texagbeliever said:

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Carlo4 said:

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Sounds like Mnuchin is taking the high road and knows a deal is happening. Pelosi is pandering to make it look like she would get the better deal/has the upper hand in negotiating.... she clearly doesn't here.

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CrazyRichAggie said:

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Carlo4 said:

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Sounds like Mnuchin is taking the high road and knows a deal is happening. Pelosi is pandering to make it look like she would get the better deal/has the upper hand in negotiating.... she clearly doesn't here.

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That's why I didn't get why the market is responding his way. Everyone knows a deal will get done within the next 4 weeks.

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CrazyRichAggie said:

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Carlo4 said:

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Sounds like Mnuchin is taking the high road and knows a deal is happening. Pelosi is pandering to make it look like she would get the better deal/has the upper hand in negotiating.... she clearly doesn't here.

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That's why I didn't get why the market is responding his way. Everyone knows a deal will get done within the next 4 weeks.

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Prognightmare said:

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https://www.cnbc.com/2020/10/15/smead-nightmare-us-stock-valuations-driven-by-young-dumb-investors.html

Quote:

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U.S. equity valuations have become a "total nightmare" fueled by "young and dumb" investors, according to Cole Smead, president and portfolio manager at Smead Capital Management.

At present, investors are paying 22 times forward earnings to purchase stocks on the S&P 500, 50% higher than the 10-year average valuations across the index.

The forward price-to-earnings (P/E) ratio divides the current share price of a company by its estimated future earnings per share (EPS).

Much of the market rally which took the U.S. benchmark from correction territory in March to an all-time high in August was driven by tech megastocks and a bullish options market.

"The buying that went on in August and September is a 10-year phenomenon the likes of which we have never seen, among millennials and in the risk-taking among people that don't want to own bonds and want to own overpriced U.S. quality businesses, it is of record proportions," Smead told CNBC's "Squawk Box Europe" on Thursday.

He added that current valuations were an example of "stock market failure" driven by millennials speculating in the stock market for the first time. Smead projected that markets could be in for a nosedive since despite its monetary policy shoring up credit markets, the Federal Reserve "can't save a stock market."

"They are buying bullish call options that expire inside two weeks. There was ($500 billion) of bullish call options bought in a four-week stretch by small retail traders," Smead said.

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Quote:

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Microsoft is a wonderful company, but at 40 times earnings, there is a 0% chance of that producing wealth for someone over the next 10 years that will meet their needs."

Despite a sharp tech sell-off in early September, Microsoft shares remain 40% higher since the turn of the year, while fellow tech titans Apple, Amazon, Alphabet, Facebook and Netflix have all been on a tear since March's crash.

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Good read and touches on what I was talking about yesterday about seeing what RH traders are feeding on.

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JesusQuintana said:

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Didn't Mnuchin say a stimulus was unlikely prior to election yesterday?

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jtmoney03 said:

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I've got an eye on ZM. I like the stock, but it's moves have been inflated during covid, imo. May look at a few cheaper OTM puts for tomorrow and see if it swings down lower today. As long as there isn't a wave of lockdown news or crazy increases in cases/deaths, I expect it to drop a little today. Down 2% in PM.

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ehrmantraut said:

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Prognightmare said:

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https://www.cnbc.com/2020/10/15/smead-nightmare-us-stock-valuations-driven-by-young-dumb-investors.html

Quote:

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U.S. equity valuations have become a "total nightmare" fueled by "young and dumb" investors, according to Cole Smead, president and portfolio manager at Smead Capital Management.

At present, investors are paying 22 times forward earnings to purchase stocks on the S&P 500, 50% higher than the 10-year average valuations across the index.

The forward price-to-earnings (P/E) ratio divides the current share price of a company by its estimated future earnings per share (EPS).

Much of the market rally which took the U.S. benchmark from correction territory in March to an all-time high in August was driven by tech megastocks and a bullish options market.

"The buying that went on in August and September is a 10-year phenomenon the likes of which we have never seen, among millennials and in the risk-taking among people that don't want to own bonds and want to own overpriced U.S. quality businesses, it is of record proportions," Smead told CNBC's "Squawk Box Europe" on Thursday.

He added that current valuations were an example of "stock market failure" driven by millennials speculating in the stock market for the first time. Smead projected that markets could be in for a nosedive since despite its monetary policy shoring up credit markets, the Federal Reserve "can't save a stock market."

"They are buying bullish call options that expire inside two weeks. There was ($500 billion) of bullish call options bought in a four-week stretch by small retail traders," Smead said.

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Quote:

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Microsoft is a wonderful company, but at 40 times earnings, there is a 0% chance of that producing wealth for someone over the next 10 years that will meet their needs."

Despite a sharp tech sell-off in early September, Microsoft shares remain 40% higher since the turn of the year, while fellow tech titans Apple, Amazon, Alphabet, Facebook and Netflix have all been on a tear since March's crash.

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Good read and touches on what I was talking about yesterday about seeing what RH traders are feeding on.

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This is bull***** RobinHood traders are not influencing the market that much. This is a weak take.

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AgEng06 said:

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How low can MGNI go? I want to add to my position.

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McInnis 03 said:

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ZM BOOM

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AgEng06 said:

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How low can MGNI go? I want to add to my position.

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oldarmy1 said:

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Touchless said:

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oldarmy1 said:

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oldarmy1 said:

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If you buy a $SPY PUT out 30 days the movement isn't very pronounced unless a big market move occurs. So with SPY so close to a key support level and early move upward you can enter it and exit if SPY moves above $352.50. Probably less than a $20 loss on say a $330 Put.

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We're still holding 3500 SPX but SPY is ahead of the selling. Options green green

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With these currently looking good, how long would you suggest holding vs taking the profit? I bought 11/16 $330P that are up close to 20% now and have helped as a hedge today with several others struggling.

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I closed out 25% to have a no loss position now. I don't want to part with any more because the reversal pattern is so close to confirming.

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CrazyRichAggie said:

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This good for the November $22.5 Call also?

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tam2002 said:

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RKT at 22.50. Good spot to start a position?

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CPDAggie10 said:

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CrazyRichAggie said:

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This good for the November $22.5 Call also?

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Are you buying the November calls on this one? I recall OA saying something earlier in the week about selling covered calls against shares?

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Prognightmare said:

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tam2002 said:

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RKT at 22.50. Good spot to start a position?

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Yes, I added to my position.

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E said:

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Prognightmare said:

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tam2002 said:

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RKT at 22.50. Good spot to start a position?

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Yes, I added to my position.

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Common shares or calls? I think a bunch of us are in the 10/30 $24's

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