Thank you for the guidance. I'll elaborate on my story a bit. Started in early 2017 with around 2,700. First 4 stocks were CHK, AAPL, SONY, and JPM. Many different stocks along the way. I added to my portfolio as I acquired money, the bulk of which came from working summers. Really just held stocks for a while, watching from afar, making moves in terms of where stocks would be in years, not worrying about periods shorter than that. Now, the main stocks in my portfolio are AMD, POWL, FHN, and SMCI. I've learned enough over the years to understand most of what y'all talk about, just not enough to truly analyze stocks myself. I'm here to learn more.

aggieland28 said:

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Thank you for the guidance. I'll elaborate on my story a bit. Started in early 2017 with around 2,700. First 4 stocks were CHK, AAPL, SONY, and JPM. Many different stocks along the way. I added to my portfolio as I acquired money, the bulk of which came from working summers. Really just held stocks for a while, watching from afar, making moves in terms of where stocks would be in years, not worrying about periods shorter than that. Now, the main stocks in my portfolio are AMD, POWL, FHN, and SMCI. I've learned enough over the years to understand most of what y'all talk about, just not enough to truly analyze stocks myself. I'm here to learn more.

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Welcome to the clubhouse and we're all here to help. Don't be intimidated about asking questions. We can't help if don't know your questions.

As someone who hasn't posted here in months, I came to check NVDA results…

aggieland28 said:

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Thank you for the guidance. I'll elaborate on my story a bit. Started in early 2017 with around 2,700. First 4 stocks were CHK, AAPL, SONY, and JPM. Many different stocks along the way. I added to my portfolio as I acquired money, the bulk of which came from working summers. Really just held stocks for a while, watching from afar, making moves in terms of where stocks would be in years, not worrying about periods shorter than that. Now, the main stocks in my portfolio are AMD, POWL, FHN, and SMCI. I've learned enough over the years to understand most of what y'all talk about, just not enough to truly analyze stocks myself. I'm here to learn more.

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Happy to have you here, but its the bolded part that gives me pause in this market. Not that I expect you to be able to, but because it leaves you completely reliant on the winds of the market. And you are primarily invested in a very elevated and likely overvalued tech bubble. Those stocks have to continue to outperform in a market that continues to stay bullish in an economy that doesn't deteriorate. You don't really have much to fall back on if they don't.

On a 1-year horizon I'm personally bearish AMD, neutral POWL but might be leaning bearish, neutral to bearish SMCI (was strong bearish a couple months ago, but its mostly played out.. and might continue to), and very bearish on the banking sector (though I can make a case FHN goes to $30 before it drops). 3-5 years, it all depends on the individual stocks.

I wouldn't put any new money in those stocks. I'd start to diversify with some exposure to durables, energy, and metals. But right now, I would be very careful on everything. I've made my opinion clear on that.

Please ask questions. There's a lot of experience on this board. And my views are strictly my own. Highly recommend learning how to DD on stocks yourself. I know it's tough with a day full of classes, studying, and being a wholesome kid while definitely not partying and chasing the opposite sex, but you have enough exposureto start taking the next steps and being way ahead of your peers. Don't fall in the trap of risking everything you've built up over a handful of volatile stocks. While the SPX seems like it goes up forever, the overwhelming majority of individual stocks dont. Many hit major highs and no new value is created for a very long time. Keep yourself aligned with where the bull is.

Maybe. This all feels like a major overreaction. SPY is barely lower than today's low.

I wouldn't be surprised if we open red and close green tomorrow.

aggieland28 said:

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Thank you for the guidance. I'll elaborate on my story a bit. Started in early 2017 with around 2,700. First 4 stocks were CHK, AAPL, SONY, and JPM. Many different stocks along the way. I added to my portfolio as I acquired money, the bulk of which came from working summers. Really just held stocks for a while, watching from afar, making moves in terms of where stocks would be in years, not worrying about periods shorter than that. Now, the main stocks in my portfolio are AMD, POWL, FHN, and SMCI. I've learned enough over the years to understand most of what y'all talk about, just not enough to truly analyze stocks myself. I'm here to learn more.

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Take some profits if you haven't already. There's a reason why whales like Buffet are cash heavy right now...and keep in mind Buffet is about as patient as they get.
and first and foremost, when Heineken and Prog speak, listen and glad to have you here!

Heineken-Ashi said:

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aggieland28 said:

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Thank you for the guidance. I'll elaborate on my story a bit. Started in early 2017 with around 2,700. First 4 stocks were CHK, AAPL, SONY, and JPM. Many different stocks along the way. I added to my portfolio as I acquired money, the bulk of which came from working summers. Really just held stocks for a while, watching from afar, making moves in terms of where stocks would be in years, not worrying about periods shorter than that. Now, the main stocks in my portfolio are AMD, POWL, FHN, and SMCI. I've learned enough over the years to understand most of what y'all talk about, just not enough to truly analyze stocks myself. I'm here to learn more.

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Happy to have you here, but its the bolded part that gives me pause in this market. Not that I expect you to be able to, but because it leaves you completely reliant on the winds of the market. And you are primarily invested in a very elevated and likely overvalued tech bubble. Those stocks have to continue to outperform in a market that continues to stay bullish in an economy that doesn't deteriorate. You don't really have much to fall back on if they don't.

On a 1-year horizon I'm personally bearish AMD, neutral POWL but might be leaning bearish, neutral to bearish SMCI (was strong bearish a couple months ago, but its mostly played out.. and might continue to), and very bearish on the banking sector (though I can make a case FHN goes to $30 before it drops). 3-5 years, it all depends on the individual stocks.

I wouldn't put any new money in those stocks. I'd start to diversify with some exposure to durables, energy, and metals. But right now, I would be very careful on everything. I've made my opinion clear on that.

Please ask questions. There's a lot of experience on this board. And my views are strictly my own. Highly recommend learning how to DD on stocks yourself. I know it's tough with a day full of classes, studying, and being a wholesome kid while definitely not partying and chasing the opposite sex, but you have enough exposureto start taking the next steps and being way ahead of your peers. Don't fall in the trap of risking everything you've built up over a handful of volatile stocks. While the SPX seems like it goes up forever, the overwhelming majority of individual stocks dont. Many hit major highs and no new value is created for a very long time. Keep yourself aligned with where the bull is.

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oldarmy1 said:

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Quote:

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Most people who don't follow the market don't get it. Traders aren't trying to predict the market as no one can do that. Experience teaches one how to deal with different types of markets. Investing and trading is about probability. You look for high probability setups and ride them when you are right and cut losses quickly when you are wrong. Most are unable to do this because people don't like to admit they are wrong but it is essential in trading.

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It appears many feel that trading is nothing more than throwing a dart onto a list of stocks and hoping they get it right.

Your response is accurate for many successful traders. However, it's more about ones willingness and capacity to become educated, experienced and willing to work in understanding all aspects of economies, economics, technology, human nature, political policies, on and on and on.

The ones who would say its impossible in the face of factual proof indicates to me they do not recognize the intense hard work it requires. A coin flip? The lottery? Gambling? My word!

You replied to the poster who included a revealing statement in which he says that what worked in one decade won't work in the next. No kidding, Sherlock! If you think professional traders are simply looking for something that "works" then it demonstrates the lack of realization on how markets work.

I wonder how many in here have actually held a paper share of stock in their hands? Yeah, things change. But we aren't trees. We can move, grow, learn. How many have spent time on the NYSE trading floor? Do you know how the next wave of Artificial Intelligence Neural Networks work, or how that technology assimilates multisourced data and "learns"? Do you look at a P/E and stock brief when choosing to invest in a single stock? Or do you listen to the quarterly earnings broadcast, speak with senior executives, their suppliers, financers and competition? Yup, it's a lot of work but I don't go to Vegas when I invest!

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To any newbs or newer lurkers. Have you read the first page of this thread? If not, start over and go do that. Have you followed OA1 on twitter yet? Do that next.

Most of the people here learned their first trading strategy reading the first page of this thread. It gives such incredible, yet simple insight. Even if you've been here a while. Go read it again. I do once a month. While OA1 isn't here as much these days, his impact is. Don't forget where this started and how it became the best thread on texags and one of the rarest places on the internet.. where you don't have to pay a dime but get inundated with a constant bombardment of knowledge and ideas from people on all spectrums of trading.

The quote above is one of the best in the history of this thread.

FUBO - not as strong as I wanted off the June low. Chart tells you what to expect and levels to watch. Could be a great R/R in this range with very limited downside loss potential.

Who the **** are you? You want to compare brainpans regarding stocks buttercup?

Probably not the best time to make a joke like that. Read the room dude.

So, wanted to make sure my understanding of CC's is correct.

Assuming after the SMCI split I have 720 shares @ $56, currently at $44, and I'm prepared to hold until $60.

I sell 7 covered calls with a strike price of $60, and keep the premium regardless of what the stock does.

1. Stock never reaches the strike price. I have to hold onto my shares, but I lowered my cost basis by the amount of the premium.

2. Stock hits the strike price, shares gets called away, my profit is limited to $60/share, plus the premium.

Anastasia Beaverhaven said:

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Is there a preferred site to practice selling covered calls or trading options?

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What do you mean practice? Thinkorswim and TradingView have features where you can paper trade historical points in the market, being able to fast-forward and rewind. But if you're talking about just modeling the option, you can use a website like optionstrat.com.

Technically your cost basis stays the same for tax purposes, and the option premium received is taxed at short term income rates

Brian Earl Spilner said:

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So, wanted to make sure my understanding of CC's is correct.

Assuming after the SMCI split I have 720 shares @ $56, currently at $44, and I'm prepared to hold until $60.

I sell 7 covered calls with a strike price of $60, and keep the premium regardless of what the stock does.

1. Stock never reaches the strike price. I have to hold onto my shares, but I lowered my cost basis by the amount of the premium.

2. Stock hits the strike price, shares gets called away, my profit is limited to $60/share, plus the premium.

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This is correct, and I would concur with paper trading them for a while till you see how they work in the real world. Some things I'd like to point out:

• You're not lowering your cost basis. You are lowering your average cost. The IRS still considers your original price paid as the taxable cost. The option is a standalone cost basis and return item.
• For that reason, I like to look at it as a way to make your money work for you (call premium), while mitigating some risk on your existing holding - realize however, that if the stock price plummets, you don't have downside protection, except for the premium you've collected.
• Be careful about capital gains - - if you write calls on a highly appreciated stock and it gets called away, you're forced to recognize the gain (and pay taxes) even if you really didn't want to sell it. The only alternative at that point is to "roll" the calls out to an extended expiration date or strike price.
• It's best to map out the potential outcomes in advance - what if scenarios for each type of price movement. Your broker likely has charts which can help you analyze this.