Daily General Discussion and Advice Thread - January 06, 2022 Investing |
- Daily General Discussion and Advice Thread - January 06, 2022
- Investors should understand Warren Buffett and Benjamin Graham's analogy of Mr. Market
- 6 Month Call Option IRA Ideas
- How can I milk AMC shares/options with its current action? New (bag) holder here
- Should I sell my AMD stock and take the loss or will it rebound?
| Daily General Discussion and Advice Thread - January 06, 2022 Posted: 06 Jan 2022 02:01 AM PST Have a general question? Want to offer some commentary on markets? Maybe you would just like to throw out a neat fact that doesn't warrant a self post? Feel free to post here! If your question is "I have $10,000, what do I do?" or other "advice for my personal situation" questions, you should include relevant information, such as the following:
Please consider consulting our FAQ first - https://www.reddit.com/r/investing/wiki/faq And our side bar also has useful resources. Be aware that these answers are just opinions of Redditors and should be used as a starting point for your research. You should strongly consider seeing a registered financial rep before making any financial decisions! [link] [comments] |
| Investors should understand Warren Buffett and Benjamin Graham's analogy of Mr. Market Posted: 05 Jan 2022 09:21 PM PST Benjamin Graham was Warren Buffett's mentor during his time at Columbia University, and Warren Buffett subsequently went to work for Graham as well. From time to time, Warren Buffett often references various aspects of investing that he learned while under the wings of Graham. According to Buffett himself, the one analogy he found to be the most useful from Graham's book - "The Intelligent Investor" is the concept of Mr. Market. According to Graham, the stock market is a salesman that comes and offers you various quotes on the securities that you own. If he is feeling great that day, he might give you an amazing offer. If not, he might give you a lowball offer. The point is - you should never let the salesman's offer persuade you into thinking that your security is somehow more or less valuable. At the end of the day, the securities that you own have an intrinsic value and you should only do business with Mr. Market when it is favorable for you. From Benjamin Graham himself:
In these turbulent times in the market, it is important to recognize that simply because the market is up or down doesn't mean that your company's intrinsic value somehow changed. It is simply what the salesman is offering you today. Instead, you should be looking deeper into your company's revenue growth, valuation multiples, and other fundamental factors and whether your thesis around that has changed. The mood of Mr. Market will often open up amazing opportunities in the equity market. In 10 years from now, we will be looking at many companies and saying "wish we had bought it in 2022". Don't let Mr. Market fool you. Best of Luck to All! [link] [comments] |
| Posted: 05 Jan 2022 10:10 PM PST Hey guys. I recently rolled over an old 401K that has roughly $30K into a new IRA account through Fidelity (where my trading account and current 401K are at). With the majority of stocks getting annihilated in Q4 (disregarding the majority of mega-cap, of course) and the Fed basically signaling they will be raising rates several times this year, with a starting target date around March I believe, I think now might be a good time to open some 6-month call options on stocks that have been beaten down in the Fintech space as well as some large-cap stocks sitting near critical support. We have earnings season coming up starting in the next few weeks and running until March or so and the following stocks typically like to run during times like these. *Fintech* UPST - 7/15 200C - Has taken a massive beating nearly 70% off highs. They are trying to get into the auto loan business and have other potential catalysts (partnerships) around the corner. Momentum stock that can run hard with Fintech coming back on the scene, especially at these low entry points with institutions that got out at the top. Looking for entry around $110-120. AFRM - 6/17 100C - Another one that has been sold off and shorted to oblivion hovering around $80 from highs at $160. Have a feeling a reversal is coming soon and that this could ride on the shoulders of SQ, PYPL, COIN, etc. Looking or an entry around $75. *Semis* NVDA - 6/17 280C - Trading in the range of 280-320 for the last couple of months. Top growth stock on everyone's mind that has tons of potential catalysts and one that is going to be a leader in the Metaverse movement, which I believe as a whole will start to take off this year. P/E and such are high but NVDA is solidifying its stance as a stock that retail and institutions just can't ignore. No one doubts that this is an amazing company that will be a market leader, however, currently, it is a mega-cap momentum stock that is selling off and shorted due to a flat/downtrend in QQQ's. NVDA is notorious for running hard into earnings and with a blowout quarter (which they typically have) and more price target upgrades, I can see this hitting 350 well before summer. Looking for an entry around $250-260. AMD - 6/17 150C - Similar ideas to NVDA with the semiconductors still running this year. Chip shortage should begin easing in Q1/Q2 and with the Metaverse taking off as well as the upcoming acquisition of XLNX which has been pushed to Q1, I see AMD as being a leader in this space. Volume has been hovering around 50M, and I anticipate it to increase with the above catalysts taking off and the QQQ's breaking out of their sideways trend. Looking for an entry around $125-130. Any and all suggestions/input on these or any other 6 month plays would be greatly appreciated. Let's get this money. [link] [comments] |
| How can I milk AMC shares/options with its current action? New (bag) holder here Posted: 06 Jan 2022 04:31 AM PST I'm looking to drop some of my amc but trying to break even or even profit if possible. I have 100 @ $29, 100 @ $40, 600 @ $50-55 (OUCH). I'm not in a rush to sell the 600 high cost shares and will just use them to sell OTM covered calls. I'm want to try high risk moves with the $29 and $40 shares I have. I'm fine if they get called away since I would at least break even. I was going to try to sell weekly $31 calls, but then of course the price tanked so the premiums dropped like a rock. IMO, AMC will tank to $19-20 before Jan 21 to keep most options OTM. But I don't know how to use this to my advantage. Yes I can buy puts, but it's honestly kinda late for that as they're too expensive now since stock is already at $22. It's pointless to sell covered calls (@ $30) now cause the premium is so little. I'm still new to this and at a loss on what to do with this until Jan 21. My prediction is $19-20 for Jan 21, then 25-30 for Jan 28th, then sit at 30-34 for most of feb. What are some ways to milk the most $ of this situation? I only have a couple hundred cash to use. Everything else is in stocks or options atm. [link] [comments] |
| Should I sell my AMD stock and take the loss or will it rebound? Posted: 05 Jan 2022 12:17 PM PST I'm a novice investor and only have about 2500 invested. I bought some amd stock at 145 hoping it would go up a little before their earnings report and I could sell and make a couple hundred. Right now the stock is sitting at 136 and has lost 10% in the last two days. Would it be better for me to just take the couple hundred loss or should I just ride the wave? [link] [comments] |
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