I recently decided to hold on to my stock (Netflix, Adobe and Philips) for a while, since advice was still mostly positive. I guess I should check how that's going.
Edit: I did. Fuck.
Though in all honesty, I don't see why a correction in China would seriously hurt the profits of Netflix. Maybe I should buy more.
I could see Netflix doing better in a recession, a few bucks a month for the entertainment it provides vs the cost of going to the cinema (two good cinema tickets here costs ~4 months netflix subscription).
Perhaps a more accurate description: provides entertainment vs the cost of a cable subscription. Plus, recession or not, they are riding the wave of chord cutting nicely.
Actually you would think this would be true, but because of the cost of holding a position you can lose money if the market stays flat (not likely given the current VIX).
Write options that are barely out of the money, buy options that are way out of the money. That'll limit the size of the pennies you pick up, but can also limit the size of the bulldozer.
In 2000 this best trade was not to short stocks (too hard to time) but to go long safe haven assets (treasury bonds) for a much smoother ride. However this time around that might not work with the Fed wanting to raise rates(which would hurt bonds).
It might exactly work because a rate raise is expected. That way, you can make a gain twice. First due to the flight into safe haven assets, and then again when the raise hike is postponed again and again. (Just a scenario. :) )
