Investing 102 - Page 226 - Lateral-g Forums

NOVA · #**2251** 11-09-2012, 11:08 AM

is it a buyers market ....... or is it going down some more

- thinking about AAPL?,COKE,HD,MA,PM,T,COST,CVX,MCD,MRK,WFM,MA,SBUX ,DIS .......... this is the best thread on the board

toy71camaro · #**2252** 11-09-2012, 12:35 PM

I increased my MCD today.. with a 3.7ish yield and current rate, and a 10% sale on when i bought last time. I thought it was a good "deal".

**GregWeld** · #**2253** 11-09-2012, 01:09 PM

Quote:

Originally Posted by NOVA

is it a buyers market ....... or is it going down some more

- thinking about AAPL?,COKE,HD,MA,PM,T,COST,CVX,MCD,MRK,WFM,MA,SBUX ,DIS .......... this is the best thread on the board

No one has an answer to that.... your guess is as good as the next guys.

Here's my answer to that question. SCALE IN. If you want to eventually hold 100 shares -- buy in 25 share increments.... up or down you'll end up somewhere "close".

If you buy tomorrow the market WILL go down. If you don't buy tomorrow it WILL go up. Trust me on this. You just can't game it like that.

**GregWeld** · #**2254** 11-09-2012, 01:11 PM

Quote:

Originally Posted by toy71camaro

I increased my MCD today.. with a 3.7ish yield and current rate, and a 10% sale on when i bought last time. I thought it was a good "deal".

AND THIS MY FRIENDS IS THE WAY TO THINK AND ACT. This kind of thinking will get you were you want to be. Do NOT be afraid to buy more of good stocks/companies just because they're lower than were you originally made a purchase.

If it was a tool in the Snap-On truck -- you'd be ELATED to buy it on sale!

takid455 · #**2255** 11-09-2012, 06:56 PM

An event happened today with one of my holdings. Linking to page http://m.seekingalpha.com/article/996371

Actual company aside, can some explain the benefits to this action vs buying the amount of shares for the net out of pocket? Sort of understand the article but fail to see the advantage in the action vs simply buying a chunk of shares today.
Action in question

Buy 24,413 January 2013 $3 call options for $13 each
Sell 24,863 January 2013 $2.50 put options for $11 each

**GregWeld** · #**2256** 11-09-2012, 07:14 PM

It's called a "collar" --- where the person buys one position and sells another... Options trading isn't something for Investing 102 because it's really complex. There are many ways to trade "OPTIONS". Maybe that's why my boat was called "Options"?? I wanted to call the dingy "Puts and Calls" - in other words taking one to shore or picking them up? LOL

So with Options trades -- you can do one of two BASIC things (there's many ways to trade options):

Investopedia explains 'Put'
When an investor purchases a put, he or she expects the underlying asset will decline in price. The investor will then profit by either selling the put options at a profit, or by exercising the option. If an investor writes a put contract, he or she is estimating the stock will not decline below the exercise price, and will not fall significantly below the exercise price.

Consider if an investor purchased one put option contract for 100 shares of ABC Co. for $1, or $100 ($1*100). The exercise price of the shares is $10 and the current ABC share price is $12. This contract has given the investor the right, but not the obligation, to sell shares of ABC at $10.

If ABC shares drop to $8, the investor's put option is in-the-money and he can close his option position by selling the contract on the open market. On the other hand, he can purchase 100 shares of ABC at the existing market price of $8, then exercise his contract to sell the shares for $10. Excluding commissions, the total profit for this position would be $100 [100*($10 - $8 - $1)]. If the investor already owned 100 shares of ABC, this is called a "married put" position and serves as a hedge against a decline in share price.

Read more: http://www.investopedia.com/terms/p/...#ixzz2Bm20BkPM

Definition of 'Call'
1. The period of time between the opening and closing of some future markets wherein the prices are established through an auction process.

2. An option contract giving the owner the right (but not the obligation) to buy a specified amount of an underlying security at a specified price within a specified time.

Investopedia explains 'Call'
1. In some exchanges, the call period is an important time in which to match and execute a large number of orders before opening and closing.

2. A call becomes more valuable as the price of the underlying asset (stock) appreciates.

Read more: http://www.investopedia.com/terms/c/...#ixzz2Bm2JfpdG

**GregWeld** · #**2257** 11-09-2012, 07:18 PM

In honesty -- the boat was named "Options" because of the Microsoft options that paid for it! And we said that owning her gave us "Options"...

But you wouldn't believe how many people thought I was an Option trader!

Bucketlist2012 · #**2258** 11-09-2012, 07:52 PM

What a Beautiful Trawler...

Reminds me of my Younger days..My Dad had a 40' Farallon Eagle Trawler, and then a 34' CHB. Among other Boats.

Boy was it a lot of work but the memories are forever..RIP Dad..

**GregWeld** · #**2259** 11-09-2012, 08:04 PM

Quote:

Originally Posted by Bucketlist2012

What a Beautiful Trawler...

Reminds me of my Younger days..My Dad had a 40' Farallon Eagle Trawler, and then a 34' CHB. Among other Boats.

Boy was it a lot of work but the memories are forever..RIP Dad..

Mine was a 1991 47' Grand Banks Wide body "Motoryacht"... that is their description. They made a Europa - a Classic - and the Motoryacht...

All fiberglass.... and I had the optional Aluminum windows (otherwise they're wood framed) and the bigger twin 300 hp Cummins turbo diesels.. she'd cruise at 14.5 knots and top out at 17. Weighed 25 tons! Burned 11 gallons per hour... She carried 600 gallons of fuel - and I had a 500 gallon per day water maker - so we could stay out "forever".

Bucketlist2012 · #**2260** 11-09-2012, 08:18 PM

Quote:

Originally Posted by GregWeld

Mine was a 1991 47' Grand Banks Wide body "Motoryacht"... that is their description. They made a Europa - a Classic - and the Motoryacht...

All fiberglass.... and I had the optional Aluminum windows (otherwise they're wood framed) and the bigger twin 300 hp Cummins turbo diesels.. she'd cruise at 14.5 knots and top out at 17. Weighed 25 tons! Burned 11 gallons per hour... She carried 600 gallons of fuel - and I had a 500 gallon per day water maker - so we could stay out "forever".

Ah yes...The Grand Banks is the Mac Daddy. Dad's was the less expensive version...Still very nice, but no Grand Banks...Your picture brought a tear to my eyes remembering the good times...Memories forever in the Bay area..

We ran a single screw Cat3160 in the 40', and a Ford lehman in the 34'..You get really good handling a single screw in tight places...

He taught me the finer things of life and how to work hard for them..He was a spender and not an Investor/Saver...And in the end it cost him..

That is why I turned out like I did...I did not want to have a bunch of"stuff" and no liquid assets...I told the wife a few months ago that spending is on hold until sometime in 2013 at the least...I need to keep liquid, nimble and ready..I can always spend more later...

But boy you stirred up some memories...We had everything from Steel hulled Chris Craft/PT Boats with dual 327's, to 34' Sport fisherman with dual 454's, But the Trawler was the go anywhere, anytime Yacht, that has a certain look that is priceless..