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    Thursday, July 11, 2019

    Stocks - r/Stocks Daily Discussion & Options Trading Thursday - Jul 11, 2019

    Stocks - r/Stocks Daily Discussion & Options Trading Thursday - Jul 11, 2019


    r/Stocks Daily Discussion & Options Trading Thursday - Jul 11, 2019

    Posted: 11 Jul 2019 01:06 AM PDT

    This is the daily discussion, so anything stocks related is fine, but the theme for today is on stock options, but if options aren't your thing then just ignore the theme and/or post your arguments against options here and not in the current post.

    Some helpful day to day links, including news:


    Required info to start understanding options:

    • 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

    See the following word cloud and click through for the wiki:

    Call option - Put option - Exercising an option - Strike price - ITM - OTM - ATM - Long options - Short options - Combo - Debit - Credit or Premium - Covered call - Naked - Debit call spread - Credit call spread - Strangle - Iron condor - Vertical debit spreads - Iron Fly

    If you have a basic question, for example "what is delta," then google "investopedia delta" 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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    Tesla made a +1000% increase over 7 years

    Posted: 11 Jul 2019 12:43 AM PDT

    Was the stock on sale at 33$ to the retailer investors, or was only for big investors at that price?

    submitted by /u/luchins
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    Given Virgin Galactic going public, thoughts on this Space Portfolio? [X-post from r/investing]

    Posted: 11 Jul 2019 09:30 AM PDT

    Goals:

    -Maintain holdings in broad array of companies involved in aeronautical engineering, research, and manufacturing.

    -Donate half of all income distributions to organizations promoting space travel and public interest (personal goal, I wouldn't recommend if investing purely for profit)

    Performance Since 2017 (link):

    CAGR Stdev Best Yr Worst Yr US Mkt Correlation
    11.38% 19.60% 24.49% -5.57% 0.81

    Holdings:

    Company Description Ticker Target Allocation Comment Crowning Achievement(s) in Space
    Boeing Global aeronautical design, manufacturing, and research company BA 21% Prime contractor for NASA and has reach in nearly every stage of space travel. Lunar Roving Vehicle, Saturn V, International Space Station, Space Shuttles, Delta Rockets (ULA), CST-100 Starliner (upcoming manned space capsule competing with Space X's dragon), SLS
    Lockheed Martin Corporation Global aeronautical design, manufacturing, and research company LMT 21% Prime defense contractor (received nearly 10% of Pentagon spending in 2013) Military and civilian satellites, multiple deep space probes, NASA's Orion crew vehicle (upcoming), Space Shuttle external tank
    Northrop Grumman Corporation Global aeronautical design, manufacturing, and research company NOC 18% Prime defense contractor James Webb Space Telescope, acquired Orbital ATK, extensive satellite and launch expertise
    Aerojet Rocketdyne Holdings American rocket and missile manufacturer AJRD 13% Prime manufacturer of launch system engines Space Shuttle Main Engine, Delta, Atlas, and Ares engines, Blue Origin rocket engines
    Social Capital Hedosophia Public investment vehicle. Merging with Virgin Galactic in de facto IPO IPOA 7% Virgin Galactic aims to be at the forefront of space tourism. Implications for rapid terrestial transportation as well. Has working space plane and marked interest SpaceShipTwo
    ORBCOMM Inc. IoT and M2M communications company ORBC 4% Hosts satellite array for terrestrial communication ORBCOMM OG2 satellite array launched by Space X
    Iridium Communications Satellite communications company IRDM 4% Hosts satellite array for global terrestrial communication Iridium Satellite Constellation
    Maxar Technologies Inc. Satellite, on-orbit servicing, Earth observation company MAXR 4% Contractor for NASA and other space programs Canadarm, Dextre, NASA Lunar Gateway (upcoming)
    ViaSat Inc. Satellite TV company VSAT 4%
    Heico Corporation Manufacturer of niche aeronautical parts HEI 2% Extensive reach in all aeronautical sectors
    Arconic Inc. Specialized lightweight metals manufacuter ARNC 2% Spinoff of Alcoa Corp.

    Considerations:

    -Given the genesis of US space-faring, almost all US companies involved in space travel have extensive operations in defense or weapons manufacturing. This presents certain ethical questions that an investor must consider.

    -Space travel is not profitable. Nearly all profits generated by these companies for their efforts in space came directly from government contracts. There are at present very few profit-motivations in outer space. An investor should be aware that the companies above act very differently from the widget manufacturers of Economics 101.

    -The allocation weightings above are based on my own inferences. I considered each company's market cap, as well as the proportion of space-related revenues to all revenues, but ultimately the allocations above are totally made up.

    Feel free to comment with any questions or suggestions

    Additionally yesterday I made a subreddit for space investing because there was limited discussion elsewhere on reddit. If you're interested in this kind of thing, check out R/spaceinvesting

    submitted by /u/Awesomesauce1492
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    Why do people like AMD so much?

    Posted: 11 Jul 2019 05:41 AM PDT

    I just finished my build using full amd parts for the first time ever. But their revenue per share has decreased massively the past 15 years. And only after 15 years we now see an increase since they are the choice in the market. Their research and development used to be higher as the current moment. But above all the stock price has increased by so much it baffles me. Extreme high p/e, slowing revenue over 15 years (which will end now imo), low dividend. Why would the stock be worth buying at these high levels?

    submitted by /u/oigid
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    What's the deal with abandoned property (stock) laws, and how often do I need to "contact" companies, to avoid my stock being considered abondoned property?

    Posted: 11 Jul 2019 11:57 AM PDT

    (California) I inherited some stock after my mother's death. I was hoping to just let it sit there and not have to do anything with it, until I got a terrifying letter from American Stock Transfer and Trust Co. (in NY), saying basically, hey we haven't heard from you in a few years, your stock (we are not a wealthy family but this was several thousand) is at risk of being considered abandoned and re-appropriated or something.

    WTF?! I thought the whole point of long term blue chip investments was to not have to monitor them and think about them! I contacted them right away, had to pay for a notary and a stupid medallion signature guarantee, and finally got it resolved. With that particular company..

    But this bothers me still. Because what if a company doesn't have my current address and I don't get the notice in time? What if I'm out of the country? What if many other possibilities? It was vague, they didn't give an exact date, why?

    And exactly how often do I need to "reach out" and contact these companies?

    To me this totally seems like an excuse to take your money. WHY should I need to contact them AT ALL?! Is there something I don't know about where I don't have to keep up with all these companies for the rest of my life?

    What's the deal with this? Thanks very much.

    submitted by /u/EliteAlmondMilk
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    AMD

    Posted: 11 Jul 2019 05:11 AM PDT

    Anyone else here was hoping for it to settle and then buy in but you've just been watching it climb up.. think it's time to just go in on it

    submitted by /u/fartingfan
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    Is Teva too risky?

    Posted: 11 Jul 2019 10:45 AM PDT

    Teva is a large manufacturer of largely generic drugs, based in Israel. I've been watching it for over a year, and almost bought in when Berkshire Hathoway took a stake in the company last year (sounds like they currently hold 43 million shares).

    The company has been in trouble for years, and cut their dividend in 2017 to try and help with a massive restructing of the company. When Berkshire bought in in 2018, the stock was trading at around 18 a share, and its biggest risk was its large debt and expiring patents.

    Since then, as we've all seen in the news, it's at the center of the opioid crisis and facing lawsuits from dozens of states, which tanked its share price from 20 to under 8.

    It is risky, but Orrwitz saw it as a potential value stock at 18. If it can survive the opioid lawsuits, which should be a temporary hit, wouldn't it reason that the stock should be able to eventually reinstate their dividend, which should help regrow its share price back to what it was last year? It feels like what the tobacco companies went through in the 90s. Short term pain, then back to profitability for the ones that survived. The liability of the lawsuits is factored into it's new low price, and if/when it can get past that, and restricting, then all it really has to battle is debt, which again berkshire saw as very doable.

    There is also some small fear of the political risks with the various healthcare plans being promoted by various presidential candidates, but seeing at how difficult it was to even pass Obamacare several years ago, this doesnt feel like a substantial risk to Teva, at least not for the next several years.

    With the markets being at all time highs, and everyone waiting for a recession, does teva seem like a potentially good place to park some money? Disclosure - I bought a few hundred shares when it first fell below 10, and will probably buy more if it hits below 8.50.

    submitted by /u/waaaghbosss
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    Shopify and the power of platforms

    Posted: 11 Jul 2019 10:51 AM PDT

    https://stratechery.com/2019/shopify-and-the-power-of-platforms/

    Interesting article about shopify and how they've placed themselves. Wondering what everyone thinks.

    Im under the impression that the stock is overvauled but the article makes sense.

    submitted by /u/TODO_getLife
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    Hoping for some clarification on covered calls.

    Posted: 11 Jul 2019 06:57 AM PDT

    So I was hoping on some clarification on covered calls in options. My dad, who works for JP Morgan tried to explain it to me, but couldn't get through with his broken english.

    So I bought 100 shares of AMD with the intention of playing around with options. Did I just screw up?

    I wanted to exercise my calls and puts, but I just realized I have to purchase my shares once the call/put expires, correct?

    Plz let me know if I'm missing something.

    submitted by /u/zedotp
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    Stock price dropping the last two months. When do I give up and sell?

    Posted: 11 Jul 2019 06:44 AM PDT

    Have about 100 shares of a stock that dropped to half my buy in. I don't really see any positive signs of getting back my investment. What is the general rule for selling here? Do I give up? Gamble on it bouncing back and stick it out? At this point, when do I sell?

    submitted by /u/endrik7
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    Stocks you refuse to own for moral/ethical reasons?

    Posted: 11 Jul 2019 01:12 PM PDT

    I know some people will not invest in certain stocks or industries because they feel it goes again their morals/ethics.

    Just curious what people's thoughts are. Also, any stocks you own that make you feel shitty for owning them?

    submitted by /u/GiveWaterGiveLife
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    Price Alerts

    Posted: 11 Jul 2019 07:09 AM PDT

    I would like to fine a website or app that will just send me a notification when a stock hits a certain price. For example, I would like to get a text or email when CI hits $200. Does anyone know of an app or website that does that for free? It seems every place I go to wants my check book and a vile of my blood . . .

    submitted by /u/mtemofo
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    Whats your favorite android apps for watching and researching stocks?

    Posted: 11 Jul 2019 12:52 PM PDT

    I'm getting into trading with fidelity and want to know about the apps you all use.

    submitted by /u/ddoubledub89
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    Put Debit Spreads and how...

    Posted: 11 Jul 2019 08:08 AM PDT

    So, I am sitting on a losing put debit spread for ZNGA that expires this week. What I am extraordinarily annoyed and confused by is how my $5.5/$5 PDS is valued at -$3100.00. By all rights as you get further away from the money the value of each increment should be cheaper. Can anyone explain why it's values are .01/.32 respectively? This has been an on going saga for a month with negative BS numbers. Just very interested why this even can happen.

    submitted by /u/zlash99
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    I think it's time we discussed $OKTA

    Posted: 11 Jul 2019 11:42 AM PDT

    How in the world can a company that has a TTM Revenue of $440m, no current path to profitability be worth $15.6B?

    I'm all for understanding that cloud related SaaS stocks have a LOT of growth priced in, but this... this is one that I think goes beyond anything remotely understandable.

    What do you all think of it's prospects, and, are there any other stocks like this that are absolutely insanely valued right now?

    submitted by /u/Windberry
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    Advice on Weatherford WFTIQ

    Posted: 11 Jul 2019 07:51 AM PDT

    Weatherford filed chapter 11 for restructuring last month and is now trading at around $0.05 Worth taking a risk on?

    submitted by /u/boootygroceries
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    LEG- anything I'm missing?

    Posted: 11 Jul 2019 07:34 AM PDT

    So I've been looking at companies with a good TSR, and Leggett and Platt was one that immediately popped out to me. It seems quite undervalued given it's a dividend aristocrat, its consistent growth etc.

    The only thing that could be of concern is its recent spike in D/E due to its acquisition of ECS, but management seems to have a good plan to digest the debt and incorporate the acquisition. Basically, this company seems too good to be true, so is there something that I'm missing about it?

    submitted by /u/colecr
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    SPY vs it's smaller variants

    Posted: 11 Jul 2019 10:53 AM PDT

    Hi!

    So I was thinking of buying into SPY, but I don't have much cash to play with. I'm in Canada, and I could either buy two SPY stocks, or 15 SPYG stocks (or SPYV or SPYD.)

    It seems stupid to only buy 2 of one, when I could buy 15 of another...Or am I not thinking about this correctly?

    submitted by /u/Travisx2112
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    Thoughts on Spotify?

    Posted: 11 Jul 2019 12:13 AM PDT

    Was wondering what you folks think of Spotify in terms of investment. Last year, I thought they would be a big name in streaming, but I don't know if I have the same confidence anymore. Similar sentiment to how Netflix was leading for a bit but now it kind of plateaued. Not saying that they're similar companies or have similar revenues, but that they're both innovative in a field that is now crowded by competition.

    Thoughts?

    submitted by /u/adnan937
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    CannTrust Holdings - CTST ... Will it recover?

    Posted: 11 Jul 2019 07:53 AM PDT

    Hello Reddit,

    After the news first broke about $CTST, I decided to invest. They have a strong standing in the cannabis industry and I saw this as just a temporary blip as the regulations only have a short term impact.

    Fast forward a couple days and I'm starting to wonder if I am in denial about the long term repercussions of this news as many other competitors could take away business. I'm the mad man who has continued to pump more into this stock as it seems to be oversold at just insane levels currently.

    What's everyone think of CannTrust as a long term investment? I'm not going to deny the risk, but I still see it as a likely rebound stock.

    submitted by /u/GiveWaterGiveLife
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    SFTBY just dropped by 50% today any reasons ?

    Posted: 11 Jul 2019 07:06 AM PDT

    I noticed today that the price for SFTBY(SoftBank) just dropped by half today, but I'm not able to find any news or reason for that ? I tired googling it, found no news report. Checked SoftBank's site nothing there either. Can someone explain why something like this would happen ?

    submitted by /u/get_outta_thr
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    TGS is up more than 60% since I recommended it in late April.

    Posted: 11 Jul 2019 02:11 PM PDT

    It was very badly oversold. Anyone could see that. Are you one of the fools who rejected my advice to buy?

    submitted by /u/Dems4Prez
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    How long do you hold your stocks for?

    Posted: 11 Jul 2019 06:07 AM PDT

    I'm new(ish) to stocks and I'm wondering if most people tend to hold for longer or shorter amounts of time. Does it depend on the stock?

    submitted by /u/1SickBunny
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    Any good penny stocks?

    Posted: 11 Jul 2019 08:16 AM PDT

    I'm looking for a cheep(preferably around 2-5$) stock that is a short term investment. I'm doing a competition in my personal finance class with a stock game so the risk doesn't matter.

    submitted by /u/Fishtian
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