Stock market tips and experiences

[MetsFan]

Did anybody get in on LOCO?

I also saw this and thought it was hilarious. As long as the sheep keep buying Apple, I'll be happy.

[bimmerfrk]

the stock or the chicken? hehehe

[E92TTKING]

When is alibaba apo expected to release? Aug 8?
Who is hopping in on that one?

[F1Venom]

I don't play earnings, but it looks like insiders have been buying TWTR so I'll go long on Monday. Its earnings are Tuesday after the bell. I've got a target of $50 by September.

[E90Alex]

Been holding STJ for a while and now just added more to my position.

Anyone have any thoughts on STJ?

[Ubersmooth]

Originally Posted by E92TTKING

When is alibaba apo expected to release? Aug 8?
Who is hopping in on that one?

I'm pretty sure they pushed it back to September.

I might try to pick it up and dump it fast, all depends on how TVIX goes for me.

[F1Venom]

Why anyone would bother themselves with something like TVIX right now is beyond me.

[nnnnnnnnnnnnnnnnnnnnnn]

Originally Posted by F1Venom

Why anyone would bother themselves with something like TVIX right now is beyond me.

Expand upon this thesis. Why do you think that?

[F1Venom]

Originally Posted by nnnnnnnnnnnnnnnnnnnnnn

Expand upon this thesis. Why do you think that?

Because it's down 99% in two years.

[nnnnnnnnnnnnnnnnnnnnnn]

Originally Posted by F1Venom

Because it's down 99% in two years.

And why is it down?

[F1Venom]

Originally Posted by nnnnnnnnnnnnnnnnnnnnnn

And why is it down?

Because it was created to fail?

[nnnnnnnnnnnnnnnnnnnnnn]

Originally Posted by F1Venom

Because it was created to fail?

what are you talking about??

[F1Venom]

Originally Posted by nnnnnnnnnnnnnnnnnnnnnn

what are you talking about??

TVIX and volatility are the worst possible things to try and trade/invest in a bull market. I mean if you want to buy some now and see for yourself what happens then go ahead. I'm just warning that these things decay like no other.

[nnnnnnnnnnnnnnnnnnnnnn]

Originally Posted by F1Venom

TVIX and volatility are the worst possible things to try and trade/invest in a bull market. I mean if you want to buy some now and see for yourself what happens then go ahead. I'm just warning that these things decay like no other.

I don't think you understand what you are talking about. TVIX is a hedging instrument.

[F1Venom]

Nah, selling options is a hedging instrument. Unless you're expecting some black swan event, then TVIX will only cost you money.

[nnnnnnnnnnnnnnnnnnnnnn]

Originally Posted by F1Venom

Nah, selling options is a hedging instrument. Unless you're expecting some black swan event, then TVIX will only cost you money.

...really?

Volatility is mean reverting. During long periods of low volatility the chance of sharp spikes upward is greater. A great way to hedge these sharp spikes is to take a position in something like TVIX and have a very short holding period. It is a better idea than selling options..... Here is a scenario - Let's say you think some news will come out that might cause the market to sell off (Fed statement, etc etc), but you want to smooth out the volatility in your portfolio. Using something like TVIX will hedge this spike in volatility. Then just close it out at the end of the day.

Volatility is an asset class. You are capitalizing (or at least trying to) on the perceived value.

Now there are some issues with TVIX and others like it. The average person should most likely stay away from it because it can be difficult to wrap your head around its mechanics.


Also, hedging always costs you money.......

[F1Venom]

Oh, so you think there's going to be some headline on Monday to drag us lower? We're in a bull market, TVIX being useful has only been a 0.1% occurrence the past couple of years. I do think the bull market is drawing to a close, but I doubt the markets will go down enough to make holding TVIX worthwhile.

[F1Venom]

Normally I'd agree to use volatility instruments to hedge against risk, but right now they're not doing much.

[nnnnnnnnnnnnnnnnnnnnnn]

Originally Posted by F1Venom

Oh, so you think there's going to be some headline on Monday to drag us lower? We're in a bull market, TVIX being useful has only been a 0.1% occurrence the past couple of years. I do think the bull market is drawing to a close, but I doubt the markets will go down enough to make holding TVIX worthwhile.

What are you talking about???? I am not making any predictions. I gave you a scenario and explained the uses of something like TVIX. You are exactly the type of person who loses their shirt in the market. You need to educate yourself before you even think about opening a new position.

[nnnnnnnnnnnnnnnnnnnnnn]

Originally Posted by F1Venom

Normally I'd agree to use volatility instruments to hedge against risk, but right now they're not doing much.

Do you know what hedging is? Your statement is moot. Why would you wait until there is a spike in volatility to hedge volatility? That complete defeats the point! You'd be too late!

[F1Venom]

Originally Posted by nnnnnnnnnnnnnnnnnnnnnn

Do you know what hedging is? Your statement is moot. Why would you wait until there is a spike in volatility to hedge volatility? That complete defeats the point! You'd be too late!

I know what hedging is, but selling options is the better way to do it since you could be collecting premium.

[F1Venom]

Originally Posted by nnnnnnnnnnnnnnnnnnnnnn

Do you know what hedging is? Your statement is moot. Why would you wait until there is a spike in volatility to hedge volatility? That complete defeats the point! You'd be too late!

LOL! So you've been hedging with TVIX for how many years? If you've even made any money, how much has "hedging with TVIX" set you back? Because there's no way you're actually not losing a considerable amount.