Optimism Taking off in the Cheap Stocks

[william the wie]

There has been a wild swing to optimism in stocks priced between $5 and $20.

I only check my wish list every month or two. I like low priced issues because I want to be on the opposite side of the stupidest money I can find and usually I am safely and fully invested. But with money likely to be coming in in the first quarter and no put expirations due in the near future I decided to check my wish list screen to figure out if I needed to tighten it up before I put new money in. The put/call ratio has recently gone to hell. One issue had over 400 calls and no puts outstanding for the March expiration. This is not the time to panic but it may be the time to tighten up on selection, which I am in the process of doing.

 

[depotoo]

I was really, really stupid year’s ago, as I was offered stock from eBay pre-IPO. Turned it down.

There has been a wild swing to optimism in stocks priced between $5 and $20.

I only check my wish list every month or two. I like low priced issues because I want to be on the opposite side of the stupidest money I can find and usually I am safely and fully invested. But with money likely to be coming in in the first quarter and no put expirations due in the near future I decided to check my wish list screen to figure out if I needed to tighten it up before I put new money in. The put/call ratio has recently gone to hell. One issue had over 400 calls and no puts outstanding for the March expiration. This is not the time to panic but it may be the time to tighten up on selection, which I am in the process of doing.

 

[depotoo]

Good to see optimism in the smaller stocks.

 

[william the wie]

Good to see optimism in the smaller stocks.

why with it being a contrary indicator? 1929, 87, 2000 and 2006 were among the most optimistic markets in history.

 

[william the wie]

I decided that I should listen to myself and get into writing puts on utilities, the downside is a lot less even with the coming rate hike and the annualized yield on calls is high enough to get me out at a probable profit. So that's what I did earlier today.