This is where it’s hard to know without knowing their full portfolio. They could just be selling OTM to create some yield. Maybe they do think it’ll rebound. It wouldn’t take much of a short-term bounce to move the price of them. We don’t need to get to those levels to make a profit. Time decay is really going against them though.
Fed will never run out of ammunition.
I liked it. I am very pleased that the market does not want to go down more even in the absence of a pssed stimulus package. (or they know it will get passed eventually).
You can only steal from someone if one has something of value that can be stolen.
Time decay is really going against them though. => With all these, they are ready to through $3M. How much they would have thought/analyzed, not an easy task even if he has $100M in cash.
IMO, no one must follow others, but analyze individually whether the stocks are at deep discount level or not. It is their money, they can through away at any time.
Even I do follow Warren Buffet and few others, but those are proven leaders on market. It is my risk to follow these leaders.
Second, no one will show openly their portfolio, not good the portfolio.
Here is my view, but do not consider this promoting buy or sell ideas. Anything I say here can be 100% wrong !
- Market brought down 30% from peak with flimsy virus Coronavirus (Yes, that is my opinion)
- Media/News always hyping higher than usual
- This is controversial, if no medicinal cure will be there even after one year from now, justifies my statement. Politicians (Both parties) scared by market reaction, creating mandatory shutdowns, so that their elections are fine. This is the reason for recession, but not Coronavirus but the scared election minded politicians.
- The above is almost equal to government shutdown for 35 days. You will not see 30% reduction in company profits in the coming quarterly reports which is just 21 days ahead.
- FED is reducing interest rate is extra-ordinary positive to market.
- FED pumping unlimited bond buying extra-ordinary positive to market.
- Fiscal stimulous discussion is extra-ordinary positive to market.
- Now, most of the retail investors are scared to touch the stocks, some are even selling the good stocks by seeing the news hype.
- Buffet is buying week after week (already posted). Other hedge funds may also do which we may see only around May middle.
- VIX going down, when market going down, means spy puts are getting released or no one is eager to get spy puts.
With all these, market is going down is wrongly pricing it.
My rule: When fundamentals are looking positive, market is mis-pricing the equities, is an anomaly, and it gives me advantage of buying at low price. I did buy GOOGL and AMZN when market priced them wrongly. Similar to it, now market is pricing wrongly with lot of positive fundamentals.
If they are selling covered calls, they just pocketed $3M for calls that aren’t likely to be hit.
Good guess , but covered call means selling the calls, not buying it right.
Risk is entire net worth thrown away when market goes up and exercised it and owner needs to pay hefty tax on sale !
Normally, people will buy productive puts, not covered calls during this volatile period.
David Webb, a famous investor in Hong Kong, has been bottom fishing. I can only find Chinese source.
Well let see what’s better than QE to infinity.
There’s always a buyer and seller for each transaction. I doubt they can even tell if it was the same person.
Sure,I agree, but I am pointing the buyer…who is seeing positive growth on stocks, risking $3M
Ever heard of the trillion dollar coins?
Also Fed is only buying bonds now, and high grade ones. They could lower the grade req. Bank of Japan actually directly bought stocks if I remember right. Wait until Fed buys FAANG stocks.
BBB is close to junk status. And let’s not talk about what happened to Japan.
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Here is another Professional HedgeFunds Billionarre buying stocks. Billionaire investor Bill Ackman is an “aggressive buyer” of stocks as the coronavirus pandemic bleeds markets, having bought “around $2 billion worth of equities” in the last ten days. A 'very bullish' Bill Ackman is an 'aggressive buyer' of stocks in coronavirus panic
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See finviz insider trading for NRZ, all the directors bought 10000 shares each at $5.x range on Mar 18 & 19th !
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I just bought some IVR around $5.x, it has 0.50 dividend so far not revoked yet.
The Company’s Board of Directors declared a cash dividend of $0.50 per share of common stock for the first quarter of 2020. The dividend will be paid on April 28, 2020 to stockholders of record on March 30, 2020, with an ex-dividend date of March 27, 2020.
Let us see how it goes. IMO, expecting real estate issues at par with 2008 downturn, these equities are corrected 68%, but I think correction is way over done than actual. Only time will tell us what is right !
I have got this suggestion, as per picture, but would like to review the situation, if I assume market is going up to S&P 2700-2800 by May-Jun 2020
Okay, I risk my money, no issues, first two options ready to lose 100% cost. The last two are fine, but expensive, but first two are cheaper, Based on these, @hanera review which is better?
I have few scenarios, let me know which is better? I know 3 & 4 are expensive, but would like to know which is best you will choose?
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PUT (VIX) CBOE MKT VOLATILITY MAY 20 20 $20 for 20 cents/option
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CALL (SPY) SPDR S&P500 ETF JUL 17 20 $300 for 84 cents/option
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LEAP CALL (SPY) SPDR S&P500 ETF DEC 16 22 $250 for $24/option
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LEAP CALL (SPY) SPDR S&P500 ETF DEC 16 22 $225 for $35/option
Suggestions
Prep your mask or die with money
Get rich or die tryin
The bloggers in the image are pretty good.
Frankly I don’t follow VIX or SPY at all.
Thought you can use the trading platform to analyze?