We Are in Bear Market


#804

Apple is the easiest one for me. They aren’t going anywhere, although growth is slowing as they are close to saturating the high end of the mobile phone market. It will be a value stock at $120/share. If it gets there, load up on it.

Facebook is harder. They own some incredible assets like Instagram but the outlook there is cloudier given likely regulation and it won’t be a value stock for another $100 of losses.

Assuming this is another WB style investor, he is waiting for 30% margin of safety to buy. Hence,
intrinsic value of AAPL = 1.3 * 120 = $156, FB = 1.3 * 30 = $39 :sob:


#805

That guy is full of crap. Ignore him.


#806

Lol if it gets to that point, this forum is shutting down for sure.


#807

That’s the final capitulation. :smile:


#808

I will also be a buyer of AAPL if it falls to $120. :raised_hand:


#809

We need wqj to do some scuttlebutt for us. Find out what TC/ Luca plans to buy at :slight_smile: We can then front run them.


#810

How would I know… :rofl:


#811

If people are ready to buy at $120 or $150 and they expect the price will come down to that level, it shows downward trend, then selling my current AAPL at 10% loss now is justified as I can get more qty at those prices :rofl:


#812

Actually, you acted without consulting me :hot_face: Say you think AAPL would hit $150 by Jan OE, and willing to sell now and try to catch back at $150, you can sell calls (Jan OE $165) @$13.80 vs your holdings.

Should AAPL continues to rally, you have effectively sell AAPL at $179 instead of $172.
If it did drop to $150, you can buy back the calls for peanuts :slight_smile: and won’t jeopardize your route to long term :heart_eyes: capital gain.

Now, you need to read more about options :slight_smile:


#813

Investing is never for any kind of short sighted gain. Stop leading people down the wrong path.


#814

Talking to me? This is not short sighted gain, this is hedging!!!
Hedging is not limited to long puts.
Got collar, zero collar, short covered calls, …
At times like this, is good to do some hedging rather than just liquidate the position.
Is the opposite of in a bull market when you want to enhance gain but putting on margin like 30% as you suggested.


#815

Have you made more than $10k in your lifetime from this kind of “hedging”? I suppose not…


#816

Can’t tell you :grinning: Is a trick question. Remember he is willing to sell at $172, and plan to buy back at lower price. Have he said he sold AAPL and be done with AAPL, I won’t suggest this at all.


#817

If easily swayed should have done DCA instead.


#818

Sell. Everything. Now. :scream:


#819

To sow even more doubt let’s not forget apple is the only FAANG with meaningful revenue from China. In case Trump and Xi can’t get along next week…

:scream: :scream: :scream:


#820

#821

Fear Uncertainty Doubt


#822

Trump is such a loser. Can’t he just drop dead.


#823

I have tried once, but system did not allow me. Some how that kind of options I was not eligible. I need to talk to representative to enable.

Since you have such option, try with TSLA at $250 or $300 sell call option. I was expecting TSLA to touch $325 and it touched. This may even touch $300 or worst case to $250 before Dec 2018.

$250 is extreme but can happen.

Meanwhile, I will enable that option at my brokerage.