Talking stocks, trading, and investing in general

[Slopho]



I traded NFLX on friday for a nice gain...perhaps I should have held it? I bought in at 75.

Its never wrong to make a profit.

 

[Saltricks]

You think they are still undervalued? I figured that the 800k subscriber loss announcement was blown way over proportion, but I don't expect the stock to hit back to 110 anytime soon.

 

[Slopho]



You think they are still undervalued? I figured that the 800k subscriber loss announcement was blown way over proportion, but I don't expect the stock to hit back to 110 anytime soon.

I could actually see this stock at around $150 in 6 months.

 

[stevent]



I could actually see this stock at around $150 in 6 months.

Netflix was just at ~$300 a quarter ago. And at the level they were a hold-buy for most people. It all depends on how much growth they can achieve or at least show they have the potential to achieve.

I traded NFLX on friday for a nice gain...perhaps I should have held it? I bought in at 75.

What type of trading do you do? You have to pay extra taxes and are pretty much just gambling in a sense short term. If you think they'll go up, trade options instead. Almost no cost and a nice profit if it moves like you think it will.

But like Slopho said, making money is making money.

 

[Saltricks]

I'm not as familiar with options yet, I'm still researching as much as I can about them before I jump in. I think I understand call options, but when it comes to put options I'm still hazy. I know that people go into major debt due to short selling, so I'm trying to really know what I'm doing before I start trading options.

Big question that I have is when you buy put options, do you have to own the stock already? Or can I buy the stock after I buy the option? Also, if I buy put options, am I obligated to provided the shares before the expiration period, or can I just let the contract expire? For example, if I bought put options on netflix right now and it rose up 50 points, would I have to cover that loss?

 

[stevent]



I'm not as familiar with options yet, I'm still researching as much as I can about them before I jump in. I think I understand call options, but when it comes to put options I'm still hazy. I know that people go into major debt due to short selling, so I'm trying to really know what I'm doing before I start trading options.
Big question that I have is when you buy put options, do you have to own the stock already? Or can I buy the stock after I buy the option? Also, if I buy put options, am I obligated to provided the shares before the expiration period, or can I just let the contract expire? For example, if I bought put options on netflix right now and it rose up 50 points, would I have to cover that loss?

You don't need to have the stock (referred to as a "naked" postion). Best bet is to read through investopedia/wiki, I still get confused when trading a bunch of the time. Just be sure you know how much you can afford to lose, as it really is a gamble on how you think a stock will perform. All derivatives are inherently more risky due to what you trading.

http://en.wikipedia.org/wiki/Put_option
http://www.investopedia.com/terms/p/putoption.asp#axzz1cEecRw5R

 

[Charley]



I'm not as familiar with options yet, I'm still researching as much as I can about them before I jump in. I think I understand call options, but when it comes to put options I'm still hazy. I know that people go into major debt due to short selling, so I'm trying to really know what I'm doing before I start trading options.
Big question that I have is when you buy put options, do you have to own the stock already? Or can I buy the stock after I buy the option? Also, if I buy put options, am I obligated to provided the shares before the expiration period, or can I just let the contract expire? For example, if I bought put options on netflix right now and it rose up 50 points, would I have to cover that loss?

IF you own the option (Long either the Put or Call) you have paid the premium that allows you to make the decisions on exercise. If you have sold the option (Short either the Put or Call) then someone else has the right to exercise or not and when they will do that. Generally the options are not exercised until expiration except in cases of large dividend payments. Remember, there is no time value or option premium left in an exercised option.

A good place to start trying to understand options is to look into Covered Calls. I'm not recommending them particularly, but the concept is a relatively simple strategy in the option world and can be modeled for changed in the Greeks as the underlying price changes and time rolls on. Try to understand the flaws in the modeling formulas as well.

 

[Charley]



The market seems to have a belief that one of the Finance Ministers will arrive at one of these summit meetings with the magic hat.
Put four $1 bills into it and pull out a $10 bill.
It now seems that the magic hat contains a ********. That appears to be an equally acceptable solution.

The Magic Hat did not have either the Magic Money nor the ********.

EU Done.

 

[javyn]



The Magic Hat did not have either the Magic Money nor the ********.
EU Done.

O'Bagney, ********, I'm not sure if you are a Liberal trolling us (if so, kudos, you kick ass at it!), or if you really are a bigot.

 

[Slopho]



The Magic Hat did not have either the Magic Money nor the ********.
EU Done.

Not so fast. The Germans have invested plenty on this and this is their big chance to make up for WWII. I know they want to cut and run, but they're going to lose a lot of face if they do.

 

[javyn]

Looks like GLUU's wanting to pop even amid the carnage. If we can close above 3.20, would be nice.

 

[NameBack]

this rally today was hilarious. Greece is falling off the rails -- Europe is imploding as we watch, and the markets are going up? Italy is going to fall out of the euro at this rate! If people think that Dexia and MF Global are going to be the only casualties of this crisis, they've got another thing coming. There's a bank run our near future, folks.

 

[stevent]



this rally today was hilarious. Greece is falling off the rails -- Europe is imploding as we watch, and the markets are going up? Italy is going to fall out of the euro at this rate! If people think that Dexia and MF Global are going to be the only casualties of this crisis, they've got another thing coming. There's a bank run our near future, folks.

The source of all the volatility is greece politics, no bank run in the near future regardless of what greece does. Exposure for French banks is only 30 billion euros or so, not anything significant and even with a 70/80% haircut there won't be that much of an effect. Everybody knows that Greece is done either way.

 

[NameBack]



The source of all the volatility is greece politics, no bank run in the near future regardless of what greece does. Exposure for French banks is only 30 billion euros or so, not anything significant and even with a 70/80% haircut there won't be that much of an effect. Everybody knows that Greece is done either way.

But Italian bond rates are skyrocketing! At this rate even though they have a non-interest surplus they'll be forced into default! And it's just going to get worse the way things have been going at the ECB and with EMZ politics. After Italy leaves the Eurozone, what's left? You think the rest of PIIGS are far behind? Even France?

 

[stevent]



But Italian bond rates are skyrocketing! At this rate even though they have a non-interest surplus they'll be forced into default! And it's just going to get worse the way things have been going at the ECB and with EMZ politics. After Italy leaves the Eurozone, what's left? You think the rest of PIIGS are far behind? Even France?

Some spread volatility, not in panic time yet.