Ironmag Investment Club Thread

[NordicNacho]

Anyone down for a private Stockmarket Simulater for Iron Mag Members? I set up a game it should be fun the next week is going to be a little crazy. With the Fed and all the Financials coming out with earnings.

Investopedia Simulator - Login


password= prince

[BoneCrusher]

what about user name?

[Splash Log]

I will play

[danzik17]

I'll definitely play

[Gazhole]

Well, im in and ive joined the game, but now i should really read the manual :P.

I have NO idea what im doing here...

[danzik17]

10 hours to the start of the game gents.

[NordicNacho]

what about user name?

start up a account its free

Investopedia.com - Your Source For Investing Education

Then hit the other link it should work. Greenspan is on Cnbc tommorow it should be a cool interview.

[danzik17]

Gah I misread the amounts - I thought we had 100K, we actually had a mill. I could have made so much more money so far - I'm down like 2% on one trade, but up over 30% on another. Fuck I wish I had enough money to actually trade like this.

[DOMS]

Gah I misread the amounts - I thought we had 100K, we actually had a mill. I could have made so much more money so far - I'm down like 2% on one trade, but up over 30% on another. Fuck I wish I had enough money to actually trade like this.

Have you considered options?

[danzik17]

Have you considered options?

That's what I made the 30% on

[danzik17]

Ended up less than 30% actually, hate the trading delay here - I'm used to my trades being completed almost instantaneously. If I had done this trade on Scottrade, I would have made closer to 80-90% actually - the value of my options nearly doubled in 3 hours.

There's another huge opportunity, but I'm questioning whether or not the stock in question will make the move I want in the timeframe I'm looking at.

But it would have been 10x as much since I would have invested 10x the amount

[DOMS]

That's what I made the 30% on

Do you use straight puts and calls, or do you use spreads?

[danzik17]

In this case it was a straight up put that (predictably) gained a crap ton of value in a very short amount of time.

I'm also buying actual shares of the stock as it decreases since it's a historically dependable stock, and there is no real reason for it to be decreasing at the moment other than volatility in other parts of the market.

That 2% loss is also only temporary, I knew I was going to be hit on the stock, however I am fully confident that I will make a profit on it within 2 weeks, especially after Bernanke speaks on the 19th if he has nice things to say .

[DOMS]

In this case it was a straight up put that (predictably) gained a crap ton of value in a very short amount of time.

I'm also buying actual shares of the stock as it decreases since it's a historically dependable stock, and there is no real reason for it to be decreasing at the moment other than volatility in other parts of the market.

Why would you buy shares when the stock is going down when you have a put? You're betting against yourself. Not to mention losing leverage by buying shares and not an option. Why wouldn't you just simply buy a call on the cheap?

Keep in mind that my strategy involves only options, and not shares, so I may be missing something here.

[danzik17]

Why would you buy shares when the stock is going down when you have a put? You're betting against yourself. Not to mention losing leverage by buying shares and not an option. Why wouldn't you just simply buy a call on the cheap?

Keep in mind that my strategy involves only options, and not shares, so I may be missing something here.

Because the calls for next month are overpriced right now, and this stock will swing back up before they level out most likely. I happened to catch the put at an extremely good price (it would have been better but the 20m delay kills me - I lost about 0.2 points on that delay).

However, the calls for this month are extremely cheap, but I don't know if it will make the swing in time for the 21st.

[DOMS]

Because the calls for next month are overpriced right now, and this stock will swing back up before they level out most likely. I happened to catch the put at an extremely good price (it would have been better but the 20m delay kills me - I lost about 0.2 points on that delay).

However, the calls for this month are extremely cheap, but I don't know if it will make the swing in time for the 21st.

Have you considered doing ration spreads?

I break the cardinal rule of having no a ration no greater than 66%. I go 3-to-1 and, 95% or more of the time, I take the position with a credit. Usually with a point difference of 10 between the strike prices.

[danzik17]

Yea I should remind you that I am still fairly new to both stocks and options right now, and I'm currently working off of common sense/logic - I don't know a whole lot about options related strategies at the moment.

Hell I'm happy enough with my progress so far that I understand what options are and how to profit from them correctly - that's something that like 99% of people can't say.

[danzik17]

I was looking through this thing anyway and it doesn't look like you can exercise options, you can only re-sell the contracts. That cuts out a big big method of making cash.

[DOMS]

I was looking through this thing anyway and it doesn't look like you can exercise options, you can only re-sell the contracts. That cuts out a big big method of making cash.

I know. I've used Investopedia's simulator. But the CBOE's simulator (borrowed from OptionsXpress) is built for options, but it's still a little lacking. It's also the best I've found so far.

[musclepump]

everyone should buy QMAR

[DOMS]

everyone should buy QMAR

Why?

[maniclion]

They should have an online dart throwing monkey simulator, I'd use it...

[danzik17]

Nice short on LEH there nordic

[danzik17]

God I love EMC, it has a reliable bottom of about 18.5 and a seeming top of 19.5. Small beans with my real cash since I don't have a lot to invest right now, but making some moves in this game

[NordicNacho]

You made a bunch on EMC CORP one of the guys on Fast Money loves that stock. Way to go man! Im finally out of the hole


heres some info I like the street alot

EMC Soars on Bullish Analyst Notes - News & Analysis - Technology - EMC - NTAP

[NordicNacho]

Nice short on LEH there nordic

it got a big ass bump from that .5 fed cut but its coming back down. Nothing like shorting a stock with 188,000 and the next day it pops over 10 percent. Great timeing huh

[danzik17]

Yea I've liked EMC for awhile, ever since I found out they were purchasing VMWare. I could only wish I had like 20 grand in actual cash to invest in it so I could make a decent profit - I'm currently investing in only small amounts seeing as I'm still in college and might need the cash for a move at the end of this year.

Another stock I'm learning to love is BAC - between the small 2-3% growth it has per year and the 5% yield, that compounds out to be $$$ with not a whole lot of risk - Bank of America isn't going anywhere anytime soon.

[NordicNacho]

I love amazon right now they are going to explode this Christmas. Free Shipping and no Sales Tax is a big savings plus they sell stuff so cheap. For tech Im in ebay and Amazon


B of A is a great company that and wellsfargo are the only backs I would buy to keep long term plus Buffet loves it

heres my learning portfolio, so far so good

Investopedia Simulator - Login

[danzik17]

GFG EMC just broke through 21. I'm laughing at all the people I talked to in real life that said I was just going to lose money in the market. I'll be taking my 15% or so profits over the last month and bitchslapping them.

[danzik17]

Btw I believe along with many others EMC is going higher - for my real cash I'll be jumping out at 23, but I think it will go even higher than that. The rule is don't get greedy though.