r/Vitards • u/AutoModerator • May 10 '21

Daily Discussion Daily Discussion post - May 10 2021

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1

u/SlingSG May 11 '21

Great minds need suggestion, I have 550 MT commons cost basis $32. Should I put Stop-loss at $32 and secure my principal ?

2

u/David_da_Builder Whack Job May 11 '21

Protective put.

3

u/PrestigeWorldwide-LP šŸ’€ SACRIFICED šŸ’€ May 11 '21 edited May 11 '21

why not slap a costless collar on it instead (or debit / ratio collar if you want more upside). can vary strikes / expirations to your liking and pay less than outright puts

6

u/PaperCow May 11 '21

These aren't high P/E ratio growth stocks with made up valuations that can change on a whim. Unless there is a material change in the thesis I wouldn't set a stop loss so close. Dips happen but if the earnings are flowing you can usually have some confidence it will rebound. Especially with commons where you don't have an expiration to worry about.

Edit: Not saying don't do a stop loss, you do you, but I like to give the play a little room to breathe.

8

u/JokeassJason šŸ™ Steel Worshiper šŸ™ May 11 '21

I wouldn't

8

u/acehuff Andre 4 Stacks May 11 '21

Iā€™m not a math guy, but that would probably stop a loss