I'm not going to put all of my money into it obviously, but I have put 5% of my investment funds into it for fun. If it dies oh well. My retirement 401k is already diversified in the basic cookie cutter stuff.
You said it yourself - they are for short term use only. Highly leveraged securities intended for trading are not liquid enough for long-term investing and tend to blow up (lose everything) in down markets. Take the 2x and 3x energy bull and bear ETFs, which blew up recently, as a warning. Even if the underlying stays well above zero, the leveraged ETFs can still blow up due to the liquidity issue. Treasurys appreciate when interest rates drop. We have had a bigger interest rate drop recently than the period leading up to the recession, and both drops are the largest in history. You are much more likely to see interest rates increase from here or stay flat. You also picked ideal periods for the 3x market ETFs. Include the 2008-2009 recession to get a better idea of the return.
Twilio (TWLO) after-hours. That thing's more than doubled in the last 2 months. That was probably a "stay-at-home" trade to buy into.
What?! I thought we were your brokers, haha. I say test it out, if you watch it and it's not a lot at play it's worth trying. And definitely not financial advice. With that said, on these ETF/P/N I have been noticing some interesting options placed, I can't recall which one but it was enough that basically I'd almost guarantee there will be a small short coming, unfortunately I can't recall it. I also know these play differently vs stocks, I think this has been discussed repeatedly here, but when I've tracked volume like that it's pretty much a sign it'll dip (especially for stocks, so not exactly the same here). Anyway on ETFs I've been trying to watch some of these type plays for options, I'm not looking for the crazies going all in on random positions but more for the bets you can tell where a call and a smaller put/hedge bet was placed. ie orders where you can tell the money is most likely going. I know this doesn't always work especially on ET types but I still think I'm going to review it. Again, I haven't spent a ton of time on these yet though. So until I look this over enough I am not going to place all-in/wallstreetbets type plays on SPY or something, haha, I also wouldn't do that regardless. I'm more trying to work at my ETF/N/P type plays. So it'll probably be a while, especially with market before I'll actually place any. Still working on trading those, but from the guys that actually know what they're doing, the returns are amazing.. But I've also seen guys not know what they're doing and wreck an account that was trending just fine on stocks. Also, mentioned but of course very short term plays. I think if you do try it, just move in/out to maximize money, at least as you learn it. I don't think I've seen anyone just leave them, since things can change rapidly on these.
Im wondering about putting $15k into Southwest Airlines and just planning And letting it sit for a few years until airlines rebound. Southwest seems to be a well run company. Thoughts?
I’ve been contemplating the same thing. Just trying to figure out if I should put in an airline or Boeing (since we all know the guvmint ain't gonna let Boeing go away).
Never assume a government bailout = you are safe as a shareholder. https://money.cnn.com/2009/05/05/news/companies/gm_shareholders.reut/index.htm Sure airlines will recover...but then you have to wonder if that was the best investment of your 15K. what if airlines stay down for 3 years and u can make money in the meantime on something else...
Appreciate the info but I was being sarcastic about the government thing. Boeing isn’t going anywhere though. It will be back to $300 in a year.
Yeah, these are good points, I mean I think Boeing/SW would be very safe bets but could take a while. With that said, I definitely like those plays better than cruises (for example).
Yeah, Boeing is really good bet, I'm probably going to load up some options/stocks eventually, I think it would be a nice investment. And I wouldn't have to worry as much as a few dangerous ones. SW and other airlines are good too, I don't know how I feel on cruises, but airlines I feel good about long-term Other option could easily sell puts if you miss entry, I think it'll be steady/solid assuming we don't have some other trash get in the way. I mean assuming you were planning on going heavy on Boeing, definitely not financial advice and I know you know how things work but just in case others take this and don't understand. Don't want them asking for money owed if they hit the strike price etc. I think I'd feel safer on Boeing vs more volitale ones. If attempting that move *
i have a different take on BA, whose competitive advantage in the aerospace industry has been that it has a more diversified porfolio of commercial and defense work. due to its complacency / negligence---contributing to the 737 max nightmare--- its business has, instead, become diworsified. what was previously a competitive advantage has morphed to be a nightmarish liability the 737 Max F****-up renders it less competitive against AIRBUS, it also adversely affects its competition against US defense contractors, namely Lockheed (LMT)and Northrop (NOC) who are seizing this opportunity to crush BA for this reason, i m looking for opportunities to sell call spreads on BA, and either buy calls or sell put spread on NOC or LMT also, Buffett's dumping of airline stocks amounts to a canary in a coal mine, so i'd stay away
after ~ 4-5 wks of higher lows---forming an ascending triangle---CRM appears to be making a run to the peak
I listened to the CEO getting interviewed today after earnings. He sounded depressed. Even admitted the next quarter would probably be bad.
I don't know about you, but I'm probably going to come back and think I should've bought instead of thinking I should've bought instead of thinking I should've bought. I don't like chasing stuff like that out of FOMO.
You seem to have good instinct man. Go with your gut. I am not too worried about RTW/CINF since I expected to hold it for a while. But ya, not happy with the current prices lol.
You may be right, but they have some catching up to to do with their competitors like Crowdstrike and Palo Alto Networks. Their most recent earnings weren't all that great and they've been laying people off. Last I looked, CRWD was up almost 100-150% or so since the lows in March. I heard today there was a lot of option action (calls) on FEYE, though, and all these cybersecurity stocks have been popping, so maybe it's their turn to pop (and they did pop today and after-hours).
