Stocks and Trading Thread - Channeling your inner Mono

[Tamas]

So of my tiny little stock purchase some time ago, Lloyds Bank was a reasonably good idea I think. the FTSE100 ETF was less so.

[DGuller]

The Dow is a stupid index and I never pay attention to it.

If S&P is a smart index, why is it so small relative to Dow? 

[Admiral Yi]

If this is it, I've ended up only giving back December and January, which is not so bad.

[Admiral Yi]

Well that wasn't much of a crash.

My spidey sense says double dip.

[Camerus]

I wonder how many folks with cash reserves waiting for the impending correction blew their load on this dip.

[Admiral Yi]

I'm all set up to do my first ever options trade--writing 3 covered calls for ATT, @37.50, March 9 expiration.  I would make $89.74 (at 33 cents a share) and pay a commission of $9.20.

I just can't bring myself to pull the trigger.  Somebody talk me into it.

[Admiral Yi]

Order placed.  Thanks for nothing.

[Admiral Yi]

Does the value of a bond fund decline when interest rates rise?

[Habbaku]

Order placed.  Thanks for nothing.

Sorry, I rarely pay attention to this thread or I'd have offered a bit of advice.

What's got you into options trading?

[Habbaku]

Does the value of a bond fund decline when interest rates rise?

Not necessarily, but that's typically true. Times of rising rates aren't the best for bonds in general, but particulars might be suitable. If you think rates will continue to rise, shift away from long-term bonds.

[Admiral Yi]

What's got you into options trading?

I used to work with a guy at Pearson who had worked at Lehman and his whole career was selling covered calls until it struck, then selling the put to get back in.  He claimed to clear 15% a year.

Then I caught a youtube clip about a kid who started trading when he was 11.  The interviewer asked him what his first options trade was and he said he cobbled together enough shares (SPY I think) to sell one covered call.

Then I was thinking if I'm going to unload a stock (which I wanted to do because I think we have another correction coming and really need to move some money into fixed income anyways) why not make some money while doing it by selling the covered call?

Plus it makes me feel like a badass, with not a great deal of downside.

[DGuller]

I'm not naive enough to believe fully in efficient market, it does have holes that well-connected can exploit, but clear 15% a year? Only if it's occasionally followed by a clear -100% a year.

[Admiral Yi]

Anyone know why some stocks trade after hours and others don't?

[frunk]

Anyone know why some stocks trade after hours and others don't?

Listed on other exchanges, maybe?

[Admiral Yi]

Listed on other exchanges, maybe?

Not for the stock I looked at.

I'm wondering if it has something to do with earnings reports.