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Post by dreamboatcruise on Jan 2, 2018 13:55:19 GMT -5
Thank you all for the feedback! Especially sports, baba and Matt. I will check out that book Baba. Matt, your rec may be over my head? I definitely don't have any university level finance education. I'm a chemical engineer and dermatologist, so I consider myself to be relatively intelligent and good at mathematics....but I'm starting to feel a little over my head! I bought a ton of it when it was under a $1. I sold a bunch when it was in the $4 range, but still own a little over 200k shares, and it has ballooned to account for a pretty large % of my portfolio. I still strongly believe in the potential, so I'm hesitant to sell much more right now (especially as I like it at this price). I'm trying to figure out a way to stay heavily invested, but limit the downside risk. Sounds like there is some debate on if call options are the right approach to accomplish that. Maybe some puts instead? Or some $1 strikes for 2019, so I can still benefit on the upside, but can buy my shares back cheaper if they drop? Sorry, I know my options lingo is showing how little I really know about them! but I agree with you mytakeonit....the fastest way for me to learn is to just put a little money on the line! I will emphasize the 'little' part I realize its probably time to just hire some professional help, but I would still like to understand it a little better before that. Plus I really enjoy it! Maybe I should call up Aegis?? Kidding of course!! Sports, did you end up buying 2019 leaps today? Do you mind telling me what strike price and premium? epc, sounds like you have played this well, consider not changing much at all! Sports can get you all excited over options, but watch out, especially short term options. But you might want to someday find the world of selling naked puts. But that day is not now, for the most part. The time for that is after a big correction or toward the end of a bear market. It's like stealing at that point. Ah, yes, all the times I thought my naked selling of puts was when we were at or nearing the end of the long MNKD bear market/mauling. It was indeed like stealing, but not so much so that I could actually file a police report.
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Post by sportsrancho on Jan 2, 2018 14:00:15 GMT -5
Thank you all for the feedback! Especially sports, baba and Matt. I will check out that book Baba. Matt, your rec may be over my head? I definitely don't have any university level finance education. I'm a chemical engineer and dermatologist, so I consider myself to be relatively intelligent and good at mathematics....but I'm starting to feel a little over my head! I bought a ton of it when it was under a $1. I sold a bunch when it was in the $4 range, but still own a little over 200k shares, and it has ballooned to account for a pretty large % of my portfolio. I still strongly believe in the potential, so I'm hesitant to sell much more right now (especially as I like it at this price). I'm trying to figure out a way to stay heavily invested, but limit the downside risk. Sounds like there is some debate on if call options are the right approach to accomplish that. Maybe some puts instead? Or some $1 strikes for 2019, so I can still benefit on the upside, but can buy my shares back cheaper if they drop? Sorry, I know my options lingo is showing how little I really know about them! but I agree with you mytakeonit....the fastest way for me to learn is to just put a little money on the line! I will emphasize the 'little' part I realize its probably time to just hire some professional help, but I would still like to understand it a little better before that. Plus I really enjoy it! Maybe I should call up Aegis?? Kidding of course!! Sports, did you end up buying 2019 leaps today? Do you mind telling me what strike price and premium? epc, sounds like you have played this well, consider not changing much at all! Sports can get you all excited over options, but watch out, especially short term options. But you might want to someday find the world of selling naked puts. But that day is not now, for the most part. The time for that is after a big correction or toward the end of a bear market. It's like stealing at that point. Is that what you call a exciting naked put:-) It does take quite a bit of paperwork to get your brokerage account to let you do that. Right? So baba when MNKD gets going...pretty much we should all be selling naked puts. And then use that premium money to buy more calls:-)
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Post by babaoriley on Jan 2, 2018 14:05:55 GMT -5
Buy government bonds!
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Post by sportsrancho on Jan 2, 2018 14:08:06 GMT -5
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Post by dreamboatcruise on Jan 2, 2018 14:09:49 GMT -5
I'm putting all my money in bitcoin... and tulip bulbs.
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Post by agedhippie on Jan 2, 2018 15:04:17 GMT -5
I still strongly believe in the potential, so I'm hesitant to sell much more right now (especially as I like it at this price). I'm trying to figure out a way to stay heavily invested, but limit the downside risk. Sounds like there is some debate on if call options are the right approach to accomplish that. Maybe some puts instead? Calls will do what you want, but they limit your loss to what you paid for them. I would suggest using a paper trading account to play with nearer term Calls to get a feel for how they work. I use options a lot and have lost a packet on LEAPs with Mannkind over the years. I like LEAPs though because they give time for things to come right. I am using warrants as an even longer options a fair bit now, but not with Mannkind (I don't think Mannkind have tradeable warrants) On the otherhand I had a straddle (if the price goes significantly up or down I win, if it stays in a tight range I lose) in place when that $6 spike hit and made out like a bandit, quadrupled my money and more than offset all my LEAP losses. While I would like to claim it was skill it was in fact pure luck, I never expected that size move and would have settle for a 10% gain.
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Post by casualinvestor on Jan 2, 2018 15:59:33 GMT -5
My opinion on it is that options (by themselves) are a great way to trade bigger with less money invested. But the potential for loss or gain is similar. I decided to stick with long term trading, until I'm retired anyway.
Long term calls, just like buying and holding stocks, are great in the bull market we've had for the past 10 years.
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Post by sportsrancho on Jan 2, 2018 16:05:12 GMT -5
My opinion on it is that options (by themselves) are a great way to trade bigger with less money invested. But the potential for loss or gain is similar. I decided to stick with long term trading, until I'm retired anyway. Long term calls, just like buying and holding stocks, are great in the bull market we've had for the past 10 years. I hear ya. I’m trying to get retired, so I’m going to do it the other way around. I’ll buy shares in those good companies with the big dividends after I retired:-)
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Post by babaoriley on Jan 2, 2018 16:20:50 GMT -5
Sports, c'mon, you're hooked on options, you're kidding yourself if you think you'll take your money and buy XOM, T and the like - by the time the MNKD story plays out, you'll have figured another stock or two on which to place your bets. Compared to the action we see now, that would be like watching paint dry. But, it's actually the best way to go (financially), unless you get lucky. I'm trying to transition over, but I'm ancient compared to you.
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Post by sportsrancho on Jan 2, 2018 18:25:08 GMT -5
Sports, c'mon, you're hooked on options, you're kidding yourself if you think you'll take your money and buy XOM, T and the like - by the time the MNKD story plays out, you'll have figured another stock or two on which to place your bets. Compared to the action we see now, that would be like watching paint dry. But, it's actually the best way to go (financially), unless you get lucky. I'm trying to transition over, but I'm ancient compared to you. Lol, you are so right! I’m going to have to limit myself to say $100,000 for trading. And let the rest work for me compounding dividends.
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Post by mytakeonit on Jan 2, 2018 19:19:31 GMT -5
Okay ... so maybe I was wrong and options are the way to go.
But then ... where did all this $$$ come from that I don't have to work?
Oh woe is me ... what to do? Ha!
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Post by mytakeonit on Jan 2, 2018 19:27:34 GMT -5
$100k ?? Okay sports, what kind of gains are you showing and maybe I'll send you another $100k to work for me. And btw, I love paying taxes ... because then I know I'm making $$$.
AND, I'll tell Warren Buffet that he's been doing it all wrong from the start.
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Post by sportsrancho on Jan 2, 2018 19:34:25 GMT -5
$100k ?? Okay sports, what kind of gains are you showing and maybe I'll send you another $100k to work for me. And btw, I love paying taxes ... because then I know I'm making $$$. AND, I'll tell Warren Buffet that he's been doing it all wrong from the start. I totally get your point, but you have to understand I started with only $40,000 in 2010. I haven’t had very much time:-)
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Post by mnholdem on Jan 2, 2018 19:40:29 GMT -5
Sports, c'mon, you're hooked on options, you're kidding yourself if you think you'll take your money and buy XOM, T and the like - by the time the MNKD story plays out, you'll have figured another stock or two on which to place your bets. Compared to the action we see now, that would be like watching paint dry. But, it's actually the best way to go (financially), unless you get lucky. I'm trying to transition over, but I'm ancient compared to you. I wholeheartedly agree with you, baba. I don't think I could endure sportrancho's exuberant "OMG!" being replaced with, "Now that's a nice little 0.8% dividend." Then again, if she's busy travelling around the world doing all the things on her bucket list, she might prefer a portfolio that doesn't require so much of her time. I'm looking into cannabis stock that I'll call a "potfolio". Speaking of long-vs-short term options, my May 2018 Calls jumped 47% today and if I were to sell them tomorrow for the same price as today, I'd lock in 118% after commission. Not quite ready to sell those...I want to see what January brings.
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Post by sportsrancho on Jan 2, 2018 19:46:11 GMT -5
See you guys, I told you! mnholdem knows when to buy them..and knows when to holdem:-))
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