I bought puts on DDM for the purpose. DDM is an ETF tracking the Dow with 2x leverage, and the theory is that it will fall faster when Dow falls. Puts for extra leverage, so that it's cheap, but I have some pretty good protection if the market plunges. It won't help much though if it goes to 22k first and then down to 19k. It will only work if the market goes down to pre-Trump levels or under before July, which is what I need insurance for anyway. Otherwise I'd be happy to write off the 100% loss on the puts.
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I bought puts on DDM for the purpose. DDM is an ETF tracking the Dow with 2x leverage, and the theory is that it will fall faster when Dow falls. Puts for extra leverage, so that it's cheap, but I have some pretty good protection if the market plunges. It won't help much though if it goes to 22k first and then down to 19k. It will only work if the market goes down to pre-Trump levels or under before July, which is what I need insurance for anyway. Otherwise I'd be happy to write off the 100% loss on the puts.
Look at the hourly chart. None are red. (knock on wood)
I know, right!
Something about that graceful higher low, higher high pattern on the 15 min though.
racer26
Active Member
Hm. Does this momentum carry into tomorrow, where I might be able to escape in the green, or do I bail out now, with only a few hundred in losses.
This smells like a 256.99 or 257.01 close...
This smells like a 256.99 or 257.01 close...
Jonathan Hewitt
Active Member
You can sell calls against your calls to create a spread if you want to hedge (assuming your broker lets you). Your max gain will be much lower but so will your max loss.
racer26
Active Member
Unfortunately, they do not. Can only covered write against common. Don't really understand the logic behind why.
Tricky one. Volume and price action into the close will be a hint. But that is cutting it fine... obviously.
You'd think the short-sellers would move to Schwab, which just lowered their commissions and isn't paying share-lenders *anything*.
GM reports tomorrow morning. Should give clues about Tesla. Almost guaranteed Tesla will be mentioned during GM's conference call.
Looking at the trading pattern today (high green, short red) suggests large investors establishing new long positions and/or closing short positions. If the gain today is from short covering in anticipation of positive events at earnings, we could be in for a steady ride up. There are 10 trading days before earnings report. There are about 35 million shares shorted.
ev-enthusiast
Active Member
Folks are getting nervous.... those last few minutes were bouncy bouncy
racer26
Active Member
Well; I escaped from half of the Feb10@260's for a $50 loss (basically, I lost the commissions). Hopefully tomorrow continues upward and I can pick up that $50 plus a few more left on the table.
Kindly send (C.O.D.) sample of your wood.
115,000 shares traded in the closing minute
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