I went in on Friday at TWTR with a combo of OA's thoughts (mentioned he's targeting $65 as his watch point) + all of the summit infoIrishTxAggie said:
How are y'all playing the US - DPRK Summit in the market?
I'm thinking TWTR could see a solid boost (basically increase on the amazing run its had) depending on what Trump tweets. What other movers could you see? Just some fodder to mull over.
YESSIR! And out trifecta SN also challenging a breakout trend.leoj said:
CHK too
Me too.gougler08 said:
Got in too late to buy these at your entry points and was hoping they were coming back down
come on BBY, almost back to even on the trade. Put options expire this friday, if I can close out before expiration with a profit I will take it and run.Ragoo said:update here, still riding this one.Ragoo said:I sold to open Put options at a strike and collected premium. I think $2.70 per share. They expire tomorrow and with the action in the stock price i would have had to purchase the shares at a price MUCH higher than current value. Effectively this would have closed my option position and I would own the shares at a cost basis of Strike - $2.70 which still puts me upside down on the trade.oldarmy1 said:When you have some time would you mind writing up the rolled option strategy? I've kept the posts to simple buy call/put options, along with some covered call strategies, but the rolling stratgy is key to success.Ragoo said:
well, i've made my first seemingly bad trade. sold put options in BBY last week for a high premium with a high IV. This week the price has slipped below my strike and then massive sell off this AM. I rolled these put options out 3 more weeks, collected another $0.34 in premium credit and bought myself some more time for the stock to come back up or for theta to help me out.
Puts me in the trade longer than I really want but I can stay in the trade and hopefully not lose. Depending on how this works out I can roll again in the future collect more premium and again and again until hopefully the premium collected offsets what I have to pay to get out of the trade and I walk away without losing money.
So, I bought the options back at current market value, and sold the same put, same strike out another 3 weeks with a total net credit to me of $0.34. So now my breakeven is Strike - $3.04. Still upside down to current market value of the underlying, but if we see the sell off stabilize and price comes back up I can still potentially close the trade out at break even. I may even be able to keep kicking the can down the road until my total in premium collected is enough that i can hold to expiration or buy the puts back cheaper than my total premium.
Note: i would not have rolled the options another 3 weeks if I also did not receive a net credit.
Lesson here is to manage position size. i thought this was going to be a winner at earnings so I went "all in". Sold 5 contracts @ $78 strike for a handsome premium. Then the stock tanked. After rolling out 2 more weeks my break even on the underlying is $74.48 so headed in the right direction. Options expire next week and I have not been assigned yet, so hopefully a good sign especially if the price keeps moving up. Note: I do not want to get assigned.
Since I am trading cash secured instead of on margin I have been on the sideline riding this one out. :/ I might need to change that but also change strategy to selling put credit spreads or short bullish credit spreads they are also called.
A credit spread acts the same as selling a naked put, which is what i have been doing, but you are also buying a further out of the money put to offset risk. Sell a put, buy a put capping your downside risk.
tramaro1 said:
Thoughts on BPMX?
World Cup starts Thursday, will be interesting to see if that sends it up higherPignorant said:
JP Morgan raised TWTR price target from $39 to $50.
I was TWTR when TWTR wasn't kewl.Pignorant said:
JP Morgan raised TWTR price target from $39 to $50.
Glad I took your advice (even if it was only at $41 and not earlier as you suggested)...I'll set my target up near yours now toooldarmy1 said:I was TWTR when TWTR wasn't kewl.Pignorant said:
JP Morgan raised TWTR price target from $39 to $50.
And that target is too low. Amateurs!
Excellent. It has two big gap ups and at least one of those will fill. If the markets have a negative wave again that 2nd gap would close. If you are thinking longball don't sweat it. If you are trading it then a June 15th covered call of the $43 gets you $1.45. If called out the stock will be back to below $43 on its ebbs and flows after a double gap up.gougler08 said:Glad I took your advice (even if it was only at $41 and not earlier as you suggested)...I'll set my target up near yours now toooldarmy1 said:I was TWTR when TWTR wasn't kewl.Pignorant said:
JP Morgan raised TWTR price target from $39 to $50.
And that target is too low. Amateurs!
$4.50 still seems to be a resistance as we're down almost 2% for the day nowJoseph Parrish said:
SN up 5% early this morning. Maybe we can push closer to that $5 mark.
Educate me. You have a recommended link?OneNightW said:
oldarmy1, et al.,
What are your thoughts on DBX? I just opened a long position on them since their customer base is rapidly growing. They kind of remind me of the first few years of Netflix, but for cloud storage.
