or Connect
New Posts  All Forums:

Posts by RedLeg

 Larger funds are all about institutional money. Smaller investors get in due to relationships they have with fund partners. We have a friends and family fund for example that co invests alongside our main fund. You don't get to $5 billion in 100k chunks
 I agree that Apple Pay is a great opportunity for them, I just don't see it being a major driver in the next 6 - 12 months. It will take some time to ramp, and Apple is such a giant company it takes a really large amount of incremental revenue to move the needle. Apple traded at 10-11x P/E back in early 2013, so their trading multiple can certainly contract from here. All it takes is a little doubt about the growth story to creep in and you'll see the stock start to fall....
  I was in Apple since the end of 2012 / early 2013. I sold my entire position last week. My concern here is that everything positive is priced in. The news from the iPhone 6 launch has been great (record sales, higher margins on the 6 plus, etc.), but the stock has gone nowhere. Any bad news and I think she pulls back. I don't see any announcements on new iPad's or Apple TV moving the needle upward either. I'll be a buyer again in the mid 80's.
 Your loss would be the drop from 90 to 80, less the premium you collect when writing the option
 You would be responsible for buying the stock at $90, so your loss you be $10 per share less the premium you received. Your max loss would be $90 per share less the premium (if the stock went to 0). While the downside seems steep, it's not as bad as if I had bought the 100 additional shares at $100 per share. Key is that I do not write more puts than I am comfortable buying outright. I always have the cash set aside.
 Will occasionally, but always cash secured out of the money. If I want to get in a stock, but I'm not sure it's bottomed, I'll consider putting half a position on, then writing puts on the other half. Stock drops a bit more, I get the stock at strike, plus the premium, lowering my entry even more. Stock bounces, consider if you want to put the other half of your position on. If not, you can pocket the premium or roll into calls.
 For anyone who doesn't exactly know what they are doing, please do not go out and write a bunch of options. Writing covered calls can be a great method to generate some additional income, but the key word is covered. I'm not as inclined to write covered calls right now given that vol is still so cheap
 Stay long and take out your anger in the sack
If we don't rebound tomorrow I'm shifting out of some of my more risky positions. I do not like that we are selling off on the back of a strong earnings season.   The market has been more or less insulated from geopolitical / macro events up until now. I'm worried short term.
Picked up PBF Energy at open this morning
New Posts  All Forums: