From Barrons, “” On a combined basis, eight popular tech stocks— Apple (ticker: AAPL), Microsoft (MSFT), Alphabet (GOOGL), Tesla (TSLA), Nvidia (NVDA), Meta Platforms (META), Amazon.com (AMZN), and Netflix (NFLX)—collectively lost $4.8 trillion in market cap, roughly equal to the annual GDP of Japan—and 40% of the combined valuation of those eight stocks at the start of the year. Apple was the best performer, losing a quarter of its value in 2022. Amazon, whose valuation fell below $1 trillion, declined 49%, shedding more than $825 billion.“” Barron’s also has a feature story on using options. Many of us sell puts on sell offs and sell calls on big rallies, but, using leverage is a great way to get seriously hurt, or worse. Selling, cash secured puts for the average retail investor is fine, but , this year reminded us that using leverage can be very dangerous, unhedged . Over writing calls offers the same risk, 1-2 mistakes can kill you. Happy healthy holidays everyone , and good luck
Thanks for sharing that. It’s important to note that bankers holding Musk shares as collateral , may in fact be sellers if they want to reduce their exposure, hence, Musk’s representations, are somewhat, misleading.
Did Barrons also run the comparison from the start of 2021 and the start of 2020? It would be interesting to see how much run up occurred just in the last couple years alone.
“”Arguably, a reversal in tech valuations was overdue. The Nasdaq Composite rallied 35% in 2019, 43% in 2020, and 21% in 2021. That’s a three-year combined jump of 136%, the largest move by technology shares since the inflation of the internet bubble took the tech-heavy index up 440% in the last five years of the 1990s.”” From the article.
For those interested in the option plays, Today I’m selling Googl calls, into the news. 1-2 months out, 100 and 105.
I sold jan 14 127.5 for $4.