Trade Findings and Adjustments 10-22-20
Keve Bybee – keve@hurleyinvestments.com
What direction is the market heading?
As we look at opportunities, ask yourself:
- Am I wanting to put on a trade because it’s a good idea with our current reality, or am I hoping for something I want to happen?
FB – What is FB jumping up on?
- SNAP earnings were great, which pushed up all social media stocks
- Not necessarily a true positive for FB
- They could have incredible earnings from more add revenue/user engagement.
- Or could have terrible earnings because small business earnings could be bad, restrictions on election advertising, covid keeping people from their jobs.
F – We decided to be patient and wait until it got up to $8 to protect shares this morning. Great day to get $8 strike puts to protect shares out to Nov 27.
UAA –
- Nothing for the short term with so much uncertainty
- Look at some cheap leaps – after election
- Good time to protect shares
JPM –
- I’d wait to see after election
Naked puts?
- Not a bad idea to get into a stock that has run up and you’d love to buy shares on a drop
- Holds a lot of margin in your account to come good on your obligation to buy shares.
- i.e. the broker will make you hold lots of cash.
