GtownRAB said:

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AgShaun00 said:

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just sold some cover calls on NIO for next week at 9.5 guaranteed that it will fly by it.

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Rookie question here - so for simple math, the strategy here would be:

buy 100 shares of NIO
Sell 1 call of NIO

If the stock goes way up, you lose quite a bit on the sold call, but your stock goes up in value to offset it.

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Not quite. If the stock goes way up your shares will get called out (sold at strike price) and you miss out on continued upside value of your underlying. You still keep all the premium for the call you sold, and sell the stock hopefully for more than your basis. Selling calls on your holdings generates cash through premium but limits your upside

GtownRAB said:

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AgShaun00 said:

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just sold some cover calls on NIO for next week at 9.5 guaranteed that it will fly by it.

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Rookie question here - so for simple math, the strategy here would be:

buy 100 shares of NIO
Sell 1 call of NIO

If the stock goes way up, you lose quite a bit on the sold call, but your stock goes up in value to offset it. If the stock stays flat or backwards, then you profit what you sold the call for (minus any loss if you also sell the stock).

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my thought process is that i went 8 days out and was able to sell 3 calls for .43 at a 9.5 strike prices. So as long as NIO is below 9.93 by next friday, it did ok. If it goes over that in a week, then I lose out on some profit, but still my overall profit for NIO will be around 60% since my cost basis is 6. I was trying to take advantage of a big day in premium spike and put a few points in my pocket.

OA1, What's a good entry point for NIO?

NRD09 said:

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$30,000 Millionaire said:

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AgShaun00 said:

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where is our vxx guru? Is it time to buy long vxx calls yet?

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I did. holiday weekend, low volume, VIX filled its gap.

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Big volume on 7/17 40 calls, i picked up a couple

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With TVIX being eliminated today, the money has to go somewhere.

NRD09 said:

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GtownRAB said:

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AgShaun00 said:

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just sold some cover calls on NIO for next week at 9.5 guaranteed that it will fly by it.

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Rookie question here - so for simple math, the strategy here would be:

buy 100 shares of NIO
Sell 1 call of NIO

If the stock goes way up, you lose quite a bit on the sold call, but your stock goes up in value to offset it.

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Not quite. If the stock goes way up your shares will get called out (sold at strike price) and you miss out on continued upside value of your underlying. You still keep all the premium for the call you sold, and sell the stock hopefully for more than your basis. Selling calls on your holdings generates cash through premium but limits your upside

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Thank you to both of you for explaining it. I am slowly learning.

Challenger 17 said:

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OA1, What's a good entry point for NIO?

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And a good exit point? I bought in the low 5s..

Philip J Fry said:

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Challenger 17 said:

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OA1, What's a good entry point for NIO?

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And a good exit point? I bought in the low 5s..

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Get net free and hold to 25 (from OAs posts above)

Philip J Fry said:

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Challenger 17 said:

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OA1, What's a good entry point for NIO?

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And a good exit point? I bought in the low 5s..

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NIO is a long hold. It'll get over $25 eventually.

I'm enjoying the TTD ride!!

Amazon was fun while it lasted. Looks like its losing steam

First options trade in awhile. Just got JD 65c 7/17 filled at .586 off that double bottom intraday test of previous resistance at 60.80. Watching underlying on this one. 60 or 65. Looking for a breakout of low 62s resistance now.

Hmm somebody just bought 265 of them at .62. Dwarfed my 20.

ETA and we're off... what a pretty 60 minute chart set up. Now a potential bullish engulfing candle off that backtest.

ETA #2. That was also a PERFECT model T intraday entry at 60.80. Took off from 60 yesterday and peaked at 61.60 earlier. Now it just needs to reclaim 61.60 for the real breakout fun.

SOmeone stop me from trying to pin a TSLA fly for next Friday on the 10 day EMA......it's so extended right now. Pullbacks are healthy.

But........................... stonks only go up!

Question for you guys.. if I'm buying simple call/put options using cash, am I still under threat of being tagged as a pattern day trader? Or is that only for margin accounts?

Every knee shall bow and every tongue shall confess

315 smacked us down again, this box is pretty damn firm for now

59 South said:

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oldarmy1 said:

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Everyone who followed in NIO get net free. Live life worry free!

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Whatever Obi-Wan, I'm holding till 100. Just kidding... trying to figure out how much to sell and how much to write covered calls on! Thanks again for banging the drum on this one for so long!

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went net free on my 50 x $10 leaps

Challenger 17 said:

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OA1, What's a good entry point for NIO?

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at least let it pull back to the 8 ema around 7.85 -8.00. DON'T chase it here. It will pull back at some point

GTFO Mutombo ROKU wants 130

disclaimer - not spiking the football until close about 135 or more.

khaos288 said:

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So weird having a sold covered call. Wanting the stock to go up, but not past the strike.

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Yeah it does suck, have to be willing to let the shares get called away. I'm in that boat with some of my ERI shares right now, with a 7/17 expiration. However, I sold those calls at $40 immediately after purchasing at something like $35.74 last week, so looking back it still feels pretty good.

EDIT: Also helps if you look at it as you are selling for the strike price plus the premium. In the example above, I got $2.30/share premium. So turning $35.74/share into $42.30/share in about 3.5 weeks (18% gain) is still pretty good, even if I could have gotten more.

TecRecAg said:

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Question for you guys.. if I'm buying simple call/put options using cash, am I still under threat of being tagged as a pattern day trader? Or is that only for margin accounts?

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should only be margin accounts. Are you on TDA?

Got in on ZOM at .16 this morning. Thanks for the heads up.

OverSeas AG said:

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Zom and their stupid Secondary offerings....


Yes we can load up the truck, but they just had one not long ago.

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Yeah I'm selling most of mine on the next run up...will hold something like 10% of remaining shares and net free. Lots of other good opportunities in this market, but still an easy model T play.

Philip J Fry said:

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Challenger 17 said:

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OA1, What's a good entry point for NIO?

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And a good exit point? I bought in the low 5s..

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Since not under $3 accumulation buys I'd sell an August $10 covered call on half for $1.35 netting you either $11.35 exit on that half or $0.68/share reduction in your share price.

Thanks to OA and his longstanding advice, always hedge. 2880p on AMZN is no longer just a sacrifice.

Does anyone know if TTOO is done diluting the stock? I'm surprised it pulled back almost 100% immediately.

I use E-trade. I haven't gotten flagged or anything.. but I'm starting to do more daily SPX/SPY stuff and want to make sure I stay in the clear.

This is a fun money account, so putting $25k in to get rid of the restriction isn't in the cards. Thank you for the help!

topher06 said:

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khaos288 said:

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So weird having a sold covered call. Wanting the stock to go up, but not past the strike.

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Yeah it does suck, have to be willing to let the shares get called away. I'm in that boat with some of my ERI shares right now, with a 7/17 expiration. However, I sold those calls at $40 immediately after purchasing at something like $35.74 last week, so looking back it still feels pretty good.

EDIT: Also helps if you look at it as you are selling for the strike price plus the premium. In the example above, I got $2.30/share premium. So turning $35.74/share into $42.30/share in about 3.5 weeks (18% gain) is still pretty good, even if I could have gotten more.

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Yeah, I've been playing weeklies and risky stuff all year so I have a bit of fatigue. I'm definitely willing to take some less risk for less gains. Make a little money, and get some sleep at night.

59 South said:

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GTFO Mutombo ROKU wants 130

disclaimer - not spiking the football until close about 135 or more.

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Oh my big fella with authority

volume alert. hello.

PSA, I have massive breakout trend down channel right at 130.50. Would look great on the weekly chart to close above that today.

topher06 said:

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Does anyone know if TTOO is done diluting the stock? I'm surprised it pulled back almost 100% immediately.

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Did they dilute again? I think it will fly if people start getting serious about covid again

Let's go ROKU

$29000 on the million share ZOM March.

Heavy ROKU call flow