What, if anything, are Market pros thinking?

william the wie

Gold Member
Nov 18, 2009
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Two months out puts on boring stocks are commanding put premiums as high as 91% of current price and Increasing dividend yields. This is competitive with DRIPs with discount on reinvested dividends with less hassle.
Why is this pricing still available?
 
Two months out puts on boring stocks are commanding put premiums as high as 91% of current price and Increasing dividend yields. This is competitive with DRIPs with discount on reinvested dividends with less hassle.
Why is this pricing still available?

boring stocks are commanding put premiums as high as 91% of current price

For example?
 
Two months out puts on boring stocks are commanding put premiums as high as 91% of current price and Increasing dividend yields. This is competitive with DRIPs with discount on reinvested dividends with less hassle.
Why is this pricing still available?

Seems like a lot of people expect another big crash sometime in the next two months and are willing to pay that premium.
 
Two months out puts on boring stocks are commanding put premiums as high as 91% of current price and Increasing dividend yields. This is competitive with DRIPs with discount on reinvested dividends with less hassle.
Why is this pricing still available?

Seems like a lot of people expect another big crash sometime in the next two months and are willing to pay that premium.

The majority always gets the market future price wrong more or less by definition.
 
Two months out puts on boring stocks are commanding put premiums as high as 91% of current price and Increasing dividend yields. This is competitive with DRIPs with discount on reinvested dividends with less hassle.
Why is this pricing still available?

Seems like a lot of people expect another big crash sometime in the next two months and are willing to pay that premium.

The majority always gets the market future price wrong more or less by definition.

Futures and options are a good way to lose a lot of money real fast. Apparently I can do that well enough all by myself! :auiqs.jpg:

Don't need to add nitrous to mah money losin's.
 
Two months out puts on boring stocks are commanding put premiums as high as 91% of current price and Increasing dividend yields. This is competitive with DRIPs with discount on reinvested dividends with less hassle.
Why is this pricing still available?

Seems like a lot of people expect another big crash sometime in the next two months and are willing to pay that premium.

The majority always gets the market future price wrong more or less by definition.

Futures and options are a good way to lose a lot of money real fast. Apparently I can do that well enough all by myself! :auiqs.jpg:

Don't need to add nitrous to mah money losin's.
Selling covered options is profitable 75-80%of the time. Reinvested dividends and option premiums are generally what causes your account to increase in size. Buying options will normally shrink your account.
 
Two months out puts on boring stocks are commanding put premiums as high as 91% of current price and Increasing dividend yields. This is competitive with DRIPs with discount on reinvested dividends with less hassle.
Why is this pricing still available?

Seems like a lot of people expect another big crash sometime in the next two months and are willing to pay that premium.

The majority always gets the market future price wrong more or less by definition.

Futures and options are a good way to lose a lot of money real fast. Apparently I can do that well enough all by myself! :auiqs.jpg:

Don't need to add nitrous to mah money losin's.
Selling covered options is profitable 75-80%of the time. Reinvested dividends and option premiums are generally what causes your account to increase in size. Buying options will normally shrink your account.

I know I could surely learn something from you.
 
Two months out puts on boring stocks are commanding put premiums as high as 91% of current price and Increasing dividend yields. This is competitive with DRIPs with discount on reinvested dividends with less hassle.
Why is this pricing still available?

Seems like a lot of people expect another big crash sometime in the next two months and are willing to pay that premium.

The majority always gets the market future price wrong more or less by definition.

Futures and options are a good way to lose a lot of money real fast. Apparently I can do that well enough all by myself! :auiqs.jpg:

Don't need to add nitrous to mah money losin's.
Selling covered options is profitable 75-80%of the time. Reinvested dividends and option premiums are generally what causes your account to increase in size. Buying options will normally shrink your account.

I know I could surely learn something from you.

I kind of doubt it considering you lived through 87, 2K crash and the real estate crash but applying what you know is boring. Rereading Benjamin Graham and in particular examining his screw ups are useful. not even his best student Buffett came close to beating the Dow by four times on average for 31 years. just stick to the basics of getting on base instead of going for a homerun every time you are up to bat
 
Seems like a lot of people expect another big crash sometime in the next two months and are willing to pay that premium.

The majority always gets the market future price wrong more or less by definition.

Futures and options are a good way to lose a lot of money real fast. Apparently I can do that well enough all by myself! :auiqs.jpg:

Don't need to add nitrous to mah money losin's.
Selling covered options is profitable 75-80%of the time. Reinvested dividends and option premiums are generally what causes your account to increase in size. Buying options will normally shrink your account.

I know I could surely learn something from you.

I kind of doubt it considering you lived through 87, 2K crash and the real estate crash but applying what you know is boring. Rereading Benjamin Graham and in particular examining his screw ups are useful. not even his best student Buffett came close to beating the Dow by four times on average for 31 years. just stick to the basics of getting on base instead of going for a homerun every time you are up to bat

OK, Who's on 1st..

The market for me today feels like I hit a pop fly that the pitcher caught when I was halfway to 1st.
 
screen for high dividend issues that increase dividend yield regularly that also have an active option market so you can acquire the issue at a discount by writing puts. You will lose 1 time in 5 at best. It does happen. 6% of the time you will lose getting in and getting out it does happen.
 
screen for high dividend issues that increase dividend yield regularly that also have an active option market so you can acquire the issue at a discount by writing puts. You will lose 1 time in 5 at best. It does happen. 6% of the time you will lose getting in and getting out it does happen.

I was right! You can teach things!
 
screen for high dividend issues that increase dividend yield regularly that also have an active option market so you can acquire the issue at a discount by writing puts. You will lose 1 time in 5 at best. It does happen. 6% of the time you will lose getting in and getting out it does happen.

I was right! You can teach things!

His fake option trades are very profitable....just ask him.
 

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