dean storholt · buying stock aapl -went public in 1980 at $22ish per share 1000 shares = $22,000...
Post on 19-Aug-2020
3 Views
Preview:
TRANSCRIPT
Dean Storholt
0
0
0
I am not a registered broker-dealer or investment adviser. I will mention that I consider certain securities or positions to be good candidates for the types of strategies we are discussing or illustrating. Because I consider the securities or positions appropriate to the discussion or for illustration purposes does not mean that I am telling you to trade the strategies or securities. Keep in mind that we are not providing you with recommendations or personalized advice about your trading activities. The information we are providing is not tailored to any particular individual. Any mention of a particular security is not a recommendation to buy, sell, or hold that or any other security or a suggestion that it is suitable for any specific person. Keep in mind that all trading involves a risk of loss, and this will always be the situation, regardless of whether we are discussing strategies that are intended to limit risk.
I am not subject to trading restrictions. Myself and other instructors could have a position in a security or initiate a position in a security at any time.
Buying Stock
How many of you can think of a stock you wish you had purchased AND HELD?
MSFT – 1000 shares in 1986 ($21,000) Now be worth $3,456,000
FB – AFTER IPO dropped to $19 1000 shares = $19000, Took < year to DOUBLE$218 Per share all time highNow $178 per share
Buying Stock
AAPL -Went public in 1980 at $22ish per share1000 shares = $22,000Now be worth 11.2 MILLION
AMZN – 1000 shares ($18000)Now 5.6 Million
PCLN, GOOGL, CMG, SNAP On and on and on and on
All time lows
CITI – dropped to $1 per share!!!
Now $70Decent return
BBY – from $10 to $40 in 11 months!!!
BAC
Good entry? BACDbl btm at band
Near $4.88
Buy 1000 sharesOr leaps
14 weeks later we have a double
Sell ½?
Have 500 shares free!!!!
Today around $30
Why Not?Stocks versus options – how do we decide?
Some stocks pay dividends
Some stock don’t expire ☺
Some stocks cost more
Can we combine BOTH worlds
I want to build a portfolio that I can pass on
Sell ATM 300p naked 3 months out for $18.55Buy ATM 300c 3 months out for $19.90
Our cost in the trade $1.35 per contract
45 days in – on the break of the 5, around $435 close position BUT—Close by selling 7 contracts and exercising 3We now own 300 shares of BA FREEEE!OR BETTER THAN FREE!!!
Cost Basis ZERO
Our $300c option now have $135 of intrinisicvalue plus the remaining time value
The put option will have some time value left, but not much
Sell 7 contracts at $135 intrinsic value = 94,500Buy 300 shares at $300 per share = 90,000(Buy 300 shares at our contract price of $300)
We now have a cost basis on those shares of -$4500
Other ways to reduce cost basis?Selling naked putsSelling Covered CallsSelling naked putsCollect the dividend
Cost Basis ZERO
Dean Storholt
0
0
0
Finding Candidates
Tonight I want to focus on ways to FIND candidates
IPO
Normal Watchlist
News
Scans
IPO
Do we have to get in on the IPO to make $$$$
NO!!!!
I would argue that you are better off waiting until after the IPO
Most RETRACE after IPO
IPO may not have options yet!
It’s all in the Charts
IPO
SNAPEntry Oct 28 $6.05Sell ½ May 30 $12.107 months, now own 250 shares FREE!!$3000 Investment
IPOPINS
Went public 4-18 @ $23.75
Ran to $35ish
RETRACED to IPO price in 1 month
Did we miss it?
Did it double?
Trending down?
Possible entries?
Stock or options
IPOSoly
Went public Feb @ $5.25
Doulbed by Apr 4
RETRACED to IPO price May 28
Are we nervous?
Sold ½ at double in April, Reload
Outside band/inside band move
Double within days/sell ½ again
Now own twice as many…FREE!!!
Normal Watchlists
I like these!
We are used to watching these – Familiar w/them
Have good options
Not Dead or Dying Companies (usually)
Normal Watchlists
AAL – American Airlines
I know high around $55
$27 would be 50% off
Hmmmmmm
Continue this live
AAL – American Airlines
What was our ½ off area?
$27
Bollinger band bottom7 candles downStochastics oversold
Good entry?
Where is stop?
What now?Double bottom?
Normal Watchlists
News
Any relevant news stories lately?
Anyone getting beat up?
Tradestation Scans
Tradestation Hot Lists
Analyzing potential candidates
How do we know that our candidate is not “dead”
Is there a reason or is the entire mkt down
Find reason for the decline
Is there a problem with the company
Has the problem been fixed
To the charts?
Continue watchlist scan
Any news stories
GE GMEF DFSIRIODPGNCOthers?
I am not a registered broker-dealer or investment adviser. I will mention that I consider certain securities or positions to be good candidates for the types of strategies we are discussing or illustrating. Because I consider the securities or positions appropriate to the discussion or for illustration purposes does not mean that I am telling you to trade the strategies or securities. Keep in mind that we are not providing you with recommendations or personalized advice about your trading activities. The information we are providing is not tailored to any particular individual. Any mention of a particular security is not a recommendation to buy, sell, or hold that or any other security or a suggestion that it is suitable for any specific person. Keep in mind that all trading involves a risk of loss, and this will always be the situation, regardless of whether we are discussing strategies that are intended to limit risk.
I am not subject to trading restrictions. Myself and other instructors could have a position in a security or initiate a position in a security at any time.
top related