The real question is how can we profit from the pending collapse of the commercial real estate sector? Naked puts? It's obviously coming and the big players are too scared to move right now, so us smaller investors have our shot.
You don't have to say "naked puts"; you can just say puts. It's assumed you mean buying them and not writing them.
Most of the commercial REITS have been destroyed. You are a little late to the game.
True, but their are still retail property management firms, like Westfield Group that are bound to drop another 25%-50%.
Trying to squeeze the last drop of juice out of an Orange might not be that risky but doing it shorting stocks can wipe out your bank account.
A stock that's gone from 100 to 5 that you think is worth 0 has the same return from 100 to 0 as 5 to 0. Shorting is not for the faint of heart.
_________________ CrowdSurge and Ten Club will conduct further investigation into this matter.
Joined: Sat Oct 16, 2004 10:51 pm Posts: 14534 Location: Mesa,AZ
given2trade wrote:
broken iris wrote:
given2trade wrote:
broken iris wrote:
The real question is how can we profit from the pending collapse of the commercial real estate sector? Naked puts? It's obviously coming and the big players are too scared to move right now, so us smaller investors have our shot.
You don't have to say "naked puts"; you can just say puts. It's assumed you mean buying them and not writing them.
Most of the commercial REITS have been destroyed. You are a little late to the game.
True, but their are still retail property management firms, like Westfield Group that are bound to drop another 25%-50%.
Trying to squeeze the last drop of juice out of an Orange might not be that risky but doing it shorting stocks can wipe out your bank account.
A stock that's gone from 100 to 5 that you think is worth 0 has the same return from 100 to 0 as 5 to 0. Shorting is not for the faint of heart.
What about buying at-the-money puts?
_________________
John Adams wrote:
In my many years I have come to a conclusion that one useless man is a shame, two is a law firm, and three or more is a congress.
The real question is how can we profit from the pending collapse of the commercial real estate sector? Naked puts? It's obviously coming and the big players are too scared to move right now, so us smaller investors have our shot.
You don't have to say "naked puts"; you can just say puts. It's assumed you mean buying them and not writing them.
Most of the commercial REITS have been destroyed. You are a little late to the game.
True, but their are still retail property management firms, like Westfield Group that are bound to drop another 25%-50%.
Trying to squeeze the last drop of juice out of an Orange might not be that risky but doing it shorting stocks can wipe out your bank account.
A stock that's gone from 100 to 5 that you think is worth 0 has the same return from 100 to 0 as 5 to 0. Shorting is not for the faint of heart.
What about buying at-the-money puts?
They are very expensive.
_________________ CrowdSurge and Ten Club will conduct further investigation into this matter.
Joined: Sat Oct 16, 2004 10:51 pm Posts: 14534 Location: Mesa,AZ
given2trade wrote:
$úñ_DëV|L wrote:
given2trade wrote:
broken iris wrote:
given2trade wrote:
broken iris wrote:
The real question is how can we profit from the pending collapse of the commercial real estate sector? Naked puts? It's obviously coming and the big players are too scared to move right now, so us smaller investors have our shot.
You don't have to say "naked puts"; you can just say puts. It's assumed you mean buying them and not writing them.
Most of the commercial REITS have been destroyed. You are a little late to the game.
True, but their are still retail property management firms, like Westfield Group that are bound to drop another 25%-50%.
Trying to squeeze the last drop of juice out of an Orange might not be that risky but doing it shorting stocks can wipe out your bank account.
A stock that's gone from 100 to 5 that you think is worth 0 has the same return from 100 to 0 as 5 to 0. Shorting is not for the faint of heart.
What about buying at-the-money puts?
They are very expensive.
Sell naked way-out-of-the-money calls?
_________________
John Adams wrote:
In my many years I have come to a conclusion that one useless man is a shame, two is a law firm, and three or more is a congress.
The real question is how can we profit from the pending collapse of the commercial real estate sector? Naked puts? It's obviously coming and the big players are too scared to move right now, so us smaller investors have our shot.
You don't have to say "naked puts"; you can just say puts. It's assumed you mean buying them and not writing them.
Most of the commercial REITS have been destroyed. You are a little late to the game.
True, but their are still retail property management firms, like Westfield Group that are bound to drop another 25%-50%.
Trying to squeeze the last drop of juice out of an Orange might not be that risky but doing it shorting stocks can wipe out your bank account.
A stock that's gone from 100 to 5 that you think is worth 0 has the same return from 100 to 0 as 5 to 0. Shorting is not for the faint of heart.
What about buying at-the-money puts?
They are very expensive.
Sell naked way-out-of-the-money calls?
Buying put + Selling Call is same thing as shorting the stock. Your example is a cute way of shorting stock but taking on more "tail" risk, ie, if the stock goes up 15-20% you might not lose anything but if it goes up 50% you will be wiped out.
Buying/Selling deep out of the money options in this market is pretty nuts. Vol is so high that the only thing that makes sense is selling them but then you are collecting small premiums for massive tail risk in a very uncertain environment. Good for big banks/diversified institutions; bad for people like us.
_________________ CrowdSurge and Ten Club will conduct further investigation into this matter.
Buying put + Selling Call is same thing as shorting the stock. Your example is a cute way of shorting stock but taking on more "tail" risk, ie, if the stock goes up 15-20% you might not lose anything but if it goes up 50% you will be wiped out.
Buying/Selling deep out of the money options in this market is pretty nuts. Vol is so high that the only thing that makes sense is selling them but then you are collecting small premiums for massive tail risk in a very uncertain environment. Good for big banks/diversified institutions; bad for people like us.
After looking into this, I think you are right. This is not a market for noobs like me. Back to oil.
Joined: Sat Oct 16, 2004 11:54 pm Posts: 12287 Location: Manguetown Gender: Male
MF Global is rapin' everybody.
_________________ There's just no mercy in your eyes There ain't no time to set things right And I'm afraid I've lost the fight I'm just a painful reminder Another day you leave behind
The thread starter PM'd me his picks after he stopped posting here. I don't pay much attention to the markets, but I recall he was investing in some company called "Solyndra." Hope everything worked out for him.
_________________
Quote:
The content of the video in this situation is irrelevant to the issue.
Joined: Sat Oct 16, 2004 11:54 pm Posts: 12287 Location: Manguetown Gender: Male
bart d. wrote:
The thread starter PM'd me his picks after he stopped posting here. I don't pay much attention to the markets, but I recall he was investing in some company called "Solyndra." Hope everything worked out for him.
_________________ There's just no mercy in your eyes There ain't no time to set things right And I'm afraid I've lost the fight I'm just a painful reminder Another day you leave behind
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