oldarmy1 said:

---

BAC Grand Slam! Whoop! Now thats how you sale 200 calls!

---

I bought the June $24 calls. How long do you think I should let them run? Up 51% at the moment.

Nbev weakness today is exactly what I am waiting for.

6.5 is guide. Grabbing calls for few weeks out.

badharambe said:

---

Nbev weakness today is exactly what I am waiting for.

6.5 is guide. Grabbing calls for few weeks out.

---

What strike price are you looking at?

We're right at a 50% retracement from the lows on the indices. Shouldn't we have some profit taking begin to occur?

7$ mostly but overall looking for liquidity. Gotta be able to pull out quickly when plan isn't working. Ugly VWAP rejection has me concerned.

ALGN testing that upper resistance of the downward wedge today

Selling 75% WYNN calls

cgh1999 said:

---

oldarmy1 said:

---

BAC Grand Slam! Whoop! Now thats how you sale 200 calls!

---

I bought the June $24 calls. How long do you think I should let them run? Up 51% at the moment.

---

Heck I would own BAC at $24 all day. It wasn't much lower than that when I was posting 401k amd SEP account entries for long term

Depending in your capital situation you could call out the shares here and sell a covered call down a $1 for extra gain or to further average down hold price. Always fun when hitting grand slams.

Well...someone is Bullish.

oldarmy1 said:

---

Depending in your capital situation you could call out the shares here and sell a covered call down a $1 for extra gain or to further average down hold price. Always fun when hitting grand slams.

---

To clarify: Exercise the options $2400 per contract. And sell the $23 covered calls?

Got out of my JPM 1/18 weekly calls a little too soon. Something better than nothing though.

I am all out of everything. Taking ideas for an earnings lotto.

Good day to be a BAC shareholder. Got nervous of my entry at 24.5 when it went to 22, but feels good today

Careful with banks in terms of options trade...I can see the money made of the banks day trade rotating to tech tomorrow

Ranger222 said:

---

Careful with banks in terms of options trade...I can see the money made of the banks day trade rotating to tech tomorrow

---

my body is ready

Ranger222 said:

---

Careful with banks in terms of options trade...I can see the money made of the banks day trade rotating to tech tomorrow

---

Oh I like that.gif

cgh1999 said:

---

oldarmy1 said:

---

Depending in your capital situation you could call out the shares here and sell a covered call down a $1 for extra gain or to further average down hold price. Always fun when hitting grand slams.

---

To clarify: Exercise the options $2400 per contract. And sell the $23 covered calls?

---

Excercise at $24 and SELL the $27.50 call out a month

OA1/others, can one of you help me understand selling covered put options? I get the general gist of covered call options, but I am still hoping to learn more before actually squeezing off live rounds in the market.

For example, lets take CHK and assume that their stock will rise to $3.00/share by February. If I was to sell a covered put option, I should sell puts at $3 expiring in February with the hope that they expire OTM (assuming CHK rises above $3) and use the premium to decrease my cost basis. Is that correct?

As the holder of stock you are a seller of calls and a buyer of puts. You sell the call to collect a premium but cap your profit if the price rises above your strike. You buy a put to protect you from the stock price dropping significantly.

If you don't own the stock you sell puts and buy calls. You sell puts to collect a premium at a price where you are comfortable owning the stock long if the price were to drop below your strike. You buy calls if you expect the price to increase into or above your strike price.

In all cases you don't want to hold the contracts thru expiration.

Ranger222 said:

---

Careful with banks in terms of options trade...I can see the money made of the banks day trade rotating to tech tomorrow

---

Ragoo said:

---

As the holder of stock you are a seller of calls and a buyer of puts. You sell the call to collect a premium but cap your profit if the price rises above your strike. You buy a put to protect you from the stock price dropping significantly.

If you don't own the stock you sell puts and buy calls. You sell puts to collect a premium at a price where you are comfortable owning the stock long if the price were to drop below your strike. You buy calls if you expect the price to increase into or above your strike price.

In all cases you don't want to hold the contracts thru expiration.

---

Ok that makes a bit more sense. My normal forays into options have always been buying calls. But reading this board and seeing the opportunities shown with rolling options, etc. I would like to learn how to decrease my cost basis and collect additional income. Granted I know that comes with the risk of having options exercised if they are ITM or the market swings enough.

snowmnag970 said:

---

Ragoo said:

---

As the holder of stock you are a seller of calls and a buyer of puts. You sell the call to collect a premium but cap your profit if the price rises above your strike. You buy a put to protect you from the stock price dropping significantly.

If you don't own the stock you sell puts and buy calls. You sell puts to collect a premium at a price where you are comfortable owning the stock long if the price were to drop below your strike. You buy calls if you expect the price to increase into or above your strike price.

In all cases you don't want to hold the contracts thru expiration.

---

Ok that makes a bit more sense. My normal forays into options have always been buying calls. But reading this board and seeing the opportunities shown with rolling options, etc. I would like to learn how to decrease my cost basis and collect additional income. Granted I know that comes with the risk of having options exercised if they are ITM or the market swings enough.

---

sell covered calls against a portion of your holdings. Note: contracts are in share lots of 100. You will have to determine the mix of strike and premium you want. Further out greater premium but higher probability your strike is reached.

snowmnag970 said:

---

OA1/others, can one of you help me understand selling covered put options? I get the general gist of covered call options, but I am still hoping to learn more before actually squeezing off live rounds in the market.

For example, lets take CHK and assume that their stock will rise to $3.00/share by February. If I was to sell a covered put option, I should sell puts at $3 expiring in February with the hope that they expire OTM (assuming CHK rises above $3) and use the premium to decrease my cost basis. Is that correct?

---

Covered puts are the opposite (bearish) version of covered calls. It's when you sell a put against a short stock position.

Covered just means you have a short or long stock position to cover the option should it get called away, if that makes sense.

Traveling but they need more explanation on options. Really no such thing as a covered put. It would be a Put hedge if you own shares that have appreciated and are wanting to use a small portion of total gains to protect downside risk on a stock you think has more upside.

A naked put is when you don't own any shares and are selling the premium to those buying put hedges. Naked puts are generally used near support levels. You end up banking the premium as long as the share price is above the strike price naked put sold. Otherwise you will likely get executed to buy the shares at the strike price and you keep the premium which further lowers your total investment.

When do you look for entry into stock that has been beaten for >1 yr? Stock referring to is MO

*accidently edited wrong post

Why do you want to own equity in this company?

Ragoo said:

---

Why do you want to own equity in this company?

---

High dividend and forward looking investment into cannabis and nicotine salts.