Anyone have any thoughts on nibbling on some SNAP shares? It gapped down today after another bad earnings. However, 6 of their last 7 earnings have resulted in a next day gap down, and it then goes up until the next earnings. Rinse and repeat.
Ag13 said:Maybe but at a $15 share price, the intrinsic value of a $10 call option is $5.00. This does not include all the other elements of pricing an option (including time to expiration, implied volatility, etc) so the actual price of the contract you are short and looking to roll will be higher than $5.00.CC09LawAg said:That makes sense. I guess you would hope that with that kind of increase in stock price, you could sell a call further out at maybe a $17 strike price or something like that and end up with a net positive or even bid to keep from getting called out?Ag13 said:The issue would be if it shoots up to $15 and then rolling does not making any real sense and you lose out on $5/share upside when your shares get called out at $10.CC09LawAg said:
Someone explain this like I am 4 because it seems too simple and I must be missing something.
If I have 100 shares of Stock A, and sell a covered call at a $10 strike when it is at $9 and the stock price shoots up to $10.50, what is to prevent me from just rolling that covered call indefinitely if the stock price continues to go up week after week if I want to hold on to this particular stock?
And if it does happen to go way down, I just buy it back at dirt cheap and start the cycle all over again?
If it just shoots up to $10.50, then yes you could roll to an $11 or $12 strike in a future period, and likely come out ahead (for the time being) without giving up shares or upside.
Selling a $17 covered call when the stock price is $15 for > the value of the $10 contract you already have sold is probably unlikely. So you could roll out the date, but you would likely be losing money on the transaction.
Pull up a 2 year chart on WAL and tell what you see.HoustonAg_2009 said:
To the person who recommended WAL and TFC -- THANK YOU! It's been a great ride up for WAL. It has to cool down at some point right? Pre-crash $75/share. Currently trading @ $52
A guy just testified under oath in Congress that we’ve removed alien bodies from crashed UFOs. pic.twitter.com/jGa8VKVHRx
— Clay Travis (@ClayTravis) July 26, 2023
DeangeloVickers said:
Anything we can buy to battle aliens?A guy just testified under oath in Congress that we’ve removed alien bodies from crashed UFOs. pic.twitter.com/jGa8VKVHRx
— Clay Travis (@ClayTravis) July 26, 2023
And sorry a distraction. Thanks to all, this is one of my favorite threads on Texags.
DeangeloVickers said:
Anything we can buy to battle aliens?A guy just testified under oath in Congress that we’ve removed alien bodies from crashed UFOs. pic.twitter.com/jGa8VKVHRx
— Clay Travis (@ClayTravis) July 26, 2023
And sorry a distraction. Thanks to all, this is one of my favorite threads on Texags.
They expose this stuff to the public and continue to keep the Kennedy Assassination documents "Classified".Definitely Not A Cop said:DeangeloVickers said:
Anything we can buy to battle aliens?A guy just testified under oath in Congress that we’ve removed alien bodies from crashed UFOs. pic.twitter.com/jGa8VKVHRx
— Clay Travis (@ClayTravis) July 26, 2023
And sorry a distraction. Thanks to all, this is one of my favorite threads on Texags.
Preparation H and Astro glide. A lot of probing is about to happen.
That's pretty much exactly what it means to roll a covered call. Here's an example from my portfolio (I'm not doing this trade, it was just the first covered call I spotted).Talon2DSO said:Ag13 said:Maybe but at a $15 share price, the intrinsic value of a $10 call option is $5.00. This does not include all the other elements of pricing an option (including time to expiration, implied volatility, etc) so the actual price of the contract you are short and looking to roll will be higher than $5.00.CC09LawAg said:That makes sense. I guess you would hope that with that kind of increase in stock price, you could sell a call further out at maybe a $17 strike price or something like that and end up with a net positive or even bid to keep from getting called out?Ag13 said:The issue would be if it shoots up to $15 and then rolling does not making any real sense and you lose out on $5/share upside when your shares get called out at $10.CC09LawAg said:
Someone explain this like I am 4 because it seems too simple and I must be missing something.
If I have 100 shares of Stock A, and sell a covered call at a $10 strike when it is at $9 and the stock price shoots up to $10.50, what is to prevent me from just rolling that covered call indefinitely if the stock price continues to go up week after week if I want to hold on to this particular stock?
And if it does happen to go way down, I just buy it back at dirt cheap and start the cycle all over again?
If it just shoots up to $10.50, then yes you could roll to an $11 or $12 strike in a future period, and likely come out ahead (for the time being) without giving up shares or upside.
Selling a $17 covered call when the stock price is $15 for > the value of the $10 contract you already have sold is probably unlikely. So you could roll out the date, but you would likely be losing money on the transaction.
What exactly does it mean to roll it over? Does that mean buying to close the contract then selling to open at the higher strike value?
Here is my preferred methodDefinitely Not A Cop said:DeangeloVickers said:
Anything we can buy to battle aliens?A guy just testified under oath in Congress that we’ve removed alien bodies from crashed UFOs. pic.twitter.com/jGa8VKVHRx
— Clay Travis (@ClayTravis) July 26, 2023
And sorry a distraction. Thanks to all, this is one of my favorite threads on Texags.
Preparation H and Astro glide. A lot of probing is about to happen.
storey979 said:You just mean future options to sell and use the premium on shares? Im still fairly ignorant.FJ43 said:storey979 said:
First buy .78 yesterday
You can likely trade that for net free shares. Premiums on covered calls you'll have to go out a ways so trading it up and down and gaining free shares from this level the RR isn't much risk.
10thYrSr said:
AT&T looks to be going low now. Concerns over lead wrapped lines and liabilities concerning that. People seem to think that they will need to spend billions to dig up old lines to remove the lead, but I have other opinions as an environmental consultant. They are at 13, but could go lower based on sentiment. Watch the price and invest at the uptick. This company isn't going away and the costs will be minimal. Investing heavy at the bottom myself.
so with the extra week, do we know what happens next? asking for a friend...$30,000 Millionaire said:
you guys know what happens next.
That's why the farter sleeps on the top bunkFTAG 2000 said:
Stinks only go up.
https://www.instagram.com/reel/CvAa7IbNYOL/?utm_source=ig_web_button_share_sheetSpoony Love said:That's why the farter sleeps on the top bunkFTAG 2000 said:
Stinks only go up.
I picked up additional shares yesterday at $334.76.Brian Earl Spilner said:
I'm buying more MSFT at $340.
South Platte said:
SMCI. My 3 shares are going gangbusters.
RightWingConspirator said:I picked up additional shares yesterday at $334.76.Brian Earl Spilner said:
I'm buying more MSFT at $340.