I prefer after because you avoid big swings. I don’t see an advantage of buying before a big event unless you know the outcome of the event which would be insider trading. It’s unnecessary risk.
I read about a guy who ran a commodity trading team before hurricane Katrina. Everyone knew the hurricane was coming, but the severity and impact on oil drilling and refining was unknown. People were really just guessing. He made the firm close all oil positions before the hurricane hit. His reasoning was after the hurricane impact is known, the direction of the move will be certain, and the oil price move will last months. It’s better to preserve capital, miss the initial move, and buy after the outcome is known. They had a record profit the year after the hurricane.
I guess the opposite question from pandey@hotmail’s Qn
Say, you bet the farm(@40% of your portfolio value at that time) on one single stock, and it’s up 40% in the last 7-8 months, what do you do before the results? Sell options on it? Reduce stake but not sell the WHOLE lot? Of course, I believe it’s a great stock long term, but should I take some profits off?
Theoretical question is impossible to answer. Case by case.
Hedging an existing postion?
Sell covered calls? limit gain, still unlimited loss.
Long puts? unlimited gain, limited loss. need a little cash standby or use a little margin.
Open a new position?
Long underlying, unlimited loss and gain
Long call, unlimited gain and limited loss
Red arrow means still trading within the triangle, support is the bottom up trending line. Even so, usually it would either break slightly below or reverse before hitting.
Blue arrow means breakout, would establish a new ATH higher than $101.15. Careful with fake breakout, the norm is +3% above the resistance downtrending line to confirm is a true breakout. So if you go long upon breakout, need to place a hard sell stop just below the support line.
@marcus335 Any plan to scale into new ideas in this correction or sticking with TWLO, UI, and SHOP? My cloud portfolio comprises four stocks: TWLO, SQ, VEEV and OKTA. Sold off SPLK and SHOP and they have yet to pull back low enough. Was thinking of TEAM like @pandeyathotmail, but it keeps shooting up.
MF pumping OKTA hard. Many articles recommending OKTA. After the first article, scroll down for five more articles recommending OKTA as the stock to invest for long term.
“The modern world demands ‘zero trust’ approaches to security, which in turn are predicated on effective Identity and Access Management (IAM) to ensure every user and entity is permissioned, authenticated, and entitled per defined policies and constraints. We believe pure-play vendors like Okta, Ping Identity Holdings (PING) and CyberArk are the largest beneficiaries.”
In addition, Needham analyst Alex Henderson is upbeat on Okta.
“We continue to believe that Okta is becoming the de facto leader in cloud identity and see identity as a crucial element of Zero Trust network architectures, which we view as the future of security,” he said in a report published on Wednesday.
The IBD buy point is a buy signal for momentum traders. The five stocks mentioned in the article are: CRM, SPLK, TEAM, AYX and CYBR. I own none of them and interested in SPLK and TEAM.
Was a mispricing this morning. 10 for 1 conversion, should be $7.30 (yesterday close), it traded at $6.25, so I bought, the account doesn’t have much cash in it so can’t buy more. Now is about right
TWLO is down in earnings. It’s most likely the forecast of 30% revenue growth this year which would be a big slowdown from 65% in Q4. They are projecting Q1 growth of 44%. I’m sure they’ll get asked about the slowdown in growth.
The chart shows it might decline to $115-$125 zone is why I cut 1/3 off. Shoulda cut 100% off
It is bouncing back though. I have placed GTC purchase of calls equivalent to price $120, prospect of getting them 2mrw is not good.
, PING and CYBR.
equivalent to price $120, prospect of getting them 2mrw is not good.