And protect your position with puts.
Made over 100% on earnings with the 30 puts this week. Hope you did too. I know better to turn the unrealized gains into real profits, though.
Good thing I sold some coverered calls, too.
Still have a few calls I bought for insurance, just in case.
Looking to load up at the bottom. Still like WAGs fundamentals relative to the competitive set: CVS, RAD, WMT....
Don't whine and say I didn't post prior to boasting.
As always, I am not a professional and you should not base your investments on a message board posting, right Yank??!!
But, pot/head, it was your hero "runs" that couldn't spell potatoes and also couldn't spell limerick or countless other words.
He's like Dan Quayle, replete with a diploma from the School of Fools. He even spelled Gomer Pyle as "Pile." Then, again, "runs" knows a LOT about being a "pile".
<<Most people that truly invest acknowledge both wins and losses, as I have done many, many times>>
Yank cannot even admit he spelled "potato" and "potatoes" incorrectly.
You have zero credibility.
Oh, one more thing ... on the first post in this thread he said that he protected his position with puts, now he says he speculated.
The analogy with a drunk in Vegas is right on.
Well said. While I actually agree that there is always money to be made on both the up and down side, his posts are actually silly. Probably trying to get his WAG-spouse to agree that he knows what he is doing while their investment account goes into the toilet.
"But honey, I made money on the puts because I knew that this stock I love is going to go down when they annouce horrible earnings."
"Don't worry that the old retirement account is a mess, it is a great long term hold"
"I love you honey, now go to work"
Wrong AGAIN, Yank.... I did BOTH.....
I protected the downside with puts I still own (and are up almost 200%, by the way - unrealized, of course, but I digress)
I speculated to the downside and bought puts that I sold after holding for one day and banked over 100%.
This is maybe the fifth and I guarantee final post trying to explain this to you, Yank.
I have always, ALWAYS maintained, throughout my 4+ years on this board, that there is money to be made with WAG, but one must be nimble.
You, on the other hand have whined and cried about 10 years of dead money, insider trading, pharmacist salaries, management, overhead expenses, PBMs, rebates... I could go ON and ON...
The point is that I made cash money on this stock, THIS WEEK. My portfolio value is up up up. My patience for stupid posts though, is down, down, down.
How many times do I have to Yank-slap you before you cry uncle? This is the first, though, with this particular ridiculous handle.
Ah, Yank. What would you like me to say? I'm sorry I made money on this stock? I won't.
Would you like me to tell you I thought the stock was going down? I did. And I acted on it. And I protected my position. Like any good investor would.
You're not worth my time. You're going on ignore.
Let's break this to small words.
Why did you buy the puts that made over 100% on that trade to begin with?
There are only 2 answers possible.
1) You thought the stock was going down and wanted to make money --- this is a speculative play, usually done without other positions in the stock.
2) You already had a position in the stock and you wanted to protect some of it to the down side. This is called protective puts.
You have stated that you bought protective puts, so I will take a huge leap of faith to say the what you were protecting went down in value. And this giant step, it went down a lot more than any $1 gain in the put.
But you learned your math from that Banana guy and we know his math is the same as yours.
Did you read the part of my post where I said my net position going into earnings was negative??
Gee, you forgot about that, huh?
When you have a net negative position, your portfolio of stocks and options is balanced to the downside. You do not have to sell everything to have this position.
To answer your question - The bottom line is that the net value of my entire portfolio went up in a big way. How about answering mine - What is the % gain when you buy at .95 and sell at 1.95?
And since you're having trouble wrapping your mind around that concept (I know, you buy the rips and sell the dips), I still have some (probably) worthless calls that I bought on the cheap, which WILL eat into the profits. But before you do your New School University math on me, I only spent .07 each on the 30 calls.
Hey, stay on this board and keep investing, will ya? I need someone to be the buyer when I am a seller.
Aren't you getting tired of being dominated so frequently?
OK slick ... so how much money did you lose that day? Oh that's right, you never lose money on stock you don't sell.
Am I going too fast for you. I'll slow it down. You lost money when the stock went down. The puts you bought and sold reduced your loss. Let me try this again. You lost some % of your net worth that day. The term loss is having less than you started with. You have less. Is this clear?
"Stupid is as stupid does" - Forrest Gump.....
Kind of applies, doesn't it?
OK, let's do some math....I'll let you tell me how much I made....
If bought July 30 puts at .95 on 6/21/10 and sold them at 1.95 on 6/22/10... how much was my gain, expressed as a percentage?
In real dollars, remember that each option costs 100 times the listed price, meaning each option cost me 95 dollars and sold for 195 dollars. Pretty good one day return, if you ask me....Now, multiply that by 1000... you get the idea....
That's why I am me, and you still live in a basement.
Let me understand your trades. You made money on puts, and on selling the calls. That is very good news. I think you may have left off the part where you lost a ton of money on the underlying stock itself. And why would you have protective puts as well as covered calls?
Yup, there is a lot of money to be made here, but I think your personal balance sheet took a pretty good hit, or you are net short the stock, which conflicts with your view of the company.
I think you need a lesson on options. Options were created as a way to protect yourself from losses. So, when I made money on the puts, it means I BOUGHT puts when the price was high and SOLD them when WAG sunk lower after earnings. I could still exercise the put options I am still holding, but that would mean a HUGE capital gain, since most of the lots I am holding are more than 1 year old, and since I have long term faith in this company, I won't be doing that.
Let me know when you understand options and we can talk more about it, ok?
Hey, don't believe me. It's OK. I'm not buying YOU the BMW. It's for me.
Wrong again, yank.
Yes, my held stocks long position value has decreased in the last few days. However, since my long position is just that - long - in the long term, all the "losses" are unrealized, and therefore not recorded.
By the way, it's not a loss until you sell it, and it's not even an unrealized loss until the share price dips below the purchase price.
Since I constantly modify my holdings, and buy the dips, my basis in this particular stock is quite low.
Now, to answer your alias' question, Robb -
I am constantly adding to my long position, but do so only when there's a nice dip in the share price - like right now. I haven't added quite yet, but I will be soon enough. If you add, I suggest you do so in stages. It takes disipline and nerve.
Yes, I made money on the short side in the last week and a half. Yes, my "net" position was negative, but there's nothing wrong with that. It's called hedging. I also bought puts, as well, thinking that we might get a quick bounce and I'd make money both ways. Those I am still holding, and are probably worthless, but even factoring in the worthless value of the calls, I still came out over 100% ahead. Not bad for a week's work.
Ah, what's the use, Yank. You'll never come around. It's only been four years now.