Best investment advice you'll ever get

Damocles said:
I gotta figure out how to do these calls and puts...
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They work well in situations like this where you expect the price to jump one way or the other and are not buying to hold for a long period.

What I did was very risky as not only was the call out of the money, but it also expires in four weeks. But at the same time, I only invested $500. Thus that was my downside loss potential. End result, I netted $500 in 30 minutes.

Someone who bought 100 shares invested about the same amount of principal... but I had exposure to 2000 shares by going the call route... thus the faster pace of return.

The other side of the coin.... someone who had the Aug 7 calls yesterday watched their value plunge by 50% early on which shows the volatility such a position can have. (granted, they are back to even now, but still you get the point)
 
I sold my BAC after two days and bought Pfizer today.
I'm not smart enough or risk taking enough to do options.
 
Superfreak said:
They work well in situations like this where you expect the price to jump one way or the other and are not buying to hold for a long period.

What I did was very risky as not only was the call out of the money, but it also expires in four weeks. But at the same time, I only invested $500. Thus that was my downside loss potential. End result, I netted $500 in 30 minutes.

Someone who bought 100 shares invested about the same amount of principal... but I had exposure to 2000 shares by going the call route... thus the faster pace of return.

The other side of the coin.... someone who had the Aug 7 calls yesterday watched their value plunge by 50% early on which shows the volatility such a position can have. (granted, they are back to even now, but still you get the point)
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Yeah, most of my investing is long-term. I never really investigated calls and puts until recently.
 
Bought WM again for 3.88 this morning. I would suggest if this stock falls back down to 3.80 range, it's a buy. This time, hold long. It's not going to shoot up like it did the other day when I bought, but its got HUGE potential, and at that price, the risk is minimal. Unless you think it's going Bankrupt. I highly doubt that though, they just got another 10 Billion set aside to weather this storm. Some rumors are saying that JPM might try to buy them again as well for 8-12 a share so they can get into the markets they want. If the rumor becomes mainstream, the stock is going up. If the rumors stay at the level its at now, no one will take the thought seriously.
 
DigitalDave said:
WM Stock is over 5.00 now.
GTLS stock is also hot today with their earnings report beating estimates.
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WaMu scares me as a long term hold. Good call on your part, but I think I will stay away from them.

As for GTLS... woulda/coulda/shoulda... thought about picking it up prior to earnings, yet couldn't quite pull the trigger. Oops.
 
Superfreak said:
WaMu scares me as a long term hold. Good call on your part, but I think I will stay away from them.

As for GTLS... woulda/coulda/shoulda... thought about picking it up prior to earnings, yet couldn't quite pull the trigger. Oops.
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What scares you about WaMu? Worried about Bankruptcy?

They've got an extra $50B to get out of this mess and it looks like the housing market is starting to level out. Worst case (other than bankrupt), they go back to 3.80. Best case, in the most rosy situation, you see $12.00 a share in a quarter. Huge potential, but will see its dips on its ride back up. Financials are still fragile but this stock is pretty solid at this price still. I think it'll dip back down tommorow, maybe creating another buying opportunity for those wanting a short time gain.
 
BTW, GTLS will go to 60 by the end of the year... look for a dip from idiots selling off this big gain today. I don't think it'll go under $50 anytime soon though, and if it does, you better buy or I'll call you an idiot :)
 
DigitalDave said:
BTW, GTLS will go to 60 by the end of the year... look for a dip from idiots selling off this big gain today. I don't think it'll go under $50 anytime soon though, and if it does, you better buy or I'll call you an idiot :)
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It is definitely on my screen now.... if it does pullback, I will likely be sliding in.

Take a look at UNG. Nat gas has been hammered. Down from $63 at the start of the month.... Good hold for the next six months+.
 
A UK hedge fund just bought 6% on WaMu shares. This will give it a lot of support for the long haul. I hope you are watching this as well :)
 
Superfreak said:
yeah.... I see it all.... I just cannot stand the management team at WaMu. From the top down that bank sucks.
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They may suck, but the stock is still way undervalued. They made a lot of mistakes to get into the mess that dropped them down to 3.03 a share on a $45 stock. My target is $12 on this with the current situation. WM was hit about as hard as it could get hit and now its bouncing back. I know I said $3.80 is the worst it could get but now the worst is probably around $4.20. Risk vs Reward on this is huge, and I just want to make some loot :)
 
DigitalDave said:
They may suck, but the stock is still way undervalued. They made a lot of mistakes to get into the mess that dropped them down to 3.03 a share on a $45 stock. My target is $12 on this with the current situation. WM was hit about as hard as it could get hit and now its bouncing back. I know I said $3.80 is the worst it could get but now the worst is probably around $4.20. Risk vs Reward on this is huge, and I just want to make some loot :)
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True, they are undervalued currently... but give management time... they will bring the value down to reflect the current stock price.
 
Holy Crap! Look at it's price now! Good earnings, raised estimates, and it's dropping in price on good news! GTLS is a STEAL at $43 right now.
 
I like the company, but it just had a double bottom breakdown. From a technical standpoint, it now has a target of $32-33. I know fundamentals disagree with technicals on this, but right now the market is trading more on technicals than fundamentals.

I will see how it plays out over the next few days.
 
Superfreak said:
I like the company, but it just had a double bottom breakdown. From a technical standpoint, it now has a target of $32-33. I know fundamentals disagree with technicals on this, but right now the market is trading more on technicals than fundamentals.

I will see how it plays out over the next few days.
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That's sad to hear man. Technicals didn't work the last earnings report on this either. The stock came right back. They report good earnings every quarter, last quarter it dipped after a spike as well, but then went back up. This is going back up to at least $55 before the next earnings, and $60 by end of year.
 
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