand the difference from Buy/Sell and Open/Close yet with contracts. It seems that selling actions though holds most of the risk since they are obligations. Do options contracts have to be filled at their expiration? I know that some market orders and limit orders for stocks won't go through sometimes, but is that true for the actual options contracts as well, that they won't be exercised?

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And another thing is that with options becoming more popular among millennials, a lot of educators are trying to push on certain trade styles. Day trading for stocks, before RH at least, brokers absolutely loved it. It made people trade a lot of little trades, which racks up commissions. And the retails thinks it is safe because they are spamming small trades and closing at the end of the day each day. AND the big boys loved it too because most retail is terrible at day trading and over trading destroys their accounts and lets the big guys pull in more money. So brokers pushed educational content that talked about day trading and a lot of educators will give "hot tips" on how to do it properly. Now it's not to say day trading is bad, but it's one of those situations where you need to be aware when you read online. Options are like that too. Tastyworks, the thing in your sticky? That company has a similar philosophy. Their educational content is all about selling a whole bunch of small contracts that are around 30 delta, that are 30-60 days from expiring with high IV. And when you read their logic, it makes sense! And it seems safe. And it can work, but you need to dig deeper than that, otherwise you'll do what I've seen other traders online do, just sort of bleed your account over time. It also, surprise surprise, generates a lot of commissions for tastyworks. Also remember, Tastywork people are the ones that made the thinkorswim platform and then sold it to TD Ameritrade in 2009. And had a promotion in regards to option commissions with them. Now I'm not demonizing them. Tastyworks has some decent option info for a beginner, and they have a great platform with a great commission rate, but you should be wary of their biases, just like in the stock trading world.

Where does one starts learning about options?
inb4
>just google it/investopedia/read a book!
There's way too much content and it's overwhelming. the vid in OP is terrible too.
Any tips or a good options 101 you can vouch for?
Like you said with all the scammy tactics brokers are pushing it's hard to know what to believe.

Its simple as fuck you...

>stock is low
>buy 1-2 month slightly otm option

Thats it

>this hard thing that i want to learn takes a lot of effort

fuck you

youtube.com/watch?v=TBAQtjyqNHw Options Basics I
youtube.com/watch?v=SuTTzfa4ePE Options Basics II

Selling holds more risk, but you can shape the probability so the chance you'll make a return can be much higher than buying.
>do option have to be filled
No, people may not want to actually buy the stock and may opt to just sell their contact back to the market for a nice gain, but that is a risk you must consider, especially as expiration draws near and if it is potentially profitable to activate the contact (contract is ITM or if dividend makes it worthwhile enough). There are 2 types of option activation styles: American and european (nothing to do with the countries). American can be activated anytime during the life of the contact, european only on the last day. Now, imagine you sold a call. So someone on the other end has that call and decides to activate it in the middle of expiration because the contract is favorable and they want to capture the dividend before the ex-dividend day. That's a risk you need to consider. It's not high, but it's a real possibility. Most equities are American style. Usually it is things like index options that are european style. The CBOE has a list of european style options on their website. And to answer a follow up question, there isn't an actual person on the other side of the contract, the CBOE has a pool of sellers at that strike, and it randomly gets assigned. So your broker will notify you if it happens.

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If you are having a hard time understanding options best bet is to not fuck with them just yet.

>I know that some market orders and limit orders for stocks won't go through sometimes, but is that true for the actual options contracts as well, that they won't be exercised?
I'm sorry but I don't understand your question. Those topics aren't related. If you are asking if people opt to not activate their options at the end of their cycle? Absolutely. Remember my linked post to the previous thread: buying contracts gives you the RIGHT aka the CHOICE to buy/sell the stock at the strike price. They are under no obligation to do so. (I will say that some brokers will automatically do so if the contract is ITM at expiration, even by 1 cent, so make sure to turn that setting off/contact your broker so they don't do that while you are away from the computer). That's why they are the ones paying the premium! It's like paying a $10 deposit on a ticket to get it at a guaranteed price. If you decide not to go to the concert, all you lost was the deposit rather than the hundreds you would've spent on the ticket.

>And to answer a follow up question, there isn't an actual person on the other side of the contract, the CBOE has a pool of sellers at that strike, and it randomly gets assigned. So your broker will notify you if it happens.
This is useful to know.

>If you are asking if people opt to not activate their options at the end of their cycle?
That's what I was meaning.

I somehow made $110k this morning and I'm still not totally sure how
reddit.com/r/wallstreetbets/comments/7w6cq0/i_somehow_made_110k_this_morning_and_im_still_not/

I turned $500 bucks into $10,000.00, and lost it all. Three different times. Hopefully my story helps others avoid the mistakes I made
reddit.com/r/investing/comments/23c0wa/i_turned_500_bucks_into_1000000_and_lost_it_all/

So it's really just gambling.

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Yeah Im pretty sure my FNGU is gonna get absolutely raped tomorrow
Buying hedge at open

Sure, I know people often wonder how it actually works. It's just like in stock trading, maybe you bought from one guy, but then you sell to another. It's all in the buzz of the market place. If a buyer of a contract at that strike decides to activate, all the current sellers that are still open, are in a pool and will be randomly selected to fulfill their duty.

This is hard. Because I didn't learn from one resource. I had one that gave me the foundational/definition knowledge, and then another one that started giving me functional knowledge (how to apply concepts and practice calculating things), and then just non stop reading to understand tweaking the idea of application. Unfortunately the one that gave me my basic functional knowledge is now gone. I use to go home after working all day, and just sit and read and practice this for hours before I went to sleep. How much do you know about options/what's your current understanding level?

>ratsu a bear
NOT GOOD

Hahah that was you? Interesting. That second story about 500 to $10k, I read it long ago. I'm familiar with the story. I wouldn't say options are gambling anymore than stocks are. He just happened to use them the same way people here. Just using them as cheap leverage and hoping they are right. It isn't a bad strategy anymore than anything else in the world. But just as you can make huge money with it, you can lose an entire position very quickly too. Just like how people here like to play meme stocks for a pump. I'll try to read your story and see what happened.

I have no choice, thats the way of successful leveraged trading
This news is fake as fuck though, Buy the dip

No this ain't me, but it's funny to me the guy didn't even knew what was he doing and somehow turned a huge profit.

Basically:
>People who are long the options have the choice to exercise them even if they are out-of-the-money.

>SPY closed at 267.67 yesterday so normally all of those options would expire worthless. Since the stock went below 266.50 after the close, people who were long the 266.5 put chose to manually exercise them since they were in-the-money at that point.

>I believe you are assigned options on a proportional basis of the total outstanding, so since you got assigned on 863 of the 1000, 86.3% of the 266.5 puts were exercised.

>It's usually wise to close out of a short option position when it expires that close to the strike, since you can be assigned on an unpredictable number of them.

Too many variables compared to stocks, just like you pointed out earlier. thanks anywho.

also
>I think the system didn't take into account that the puts were expiring.

>Probably an abuse-able glitch in their platform coding.

prolly an Etrade fuckup.

I'm gonna OHNONONO so hard all this week.

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>Sounds like crypto.
I guess it does huh

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O wait never mind, you were just putting that story to make a point, that wasn't you. That first story happens occasionally. So I don't know how to explain this without knowing what level you are at. But let me try. So when sell a spread, you are selling for a premium, just like my previous examples in this thread . However you can cap your losses from potentially infinity to a defined amount by buying another option to cover you the one you sold. So the difference between the two makes a spread of your max loss, hence the name. Now usually all works well, but for him, what happened was his sold contract got assigned because it was was worth activating for someone. If something like this happens, the broker usually auto activates your back contract so it gets covered. Problem solved no worries, it all worked out. RARELY this doesn't happens and the broker auto sells for you, so effectively you just got those shares added to your account and sold it effectively. Usually if something like this happens you'll be getting a call and they'll be pissed because something went wrong and you shouldn't have been able to sit on that. He literally just got lucky that not only was he not auto activated, but that the market was in the right condition to where he didn't lose hundreds of thousands of dollars and that it was placed JUST right to make him $110k. Don't take that as a normal scenario.