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Trillion Dollar Tuesday – New Stimulus Package Not Enough to Keep the Market Afloat

ONE TRILLION DOLLARS | Dr evil, Austin powers, Dumb criminals$1,000,000,000,000.  

That's enough money to give all 1,000 Billionaire in the World another Billion Dollars.  Oh wait, we did that already.  Well it's enough money to give one Million Millionaires another Million Dollars.  What?  We did that already too.  Well it's enough money to buy 3,000 masks for every man, woman and child in the country so we wouldn't need to spend Trillions of Dollar propping up the economy or it's enough money to continue giving $600 unemployment bonuses to 30M people for an entire year.

ROFL!!!  Who are we kidding, this is America, we're going to give it to the rich people again!  

Bob CratchitThe funny thing is the rich people are pissed that they are ONLY getting $1Tn this quarter (they got $6.7Tn last quarter) so the Futures are tanking and we're losing all of Meaningless Monday's gains.  The biggest stimulus issue will hit us on Friday, it's the end of the $600 weekly unemployment bonus and the Democrats in the House wanted to extend it through Christmas while the Scrooges in the Senate said not only do they want it dropped to $200 now but they want all unemployment capped at 70% of wages AFTER it's combined with any State Benefits people are receiving.

The Republicans also want to cut dependent checks down to $500 while the Democrats want to increase them to $1,200 for up to 3 children, so people with more than 7 children come out ahead on the Republican plan!   Democrats also want to spend $430Bn to make our schools safe enough to attend and providing $50Bn for child-care facilities to keep our toddlers safe while the Republicans think $70Bn is plenty and the kids can take their chances with the rest of us.

Drop Dead": How Trump Inspired the New York Daily News to Revive ...Democrats have also propose $1Tn in aid to local Governments while the GOP just says no to that and again, they want the cities and states to fight the virus with the same budgets they had when there was no virus – even though those budgets weren't enough anyway and now revenues are dropping sharply, causing cascading fiscal failures all around the country.  

This is simply a continuation of Trump's usual policy of Global Genocide – it's just taken him a few years to get around to actually exterminating Americans.  

The Democrats also wanted $3.6Bn to help ensure election security and the Republicans…  ROFL!!!  The Democrats’ plan would spend $194 billion to expand a wage subsidy to cover up to 80% of wages and benefits through the end of the year, up to qualified wages of $45,000, and fixed costs like rent. The GOP plan would expand a wage subsidy to cover up to 65% of $30,000 in annual wages.

The Democrats are up against a wall because the Senate delayed their response until yesterday making all these negotiations very last minute with benefits running out on Friday and Congress heading into their summer break.  If there's no deal by next Friday and Congress takes a break then:


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  1. Good Morning.

  2. Good morning!

  3. Phil/INTC


    is the INTC trade official portfolio trade from 2 days ago? Only bought half the calls, maybe just as well as the price is better now. However, not buying if it's not an official position.

  4. UK travel ban on Spain strikes new blow to tourism industry

  5. INTC/Maya – It's official in 3 portfolios!  

  6. This is why you never chase.  INTC all filled at targets as it spiked up and down.  Now we wait PATIENTLY for the recovery.  

  7. King dollar’s decline ripples across the globe

  8. Phil

    WHR – clearer question from yesterday 

    I have the 65 puts but I also sold some 2021 130 calls and I was wondering if I should roll those out to 2022 160s or something similar 

  9. Phil / INTC

    Is your view for LTP still to wait to sell short calls?

  10. hwtdr INTC simply looking at the above presented chart by Phil, it should be obviouly not to jump in selling short calls if the stock just moves up .32 cents. Selling short calls now, you would only lose out on an expected gain by selling shorts calls. Patience even a fish will not get fat in a few days!

  11. yodi / INTC I am not a technician and am concerned of a further downside in which case selling short calls at these levels should help

  12. hwtdr INTC well just simply looking at a chart you will find 5/30/19 the stock was trading at 45 down from 58.88 and March 19th 2020 the stock was down to about 45 from 69. My question is how low do you expect the stock still to go?

    If you do not have any confidence in the stock I would not enter any trade at all.

  13. P.S. I am trying to sell still a Jan 22 50 put for 8.30. would drop the price to about 41.

  14. Pharm / GLD

    I think it was your trade to buy Sep 170 calls and sold July 170 calls earlier. Closed July with no profit. I only did 10 contracts. Thanks for the trade! It's up $10K. 

  15. INTC – With INTC we picked a non-optimal entry, but you don't know that at the time. It had a downside over-reaction, and usually after that, it bounces back up. So you jump in.

    But it's not guaranteed. Something I learned as a casino "advantage player" since I don't want to call myself a gambler, lol, is that you place your big bets when you have  a positive expected value, and while that doesn't guarantee that every hand will be a winner, over time, by putting your money on positive EV bets, you win.

    Well buying those calls was a positive EV bet, and so even though it turned against us in the short run, it was still the right play. Selling calls right now is not a positive EV bet.

    The long calls don't expire until 2022. What could happen between now and then? A vaccine? Intel introducing a viable 7nm chip? But you're going to cover your calls now because of a short term, $5000 drawdown and you can't stand looking at it?

    Our trading needs to match our tolerance for risk, and our bankroll – just like bet sizing, or the stakes you play at the casino. If you have a small roll, you play 3/6 poker, or $10 blackjack.  Some people have higher tolerance, some lower. Some people have more money, some have less. It's not good or bad either way, it just is. So you look at your circumstances and your personality and trade accordingly. I know this is going to sound New Age, but the best thing you can do your trading is to match your style to your psychology.

    Options are strange little beasts. The way they're priced from day to day can sometimes run the opposite of the underlying. They can jump ridiculous amounts or drop ridiculous amounts. You cannot look at your daily account balance and make a decision. You have to look at where the price is on the underlying versus the strikes and expirations of your positions, and see if you're really in trouble or not. Most of the time, you're not. Above all you have to have patience. I didn't when I started trading options and overtrading has cost me at least half a million in foregone profits.

    Sometimes the right decision is to sit on your hands. 

  16. WHR/Coulter – Do you not have longs?  Sure you should roll to get more premium but don't be too aggressive if you are also protecting long profits.  If it goes higher, you can always roll the shorts to higher strikes and use that money to roll the longs up more as well.

    INTC/Hwt – Sure, I'd wait 6 months to sell.

    And what Yodi said! 

    If INTC does drop 20%, THEN I'd sell some calls and use that to roll the longs lower and probably DD on the longs since they are so cheap.  We do that and end up with huge positions on things that bottom – eventually.  Though sometimes they go BK too…  

    Non-optimal/Dawg – There's no way to pick an exact bottom so I just get in when I'm comfortable with a strike and, if it drops 20% more, I'm comfortable doubling down and, if it drops 20% more, I'm comfortable doubling down again.  

    If my goal is to buy $200,000 worth of INTC and I can buy 4,000 shares at $50 and I buy (or oblige myself to buy) 1,000 shares at $50 ($50,000) but then it drops to $40 and I buy 1,000 more for $40 ($40,000) and then it drops to 30 and I buy 2,000 more for $30 ($60,000).  So now I have my 4,000 shares at $37.50 in INTC is at $30 and I need a 20% pop to get even (not counting calls I sell along the way) and I've only spent $150,000 of my $200,000 allocation.  That means, if INTC drops to $25, I can buy 2,000 more and have 6,000 shares for $200,000 – a $33.33 avg per share and I you don't REALLY  want to own 6,000 shares for $33.33 – why the F would you be buying 1,000 for $50 in the first place?

    Also, it's a time-frame thing.  Here's INTC 

    Here's the weekly:

    They are a cyclical stock, traders have no idea how to deal with cyclical stocks anymore.  It's a great advantage to those of us who have longer time-frames to work with.

  17. Is WBA an official position? If so, can you recommend a bull call spread for today?

  18. PSW Readers: Searching for renewable / sustainable energy idea's – while waiting for the ever elusive correction –  have any favorite's that you watch? My watch list includes:

    Solar: SPWR, ENPH, SEDG

    Wind: TPIC



    Semi: AOSL

  19. WBA/Saguaro – We've got them in a couple of portfolios.  $40.83 is very cheap so I like selling the 2022 $35 calls for $5, as I consider that free money at net $30.  So let's say we sell 5 of those for $2,500 and buy 10 2022 $35 ($8.25)/$42.50 ($4.40) bull call spreads for net $3.85 ($3,850).  That's net $1,350 on the $7,500 spread that's $5,800 in the money to start with an upside potential of $6,150 (455%) in 18 months if WBA can make it back to $42.50 (+4.2%) by then.  Getting 100:1% leverage tot he upside is a nice way to play.

    And where do you think people will be going for those flu shots?  

    Good list Eric.

  20. Phil/WBA- Sell 35 puts you mean, :)

  21. You mean sell the WBA $35 puts?

  22. WBA / Phil, Tangledweb, ravi_s.  We're all wanting to make sure you meant to sell $35 WBA puts. Thanks.

  23. INTC / Phil, Yodi, Dawgy – thank you for your thoughts

  24. INTC – Given the context, obviously puts.

  25. WBA/All – Of course I meant sell the puts, the $35 calls are $9 and the narrative would make no sense.

    Futures not improving so far.