Which stonks are you buying if any?

[MultimediaMan]

Tesla being setup for a (Big) fall? https://jalopnik.com/tesla-would-tak...unt-1846044574

[dZeus]

Tesla being setup for a (Big) fall? https://jalopnik.com/tesla-would-tak...unt-1846044574

As much as I've been tempted to, I'll avoid shorting Tesla. Maybe CDS is a better way to play this, but not really accessible for small retail investors like us.

In general tech industry valuations seem completely off right now, especially with the world awaiting another massive flare-up with the British and South-African variations of covid (check the situation in London and prepare for the same to arrive elsewhere in the next 2-3 months).

[Umfriend]

Why would a CDS be better than a put option on equity?

[UtwigMU]

Why would a CDS be better than a put option on equity?

Which brokerages are you using?

[Umfriend]

Which brokerages are you using?

The little I do in active portfolio management I do through ABN AMRO. And I only do stocks which are listed on the Amsterdam stock exchange.

[dZeus]

Why would a CDS be better than a put option on equity?

I haven't really ventured much further than buying shares, so perhaps a put option is better than CDS. Can you easily roll over put options if the share price hasn't gone down to the point you anticipate and the option is somewhat close to expiration?

Anyway, I think I'll just stick to buying shares when I think they're undervalued, and selling when they are topping out over the medium-long term.
Might need to wait another 5 years before the share price of IAG goes up enough to recoup my losses... rofl (if shareholders don't get wiped out completely, which I would expect to happen when the vaccines don't protect against the dominant mutation-du-jour)

The fact that for the first time I've invested in shares this year (like many other people that I've talked to) as well as the popularity of platforms like RobinHood make me fear there's a lot of 'bigger fools' in the market right now (probably am part of that gang myself). Still doubting whether I should sell all and take my 20% YoY return, and wait for a pull-back to buy in again, or wait for further long term gains (most of my shares are still only at 1/2 their pre-Covid price).
With the massive stimulus coordinated world-wide without substantially rising government bond rates, I guess it is relatively safe to stay in shares for now...

[Umfriend]

So I don't advise on portfolio management and even if I did, I am a bad investor so I would advise to ignore anything I say. However....

What do you mean by rolling over put options? Say the S=50 and you buy a put for 1 month at X=40 and pay 2 for that. If one day prior to expiration S=41 (or higher), the value will still be close to 0 and you may lose the whole 2. You can of course then buy another put for the next month at X=40 (or 35 of whatever). You can, close to expiration, try to sell the short put and buy a longer put to avoid a bit of bid/offer spread but for OTM options it does not do much unless you buy many many options I think.

Personally, I went in "big" for me during March-May because of my strategy of writing/shorting put options and I got a load of shares (in just five companies). But once I had them, I would start shorting call options on them such that the strikes for X-shares were a bit above the strikes against which I got them. The idea being that at least I get a bit of premium and if I do get hit (assigned), I sell them at a bit more than what I paid for them. Basically a laddered last-in-first-out mechanism. As long as I have shares, the cost of the ones I have will always be above the current market price but combined with the premiums I might do well. With 3 of the 5, I am now cash positive _and_ have 100 shares in portfolio that I'll keep.

I am doing very well (again, it's not like I am trading 100K or anything) because the market, IMHO, is crazy. So I am now more back to holding cash instead of equity and have no real intention of going in for a while. May change a bit AIW I get to be cash-positive with the last 2 equities as well. To address FOMO, you could consider just putting small monthly amounts in a number of equity funds (which I do anyway).

[UtwigMU]

I got 15 EUR in dividends after taxes today. Enjoying that passive income.

[Dr Mordrid]

Tesla Q4 2020 earnings call set for January 27.

Their Full Self Driving system (NOT Autopilot!) and neural network continues to evolve and is in public beta. Besides the massive new software suite, and the Dojo supercomputer for training their vehicle neural networks, their radar sensor system gets an upgrade;

From the filing,

The equipment under test (EUT) was a Vehicle Millimeter-wave Radar Sensor operating in 60 GHz band (60-64 GHz)

The Model Y crossover SUV gets a 5-star safety rating from NHTSA, and the 3rd row seat/7 passenger & standard range version are appearing .

[Umfriend]

I got 15 EUR in dividends after taxes today. Enjoying that passive income.

ROFL! But yeah, the idea that thousands, tens of thousands of ppl worked hard to get me (you) that EUR 15 is strangely satisfying.

[dZeus]

I bought my current shares in March, mostly for dividends (except IAG). I guess they should provide a pretty good return in the long run, so I'll wait this out unless valuations really go out of wack (like seen with technology sector shares).

Adding a monthly amount sounds like a good plan.

[Umfriend]

Adding a monthly amount sounds like a good plan.

Depending on how much that monthly amount would be, the real thing is transaction cost. I invest tens of euros in about 7 equity/mutual funds each. You can't do that with stocks as transaction costs would be killing. I would prefer to do this with trackers (low management cost) but they run into the same transaction costs. With my bank at least, I can periodically invest small amount in certain (about 200+??) mutual funds at zero transaction cost (but a sell might be charged at regular equity transaction cost) but of course, there you are implicitly charged management fees, about 1.1% p.a. I think.

[UtwigMU]

Depending on how much that monthly amount would be, the real thing is transaction cost. I invest tens of euros in about 7 equity/mutual funds each. You can't do that with stocks as transaction costs would be killing. I would prefer to do this with trackers (low management cost) but they run into the same transaction costs. With my bank at least, I can periodically invest small amount in certain (about 200+??) mutual funds at zero transaction cost (but a sell might be charged at regular equity transaction cost) but of course, there you are implicitly charged management fees, about 1.1% p.a. I think.

I have one long term saving mutual which I shifted to Murica stocks (need to rethink shifting that after Biden win) where I invest 10s of EUR monthly on autopilot.

The bank owned brokerage I have has high transaction costs but they do all taxes and real people answer emails and calls. Around 0.,5% transaction costs and because of high minimum purchases it's optimal to buy 2.5k foreign stocks or 800 EUR Slovenian stocks. So I buy stocks quarterly. With quarterly strategy some months are better than others. January-February and September-October are common low market periods.

IBKR allows put / call options.

[Umfriend]

I can trade at E4 + 0.04% on the Euronext exchanges, NYSE, Nasdaq, Milan and Swiss exchange. But I do pay E48 p.a. fixed fee and 0.2 p.a. holding fee as well.
I do have real people on the helpdesk.

Options are E2.25 per contract. EUR 0 for closing out with premiums of 0.10 or lower. I have a bit of a beef with that because closing out at 0.11 or 0.12 is actually worse then closing out at 0.10.

There are cheaper brokers available but as I invest out of my "company", many of those won't serve me.

[UtwigMU]

One word: gamestonk

As WSB said: We can stay retarded longer than they can stay solvent.