Down goes the Dow

[quote]Maserati wrote:

I have it down about 2.7%.

Bitcoin—yes there are risks. Many of the same risks apply to a great many other things, equities included, including panic crash.

I have managed to invest very conservatively this year and still done well thru luck.

85% in the safest bonds and CDs -- all short term in the case of future inflation.

The other 85% has cleaned up in (mostly) Telsa, GBTC, and Chinese EV stocks with small losses in gold and an early year beating in airline stocks that I have dumped.

A return of @ 12% with only 15% of the assets at risk.

I can’t tell where Maserati’s words end and Unkle’s begin.

rare wrote:

Isn't that what happened with SoftBank this year? They bought billions worth of options in tech, causing sellers to hedge by buying the underlying if I remember right.

Here is a video from Spot Gamma you might find interesting.

la gente esta muy loca wrote:

la gente esta muy loca wrote:

Financials up after hours, Fed released new stress test. Banks can resume buy backs if profitable. I would imagine some might increase dividend, hopefully BAC. ( Disclaimer; I own shares in BAC. Currently getting over 5% from dividends on original purchase price. Way more than my wife makes on her (our) checking and MMF there. )

Fixed it.

Some follow up.

Here's a nice shot of the TSLA chart. Over 71 million shares market-on-close, that is almost $50 billion.

https://www.barchart.com/stocks/quotes/TSLA/technical-chart?plot=BAR&volume=total&data=I:1&density=L&pricesOn=1&asPctChange=0&logscale=0&im=1&startDate=2020-12-18&endDate=2020-12-18&daterange=specific&sym=TSLA&grid=1&height=500&studyheight=100

Here are some of the trades.

16:00:02 $ 695.00 55

16:00:02 $ 695.00 999,900

16:00:02 $ 695.00 29,801

16:00:02 $ 695.00 86,582

16:00:02 $ 695.00 2

16:00:02 $ 695.00 698,600

16:00:02 $ 695.00 400,100

16:00:02 $ 695.00 999,900

16:00:02 $ 695.00 999,900

16:00:02 $ 695.00 1

16:00:02 $ 695.00 384

16:00:02 $ 695.00 573

16:00:02 $ 695.00 1

16:00:02 $ 695.00 3,402

16:00:02 $ 695.00 5

16:00:02 $ 695.00 10,949

16:00:02 $ 695.00 45

16:00:02 $ 695.00 3,196

16:00:02 $ 695.00 5

16:00:02 $ 695.00 31

16:00:02 $ 695.00 2,398

16:00:02 $ 695.00 8

16:00:02 $ 695.00 5

16:00:02 $ 695.00 130

16:00:02 $ 695.00 30

16:00:02 $ 695.00 240

16:00:02 $ 695.00 1,435

16:00:02 $ 695.00 236

16:00:02 $ 695.00 74

16:00:02 $ 695.00 840

16:00:02 $ 695.00 2

16:00:02 $ 695.00 11,033

16:00:02 $ 695.00 999,900

16:00:02 $ 695.00 400,100

16:00:02 $ 695.00 2

16:00:02 $ 695.00 6

16:00:02 $ 695.00 1,108

16:00:02 $ 695.00 777

16:00:02 $ 695.00 6

16:00:02 $ 695.00 999,900

la gente esta muy loca wrote:

rare wrote:

Isn't that what happened with SoftBank this year? They bought billions worth of options in tech, causing sellers to hedge by buying the underlying if I remember right.

https://threadreaderapp.com/thread/1302725084075810817.htmlhttps://spotgamma.com/softbank-call-options-gamma/

Here is a video from Spot Gamma you might find interesting.

https://spotgamma.com/aapl-options-gamma-unwind/

tl;dr - blog writer who's purely speculating. I've also never heard of someone buying covered calls or opening aggressive call spreads to reduce risk (as opposed to just holding shares).

Long position would have positive gamma anyways by definition.

Poto wrote:

I can’t tell where Maserati’s words end and Unkle’s begin.

Then you are not too bright.

The Unkle wrote:

Poto wrote:

I can’t tell where Maserati’s words end and Unkle’s begin.

Then you are not too bright.

Oh, the irony!

Racket wrote:

tl;dr - blog writer who's purely speculating. I've also never heard of someone buying covered calls or opening aggressive call spreads to reduce risk (as opposed to just holding shares).

Long position would have positive gamma anyways by definition.

These weren't covered calls, Softbank had sold shares short.

"Based on color from flow desks, these trades were mostly executed versus stock, which means that the client bought the call spreads and sold stock, executing a delta neutral trade. So these transactions themselves did not represent meaningful buying pressure on the stocks."

Benn Eifert

That doesn't seem too far fetched, So the next 10 years won't duplicate what has come to be regarded as the greatest bull market of history. So, it may be a bit less. Not going out too far on a limb there.

And yeah, extradonary measures have been taken by the Fed and Congress to build a bridge to better times after the worst health crisis in a century. Okay, that is what they are supposed to do.

We should be concerned.

I agree with that.

Irony Mann wrote:

The Unkle wrote:

Then you are not too bright.

Oh, the irony!

How do you keep coming up with such original material?

Ghost of Igloi wrote:

https://twitter.com/LizAnnSonders/status/1339191881058676736?mc_cid=8d46ba690f&mc_eid=a85db5d679

I've had a couple clients who are contrary indicator types send in money lately...including myself.

Which tells me it's late in this runup.

Sam Zell tells it in my view:

https://twitter.com/RealVision/status/1340009087250165760

Index returns ranked

1 month return

Energy +11%

Small Caps +9%

Tech +8%

US: +6%

non-US Developed: +6

EM: +5

Value +4

Financials +4

China +3

Hussman +2

Gold +0

High beta stocks taking leadership, incl tech (which had lagged for a bit).

Energy has gone nowhere for 3 weeks...its leadership time might be over.

my portfolio has doubled every year for the last two.

Can you make the same claim?

Who should be giving who advice?

Scratch that. Sorry if i don't listen to this ill advised advice.

agip wrote:

Index returns ranked

1 month return

Energy +11%

Small Caps +9%

Tech +8%

US: +6%

non-US Developed: +6

EM: +5

Value +4

Financials +4

China +3

Hussman +2

Gold +0

High beta stocks taking leadership, incl tech (which had lagged for a bit).

Energy has gone nowhere for 3 weeks...its leadership time might be over.

small caps are a double from the March 2020 lows. holy smokes. what a run.