Post by
Gabriel on Dec 09, 2020 9:24pm
News
Hello everyone,
Regarding options - Please take the time to read. Copy if needed and get it right:
Options are tools to reduce your average cost. If a stock is trading at 22$ and you want to buy it, you can sell for say 1$ a 20$ put option (your obligation for a duration of time to buy it at 20$). Should the stock drop below that strike price of 20$ your cost would be 19$. i.e. better than the 22$ that you were willing to pay. If the stock does not drop below 20$, you keep the 1$ premium. Once you own the stock, you can then sell say a 22$ call option for 1$ or the tranche that is above 22$ hereby further reducing your cost to 18$ albeit limiting your gain to 4$. You can also sell another put at 17$ for another 1$ further reducing your cost to 17$, whether exercised ((17$+17$)\2 = 17$) or not (17$) a second time. Sure your gain now is from 17$ to 22$. In conclusion options can work for you. As you probably know, I teach at an engineering faculty and when we launched our graduate program in financial engineering, I taught the course on derivatives including all the theoretical models underlying their valuations, so I know whether the premiums make sense.
Practically, I was able to reduce my average cost down by over 50% in the past on some stocks. In the case of SNC I was only able to reduce my initial cost of 37.40$ down to 24.25$ because I never had the heart to really sell lots of calls at these ridiculous prices (I mean below 40$ makes no sense).
Regarding ownership:
https://www.dropbox.com/s/758l436sx916tol/Image%202020-12-09%20%C3%A0%2020.33.jpg?dl=0
Regarding value and future stock price:
Arguably a deeply undervalued stock which will amply reward the patient and intellingent investor to quote the father of investing.
Happy holidays from your company:
https://twitter.com/SNCLavalin/status/1336672202113110017
Comment by
Form001 on Dec 10, 2020 7:07am
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Comment by
Form001 on Dec 10, 2020 11:20am
This post has been removed in accordance with Community Policy
Comment by
tomperns on Dec 10, 2020 1:42pm
We all agree that we are undervalued. Meanwhile ABNB just opened at $150 (over $100B valuation) and the company is not profitable. I definitely don't see eye to eye with the market or I need a lesson or 2.
Comment by
Bigger123456789 on Dec 10, 2020 6:28pm
Wonder why the pull back?? Seem to happen after the 750k cash donation.
Comment by
tomperns on Dec 10, 2020 6:53pm
Well we desperately need one of the catalysts you mention as catch the shorts because right now we look like shark meat to them.
Comment by
Alexcanada on Dec 10, 2020 6:57pm
I am praying for SNC under 21$ so I can add more. As said previously this week, my finger was itching to buy more but I do not want to pay 24-25$ for additionnal shares. 21 or 20$ is fine with me.
Comment by
finalstep on Dec 10, 2020 7:20pm
votre raisonnent est rationnel, Garder des fonds pour diminuer le cot d'entr est lgitime, Par contre il faut savoir quelle valeur vous donnez SNC, si le titre reprend une valorisation juste....... Possible que vous regretterez avoir manqu l'opportunit actuelle
Comment by
Bigger123456789 on Dec 10, 2020 7:29pm
I failed grade 9 french, thanks for google translate.lol
Comment by
BadatMoney on Dec 11, 2020 11:57am
In Saskatchewan we had good french immersion schools where they teach french (international, not Quebecois). I did not enter that stream. I am learning German on my own time though. I have encountered more German speakers than french on my engineering projects. Aside from having German heritage, I wanted to know what those guys are saying in front of me.
Comment by
finalstep on Dec 10, 2020 7:12pm
le problme des dcouverts est que si descendd a un certain niveau, pas trop loin.... Les acheteurs se manifestent et la couverture devient mine en fonction de la hausse du titre.
Comment by
finalstep on Dec 11, 2020 3:14am
Bien possible qu'ils utilisent les options comme police d'assurance, mais a en fait beaucoup et la demande en options aurait une incidence importante sur le prix