Investing megathread extravaganza

[DaFace]

A place to talk about investing stuff.

[JohnnyHammersticks]

Originally Posted by wutamess

Thinking of getting 50 shares today... Good buy and hold you think or look elsewhere?

I defer to TigerUppercut, but here's what I've found out. They have 2 drugs currently in clinical trials with decisions expected this year on both, each could be the first drugs approved for the conditions they treat. I've heard that if one is approved, it should be a $60 stock, if both are approved, it could be an $80 stock. I heard this online from someone I have no track record on, so take it with a grain of salt obviously. The company is burning through cash pretty fast, so I presume they would need at least at least one of the drugs approved or they may have to issue more shares which could dilute the price. I haven't read through all their recent filings, so I don't know how much they have in terms of cash reserves.

Here's a recent article from Motley Fool. https://www.fool.com/investing/2017/...ady-up-an.aspx

My call would be to buy on dips, like now. Monday morning may be a good entry point.

[scho63]

Originally Posted by wutamess

I'm trying like hell to understand that pic and how it made you money.

I will explain it to you. Stock Option trading is not for unsophisticated investors. I recommend you read through this if you have any interest in options.
http://www.cboe.com/learncenter/pdf/understanding.pdf

At roughly 10:15 am on Friday morning, I entered a LIMIT order to buy 50 CALL OPTIONS to OPEN on Tesla for .40

Each contract controls 100 shares so I had control of 5,000 shares of stock. When you initiate a new position, it is called to OPEN and when you sell it's called to CLOSE. You can also SELL an option to OPEN a position but that is even more advanced on naked call selling. SUPER DANGEROUS!

The strike price was $265 and at the time I did the order, the stock was around $263, so I was still two dollars "out of the money", not counting the .40 per share I paid for the contracts. The option of .40 would be multiplied by 100 and equals $40 per single contract. It gives me the right to buy 100 shares of Tesla for each option contract.

At 10:17 the options order began getting filled in 3 blocks, 30 contracts at .40 ($40) for $1221, then 10 at .40 for $407 and then another 10 at .40 for $407 for a total of 50 contracts @ $2035, which INCLUDES commission.

Then as the stock began to rise close to the $265 strike price well before the end of the day, the options shot up to around .65-.80 around 12:10 pm.

I then began to enter sell orders in blocks of 10 contracts at MARKET PRICE to ensure the options sold. Then at 12:12 pm the options started to sell; 3 at .72 then 3 at .72 then 2 at .73 then 2 at .74 then 20 at .67 then 20 at .75 for a total of 50 sold contracts at a total sales of $3,509.85 INCLUDING COMMISSIONS.


So the end results:
50 bought at $2,035
50 sold at $3,509.85
Profit $1,474.85 in two hours.

The times stamps are on each executed trade, hour:minute:seconds

$1,474.85 / $2,035 = 72.5% profit

[wutamess]

Originally Posted by scho63

I will explain it to you. Stock Option trading is not for unsophisticated investors. I recommend you read through this if you have any interest in options.
http://www.cboe.com/learncenter/pdf/understanding.pdf

At roughly 10:15 am on Friday morning, I entered a LIMIT order to buy 50 CALL OPTIONS to OPEN on Tesla for .40

Each contract controls 100 shares so I had control of 5,000 shares of stock. When you initiate a new position, it is called to OPEN and when you sell it's called to CLOSE. You can also SELL an option to OPEN a position but that is even more advanced on naked call selling. SUPER DANGEROUS!

The strike price was $265 and at the time I did the order, the stock was around $263, so I was still two dollars "out of the money", not counting the .40 per share I paid for the contracts. The option of .40 would be multiplied by 100 and equals $40 per single contract. It gives me the right to buy 100 shares of Tesla for each option contract.

At 10:17 the options order began getting filled in 3 blocks, 30 contracts at .40 ($40) for $1221, then 10 at .40 for $407 and then another 10 at .40 for $407 for a total of 50 contracts @ $2035, which INCLUDES commission.

Then as the stock began to rise close to the $265 strike price well before the end of the day, the options shot up to around .65-.80 around 12:10 pm.

I then began to enter sell orders in blocks of 10 contracts at MARKET PRICE to ensure the options sold. Then at 12:12 pm the options started to sell; 3 at .72 then 3 at .72 then 2 at .73 then 2 at .74 then 20 at .67 then 20 at .75 for a total of 50 sold contracts at a total sales of $3,509.85 INCLUDING COMMISSIONS.


So the end results:
50 bought at $2,035
50 sold at $3,509.85
Profit $1,474.85 in two hours.

The times stamps are on each executed trade, hour:minute:seconds

$1,474.85 / $2,035 = 72.5% profit

How often does something like this happen for you?

[Amnorix]

Originally Posted by wutamess

How often does something like this happen for you?

And how often does it go the other way?

The main reasons i wouldn't get into this is because -- I think -- as fast it goes up, it could have gone down, and it's pretty damn tough to know which way it will go. Even if you think you know, in the short term MANY other factors could come into play, including alot of stuff that has nothing to do with the company specifically, but rather deal with the broader market.

Seems super dangerous, tbh. Think I'll stick to boring and safe (relatively speaking).

[TigeRRUppeRRcut]

Originally Posted by wutamess

Thinking of getting 50 shares today... Good buy and hold you think or look elsewhere?

Sorry I haven't seen yours and JHS' posts til now. I'm big on these start up drug companies that have control over future profits of novel drugs that they want to bring to market.

Portola had a minor hiccup last Fall when they applied for approval but the indication from the FDA was 'hey we know your drug works but you're getting a little eager... So quit being rookies and see you again in 6 months'. PTLA already applied for FDA approval on their other drug, betrixaban. In second quarter they are expected to reapply for approval of andexanet Alfa which is expected to go thru. Their clinical studies so far have been compelling. Warfarin will be a thing of the past if this drug goes thru.

[TigeRRUppeRRcut]

The one I'm kicking myself over is not buying more esperion therapeutics a few months ago. FDA approved their drug and they exploded 74 percent today

[scho63]

Originally Posted by wutamess

How often does something like this happen for you?

Originally Posted by Amnorix

And how often does it go the other way?

Seems super dangerous, tbh. Think I'll stick to boring and safe (relatively speaking).

I have about a 34% win ratio. While that seems really low, in the options market you may put up $1,000 and get back $7,500.

If you keep you initial investment at the same level all the time, you can do pretty well.

Where people, including me get in trouble is that we risk $1,000 on a few trades, make a few thousand, feel cocky and then make a real risky bet with like $4,000 and lose it all.

Discipline is paramount

Since 2009 I'm in the hole about $12,000

[JohnnyHammersticks]

Originally Posted by JohnnyHammersticks

Anyone know any good Bitcoin/Crypto currency-related potential moon shots? HIGHLY speculative, but they could explode if things go the right way. I'm looking at $BITCF right now. Don't even know if it's a legit company yet. Trading at $0.06 OTC currently.

Talked myself out of this one after reading their filings. Still don't know if $BITCF is a legit company, but the ****ing thing is up to $0.15 now. Could've made 150% in less than 2 weeks...

[JohnnyHammersticks]

Originally Posted by JohnnyHammersticks

Talked myself out of this one after reading their filings. Still don't know if $BITCF is a legit company, but the ****ing thing is up to $0.15 now. Could've made 150% in less than 2 weeks...

Now it's at $0.27

[FD]

Originally Posted by scho63

I have about a 34% win ratio. While that seems really low, in the options market you may put up $1,000 and get back $7,500.

If you keep you initial investment at the same level all the time, you can do pretty well.

Where people, including me get in trouble is that we risk $1,000 on a few trades, make a few thousand, feel cocky and then make a real risky bet with like $4,000 and lose it all.

Discipline is paramount

Since 2009 I'm in the hole about $12,000

I must be reading this wrong, it seems essentially impossible to have lost money in the stock market going back to 2009. $10,000 put into the S&P average in 2009 is worth about $35,000 today.

[Rain Man]

Originally Posted by JohnnyHammersticks

Now it's at $0.27

No worries. You can buy it in a couple of weeks when it's back at $0.15.

[ChiefaRoo]

MGM Resorts International (MGM)
Undervalued Trading at 9 times earnings
Catalysts -new casinos in D.C. and Macau China next month
Little 2% dividend
Best of breed and dominant in Vegas.

[scho63]

Originally Posted by FD

I must be reading this wrong, it seems essentially impossible to have lost money in the stock market going back to 2009. $10,000 put into the S&P average in 2009 is worth about $35,000 today.

Have you ever heard of the word "gambling"?

[ChiliConCarnage]

Originally Posted by scho63

Have you ever heard of the word "gambling"?

I think it's pretty commendable admitting your down since 2009.
Those screenshots have that handy 2 roundtrips to PDT threshold warning message at the bottom for a reason and it's not because most people who try to day trade succeed.

In other news, Settlement is moving to T+2 in September so that's nice. Tonight is the House decision on Republicare or whatever the hell it is.. should cause some action

Spoiler!

All in LABD

[FD]

Originally Posted by scho63

Have you ever heard of the word "gambling"?

Personally, I play craps.

On a more serious note, though, you should really stop "gambling" on stocks and throwing your money away since you seem terrible at it. And you should definitely stop posting financial advice for others, and probably stop posting altogether.