I'm just curious. But even on those, wouldn't you still have an exit at some point?

AgEng06 said:

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I'm just curious. But even on those, wouldn't you still have an exit at some point?

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Depends on your time horizon, and when you need the cash.

I suppose long means different things to different people.

It's difficult to pin an exit position or % down on a 5/10/15 year hold.

Got it, thanks.

So the flip side then, is there a threshold you day/quick trade guys use? Or what profit is necessary for you to feel like the deal was successful?

AgEng06 said:

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Got it, thanks.

So the flip side then, is there a threshold you day/quick trade guys use? Or what profit is necessary for you to feel like the deal was successful?

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You have to factor in the 37% tax on short term gains. It's why OA recommends recouping your initial investment cost and keeping the gains as long term shares.

Say you bought 100 shares at $10/share for $1000.

Price goes to $15/share.

You would sell 66 shares to recoup your initial investment for further trading. Meanwhile, the other 34 shares remain for long term gain (and the lower tax requirement).

At least I think that is how this works.

I'm not longing or shorting this edge but looks like we are going to make the move to 2700. Wanted a deeper dip at open to get long, missed it.

So do we think we are continuing on to Model to T

Yep...will probably move 401k to cash at that point and then sell covered calls against long holdings as I think we retest bottom in the next couple of weeks

What's the current Model T target?

I just re-entered VST at $15.55. Ride it up before drop and take some profits hopefully, if not and we drop and I miss it, it's an energy / utility company I'll recover it down road.

Aggie_2463 said:

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What's the current Model T target?

I just re-entered VST at $15.55. Ride it up before drop and take some profits hopefully, if not and we drop and I miss it, it's an energy / utility company I'll recover it down road.

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279 or 280 on the SPY

Can someone help me understand how to issue covered calls? I haven't done it before and I want to make sure I enter one correctly if I ever do it. Below is a screenshot of one I could do for LEN.

Obviously select Covered Call and then I assume I select Sell since I own the shares already. I can do 100 or 200 shares since I own 217 which defaults to 1 or 2 contracts. I do Buy to Open?? And then enter whatever date and strike price I want. I would then receive the premium listed in the box I'm guessing, but there is also an "estimated amount" below that is throwing me off. That calcs out to me selling all 200 shares for the current share price (which I obviously don't want to do) instead of the strike price so this is why I think I'm doing something wrong here.

Any advice would be greatly appreciated. TIA.

What you describe is not a covered call.

If you already own the shares, just sell call options to cover the number of shares you own. (sell to open)

If you do not own shares, buy 100 shares of the stock for every call option you sell.

McInnis 03 said:

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Ragoo said:

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McInnis 03 said:

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hedge_zer0 said:

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i wonder what amazon will do, considering multiple employees at different warehouses have gotten sick

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They'll buy one of the cruise lines and probably something like schlumberger

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what would amazon do with an O&G service company?

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Don't know, but they aren't there yet so why not

I'm being sarcastic, but it wouldn't shock me top see Amazon enter areas they've been wanting now that everyone is on sale

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I have a feeling Amazon will want more control over the air delivery side of their business. I am holding on to AAWW and ATSG in case.

jj9000 said:

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AgEng06 said:

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I'm just curious. But even on those, wouldn't you still have an exit at some point?

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Depends on your time horizon, and when you need the cash.

I suppose long means different things to different people.

It's difficult to pin an exit position or % down on a 5/10/15 year hold.

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I understand that for the indexes and the big blue chips, but when making long-term investments in the smaller companies -- what are good things to look for as for when to get out? Is there a % of market cap where you can basically say there just doesn't seem to be much more room to improve the stock price?

ie. You like the company in the immediate future (year+) as an emerging market, but that doesn't necessarily mean its a good hold for 5-10 years.

Touchless said:

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Can someone help me understand how to issue covered calls? I haven't done it before and I want to make sure I enter one correctly if I ever do it. Below is a screenshot of one I could do for LEN.

Obviously select Covered Call and then I assume I select Sell since I own the shares already. I can do 100 or 200 shares since I own 217 which defaults to 1 or 2 contracts. I do Buy to Open?? And then enter whatever date and strike price I want. I would then receive the premium listed in the box I'm guessing, but there is also an "estimated amount" below that is throwing me off. That calcs out to me selling all 200 shares for the current share price (which I obviously don't want to do) instead of the strike price so this is why I think I'm doing something wrong here.

Any advice would be greatly appreciated. TIA.

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If you already own 100 shares of something, just do a single order "Sell to open" a contract on the underlying. TDA's "covered call" is confusing if you haven't done it before.

Could we anticipate a sell off at just short of the reasonable target because of all this fear of missing the target and volatility?

gougler08 said:

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Aggie_2463 said:

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What's the current Model T target?

I just re-entered VST at $15.55. Ride it up before drop and take some profits hopefully, if not and we drop and I miss it, it's an energy / utility company I'll recover it down road.

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279 or 280 on the SPY

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That would be right at the 50% model T. It seems some people think the Model T could be less (anywhere from ~38% up to 50%). Is there any rhyme or reason why we would expect something in the high 30%'s versus the full 50%?

Apple stock price target cut to $290 from $335 at UBS

Thank y'all. That makes more sense. I just assumed I should used the 'covered call' option from the drop down since it's listed there. Based on y'alls responses, I'm assuming that may be more if I didn't already own the shares. I'll just go with the "sell to open" option if I want to try it out.

what is the market taking into account that its going up ?

aeroag14 said:

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gougler08 said:

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Aggie_2463 said:

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What's the current Model T target?

I just re-entered VST at $15.55. Ride it up before drop and take some profits hopefully, if not and we drop and I miss it, it's an energy / utility company I'll recover it down road.

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279 or 280 on the SPY

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That would be right at the 50% model T. It seems some people think the Model T could be less (anywhere from ~38% up to 50%). Is there any rhyme or reason why we would expect something in the high 30%'s versus the full 50%?

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A model T is the 50% Fibonacci retracement...38.2% is another common resistance line when something is building back up...OA seems to think the 50% is the one that we normally rebound to and he's way better at this than me, so that's what I'm targeting

My best three hypotheses...

1) we aren't containing the spread well enough, which actually means this thing hits hard early and runs its course. Even if that means hundreds of thousands of deaths (80% aged or co-morbitities) - while its an AWFUL human tragedy it would be better economically than a drawn out version

(2) the market is realizing that it overreacted in terms of pricing this, and even with 10% unemployment a 30%+ devaluation was too high

(3) some people are just always optimists and love a bull market (myself included). They are refusing to accept the current pricing, but will he beat into submission along the way down

If I wanted to short the price of oil (think it will dip lower), what's a good ETF? DIG/DUG also include natural gas, which I don't follow as closely so would prefer oil only exposure.

TheCellarDoor said:

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If I wanted to short the price of oil (think it will dip lower), what's a good ETF? DIG/DUG also include natural gas, which I don't follow as closely so would prefer oil only exposure.

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Short USO or buy USO puts

TheCellarDoor said:

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If I wanted to short the price of oil (think it will dip lower), what's a good ETF? DIG/DUG also include natural gas, which I don't follow as closely so would prefer oil only exposure.

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You think we got a ways to go down more to make it a worthwhile trade?

I picked up a little of this earlier today. Not shorting it though - as a hold.

gougler08 said:

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Yep...will probably move 401k to cash at that point and then sell covered calls against long holdings as I think we retest bottom in the next couple of weeks

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Do you have a self directed 401K to where you can move things around within days/weeks? My 401K manager only allows us to make these kinds of adjustments every 90 days.

So if I move to cash today, I can't buy back in until 3 months from now.

Thanks, I appreciate it.

Follow-up: In your example, you used a price increase from $10 to $15. How do you determine a threshold for that increase, or how many shares to hold? For example, you could hold until $15, $20, etc?

SPY action today reminds me of Thursday. We had like 6-7 tests of 259 that day before breaking out in the last 10 minutes of trading?

Here is the latest post from Game of Trades. Goes over 2000, 2008 bear markets. Goes over this current situation and how these markets compare so far.

PearlJammin said:

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gougler08 said:

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Yep...will probably move 401k to cash at that point and then sell covered calls against long holdings as I think we retest bottom in the next couple of weeks

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Do you have a self directed 401K to where you can move things around within days/weeks? My 401K manager only allows us to make these kinds of adjustments every 90 days.

So if I move to cash today, I can't buy back in until 3 months from now.

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Mine is through Fidelity...I think when I've re-balanced in the past it changes in a couple days, but good point, I guess I need to check the frequency I can do it

Need some volume to break through 260.

gougler08 said:

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PearlJammin said:

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gougler08 said:

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Yep...will probably move 401k to cash at that point and then sell covered calls against long holdings as I think we retest bottom in the next couple of weeks

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Do you have a self directed 401K to where you can move things around within days/weeks? My 401K manager only allows us to make these kinds of adjustments every 90 days.

So if I move to cash today, I can't buy back in until 3 months from now.

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Mine is through Fidelity...I think when I've re-balanced in the past it changes in a couple days, but good point, I guess I need to check the frequency I can do it

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My 401k is with fidelity. You can rebalance every 30 days, and when you do it's the price at close of market the day you submit rebalance.

If you do it within 30 days you'll get a warning, next time they suspend your account from rebalancing for 3-6 months.

I just loaded up on SDOW and SQQQ. Thought I would help keep this rally alive.

Thank you sir