Investing General Discussion
- Thread starter Furious
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Guest, it's time once again for the massively important and exciting FoH Asshat Tournament!
Go here and give us your nominations!Who's been the biggest Asshat in the last year? Give us your worst ones!
Sanrith Descartes
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Pops
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Blazin
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Blazin I took your advice once so I am going back to the well.
RCL call options
$120 strike
Expiry Jan 15, 2021
Cost basis $2.39
Its long dated and I honestly feel I will at minimum get back to the green. Down about 50% from initial purchase. Thoughts?
You can't ask me that one because I said no cruise lines! I don't like taking responsibility for someone else's risk tolerance and I know that you are experienced enough that is not what you are asking of me. My opinion is that call will expire worthless, now that's not to say that it can't get back to your entry on a strong rally. If it's just one contract maybe just let it ride, but I would be looking for an exit on a rally. I obviously don't like selling into fear but the cruise lines have a very murky outlook next 1-3 yrs, and I don't have sufficient knowledge of them to determine the risk of insolvency.
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Blazin
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Can really suck and I'm not fear mongering you but I would try to get comfortable with the idea it could drop to S&P 2000 level. I'm not predicting but getting comfortable with it can help with the anxiety of seeing tick for tick. Goldman sees a 2000 base and a year end 3200, for me hell if they said year end 2021 of 3200 to me that would not be very scary. The market will not bottom until we have clarity. The market would deal with shitty news far better than unknowns, and it's near impossible to tell where we stand even a month from now.
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TJT
Mr. Poopybutthole
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Oh no I am not freaking out at all. I've been buying a little all the way down as I do not pretend to know when or where the bottom will be. But like I said this strategy has led to me being out on top before without fail so I am pleased with it.
I also fully expect that it will be a year or more before some of these buys are back where they should be.
I feel guilty for the cognitive dissonance I get from not wanting this to be a full-on catastrophe while sitting on a pile of cash waiting for the market to bottom out. =/
ver_21
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Make a friend in the Chicago, Philadelphia, or New York Restaurant business. Become a partner 3 months from now.
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Blazin
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TJT
Mr. Poopybutthole
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Yeah I've already made quite a few buys and have about half the pot of cash I had on hand left. Now I wish I had diamond hands and didn't start purchasing until this week. But what can you do.
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ver_21
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Blazin
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With that close will look to tomorrow for a proper check of Dec 2018 low. Over night has really mucked things lately so we may open in the morning below that level. (S&P 2346)
TJT
Mr. Poopybutthole
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I fully agree on this but I also fully agree with the previous sentiment. Buying on the way down always feels like fucking shit. But god damnit. It's the right thing to do and I know it.
So I do.
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Sanrith Descartes
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I never expected it to hit the strike. I was banking on a semi-recovery and to grab some profit in the 3rd quarter. It was one of my first plays after we hit about 15% down. I (obviously pulled the trigger too early). It has enough time on it im letting it ride at least into the summer and see if the government bill them out. I have 4 contracts so not a "big" investment (relatively).
TheBeagle
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