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Stock Market & Retirement Planning

Stock Market & Retirement Planning

I got away from individual stocks back when I did a stint as a stockbroker so I can't speak to HD. I was just curious if the fundamentals of the business have changed, or the balance between them and lowes etc.


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Nothing really changed I just see more downside than upside at this point...
 
Barberakb said:
Nothing really changed I just see more downside than upside at this point...
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Nothing wrong with locking in profits.

Have you considered selling a "Covered Call" on it? A little more profit and if it goes down just below the strike, you keep the "Call" and the stock and can do it again.

I sell a lot of covered calls on what I feel are solid stocks.
 
TrueFX said:
Nothing wrong with locking in profits.

Have you considered selling a "Covered Call" on it? A little more profit and if it goes down just below the strike, you keep the "Call" and the stock and can do it again.

I sell a lot of covered calls on what I feel are solid stocks.
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No idea what you mean. Never done anything advanced like that or commodities. Ive only done market orders.
 
Barberakb said:
No idea what you mean. Never done anything advanced like that or commodities. Ive only done market orders.
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Covered Calls are actually one of the simplest and most straight forward options strategies out there. To keep it short and to the point :

You own 100 shares of Home Depot. HD is currently trading at $90.53. You can sell an option on your stock at a strike price of $91 for $0.88 per share right now.

What that means is that someone will pay you $88 for the right to own your 100 shares if the share price is at or above $91 at expiration, Friday September 19th.

Say the stock goes to $91.50. You still make the $0.47 difference per share from $90.53 to $91 plus you keep the $0.88 per share the buyer paid you. You would technically be ahead by $0.38 on the option itself not including your outright profit on the stock.

If the stock price closes at $90.99 or less, you keep the $88 and all of your stock.

There is a lot of good information out there about Covered Calls. Google it up and you can find some ideas. One site that is good for beginners is the Blue Collar Investor. His primary strategy is covered calls.

Hope I didn't confuse you too much.
 
TrueFX said:
Covered Calls are actually one of the simplest and most straight forward options strategies out there. To keep it short and to the point :

You own 100 shares of Home Depot. HD is currently trading at $90.53. You can sell an option on your stock at a strike price of $91 for $0.88 per share right now.

What that means is that someone will pay you $88 for the right to own your 100 shares if the share price is at or above $91 at expiration, Friday September 19th.

Say the stock goes to $91.50. You still make the $0.47 difference per share from $90.53 to $91 plus you keep the $0.88 per share the buyer paid you. You would technically be ahead by $0.38 on the option itself not including your outright profit on the stock.

If the stock price closes at $90.99 or less, you keep the $88 and all of your stock.

There is a lot of good information out there about Covered Calls. Google it up and you can find some ideas. One site that is good for beginners is the Blue Collar Investor. His primary strategy is covered calls.

Hope I didn't confuse you too much.
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that's what would happen to me..I'd lose the 88 and end up with nuthin'.......waaaaay to risky for my $$
 
ButchE said:
that's what would happen to me..I'd lose the 88 and end up with nuthin'.......waaaaay to risky for my $$
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That is the other side of the equation, that is if you "Bought" the Option.

In this instance, I'm suggesting that the owner of the HD stock "Sell" the Option. The difference between the two is what defines the risk.
 
Glad I found this thread as this is what I do for a living, though doing it for a living also precludes me from issuing advice on here... nice to see what everyone is thinking.
 
TrueFX said:
Covered Calls are actually one of the simplest and most straight forward options strategies out there. To keep it short and to the point :

You own 100 shares of Home Depot. HD is currently trading at $90.53. You can sell an option on your stock at a strike price of $91 for $0.88 per share right now.

What that means is that someone will pay you $88 for the right to own your 100 shares if the share price is at or above $91 at expiration, Friday September 19th.

Say the stock goes to $91.50. You still make the $0.47 difference per share from $90.53 to $91 plus you keep the $0.88 per share the buyer paid you. You would technically be ahead by $0.38 on the option itself not including your outright profit on the stock.

If the stock price closes at $90.99 or less, you keep the $88 and all of your stock.

There is a lot of good information out there about Covered Calls. Google it up and you can find some ideas. One site that is good for beginners is the Blue Collar Investor. His primary strategy is covered calls.

Hope I didn't confuse you too much.
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You did confuse me a little bit but Im gonna look it up to find out more.

Thanks.
 
Good day for the Staticline portfolio. Bought BNNY in February at $37. Nice 24% gain thanks to the below.


Annie's (BNNY) shares soared in early trading. Annie's is an organic food company, most known for their Mac and cheese. The company is being bought by General Mills (GIS) for $820 million in cash, or $46 a share.



I bought them back in Feb after their poor results in the previous quarter that caused investors to dump shares.
 
Jrodm13 said:
Glad I found this thread as this is what I do for a living, though doing it for a living also precludes me from issuing advice on here... nice to see what everyone is thinking.
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so tell me..do you think there's another adjustment looming ??
 
Just peeked into my 401k account.

Looks like I've made some solid choices!!!
 
Orange Hog said:
Has anyone read Dave Ramsey's Total Money Makeover book? I just picked it up on a reco from my bro-in-law and started reading it this weekend. We are aggressively working on paying off my last student loan and saving for a house. I've heard nothing but great things about his approach to personal finance.
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Have done it, and my mother is a teacher of it. While it may not be perfect for everyone and a little extreme to some, it is very effective at reducing ones debt
 
I am not a huge fan of Dave's plan for me personally but I think it works for some people.
 
Orange Hog said:
While we don't necessarily have significant debt (just the one student loan), I like his approach to putting a budget into action rather than just putting it on paper. My brother-in-law and his wife have been living in a smaller home and have been closely managing their budget to ensure they live within their means and save aggressively for a house, all based on Dave's philosophy. In a few years they will drop a large down payment on a home and will have it paid off in 10-15 years and live the rest of their life debt free...and they aren't even 30 years old yet! It seems like common sense stuff but putting it into action seems to be the stumbling block for many folks.
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That's awesome. The trickiest part honestly is being able to keep enough of a credit score to be able to purchase a house until you have enough to eventually afford one in cash. A mortgage will usually take care of it all but in some instances, not so much.

The entire credit score is a ton of BS anyway IMO. Oh you have zero debt but a ton of monthly income? Oh sorry, you don't qualify for anything and we're not into that secondary sources stuff like phone/utility bills because we're lazy and that's not easy.
 
I am doing some hard stuff right now. Instead of putting money into the market, I am paying down debt. It's not fun or sexy, but after doing some math, I determined that I am better off doubling up house payments and wiping out all credit card and car loans right now. I still have money in the market, I am just not dumping anything new in right now.
 
Not sure paying mortgage down early is great idea if your interest rate is low. If it isn't low, refinance. With tax deduction having mortgage is good. Basically your paying 4% on money you could make more invested, then the deduction on top.

Paying down credit cards is good though.
 
Speedliner said:
Not sure paying mortgage down early is great idea if your interest rate is low. If it isn't low, refinance. With tax deduction having mortgage is good. Basically your paying 4% on money you could make more invested, then the deduction on top.

Paying down credit cards is good though.
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Somewhat agree, but having the peace of mind of living mortgage free is invaluable to some.
 
Stock Market & Retirement Planning

Yes, but you maintain the ability to pay off mortgage on demand from the investment pool. It's a matter of having your asset in the higher returning allocation - equity on your house, or equity in investments. As long as you maintain stop orders it can be allocated to investments and safe.

But I agree that if having a mortgage causes stress and discomfort try to pay it off. But at today's rates that should be financially inferior.
 
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I am not doubling payments on my primary residence. It's another house that I will own outright in 4 months.
 
Covered calls are actually a conservative thing when it comes to options. You can sell an option out of the money and pretty much guarantee that you will keep the stock and you just profit from the sell of the option. Or you can get downside protection and sell an in the money option. Look for some books by Alan Ellman. Ones of the books is called the complete encyclopedia of covered call writing. That's a great place to start. Or even comes with excel sheets that you can use to input all the numbers to see profit and loss and such. I got ppb my kindle and emailed him and he sent me the excel sheets. Has strategies and when to do what and why.
 
Orange Hog said:
Has anyone read Dave Ramsey's Total Money Makeover book? I just picked it up on a reco from my bro-in-law and started reading it this weekend. We are aggressively working on paying off my last student loan and saving for a house. I've heard nothing but great things about his approach to personal finance.
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I think Ramsey is useful for debt reduction and budgeting advice. I would look elsewhere for information on investing and markets.
 
Effin AAPL taking a bath today. Most frustrating stock out there.
 
Erky said:
It's a fun stock, though.
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It can be. The Apple Watch news did not go well. The made up photos missing the sticking out camera lens brought it down lower I have a feeling. In the end, they will sell enough of them for it to go back up. To think the first time I bought this stock was at $84 and sold it at $240.
 
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