The Dow is down AKA Stock Market Watch 2020. Update: Pump before the dump.

Sheepinator

Member
Jul 25, 2018
9,613
Yep I’ve been trading stocks for just over a year now but I haven’t messed with options yet because I need to learn more about. Also seeing the massive L’s on r/wallstreetbets has been a massive cautionary tale for me lol.
The simplest to start with is covered calls. If you're happy exiting something at price $150 say, and next weeks $150 calls are priced at $3 say, you sell those and wait. If it closes about $150, you're out at the price you were happy with and you have $3 more, which just got you an extra 2%. If the stock stays flat or goes down, you keep it, and you still have that $3, like I said a 2% gain.
 

reKon

Member
Oct 25, 2017
5,400
I’ve been considering switching after the extended down time a couple weeks back, just not sure what else is as convenient and I’m pretty familiar with how Robinhood works now. What do you use?
I use Fidelity because my company uses them for 401K. The app isn't as user friendly as Robinhood. Robinhood has done great here in terms of UI.
 

Lyrick

Member
Oct 25, 2017
2,108
Didn't know brokers force you to consent that you know you're speculating with options trading before giving you access. And I still have to wait 24-48 hrs for approval - kinda like a cool off period when buying a firearm? lol
yeah, Fidelity sends you a paper book then only gives you access to covered Calls to start (and requires a margin acct), you have to fill out more forms to get full option access.
 

MrBob

Member
Oct 25, 2017
3,472
It's fun to see how numbers are important. Market trying to rally above sp500 2600 multiple times and keeps getting rejected. Let's now watch if the fade happens or if bulls try to build up energy for one more attempted surge over.

This is my spectator sport while there are no sports to watch.
 

Lyrick

Member
Oct 25, 2017
2,108
It's fun to see how numbers are important. Market trying to rally above sp500 2600 multiple times and keeps getting rejected. Let's now watch if the fade happens or if bulls try to build up energy for one more attempted surge over.

This is my spectator sport while there are no sports to watch.
maybe it will back off and try to get a running start this time...

or give up


I have to wonder just how many sell limits are placed just below the line to keep rejecting it like that.
 

Steel

The Fallen
Oct 25, 2017
13,004
Thing I'm finding insane is that the ridiculous GDP drops that JP and Goldman predict only have an 8.5% unemployment rate which... it would not be the least bit surprising if we crash through that number easily.
 

hrœrekr

Member
May 3, 2019
712
So I'm guessing holding RCL long is probably not the greatest play here then? I'm up 66% from where I bought and could make a nice gain if I sold now.
Made 100% from Monday to Today with Norwegian.
I still want to rebuy for the long term since they are already very cheap. But for now I'll just watch.
 

Sheepinator

Member
Jul 25, 2018
9,613
I would hope that the unemployment rate has been priced in considering the one month constant drop.
I'm skeptical of those numbers. CA reported 1M in 12 days. PA said 540K in a week. Those States are 16% of the US population, yet this weeks report says only 3.3M. I realize the windows are slightly different, and not all States will have the same rate of layoffs, still, if those two are representative that's over 9.6M in the last 12 days.
 

Yamajian

Member
Oct 30, 2017
652
My SPY puts for April 17 aren't looking so hot right now. Really thought the unemployment numbers would cause a big drop today. Whoops.
 

greepoman

Member
Oct 26, 2017
873
Airlines falling.
Any reason? Aren't they part of the aid package?
My guess would be the corona numbers still increasing exponentially means longer and longer before airline travel returns to normal.

I wonder if another thing the stock market likes at the moment is growing movement to return to work sooner than later even at the cost of grandma.
 

Sheepinator

Member
Jul 25, 2018
9,613
This talk of opening by Easter is fantasy imo. The latest Italy numbers came out today. 16 days into a national lockdown they're having more new daily cases than recent days, second highest so far, and deaths have plateaued for the last few days just below the peak. So they've halted the exponential spread, but they're still a long way to getting to near zero daily new cases, which is surely the smart goal to reach before opening up everything. Hard to say how long the total process would take, though China's charts may be a model there. A national lockdown of 5 weeks might do it, whereas Trump in the US is pushing essentially partial lockdowns for 3+ weeks.

I wonder if the market is pricing in an earlier return to normal than seems feasible.
 

thepotatoman

Member
Oct 25, 2017
5,805
Denver
It's fun to see how numbers are important. Market trying to rally above sp500 2600 multiple times and keeps getting rejected. Let's now watch if the fade happens or if bulls try to build up energy for one more attempted surge over.

This is my spectator sport while there are no sports to watch.
The market is full of different traders who are focused on different prices and time frames as important to them, but sometimes superseding factors create solidly defined ranges of prices where those traders as a whole are comfortable with regardless of their focus, and that's how individual numbers become important. Technical trading is all about trying to define those price ranges just by the history of the price changes, and is the most fascinating art/science to the stock market to me.
 

PhoenixDawn

The Fallen
Oct 27, 2017
447

MrBob

Member
Oct 25, 2017
3,472
Amazing surge in the last fifteen minutes to end the day. Now to see how many hold onto their huge weekly profit going into the weekend.

The market is full of different traders who are focused on different prices and time frames as important to them, but sometimes superseding factors create solidly defined ranges of prices where those traders as a whole are comfortable with regardless of their focus, and that's how individual numbers become important. Technical trading is all about trying to define those price ranges just by the history of the price changes, and is the most fascinating art/science to the stock market to me.
Agreed, me too. Technical data is something I like to track in certain stocks for fun in my spare time, but I know I'm not nearly as good as those who do this full time. It is definitely a science for those who do this for a living and do it well.