The Official Stock Market Thread

[finfangfan]

Originally Posted by jcardstore

Good luck to anyone trading DWAC

I don’t own it but wow… it’s up to $131 now. Trading halted though… look out below.

[Josh611]

Originally Posted by finfangfan

I don’t own it but wow… it’s up to $131 now. Trading halted though… look out below.

PHUN was up something like 800% since yesterday too. Crazy.

[cash4cards]

SNAP is getting killed today down 23%

[rcmb3220]

AUPH had a day. Will have to bookmark where I was after Thursday’s close since I’m sure to be a decent amount down Monday.

[JMarchand1981]

Originally Posted by JMarchand1981

Did anyone see the AFRM211015C150 selling for a premium equal to 2% of the share price today? I grabbed the shares and sold the call and now I hope it executes with a decent day tomorrow.

That was just kind of odd for such little tv left on the option. I will clear 4% if it executes tomorrow.

Originally Posted by jcardstore

No I've been kinda stuck with a couple trades that didn't go my way.

been in each for 3 weeks now and with the CC premium, looks like I'll get assigned today for a small profit on each but wasted 3 weeks of possibly better opportunities.

Hopefully you were able to get assigned and out of those bad trades.

Give the AFRM options a look. 1.7 beta and their standard deviation lead to insane volatility. If you can handle the volatility of the shares (I wouldn't be selling these options without owning the underlying shares), and are agile enough you can make some pretty quick money. If you are looking to reduce your risk profile, this is definitely not the thing to do.

I have now been assigned a couple times at varying levels, still managing to beat the market return by a mile in the comparable period.

[JMarchand1981]

Originally Posted by cash4cards

SNAP is getting killed today down 23%

Snap deserved to get killed after that earnings call. Their guidance trimmed away quite a bit of their future earnings. I don't follow it so I don't know the before and after numbers, but I know pros that were selling into the weakness. If I were long SNAP I would be hoping that FB steps up and tries to buy it now.


PYPL is another story. PYPL Has been getting killed since it was rumored to be acquiring Pinterest. There are two solid long plays here. Buy PYPL now hoping the Pinterest sale doesn't go through, or wait until the sale goes through and then buy it on the thought it will be additionally hit on the purchase. We/I are long PYPL with a super-low cost basis. I will add more if it touches $225. We discussed adding more if it touches the $230's.

[jcardstore]

Originally Posted by JMarchand1981

Snap deserved to get killed after that earnings call. Their guidance trimmed away quite a bit of their future earnings. I don't follow it so I don't know the before and after numbers, but I know pros that were selling into the weakness. If I were long SNAP I would be hoping that FB steps up and tries to buy it now.


PYPL is another story. PYPL Has been getting killed since it was rumored to be acquiring Pinterest. There are two solid long plays here. Buy PYPL now hoping the Pinterest sale doesn't go through, or wait until the sale goes through and then buy it on the thought it will be additionally hit on the purchase. We/I are long PYPL with a super-low cost basis. I will add more if it touches $225. We discussed adding more if it touches the $230's.

I think the PINS deal was terrible. They overpaid AND it makes no sense imo.

I bought Jan 22 250 calls last week because I think the deal falls through. If I had to guess, some big investors were on the phone with PYPL leadership to get the deal called off.

I know you’re not a TA guy but I’m watching for the $236 level for the big buyers to come in

[JMarchand1981]

Originally Posted by jcardstore

I think the PINS deal was terrible. They overpaid AND it makes no sense imo.

I bought Jan 22 250 calls last week because I think the deal falls through. If I had to guess, some big investors were on the phone with PYPL leadership to get the deal called off.

I know you’re not a TA guy but I’m watching for the $236 level for the big buyers to come in

Yeah, I don't understand the integration piece about why or how it would work. The only think I can think of is Paypal goes Berkshire Junior and buys it to let it run itself and then divests 20 years from now. That is pretty much a here and now shareholders nightmare since they probably won't be in Paypal 20 years from now.

My $225 number is just based on where I actually evaluate the company today while incorporating tomorrow's growth (you know me, I am a corp. finance guy). The $230-ish number that my group has could be somewhere in that range. It depends on where/how the market trades.

In any event, there is money to be made in the swing trade right now, but I have a tough time swing trading something that I am/have been super long on.

[jcmel323]

So If i buy a stock on 10/26 and the ex dividend date is 10/27 i will receive the dividend.
My question is:
1. When can i sell it to receive the dividend?
2. Will i receive the full dividend or just a partial dividend of the days i owned the stock?

[JMarchand1981]

Originally Posted by jcmel323

So If i buy a stock on 10/26 and the ex dividend date is 10/27 i will receive the dividend.
My question is:
1. When can i sell it to receive the dividend?
2. Will i receive the full dividend or just a partial dividend of the days i owned the stock?

Very common question.

2) There is no such thing as a partial dividend. You can technically sell it later that day and receive the dividend.

1) The dividend goes to shareholders of record at the start of business on the ex-date.

My question here is why you would bother doing all of this just for a dividend? You don't gain anything since the price of the equity is adjusted down to reflect the dividend at a 1:1 rate.

[sportsfan12345]

Originally Posted by JMarchand1981

Very common question.

2) There is no such thing as a partial dividend. You can technically sell it later that day and receive the dividend.

1) The dividend goes to shareholders of record at the start of business on the ex-date.

My question here is why you would bother doing all of this just for a dividend? You don't gain anything since the price of the equity is adjusted down to reflect the dividend at a 1:1 rate.

What does this mean exactly?

[JMarchand1981]

Originally Posted by sportsfan12345

What does this mean exactly?

Sure. If you receive a .10 dividend, the money comes from somewhere, right?

The price of the equity would be adjusted prior to market open to reflect the reduced cash position of the company. People ALWAYS think they are gaining or winning when they receive a dividend but they are taking from peter to give to Paul. Honestly, by all means if that is what the trader wants to think and still believes there is no offset.

[JMarchand1981]

Originally Posted by jcardstore

I think the PINS deal was terrible. They overpaid AND it makes no sense imo.

I bought Jan 22 250 calls last week because I think the deal falls through. If I had to guess, some big investors were on the phone with PYPL leadership to get the deal called off.

I know you’re not a TA guy but I’m watching for the $236 level for the big buyers to come in

Pins deal is squashed. Back to the $260’s today

[auctionjmm]

Originally Posted by JMarchand1981

Sure. If you receive a .10 dividend, the money comes from somewhere, right?

The price of the equity would be adjusted prior to market open to reflect the reduced cash position of the company. People ALWAYS think they are gaining or winning when they receive a dividend but they are taking from peter to give to Paul. Honestly, by all means if that is what the trader wants to think and still believes there is no offset.

You skipped a very important step. That equity is also adjusted UP prior to the dividend.

Say a stock is trading at $50. A $1 dividend is announced. The stock will typically go up to $51. After the dividend goes out, the stock adjusts back down to it's normal $50. So yes, you did actually gain that $1. The only people who would be offset 1:1 are those who bought in when the price was temporarily adjusted up. I suppose in the example above, buying on 10/26 would be too late. But if he bought earlier a the $50 clip, he could cash out with his 2% profit.

[jcardstore]

Originally Posted by auctionjmm

You skipped a very important step. That equity is also adjusted UP prior to the dividend.

Say a stock is trading at $50. A $1 dividend is announced. The stock will typically go up to $51. After the dividend goes out, the stock adjusts back down to it's normal $50. So yes, you did actually gain that $1. The only people who would be offset 1:1 are those who bought in when the price was temporarily adjusted up. I suppose in the example above, buying on 10/26 would be too late. But if he bought earlier a the $50 clip, he could cash out with his 2% profit.

It’s not this simple and doesn’t work like this in real world markets because there are so many other factors that determine stock price that supersede dividend announcements.

There is no real trading strategy here. There is usually a couple months between declaration and payout during which many things happen.

[monkeymcgee]

The long and short of it is either get in an ETF that does the dividend chasing for you or just hold the stocks that you want the dividends from. You will not outsmart the smart money on some kind of dividend arbitrage.


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[jcardstore]

Originally Posted by monkeymcgee

The long and short of it is either get in an ETF that does the dividend chasing for you or just hold the stocks that you want the dividends from. You will not outsmart the smart money on some kind of dividend arbitrage.


Sent from my iPhone using Tapatalk

Divdend arbitrage is actually a fairly complicated options trading strategy. Not what auctionjmm described. It's a way to trade what jmarch detailed in his post

[monkeymcgee]

Originally Posted by jcardstore

Divdend arbitrage is actually a fairly complicated options trading strategy. Not what auctionjmm described. It's a way to trade what jmarch detailed in his post

Right, but it’s not one I’d suggest for someone who is not an advanced trader which (no offense) the person asking would not appear to be.


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[jcardstore]

Originally Posted by monkeymcgee

Right, but it’s not one I’d suggest for someone who is not an advanced trader which (no offense) the person asking would not appear to be.


Sent from my iPhone using Tapatalk

Yes 100% agree. Which is why what jmm was sharing was bad information. It makes people think that it's simple and easy when they just end up getting burned in the end

[jcardstore]

Originally Posted by JMarchand1981

Pins deal is squashed. Back to the $260’s today

Guess my 250s are going to pay today. I knew this was coming. You don't evaporate 32B in market cap in 2 days and your board and investors just shrug it off.

It was a dumb deal anyways

[auctionjmm]

Originally Posted by jcardstore

Yes 100% agree. Which is why what jmm was sharing was bad information. It makes people think that it's simple and easy when they just end up getting burned in the end

I wasn't really sharing new information. I was refuting the notion that dividends are pointless because they are mere 1:1 offsets. Perhaps I should have clarified that my example was strictly an example "in an ideal world", but I didn't mean to promote that as a successful investment strategy.

I believe strongly in long term compounded dividends so I do go the ETF route and also some blue chips with steady dividends, in addition to my riskier plays.

Sorry if I confused anyone.

[jcardstore]

Originally Posted by auctionjmm

I wasn't really sharing new information. I was refuting the notion that dividends are pointless because they are mere 1:1 offsets. Perhaps I should have clarified that my example was strictly an example "in an ideal world", but I didn't mean to promote that as a successful investment strategy.

I believe strongly in long term compounded dividends so I do go the ETF route and also some blue chips with steady dividends, in addition to my riskier plays.

Sorry if I confused anyone.

I don't think that's what JMarch was saying at all.

He was simply disputing the common misconception that you can buy a stock right before the ex-div and then sell after you get the dividend and profit.

[Josh611]

Faze Clan plans to go public via spac BRPM.

Pretty impressive to see them go from making Call of Duty videos to becoming a publicly traded company.

[jcardstore]

Originally Posted by Josh611

Faze Clan plans to go public via spac BRPM.

Pretty impressive to see them go from making Call of Duty videos to becoming a publicly traded company.

more junk spacs... yay

[elny43]

PYPL statement just hit the tape that they are "not pursuing an acquisition of PIN at this time". Nice 5% pre-market rally but still not filling the 12% hole the news left last week.