2021 Stock Market

[usedcarguy]

NLY is a great dividend payer. It's a mortgage REIT that uses leverage to buy government insured mortgage backed securities. It's not one that offers a ton of appreciation, but it's averaged a 11% CAGR since inception. The best way to play it is to buy it when it's 10%+ below book value and trim back positions if it gets 5-10% above. If your entry point is significantly above BV, your rate of return will be less as it does fluctuate with interest rates. It's currently trading just over BV, but rising rates will expand margins and increase BV.

 

[Clonedogg]

Market taking some hits this week.

 

[Cyinthenorth]

Market taking some hits this week.

Yep. My Roth IRA is currently valued under what I opened it for a month ago w/$500. It had been up $25 as recently as Friday.

 

[CyJeans]

Market taking some hits this week.

It is a blood bath across the board

 

[cyfan92]

10 year is up 6 bps. Only 7 bps to go before 1.75 which seems to be a huge technical barrier. If we break that... I'll start to get a little worried about inflation

 

[cycloneG]

Go oil! Woot!

 

[2forISU]

Market taking some hits this week.

War in the middle east, tax increases, inflation, 10-year note increasing, supply chain issues world wide, raw material increases, and increasing commodities.

 

[FallOf81]

S&P had nearly DOUBLED off the 2020 low prior to this selloff. And it was about 30% higher than pre-pandemic high. A no lose mentality built in.

 

[Clonedogg]

S&P had nearly DOUBLED off the 2020 low prior to this selloff. And it was about 30% higher than pre-pandemic high. A no lose mentality built in.

Ill be buying on the way down

 

[cyfan92]

War in the middle east, tax increases, inflation, 10-year note increasing, supply chain issues world wide, raw material increases, and increasing commodities.

 

[Tri4Cy]

10 year is up 6 bps. Only 7 bps to go before 1.75 which seems to be a huge technical barrier. If we break that... I'll start to get a little worried about inflation

Glad I was FINALLY able to lock in my mortgage rate yesterday!

 

[FallOf81]

Ill be buying on the way down

Plenty of room left on downside. 10-15% corrections should normally be common with the market. 3600-3800 SP.

 

[Sigmapolis]

Real estate and equity markets are going to throw a ******* fit when the Fed has to tighten.

And it is going to have to. Else the inflation velociraptor is going to get out of its paddock.

Consumers with clean balance sheets/ready to spend.

........political.......

We're not out of this yet. To quote Princess Leia, "It's not over yet."

 

[frackincygy]

Ill be buying on the way down

Agreed.

I've been opening positions in some popular 'high growth' names which were far too frothy for me at the beginning of the year - PLTR, QS, TTD, U, SNOW, POSH, DKNG, XLNX (to get AMD post-merger), etc. - could still be some downside, but these are 'lifelong' holds for me.

Nice to see some of the O&G names come back, now if only VNOM would restore their full divi!

 

[SCNCY]

Agreed.

I've been opening positions in some popular 'high growth' names which were far too frothy for me at the beginning of the year - PLTR, QS, TTD, U, SNOW, POSH, DKNG, XLNX (to get AMD post-merger), etc. - could still be some downside, but these are 'lifelong' holds for me.

Nice to see some of the O&G names come back, now if only VNOM would restore their full divi!

QS just can't get a win, since April 27th, they've ended negative 8 out of 11 days. I am considering if I should buy far out expiration options straddle at the the current strike price.

 

[cycloneG]

Agreed.

I've been opening positions in some popular 'high growth' names which were far too frothy for me at the beginning of the year - PLTR, QS, TTD, U, SNOW, POSH, DKNG, XLNX (to get AMD post-merger), etc. - could still be some downside, but these are 'lifelong' holds for me.

Nice to see some of the O&G names come back, now if only VNOM would restore their full divi!

 

[frackincygy]

QS just can't get a win, since April 27th, they've ended negative 8 out of 11 days. I am considering if I should buy far out expiration options straddle at the the current strike price.

I don't know enough about option trading to really opine -- just getting my feet wet by selling short to intermediate dated covered calls for 'table scraps'.

That said to my untrained eye there does appear to be some discrepancies in the long dated chain for QS.

 

[SCNCY]

I don't know enough about option trading to really opine -- just getting my feet wet by selling short to intermediate dated covered calls for 'table scraps'.

That said to my untrained eye there does appear to be some discrepancies in the long dated chain for QS.

I am about getting ready to do some covered calls myself. Trying to mix a stable income stream with speculation.

 

[frackincygy]

I am about getting ready to do some covered calls myself. Trying to mix a stable income stream with speculation.

Agree - I like the idea of being able to generate some $$$ for holding shares in companies (typically speculative bios) which don't pay a divi; should the price appreciate higher, earlier than I anticipated... well no one ever went bust for taking a profit. GLTU!

 

[SCNCY]

Agree - I like the idea of being able to generate some $$$ for holding shares in companies (typically speculative bios) which don't pay a divi; should the price appreciate higher, earlier than I anticipated... well no one ever went bust for taking a profit. GLTU!

Using a dividend stock as your underlining asset could help with your overall returns. You just need to make sure you don't sell a covered call between ex dividend date and the dividend payout.

I am thinking of employing this strategy with GE. A couple days ago, I did some quick math to determine what kind of return I could achieve. I calculated that at a consistent basis, and assuming 60 days per an option contract at a sell of roughly $25-$30, I could make a return of about 13-15% throughout the year. Of course, there are other factors that could come in to play, such as appreciation of the underlying asset, and dividend payments that would increase my return.