My Lucky [Trading] Friend
My Lucky [Trading] Friend
I received this message from a good friend this morning. Obviously he is not a Boglehead, but he was lucky this time (Note - I'm sure he is joking with his last sentence):
The other day I bought KRFT (Kraft - the food company) it simply had a nice buy set up and we were trading it in the room. It looked like a stock I could hold for a few days so I bought options in it to buy 1,000 shares - 10 contracts for about $100.00/contract. I woke up this morning to find that Kraft and Heinz are merging and the Kraft stock went from $62 to $82 - making the total worth of my contracts now worth about $20,000. It should have been a nice $1000 trade if it worked out. I'm not sure if I should tell [my spouse]. :>)
The other day I bought KRFT (Kraft - the food company) it simply had a nice buy set up and we were trading it in the room. It looked like a stock I could hold for a few days so I bought options in it to buy 1,000 shares - 10 contracts for about $100.00/contract. I woke up this morning to find that Kraft and Heinz are merging and the Kraft stock went from $62 to $82 - making the total worth of my contracts now worth about $20,000. It should have been a nice $1000 trade if it worked out. I'm not sure if I should tell [my spouse]. :>)
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Re: My Lucky Friend
I bought poloroid shortly before it declared bankrupsy. It cured me of short term trading. Somehow, I feel my lesson was more valuable than yours
Bogle: Smart Beta is stupid
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Re: My Lucky Friend
Im sure he isnt so forthcoming with emails about his losses.
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Re: My Lucky Friend
Another story to toss into the anecdotal evidence drawer.
RM
RM
I figure the odds be fifty-fifty I just might have something to say. FZ
Re: My Lucky Friend
Years ago I had a friend that made frequent day trips to Las Vegas.barnaclebob wrote:Im sure he isnt so forthcoming with emails about his losses.
If he "hit it big" I'd get the phone call, if not -- crickets.
Human nature, I guess.
Re: My Lucky [Trading] Friend
Barnaclebob wrote:
"Im sure he isnt so forthcoming with emails about his losses."
Mr first reaction to my friends email was to write something back to that effect. However, what I decided was to post his email, and then after a number of Boglehead responses, send him a link to my post with all your responses. Keep them coming, and make them good, or even "teachable". He may learn something, or who knows, he may teach us something. Either way, I'll bet he'll enjoy the comments. At least I hope he will.
Jim
"Im sure he isnt so forthcoming with emails about his losses."
Mr first reaction to my friends email was to write something back to that effect. However, what I decided was to post his email, and then after a number of Boglehead responses, send him a link to my post with all your responses. Keep them coming, and make them good, or even "teachable". He may learn something, or who knows, he may teach us something. Either way, I'll bet he'll enjoy the comments. At least I hope he will.
Jim
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Re: My Lucky [Trading] Friend
Too bad for the poor guy that sold him the calls.
Re: My Lucky [Trading] Friend
Enjoy it while it lasts.
Re: My Lucky [Trading] Friend
I have never been to a Gambler's Anonymous meeting, but I'm guessing they begin this way: I am addicted to gambling. It started when I won a few bucks ...
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Re: My Lucky [Trading] Friend
"it simply had a nice buy set up"
Statements like these hold no weight with people who only make 20k on a trade like this.
Its kind of like a small stakes blackjack player telling you sure fire ways to win...
Statements like these hold no weight with people who only make 20k on a trade like this.
Its kind of like a small stakes blackjack player telling you sure fire ways to win...
Last edited by barnaclebob on Fri Mar 27, 2015 9:07 am, edited 3 times in total.
Re: My Lucky [Trading] Friend
Kraft timing threads are popping up like mad. I wonder why we didn't hear about the sure-thing nature of the stock a month ago!
JT
JT
Re: My Lucky [Trading] Friend
Why not just tell him well done and be done with it?
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Re: My Lucky [Trading] Friend
There's some chance that he's nervous about being investigated for insider trading.
I'd be surprised if a Buffett type transaction developed a leak, but sometimes a small leak can turn into a larger one. The SEC and the exchanges will be looking carefully at any suspicious volume, especially in options, ahead of the market. They do that for every takeover where there is a "stock pop".
I'd be surprised if a Buffett type transaction developed a leak, but sometimes a small leak can turn into a larger one. The SEC and the exchanges will be looking carefully at any suspicious volume, especially in options, ahead of the market. They do that for every takeover where there is a "stock pop".
Re: My Lucky [Trading] Friend
Wins like this can really play with your mind, and think you can beat the system.
Before my BH days...
I bought Ford below $2 back in 2008-2009, I believe I sold it for around $5 unfortunately
I bought SIRI for pennies, below .20 if I remember correctly.
A few other banks and such.
Before my BH days...
I bought Ford below $2 back in 2008-2009, I believe I sold it for around $5 unfortunately
I bought SIRI for pennies, below .20 if I remember correctly.
A few other banks and such.