What were you saying?
I posted a while back that DLNG was not ready for prime time.
Maybe when we get close to ex date will the lemons pile in and run the stock up.
Better to buy a stock that is going up rather than down or marking time.
I just bought a great stock last week that pays 6.9% and pays it monthly. It is breaking out and will probably run hard since Moe Munchkin at the FED cannot ever raise interest rates for the foreseeable future.
Forget what the herd says as far as P/E ratios. They will be wrong as the P/E get larger and the DOW crosses 20,000
What would u say if I told u the Dow will catapult up to 20,000 by years end?
Buy a DOW etf and hang on because that's going to be a hell of a ride.
Now do u know why I think the DOW is going on to 20,000?
look to Europe for a hint and BREXIT.
BTW, Dow ETF's were up today and DLNG was down over 4.7% and down another dime after hours.
The last 10 min volume was very large on the downside compared to normal.
I'd be careful adding here. No divvy for 2 more months. Why buy a stock that is dropping while the general market appears to be heading for a high new???????? WELL???
Dropped 23 cents in 10 minutes. That isn't good. More sellers than buyers.
I took the fund that I was going to buy DLNG with and bought a Nasdaq ETF Much better chance of making money.
And this is EXACTLY why I wait until there is a FIRM MACD crossover.
DLNG failed that crossover and is not ready for prime time. Maybe when we approach the ex div date the lemons will pour into DLNG giving investors an out. I suspect DNLG is heading back down.
Which is why I posted that MACD needs to go positive and it is just meandering around 0. If that goes positive then I will have more confidence it will move up.
Then again as every month Moe Munchkin at the Federal Reserve needs to open up her pie hole on whether she should raise the interest a lousy 1/4 point. Just goes to show just how bad the whole word's economy is.
Technical indicators look like DLNG is ready to move up. I made that prediction in an earlier post this morning.
MACD needs to go positive and I will buy. I also think the DOW is getting ready for a move to $20,000.
I get to keep all the premium because at this juncture DLNG appears to be ready to take off to the upside. All those PUTS the investors bought from me are pretty much worthless.
Bunch of novices? Maybe. BUT....the annual trading volume for the S&P 500 has been declining for the past twenty years. Might be why many hedge funds are closing up shop and liquidating.
I suspect you will be gambling with less "investors/traders" than you have been. Not sure who is going to sell to you since Ma and Pa left the casino a long long time ago. We even have huge public pension funds demanding a seat at the directors table to try and make management take more risky investments to increase the pension plans yield..
You sure know how to make a thread quite complicated for the average reader who doesn't need to know this stuff to get a elementary look at put options..
the angle of the dangle is equal to the square of the mass divided by the cube of....
"If I'm up a pile of $ in an investment and I want to insulate myself from a possible pullback I BUY puts."
Why would you not sell CALLS? That way YOU are pocketing the commission instead of paying out via buying puts? If the stock is called because of the underlying stock going up, so what? Now you got paid for the call and the sale of the stock? WHY PUT CAPITAL OUT WHEN YOU CAN BRING IT IN? And you still collect the divvy unless the stock gets called away before expiration ...........usually to get the divvy. Unlike European options that only get called or PUT on the day of expiration. The US Wall Street Alpha thugs just make more money the US version.
I'm trying to get you to understand there is another way to make money
I'd rather collect the $3500 in the example. How long will it take to collect $3500 of distributions with the same amount of allocated funds?
as requested by paladin and hanna on May 5 & 6
Most investors/gamblers lose money trading options. Why? Because most buy DEEP OUT OF MONEY CALLS and puts. So my #1 rule is never buy calls or puts.
The way to make money in options is to sell calls and sell puts. Preferably COVERED so one can sleep. Covered means you either own the stock with calls or you have enough capital in your account to cover the PUT option if the stock is put to you. And never sell puts on stocks you do not want to own. Just a few simple rules nets good and sometimes very fast money.
Let's say I sold 10 june 17 puts strike price $30.00 (1000 shares expiring 17 June of this year……. 1 PUT = 100 shares) on XYZ for $3.50 netting me before commissions $3500.00. Say XYZ is trading at $30.00 share so if the stock is PUT TO ME on or before expiration my cost is $26.50 a share. THAT'S assuming the stock is trading at $30 or under otherwise no one would exercise the option to PUT the stock to me. If it were PUT to me and I don't want it, just sell the stock immediately and get out of the position otherwise keep the stock at a cost basis of $26.50.Of course you can always go back into the market and close out the option by buying it back. Place order " buy to close" put position.
In any case I KEEP THE $3500.00
I hope this is a good explanation for investors on this board who want to learn a little about options trading.
Yeah! Yellen having tea with POTUS in the White House convinces me that the Federal Reserve Bank and banksters are running the country and own just about every Congress critter as well as the Supremes.
BOW DOWN TO THE INVINCIBLE POWER OF THE INVISIBLE HAND
One would think with this terrible jobs report this morning that the Dow would have collapsed.
BOW DOWN TO THE INVINCIBLE POWER OF THE INVISIBLE HAND
I will put something together this weekend for hanna and for you paladin on put options.