I have a basic question on the wheel:
I just got options approval on some IRAs (rollover 401ks) and want to make sure I don't screw something up.
CRWD has weeklies. A 100p is about $2.5. That's 13k a year in collected premium if I can do similar every week. Right? That's with 10k in collateral...so 130% apy essentially? If the stock drops I might end up getting assigned and buying the shares with my 10k, at which point I start selling calls until they get called out and I go back to selling puts. Worst case scenario here is the company goes bankrupt and I have to spend $10k for worthless shares. Right? Am I missing something? (other than that the premiums might not always be this juicy...)
TIA...

0708aggie said:

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welp those momo calls are worthless

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No so fast my friend. Could've been the shake before the bake. Still looking at 20.10. Back above that after that sell off, and where will the sellers be?

Someone may have gotten blown up this morning.

NRD09 said:

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I have a basic question on the wheel:
I just got options approval on some IRAs (rollover 401ks) and want to make sure I don't screw something up.
CRWD has weeklies. A 100p is about $2.5. That's 13k a year in collected premium if I can do similar every week. Right? That's with 10k in collateral...so 130% apy essentially? If the stock drops I might end up getting assigned and buying the shares with my 10k, at which point I start selling calls until they get called out and I go back to selling puts. Worst case scenario here is the company goes bankrupt and I have to spend $10k for worthless shares. Right? Am I missing something? (other than that the premiums might not always be this juicy...)
TIA...

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Sounds like a Wheel play. Someone posted a video in here explaining the Wheel earlier this week.

WORK really absorbing a downgrade. Nice

Thanks to whoever posted the APT stuff yesterday. Got on a 717 20C that looks like it's going to do pretty well.

Correct, I mentioned that in my post. Just trying to make sure I understand the risk

59 South said:

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0708aggie said:

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welp those momo calls are worthless

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No so fast my friend. Could've been the shake before the bake. Still looking at 20.10. Back above that after that sell off, and where will the sellers be?

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quit playing with my heart 59. My contracts just closed. Don't make me lotto 2 or 3 more.

ELI5?

I'm new to options, but it looks right to me. I think the biggest potential issues would be the weekly premium may not be the same every week (if the stock price stays level) or the stock price goes up and you'd need more cash to sell cash covered puts in order to get a similar premium

stxag8 said:

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ELI5?

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Someone's account likely went belly up when they had to cover outstanding futures contracts that were set to expire within 5 seconds of expiration. Futures are not to be messed with.

TecRecAg said:

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59 South said:

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0708aggie said:

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welp those momo calls are worthless

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No so fast my friend. Could've been the shake before the bake. Still looking at 20.10. Back above that after that sell off, and where will the sellers be?

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quit playing with my heart 59. My contracts just closed. Don't make me lotto 2 or 3 more.

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Something to watch for those better at charts than me..

BBY is in an hourly and daily squeeze. Momentum possibly building to the positive side. Looks like it's been trending good on its daily EMAs too.

59 South said:

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TecRecAg said:

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59 South said:

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0708aggie said:

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welp those momo calls are worthless

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No so fast my friend. Could've been the shake before the bake. Still looking at 20.10. Back above that after that sell off, and where will the sellers be?

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quit playing with my heart 59. My contracts just closed. Don't make me lotto 2 or 3 more.

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No FOMO on MOMO!

So did someone just dump a million shares of SPY or is my chart acting up?

Why are the GLUU 7/17 $11c not moving? We're at $9.33/share now

Anyone in on DMTK or thinking about it?

Nice little cup and handle on SYF

So the stock without a name. Anyone recall the point of exit?

cptthunder said:

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Come on MOMO take out 20.15... please?!?!

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Thats about the number I'm hoping for at a minimum. I didn't want to go with expiry this week so I sold P18s and bought C24s for next week. Really want to see it be firmly above 20 before the weekend or I'm gonna take my put profits and run.

Quick question from a relatively new options guy... I am holding an OTM covered call that expires today. Is it better to let it expire and sell a new covered call on Monday, or should I roll it before the close today to try and capture the weekend Theta on next week's option? I can buy back the expiring option for $5 or less.

MROD92 said:

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So the stock without a name. Anyone recall the point of exit?

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The chop has put a few in to the "without a name" category. You might have to be more specific.

deadbq03 said:

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cptthunder said:

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Come on MOMO take out 20.15... please?!?!

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Thats about the number I'm hoping for at a minimum. I didn't want to go with expiry this week so I sold P18s and bought C24s for next week. Really want to see it be firmly above 20 before the weekend or I'm gonna take my put profits and run.

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3 shots at it this morning already so hopefully someone comes back from lunch ready to launch it

Edit: As I was typing...go baby go please

I'm no expert but to me, it's about your risk tolerance and style. If the stock is up 5% on Monday it would have been better to wait, if it's down or even flat on Monday it would have been better to do it today. Personally, I like to buy back the option for cheap (most times $1 late on Friday) and sell another, but I like reducing my risk.

20.15 MOMO resistance turn into support now?

YESSIR! It needs to hold though.

AGSmith said:

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Quick question from a relatively new options guy... I am holding an OTM covered call that expires today. Is it better to let it expire and sell a new covered call on Monday, or should I roll it before the close today to try and capture the weekend Theta on next week's option? I can buy back the expiring option for $5 or less.

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If you plan to buy back on Monday and sell another call, I would roll it.

Random word of advice about the rando FinTwit personalities (even the ones who appear or are legit)... take their 'this is what is gonna happen' tweets with a grain of salt.

For example, the permabeardoomster guy who posts great charts everyday was dogging SQ a few weeks ago when it was in the 50s saying it was destined to go back to 15 and stay away.

The same can be said about here. Don't blindly follow. Mostly great stuff here, soak it in and learn...

I now have 2 CCs that meet this criteria (AAL 17c and PLAY 19c). In both cases, I won't be able to do a straight roll. For some reason there's a 16.5 to 17.5 gap on AAL next week and there's an 18.5 to 20 gap on PLAY, so I'll either have to roll up or down.

I actually never worry about getting the same strike price for the next week. It's all about what my cost basis is and what % return I'm looking to get. And the choice between 16.5 and 17.5 is sort of like the decision on whether to do it today or Monday. 17.5 would be the slightly riskier play but has the higher potential payoff. 16.5 is safer but has a lower potential profit.

cool thanks, I thought I was understanding it correctly but sounded too good to be true! Will see how it works out.

willjohnathan said:

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What the hell just got tweeted?

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Stocks move into the red amid report Apple is reclosing stores in Florida and Arizona

MOMO calls looking alri- aaaaand it's gone