At a PE of 25, there’s gonna be a lot less demand for the stock.

Anyone else have QQQ puts? Market has to respond to the Corona Virus and give back some gains eventually. Did a 235/210 put spread out to Jan 2021, net cost $7.70.

How many did you buy ?
What spread ?
It cost $7.70 for the put form Jan 2021 ?

So you have the option to sell from now
Till January for $210 ?
If the stock drops to $209 your in the money ?
Or does it have to be $209-$7.70
Tell me more please

I bought the January 2021 $235 puts for $15.70 and sold the $210 Jan. 2021 for $8.00. So my net cost was $15.70-$8.00 or $7.70. My breakeven point is $235-$7.70 or $227.30. So I need QQQ to be below $227.30 by Jan 2021. I make my maximum profit if QQQ is below $210 closer to January. My max profit would be $25 - $7.70 or $17.30 or 225%.

I am thinking a better trade would have been buying the $260 Jan 21 put and selling the $235 put. Thoughts from active option traders. Thanks.

Glad I found this thread. I am a pretty active trader, mainly buying shares and writing covered calls. I also do the odd call or put spread. Use to play the earnings game a lot, but found it too volatile. I did pick up some XOM as well. First wrote the Jan 21 calls, it came down and sold them for a decent profit, then wrote the Jan 22 calls. Recently closed that position for a profit and now waiting for XOM to recover a bit so I can re-write some further calls. In high sight, should have waited on the Jan 21 calls. Think oil should recover once things start to settle down in China come the spring.

Happy trading!

Going to be a very interesting day on the markets. Looking to pick up some OILU at the right price and write some long covered calls. VIX will fly today.

I don’t know a ton on the stock market but starting to learn from my brother. Early Last week he had me buy sqqq with the virus and it appears to be going up. I guess it goes up when the market is down. I’ll just have to see when to sell

Those leveraged ETFs are dangerous if you get them wrong. I played around with them 6-8 years ago and lost my shirt. Multiple times I lost $25k overnight. Still have a capital loss carryover of about $100k on my yearly taxes from them. On a positive note, I can make gains for several years to come without paying taxes on them because they'll just lower that loss carryover.

What a wild weekend for the market. The Coronavirus is spreading. Plus it looks like Bernie may be the democratic nominee which I'd think means another term for Trump

Gotcha, I only did 2k on it and bought at around 16 but it’s up to 17.39. He did tell me they are a gamble but I am ok with the little amount I did. He has much more into it. I’m sure I’ll sell soon.

They're short term trading vehicles. Over the long term all of them will go to 0. Go back to 2012 and SQQQ was over 6000. A lot of them are based on the options market and they lose money each month when they roll the options from one month to another. That and something that goes up 10% in a day, then down 10% in a day will end up lower in the long run. (100 + 10% = 110 - 10% = 99)

Ok, thanks. He did say not to keep it long. We really only had a limited amount of time with the virus impact. He thought sell around 19 or 20.

Yah they're great for fast moving markets when you're on the right side of the trade. Like today.

We sold in the mid 19s. Not bad for a couple days

Corona virus is being way overblown...my doctor friends all said the same thing, that it’s just the flu.

People are trading on fear. I see this as a buying opportunity. Sell some puts for a travel company like CCL, I am willing to buy at a discount for sure.

Anyone could have seen this coming 2 weeks ago. Many are trying to spread misinformation comparing this new disease to the flu. The flu does not shut down the Worlds second largest economy, creating shortages of necessary drugs, raw materials for every type of manufacture, parts for autos, appliances, phones and every electronic device.
Covid19 is more akin to pneumonic plague than flu with airborne transmission, a long surface contamination life and asymptomatic transmission.
This is not a buy the dip opportunity, unless you enjoy throwing money away.

I'm dollar cost averaging 20% of my income every other week into mutual funds. Once I have another 100k in my accounts I'll re-balance and repeat the process. This bad news, is good for my investments before I retire in 32 years... good news helps too. I figure about a 0% chance the market will be lower in 2051 when I retire.

As someone with three asthmatic kids, and a solid history of being completely healthy except for having a strong susceptibility to pneumonia (caught it again in December)… please don't make the pneumonic plague analogy.

Got out of my 235/210 put spread today for a nice $3.00 gain on $7.70 investment. Wrote a new June 21 $240/$220 put spread. Also picked up some OILU and wrote the Jan 21 $10 covered calls for $4.50 per share. Think oil should start to recover by the spring.

Anyone else short the market?

So this is the crash, exit all stocks? If buying is throwing away money.....and the corona virus will be the reason? I will put my opinion out there.....its fear. Corona virus won't even be a topic come July.

UVXY follows this pattern and usually does a reverse split every couple years.

It probably will be because July is Australian winter and there’s predicted to be a second wave of infections in the Southern Hemisphere.

I think you can reasonably say that there is going to be massive economic impact by shutting down large swaths of the worlds largest economy. Do I think we’ll all be eating shoeleather and waiting in bread lines? No. But i think it’s fair to say that there could be a *gasp* period of stock market retrenchment. You know, negative economic growth and equities returning negative numbers year over year. Given we’ve had what 10 years of economic expansion is that so crazy to imagine? It’s not like the coronavirus is the only indicator. Auto loan delinquency rates are as high as they were during the last recession again. We could even see the R word again in our lifetimes

I max out my retirement fund and contribute as much as I can to my kids 529. 50/50 stocks bonds which I recognize is ultra conservative. But I’ve never loved this economic expansion. Seems like only 5 or 7 companies are driving all the growth. A ton of pretenders out there that have no real path to profitability.

I learned my lesson selling in 2008 (lesson is that they’ll inflate the economy rather than have retirement account riots). But I have clear eyes that this isn’t the most stable economic situation right now.

SIR TANKALOT CHARGES THE CENTER LANE!!!

(Sorry, I couldn't resist!)

Sold 6 Amazon 1,950 puts 4/17/20 @ $51.56

*This was yesterday's transaction*

Buckle up. The virus is starting to spread in Iran and Italy. If it gets to overpopulated India and Pakistan there may be no more hope of controlling the spread. The markets can't help but to react in the short term. A 30 to 40% correction would not be surprising.

Joust Madness!

I've been trying to be non emotional about this and thought about waiting this out, but I'm sitting on so many things that were 50-100% up I decided to take the profits on the growth stocks and sit on the sidelines and see where this goes. Did a little adding to some div stocks yesterday though.

30-40% would be very unlikely. Although that would get most NASDAQ stocks back to Dec 18 levels.

What is your strategy here?

I did a $20/$16 UVXY put spread today out to March 20.

Amazon was down $75 when I did it.

This virus is being overblown. The media is just running with it.

Actually the Media is being restrained, there is a lot that could be covered but would induce real panic.
Whoever comes up with a breakthrough treatment would be a Buy. Otherwise we are down to Utilities and long term Insurance Bonds. Also;
American Companies with no ties to Asia.
South American Commodities (unless the locust move in)

It seems to me "the markets" were waiting for an excuse to drop. I was thinking it would have been the upcoming elections, but this seems like it's going to be a better opportunity. I know that gets into the realm of conspiracy, but I'm certainly not investing heavily into anything right now. I want to have extra cash on hand to be able to buy into things if there is a major drop.

Bought 1,000 shares of Cisco at 42.50

I wish I waited 1 more day to sell the Amazon puts..

Sold some CCL July $37.50 puts for $4.60

I will be happy to exercise and get the shares for $32.90, especially come July if the virus is still a topic, we will see. Either way I am a buyer at that level.

Plus a bought couple May corn contracts, but guessing no one here trades commodities?

I'm curious to your reasoning for buying Cisco, I've been hearing nothing but negatives about it lately.

Within the Dow, six stocks hit new lows Tuesday and no stocks hit new highs. The new lows were shares of Pfizer Inc. (PFE), Walgreens Boots Alliance Inc. (WBA), Exxon Mobil Corp. (XOM), 3M Co. (MMM), Cisco Systems Inc. (CSCO) and Chevron Corp. (CVX). All worth at least taking a look at, why and when it is best to buy an oversold company. None of these companies are going out of business anytime soon. I am guessing this might be part of the reasoning, but curious as well Trekkie1978

Lots of cash, little debt, PE of 16, yield of 3.27% and at a 52 week low.

The stock market is cyclical...not only is the market cyclical, but sectors of the economy are cyclical. Hot stocks never remain the hot stocks and cold stocks never remain the cold stocks.

I just loaded up with 3,000 shares of Exxon, 1,000 shares of Cisco, additional 2,000 shares of First Solar, 3,000 shares of Conoco Phillips.

What do all these companies have in common? They are huge, massive companies. Some of the biggest in the world. Most pay a dividend. And all are at 52 week lows.

You writing any calls on them? Make about $3.50 a share if you write the $43 Jan 2021 calls.

I don't write calls after stocks sell off. I only sell them once they have a run up.

I wouldn't lock myself in for 11 months for only for $3.50...totally not worth my time.

Unfortunately WBA and XOM are my two largest positions. I'm way overweight on WBA (1500 shares and short another 15 $50 Jan 21 puts) at around 15% of my portfolio. At least it pays a good dividend, does a buyback, is an aristocrat, and has buyout chatter from last year. I've missed most of the run-up in stocks for the last decade, but I'm about 75% cash and bonds that I can use to go shopping. Also selling puts on things I'd like to own a bit cheaper like AVGO and DIS.

3M makes quality personal protective equipment, the best really. Buy recommendation.

Just to be clear so when July gets here, I don’t think Coronavirus will be a market moving topic in July. Will it still exist, probably, Will it still occasionally make the news, sure....I don’t think it will be a threat or have economic impact. I agree with your comments in that we could have an economic reduction based on other factors, sure. Reduced retail sales was a factor before Coronavirus, seeing some additional reduction in retail sales or product availability due to Coronavirus yes that seems certain. Which can effect jobs, overall company performance etc.

I just bought a leather couch and chair, delayed until June, due to China’s manufacturing and ports are backlogged.

30-40%

Give it time, this virus is just starting and the deficit has been growing for years.

To put it in perspective, the DOW was down 8.3% at the closing bell yesterday from the high on 2/12/20. It does not take much to get to 30% which would be DOW 20686.

The Olympic committee announced yesterday they have a 3 month window to decide if they are going to cancel the Olympics, and flatly stated it will be canceled if a pandemic is happening. Brazil just announced their first case of the virus. Iran which has porous borders has lost control of the virus already.

What's the easiest way to short the market currently in ETF format? Like I know there's SQQQ ETF, what other easy options are there like that? Not sure I like SQQQ because it's too short term, I'm thinking downward over the next 6 months.

I wouldn't be shorting the market here...it already had a massive selloff.

So far today it's done exactly as I expected bounce, then sink...

You could buy puts in QQQ. Replicates the NASDAQ. Pretty expensive premiums.