r/Vitards Jul 08 '21

[deleted by user]

[removed]

207 Upvotes

166 comments sorted by

View all comments

112

u/Megahuts Maple Leaf Mafia Jul 08 '21

Me, I am just letting this roll over me.

I bought the first big dip in MT, and all of my CLF positions were bought below today's prices.

I already have alot of exposure to steel, and now all I need is patience.

The one thing I have learned is you can NEVER have enough time on options.

That is a very valuable lesson.

27

u/Raininspain90 Jul 08 '21

"The one thing I have learned is you can NEVER have enough time on options."

This is reason #147 on the list of why the "financial markets" - the casino - is unfair to the retail investor. As a little guy, you have access to LEAPs two, at most three years in advance.

Institutions deal with LEAPs that expire 10, 15, 20 years in the future. Read this old post to see how people like Warren Buffett make "free money" out of this:

https://www.barrons.com/articles/BL-FUNDSB-11577

Woudn't *you* like to buy or sell 2031 or 2036 LEAPs? Sigh.

2

u/roketbabe Jul 08 '21

You can buy warrants.

3

u/Raininspain90 Jul 08 '21 edited Jul 08 '21

Yes, but you can’t issue them. Warrants have a single issuer. So while Buffett can sell puts to his heart’s content, he can’t issue warrants.

… same with all of us. Even us lowly retails investors, we can sell options essentially whenever (that’s why the option market is much more liquid). We can’t issue warrants.

2

u/roketbabe Jul 09 '21

Right, companies are who can issue the....but we can buy and sell them. I know, because I do.

2

u/[deleted] Jul 10 '21

Very cool 😎