"sell WM put"

Discussion in 'Stocks' started by apitrader, Jul 25, 2008.

  1. A smart guy appears on CNBC telling viewers to sell WM $4 put, "you only lose $4, cannot go below zero".

    What a bunch of idiots, what he told you to do is: you could just lost 80% of your capital, not a big deal, you could earn 70c back.

    CNBC, i love ya moron pumpers :p
    So hard to lose money when trading with so many idiots:cool:
  2. btw, the guy is from "SWIM", a so bullish stock and wonderful company :D
  3. Illum


    Ive heard the same thing from others on Cnbc, namely fast money. Using the same stock WM, They call their investment plan with WM "asymmetric risk"

    Im new but this sounds like degenerate gambling behavior. They claim the downside is limited because its only a 4 dollar stock.

    The downside is limited by how much you put into this 'bet" not by how much the equity is trading at.

    Throwing Good money after bad. I guess not having to think about putting a stop is so liberating it makes you want to put your money in.
  4. m22au


    So true Illum. IDMC (IMB) was trading between $2 and $3 after a poor "earnings" report in May. So anyone who bought then "only" had $2 to $3 in downside and unlimited upside.

    About two months after that, the FDIC took over.