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    Thursday, December 20, 2018

    Stocks - r/Stocks Options Trading Thursday - Dec 20, 2018

    Stocks - r/Stocks Options Trading Thursday - Dec 20, 2018


    r/Stocks Options Trading Thursday - Dec 20, 2018

    Posted: 20 Dec 2018 09:05 AM PST

    These stock options discussions run every Thursday.

    Feel free to talk about options you have or ask questions on options. But before you ask any question make sure you see the following links:

    • Call option Investopedia video basically a call option allows you to buy 100 shares of a stock at a certain price (strike price), but without the obligation to buy
    • Put option Investopedia video a put option allows you to sell 100 shares of a stock at a certain price (strike price), but without the obligation to sell
    • If you're asking about basic terminology, see Tastytrade glossary, then feel free to ask a more in depth question afterwards, basic terms:
      • exercising an option - when you use your call option to buy 100 shares or put option to sell a 100 shares
      • strike price - The price at which stock is purchased or sold when an option is exercised
      • ITM - when a call option's strike price is below the stock price, or put's strike price is above the stock price
      • OTM - when a call option's strike price is above the stock price, or put's strike price is below the stock price
      • ATM - when the option's strike price is at or very near the stock price
      • long options (aka long call or long put) - buying options
      • short options (aka short call or short put) - selling (or writing) options
      • combo or option strategy - buying and/or selling multiple options
      • debit - what you're paying to buy an option or combo
      • credit or premium - what you're receiving (money) to sell an option or combo
      • covered call - when you buy stock and then sell calls
      • naked - when you sell calls or puts without owning stock or other options for the same stock
    • Wondering what those option strategies are: OptionsPlaybook, common combos:
      • Debit call spread (vertical debit spread) - generally a bullish combo that involves buying a call and selling a call at a lower strike; the cost of buying the spread combo is lower than just buying a call, however this reduces your max profit, but also reduces your max loss
      • Credit call spread (vertical credit spread) - generally a bearish combo that involves selling a call and buying a call at a lower strike; this reduces your max loss compared to just selling naked, but it also reduces your max profit, however you get the full credit upfront
      • Strangle - Two naked options, a call and a put, this creates a neutral combo and you profit as price stays between the two strike prices
      • Iron condor - same as the strangle except with protection, reduced profit but also reducing your max loss
    • A thorough explanation of nearly every option strategy explained by TastyTrade here
    • Book recommendations by the options community at r/options (subscribe while you're at it)

    If you have a basic question, for example "what is Theta," then google "investopedia theta" and click the investopedia article on it; do this for everything until you have a more in depth question or just want to share what you learned.

    See our past daily discussions here. Also links for: Technicals Tuesday, Options Trading Thursday, and Fundamentals Friday.

    submitted by /u/AutoModerator
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    Nasdaq100 Officially down 20% In Bear Market

    Posted: 20 Dec 2018 08:52 AM PST

    Today the nasdaq fell into 20% down and the S&P is shortly behind. Please be careful out there!

    submitted by /u/captaingeorge12
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    Your AM Global Stocks Preview and a whole lot more news that you need to read: International stocks are mixed as US index futures rally following yesterday’s US Fed induced sell-off

    Posted: 20 Dec 2018 04:50 AM PST

    US Stocks

    • US Index futures pared early AM losses and are now rallying 2 hours ahead of the US open with front-month Dow Jones minis +0.34%, S&P 500 minis +0.39%, and Nasdaq 100 minis +0.54%
    • Following yesterday's sell-off, the S&P 500 is barreling towards its first formal "bear market" in a decade with the benchmark US index down nearly 15% since reaching its high in September 2018
    • The VIX is lower this morning and is currently at 24.84 after closing at 25.58 yesterday
    • SPY December 21 OTM Puts, December 21 EEM OTM Calls & Puts, and Bank of America (BAC) December 21 OTM Calls are some of the most actively traded options contracts in the US pre-market
    • US 10-Year Treasury Bonds are lower with yields up 1.6 basis points to 2.7708%
    • The US Treasury 2s-10s Spread has widened 0.16 basis points to 0.11%
    • WTI Crude is currently up 2.08% to USD$47.2/bbl with the Brent-WTI spread down USD$-3.68 to USD$7.65/bbl
    • Gold is currently up 1.07% to USD$1256.43/oz

    Stocks Trending in the News

    Click name for Q-Factor breakdown, latest price details, more financial info and sentiment data.

    • Airbus (ENXTPA:AIR) is being investigated by the US Justice Department, according to a report in the French press. The investigation would parallel investigations in France and England. The press report said the company could face billions in fines as a result of the investigations. Airbus is rated "Neutral" in our European Large-Cap Global Top Stock Ideas.
    • Altria (MO) is in talks to acquire a stake in e-cigarette maker Juul, according to a report in Bloomberg. Altria is going to buy a stake valued at USD$12.8 billion, the article reports. If the investment is competed, it will value Juul at USD$38 billion making it the second most valuable private company behind Uber. Altria is rated "Attractive" in our US Large-Cap Global Top Stock Ideas and "Top Buy" in our US Consumer Staples Global Top Stock Ideas.
    • Amazon (AMZN) has seen the number of Prime members who buy groceries with Amazon decline in 2018 compared with 2017 in the wake of its acquisition of Whole Foods. This comes from a UBS survey of consumers. UBS commented that this was surprising give the USD$13.7 billion it spent to acquire Whole Foods. Amazon is rated "Neutral" in our US Large-Cap Global Top Stock Ideas and "Attractive" in our US Consumer Discretionary Global Top Stock Ideas.
    • Apple (AAPL) is tweaking the software in its iPhones in Germany in an effort to head of a legal challenge from Qualcomm (QCOM), according to a report in the Financial Times. Apple is making the move ahead of a ruling expected today in Munich. Apple and Qualcomm are locked in a global legal battle over the royalties Apple pays Qualcomm for the use of its chips. Apple is rated "Top Buy" in our US Large-Cap Global Top Stock Ideas and "Top Buy" in our US Information Technology Global Top Stock Ideas. Qualcomm is rated "Unattractive" in our US Large-Cap Global Top Stock Ideas and "Neutral" in our US Information Technology Global Top Stock Ideas.
    • Embraer (ERJ) finalized an order with Republic Airways (RJETQ) for 100 E175s. The order has previously been announced and now the details have been completed. As part of the deal Republic Airways can convert any number of the planes to Embraer's E2 platform. Embraer is rated "Neutral" in our Brazil All-Cap Global Top Picks. Republic Airways is not rated in our Global Top Stock Ideas.
    • Facebook (FB) is being sued by Washington, DC over its privacy policies. Facebook violated DC's Consumer Protection regulations the suit alleges. Facebook was lax in the oversight of third-party applications, according to the allegations. Facebook is rated "Neutral" in our US Large-Cap Global Top Stock Ideas and "Attractive" in our US Information Technology Global Top Stock Ideas.
    • Softbank Corp (TSE: 9434), the telecom spin-off of the Softbank Group (TSE: 9984), fell 14.5% in its first day of trading. Softbank Group raised almost USD$24 billion and the stock lost a historic USD$3.5 billion in its first day of trading, a record. No other IPO has ever lost that much rain in its first day of trading. Softbank Group is rated "Neutral" in our Japan Large-Cap Global Top Stock Ideas. Softbank Corp is not rated in our Global Top Stock Ideas.
    • Tencent (TCEHY, SEHK: 700) will invest USD$1 billion in Indian food-delivery service Swiggy. This is Swiggy's third round of funding in 2018 and includes a number of investment firms as well. Since its last round of funding Swiggy has expanded to 42 additional cities and seeks to keep expanding at a torrid pace. Tencent is rated "Attractive" in our China All-Cap Global Top Stock Ideas.

    European Stocks

    • European stocks are declining to end the week but are bouncing off earlier morning session lows as traders digest future interest rate hikes
    • The Euro Stoxx 600 is currently down -0.84%, the FTSE 100 has declined -0.28%, the DAX has fallen -0.9%, and the CAC 40 is lower by -1.32%
    • Investor sentiment for European stocks is negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.22x
    • Oil & Gas (-1.79%), Telecommunications (-0.01%), and Basic Resources (-2.72%) stocks are the top performers in the Euro Stoxx 600 today
    • Automobiles & Parts (-0.73%), Food & Beverage (-0.36%), and Utilities (+0.13%) stocks are the worst performers in the Euro Stoxx 600 today
    • 17 stocks in the Euro Stoxx 600 are at 4-week highs while 112 stocks are at 4-week lows
    • 8 stocks in the Euro Stoxx 600 are overbought while 51 stocks are oversold according to the 16-day RSI Measure
    • VSTOXX, the European stocks equivalent of the VIX, is little changed this morning and is currently at 19.62 after closing at 19.6 yesterday
    • EUR€ is currently up +0.835% against the USD$ to 1.1471
    • GBP£ is currently up +0.73% against the USD$ to 1.2702
    • CHF is currently up +0.746% against the USD$ to 1.0129
    • UK 10-Year GILTs are higher with yields down -0.3 basis points to 1.271%

    Asian Stocks

    • Asian stocks closed negative in overnight trading following the decision by the US Federal Reserve to raise interest rates with language that was less dovish than expected
    • The Nikkei 225 finished down --2.84%, the Hang Seng ended down -0.94%, the Hang Seng China Enterprise declined -1.03%, and the CSI 300 was -0.77%
    • The Bank of Japan kept its target benchmark interest rates unchanged
    • The Japanese Topix has formally entered a "bear market" following the drop in Japanese stocks earlier this morning
    • Investor sentiment for Japanese stocks finished negative with the advance/decline ratio for the Nikkei 225 closing at 0.05x
    • 0 stocks in the Nikkei 225 hit 4-week highs while 91 stocks reached 4-week lows
    • 0 stocks in the Nikkei 225 closed overbought while 31 stocks closed oversold according to the 16-day RSI Measure
    • Investor sentiment for Hong Kong stocks finished negative with the advance/decline ratio for the Hang Seng closing at 0.11x
    • 4 stocks in the Hang Seng hit 4-week highs while 7 stocks reached 4-week lows
    • 0 stocks in the Hang Seng closed overbought while 4 stocks closed oversold according to the 16-day RSI Measure
    • Japan 2-Year Government Bonds are lower with yields up 0.5 basis points to -0.145%
    • Japan 10-Year Government Bonds are higher with yields down -0.8 basis points to 0.027%
    • JGBs 2s-10s Spread has narrowed 1.3 basis points to 0.17%
    • JPY¥ is currently down -0.711% against the USD$ to 111.68
    submitted by /u/QuantalyticsResearch
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    Anyone else expecting a major bounce?

    Posted: 20 Dec 2018 10:39 AM PST

    Surely it can't go down in a straight line indefinitely, even if things on the horizon are uncertain.

    submitted by /u/-Mahn
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    PayPal and other Payment companies

    Posted: 20 Dec 2018 01:23 PM PST

    So we're in a bear market - how do Payment companies typically do in these situations?

    I'm currently holding PYPL. I'm up, so happy enough but thinking of selling soon. Paypal typically performs well each quarter, fourth quarter being a particularly key one for them.

    So - crystal balls aside, if you were in my position would you sell or hold?

    submitted by /u/fitfoemma
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    Isn’t this the best time for Apple to dramatically increase it’s buybacks, and even buy itself outright and go private ?

    Posted: 20 Dec 2018 12:53 PM PST

    Apple is down approx 30% from it's record highs, with possibly another 10% or more to go.

    Nearly half of it's value is now been wiped. Surely now is the time to drastically ramp up buy backs.

    Is there a reason why Apple would not want to do this ? What is the financial plan they follow in order to decide how they approach all of this ?

    submitted by /u/triton100
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    1933 Industries going big on CBD (TGIF.CN/ OTCQB: TGIFF) #Farmbill

    Posted: 20 Dec 2018 11:26 AM PST

    Selling an ETF with a loss then buyinga different similar index ETF does Wash-Sale rule Apply

    Posted: 20 Dec 2018 11:48 AM PST

    I sold VGT ETF with a loss then bought XLK in the same day. The thinking is i can collect on the Tax loss and still hold generally the same Stock. Will this be a wash-sale rule? or am i good since these are 2 different ETFs?

    submitted by /u/Stuntz-X
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    If Recession happens stocks picks besides tech (saw a similar post earlier , but it lacked answers need those answers)

    Posted: 20 Dec 2018 08:39 AM PST

    Mainly will invest in tech stocks, but I see these as two good options if recession hits as I want to not be so heavily tech depended. Any opinions on these two stocks and their future. COF and CAT. Offer your suggestions.

    submitted by /u/stocks7779
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    Question

    Posted: 20 Dec 2018 01:47 PM PST

    Hi everyone. I've decided to buy some stocks as it sounds like it's a good time to buy cheap. I tried buying some AAPL shares at 160 while it was at 161. It has now dropped to 157 and it's still not in my portfolio. Have I done something wrong? How long does it take from the transaction date to when it shows up in my portfolio?

    submitted by /u/hermansnaess
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    NVDA

    Posted: 20 Dec 2018 10:18 AM PST

    Total noob. I bought 7 shares of NVDA at 191. Should i sell? halp.

    submitted by /u/myreddditWonkaccount
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    What happened to SQ?

    Posted: 20 Dec 2018 01:52 PM PST

    How did SQ go from a FAANG valuation to where it is now?

    Is there any reason outside of the typical over-valuation and current tech correction?

    Is the analyst who posted the FAANG valuation laughing his way to the bank because he anticipated the huge spike and shorted after his article?

    Or is there something wrong with the company that I'm not noticing?

    submitted by /u/_myusername__
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    Square stock to recover?

    Posted: 20 Dec 2018 08:34 AM PST

    Will Square ever recover? seems like they been dipping hard for the past two months after the CFO announced her resignation.

    submitted by /u/F82Supreme
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    Back-test Performance Tool?

    Posted: 20 Dec 2018 08:27 AM PST

    I'm looking for a tool to back test performance. For example, if someone pulled $150k out of ABC fund and moved everything to cash, what did they miss for the last 20 days. I have access to such a tool, but it is only updated monthly and I would like to test things more often. I need to be able to do stocks and mutual funds/ETF's.

    If this is in the wrong place for this, I apologize, point me in the right direction, please.

    submitted by /u/AlligatorTree22
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    This Point in History: Birth of the Federal Reserve

    Posted: 20 Dec 2018 11:56 AM PST

    Hey everyone, I'm here today for another This Point in History post. This is post number 3 of our subreddit's series that covers historic and important events involving the stock market. To read two previous posts, click here and here. A quick reminder that the goal of these posts are to highlight important events involving the stock market and economy. Please note that because of timing constraints, limited topics, and how these events can play out over the course of days or weeks, these posts are a little different from a This Day in History post in that the posts don't always fall on the same day of the event. I would also like to give credit once again to Wikipedia and a few sites out there dealing with history of the markets. With that said, let's begin.

    Interest rates and the Federal Reserve are both hot topics in today's market and the timing of this post perhaps couldn't be better. On December 23, 1913 the birth of the US Federal Reserve occurred, a financial banking system that oversees and helps regulates the US financial sector. Regardless of how one feels about it, the Federal Reserve plays a critical role in the stock market and economy.

    So how did the Federal Reserve come to be? Well, let's go back to nearly a decade before in the leadup to the Great Panic of 1907. I already covered the event in a previous post but to sum things up fast, between 1905 up until 1907 the US saw tensions mount and confidence drop in the state of the US economy and banking system. Americans felt great uncertainty in the strength of its country's currency, banking system, and stock market leading to a devastating crisis in 1907. The year saw bank runs, bankruptcy of massive companies and banks, market liquidity issues, and the NYSE fell nearly 50%.

    If it wasn't for creative government maneuvering and the help of wealthy, powerful individuals such JP Morgan, things may have turned far worse. The US managed to fight its way out of the crisis with things wrapping up by the end of the year yet it was clear things needed to change. Regulation and better monetary control was desperately needed so in 1908 the US government created the National Monetary Commission along with the Aldrich-Vreeland Act with its intended goal to study the US market and US banking system to determine means of improving things. Things didn't go quite so smoothly with some feeling the NMC and Aldrich-Vreeland Act being sufficient but after years of bickering between banking reps, wealthy businessmen, and members congress the Federal Reserve Act was voted into effect by the House on December 22, 1913. A day later, the senate would vote in favor for the act as well with President Woodrow Wilson sealing the deal that December 23, 1913.

    While the US Federal Reserve serves numerous functions, the primarily ones are controlling inflation, minimizing unemployment, preventing bank panics, aiding in the regulation of banks, studying banking and market conditions/trends, and serving as a central bank for the country.

    Today there are 12 Federal Reserve bank locations within the United States with Jerome Powell acting as the organization's chairman. What makes the Federal Reserve particularly unique is the fact that it acts more or less independent from the government despite not being a private company/organization and is not funded by the general public. The matter is fairly complicated and I can't really do it justice in a few paragraphs but how the Federal Reserve works with, rather than within, the US government is certainly interesting and worth reading about if you have time.

    Right now things are a little shaky and volatile with the stock market. After nearly a decade of low interest rates, the Federal Reserve has begun to slowly increase rates which has been met with criticism and volatility from the markets. Whether it's the right move or if the criticism is justified is a topic for another day but I think most people appreciate having an institution like the Federal Reserve around today.

    How do you guys feel about the Federal Reserve? Is it the best system our country can realistically have or could it be improved? Do investors place too much emphasis and weight on rates?

    submitted by /u/Just-Touch-It
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    $TEVA - Down - can anyone justify this?

    Posted: 20 Dec 2018 05:21 AM PST

    I'm long on teva. I understand the company. I can't put together why its down 35% in a month. This Oct-Dec has been rough.

    submitted by /u/Gallardoreaper
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    Is baidu a good buy now or im crazy stupid?

    Posted: 20 Dec 2018 07:17 AM PST

    Hi im thinking to buy baidu stock, why it have drop so much, is a good stock to buy or no? Please helppppp!!! Also i think it cant be affected with the chinese usa trade war, please be serious

    submitted by /u/supared
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    MTBCP a dividend cow?

    Posted: 20 Dec 2018 10:46 AM PST

    I been watching MTBCP for over a year now. It is not quite like any other dividend stocks I've seen. It continues to pay out about 11% yields and the price has always been steady for the most part never veering too far off $25. Usually with high yield stocks, I would assume to see big price swings. But this thing has been more stable than anything I've seen before in that regard. Anyone know what the catch is here? Seems to be too good to be true for an 11% yield with minimal price risk.

    submitted by /u/Randyreddit11
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    If a put expires on the 24th of December. Does it expire when the market opens or closes on the day

    Posted: 20 Dec 2018 02:15 PM PST

    I never touched options trading. I always looked at it like it was some kind of sorcery. So I need to know this small detail. Any wisdom will be appreciated.

    submitted by /u/Savilo29
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    Stock tax question

    Posted: 20 Dec 2018 09:59 AM PST

    Long story short i sold some index funds I had held for 3-4 years to buy some individual stocks back in May. I owe roughly $2000-3000 in capital gains tax.

    The new stocks I purchased are down quite a bit. Would I be able to sell the new stocks so that I show a loss in actual capital gains earnings (so I don't pay tax) and then repurchase the stocks tomorrow?

    For example. S&p500 index fund went from purchase price of $8k to selling price of $18k.

    $10000 realized capital gains.

    Current individual stocks have plummeted from $100k to $88k. Can I just sell and rebuy them, basically not changing my position at all but reducing capital gains tax so if shows a realized loss of $2k?

    I've held onto the new stock purchases for 8 months.

    submitted by /u/jack3moto
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    Which chart service offers the largest bar period?

    Posted: 20 Dec 2018 01:07 PM PST

    Barchart offers quarterly candles and I haven't found anyone else that offers anything above that.

    Does anyone know if something like a yearly candle exists?

    submitted by /u/FallicoMusic
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    Question about KCAP Purchase

    Posted: 20 Dec 2018 12:33 PM PST

    I own a few shares of KCAP. Curious about how the announce external management and stock acquisition will impact me. I get that I'll receive .67 ish per share. Does this impact the stock in any other way? Will the KCAP shares be converted to the new parent company? Are the KCAP shares simply staying exactly how they are now? It looks like they will likely issue more common shares, so maybe the price will dip a bit..

    " In addition, BC Partners has agreed to contribute up to 100% of incentive fees earned, if necessary, to achieve net investment income of $0.40 per share for a one-year period after closing and to use up to $10 million of the incentive fees it earns to purchase newly-issued KCAP common stock over the next two years at a price equal to net asset value per share at the time of the purchases. "

    I was actually thinking about selling my position the next time the price goes up prior to the quarterly dividend (which is coming up very soon), so now I'm unsure what to do. Probably stick around for the .67 and then sell on the next run up for a dividend payment..

    submitted by /u/RegionalChaos
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    As WGO, the market will follow

    Posted: 20 Dec 2018 12:13 PM PST

    Been killed for months and finally at a low point where price is ridiculous to where even today and yesterday's market moves can't shake buyers of this stock. I think this is where the market in general is headed; low prices so low it becomes a true no-brainer. Right now, the 10 year chart of the DOW is screaming 50% retracement.

    submitted by /u/neve1064
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    Had around 15 different holdings before- slowly sold on the way down. Now down to 4 main( apple, amazon,fb,sq) and still royally fucked.

    Posted: 20 Dec 2018 11:24 AM PST

    Who else on here has any kind of stock/strategies here.

    Kept buying the drops too- but the falling knife is now a Falling chainsaw.

    What are other peoples strategies here ? ( portfolio down 11% from capital-and growing) Fuck me.

    submitted by /u/Waitwhonow
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