Big Hits on Some of our holdings IBM etc; Any counterplays?

[Centeron631]

I noticed today/last couple of days that the IBM jan 2023 170 took a huge loss, Direxion Regional Bank (i cant find this one in my portfolios) took a humongous drop today, and Intel has made a large drop. Any significance or any counterplays? as a result (eg. pick up a lower strike price on another ibm call or buy the stock outright?) Or just buy the direxion regional bank, or more intel? Is there some bigger picture learning to take out of these? thks for your opinions on this.

[Triplethought]

I noticed today/last couple of days that the IBM jan 2023 170 took a huge loss, Direxion Regional Bank (i cant find this one in my portfolios) took a humongous drop today, and Intel has made a large drop. Any significance or any counterplays? as a result (eg. pick up a lower strike price on another ibm call or buy the stock outright?) Or just buy the direxion regional bank, or more intel? Is there some bigger picture learning to take out of these? thks for your opinions on this.

I hold IBM 1/20/23 $170 Call too and I kind of wished I had sold when it showed pretty solid early gains. However with options Sol has said don't overload on them (even if they drop) and I ignored him and bought deeper when MKC calls went down and now I'm about to lose a LOT of money. For IBM unless Sol recommends another buy I'm going to be patient because we have another year. Plus when they do their spinoff of Kendryl I think we end up owning options of both companies. I think we either lose big or win moderately. As an IT guy I NEVER have liked IBM and have felt their Watson product is over priced and never gained traction because they're a bunch of stodgey old fools who can't adopt to the new market. This seems born out by the recent drop in profits. https://www.fool.com/investing/2021/09/ ... -spin-off/

I hold Intel and when it dropped down last week I bought another 1/3 lot on my own (not Sol's recommendation). I like the dividends and I think long term they will climb out of the supply chain issue. (I hope). If I were tight on cash I wouldn't have done this (too many other good recommendations that will climb faster).

DPST is a 3X leveraged ETF and Vanguard won't even let me buy them due to the risk. So I bought in my TD Ameritrade account but Sol issued a sell order I think.. I sold 9/27/21 at $234.04. The recent drop to $55 is simply stunning... I had been warned that 3X leveraged stuff was highly volatile so I decided not to do any more of those unless and until I understood them better. Having said that if SOL were to recommend a buy on DPST it sure looks oversold and looks to be a good deal... So this is one I'd carefully jump back in - but maybe only with 1/6 size (half the normal ) lot.

[sc2021]

DPST had a 5 for 1 share split effective today (see news item below):


Direxion will execute a forward split of the issued and outstanding shares of the Direxion Daily Retail Bull 3X Shares(RETL) and the Direxion Daily Regional Banks Bull 3X Shares(DPST) (each, a "Fund" and collectively, the "Funds").

After the close of the markets on October 22, 2021 (the "Payable Date") the funds affecting forward splits of their issued and outstanding shares as follows:

Fund Name
Ticker
Forward Split Ratio
Approximate increase in total number of outstanding shares

Direxion Daily Retail Bull 3X Shares (RETL)
RETL
5 for 1
400%

Direxion Daily Regional Banks Bull 3X Shares (DPST)
DPST
5 for 1
400%


As a result of these share splits, shareholders of each Fund will receive five shares for each share held of the applicable Fund as indicated in the table above. Accordingly, the number of each Fund's issued and outstanding shares will increase by the approximate percentage indicated above.

All share splits will apply to shareholders of record as of the close of NYSE Arca, Inc. (the "NYSE Arca") on October 21, 2021 (the "Record Date"), payable after the close of the NYSE Arca on the Payable Date. Shares of the Funds will begin trading on the NYSE Arca on a split-adjusted basis on October 25, 2021 (the "Ex-Date"). On the Ex-Date, the opening market value of each Fund's issued and outstanding shares, and thus a shareholder's investment value, will not be affected by the share split. However, the per share net asset value ("NAV") and opening market price on the Ex-Date will be approximately one-fifth for the Funds. The table below illustrates the effect of a hypothetical five-for-one split on a shareholder's investment.

5-for-1 Forward Split

Period
# of Shares Owned
Hypothetical NAV
Total Market Value

Pre-Split
10
$50
$500

Post-Split
50
$10
$500


The forward share splits will not result in a taxable transaction for holders of the Funds' shares. No transaction fees will be imposed on shareholders in connection with the share splits.

[Triplethought]

ahhh a Stock split makes more sense.

[Centeron631]

i will second that Ah!!!!!

[sc2021]

Check your share count. You should see 5x the shares you had on Friday.