Boiler Room: The Official Stock Market Discussion

FreshFromATL

Self Made
Joined
May 1, 2012
Messages
19,645
Reputation
2,631
Daps
43,679
Reppin
ATL
It may well be a stronger company. But if valuation multiples reset to historical norms, it could have higher earnings but a lower valuation. Cisco, Microsoft, and many other tech companies had much larger earnings from 2001-2010. But it still took them 12-13 years to reach their 2000 dot-com bubble peaks again.

what are you holding puts in?
 

lib123

All Star
Joined
Jun 16, 2015
Messages
6,142
Reputation
334
Daps
12,466


As hedge funds and institutions buy more puts, market makers have to sell more shares short to cover their potential losses from selling puts. This adds more downward pressure on share prices.

Basically the opposite of the gamma squeeze that helped fuel 2020-21 rally. As investors bought more call options, market makers bought more shares to cover potential losses from selling calls.
 

lib123

All Star
Joined
Jun 16, 2015
Messages
6,142
Reputation
334
Daps
12,466
A potential systemic black swan people don’t seem to be talking about is crypto. While we know that total crypto market cap is $1.7 trillion, we have no idea the total amount of borrowed money (margin leverage, loans against crypto portfolios, personal loans to make investments) involving crypto. A major break in crypto could cause mass portfolio liquidations and forced selling of stocks across the board.

Bank of America claims it costs just $93 million to move Bitcoin’s price by 1%
 
Last edited:

winb83

52 Years Young
Supporter
Joined
May 28, 2012
Messages
45,438
Reputation
3,756
Daps
68,823
Reppin
Michigan
The irony is all my stable good blue chip longs are still up very high but my growth stocks are down so bad they eat up all the gains on the blue chip safe companies. I'm bleeding out at least a grand a day from these growth companies.

My first buy on $HOOD was 3 weeks ago @ $16 and I'm down 32% on the position. 52 week high is $85 and it's now under $11.

I feel for the people who were so drunk off the market that their entire portfolio is just growth stocks. I used to get laughed at on here because all I bought was dividend plays. Had I kept my holdings like that I'd be doing fine now. The stuff I sold out of like McDonalds and Coca-Cola are doing even better than they were when I had them. Verizon is doing no worse. Raytheon is way higher.

Oh well this is the bed I made so I'll lay in it.
 

mr. smoke weed

Smoke Album Done......Wait n See #SmokeSquad
Resting in Peace
Joined
May 1, 2012
Messages
27,316
Reputation
3,820
Daps
52,059
Reppin
Chi
If you're buying commons in good companies that have had shyt luck IE wish, ater, square you should be good. Just be okay with accepting short term Ls.
 
Top