GILD on the move

IrishTxAggie said:

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GILD on the move

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Hit a high above yesterday and we're not far from $66. You'll see a lot of premium pop between those two points

Bought weekly GILD today on the dip. Set a sell at 20% TP when I went into a meeting around 10:30. Just walked out. To quote Anchorman, that escalated quickly. That and the NIO I bought at the LOD around the same time. Thankful for the profit, but COME ON

What's your target sell price?

AggiePeeps06 said:

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What's your target sell price?

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$1.00

Who wants to play JD earnings?

Captain Obvious Post Time. Now that the S&P has made it all the way back to resistance you would expect the dancing around pullbacks. This is why you enter covered calls because it could take some time or bust through. The covered calls have eliminated downside, and most are resulting in added net gains, but if the markets bust through then you determine the decay versus just buying some calls above the price at that point because a breakout would mean another leg upward on stocks.

A child can see the resistance. We have a bullish reverse head and shoulders now forming.

UpstateAg said:

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Who wants to play JD earnings?

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Interested.... Mar 8 $28 calls for .48?

JD and I don't get along. I'm sticking with my NIO swing trades.

OA, if you could go ahead and do your thing to get the GBP/JPY to 149 by Friday, I'd appreciate it.

oldarmy1 said:

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Captain Obvious Post Time. Now that the S&P has made it all the way back to resistance you would expect the dancing around pullbacks. This is why you enter covered calls because it could take some time or bust through. The covered calls have eliminated downside, and most are resulting in added net gains, but if the markets bust through then you determine the decay versus just buying some calls above the price at that point because a breakout would mean another leg upward on stocks.

A child can see the resistance. We have a bullish reverse head and shoulders now forming.

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Interested in trying covered calls but am not sure I understand. Even after some internet searching I'm a bit lost. In short, you're hoping for the stock to go down to make money on the call and owning the stock leaves you break even on the call if the stock goes up?

The idea on the covered call would further be that you don't lose money on covering the call if the stock goes down because you are anticipating a swing back up at a later date?

Can you do a covered call on an entire index at once or specific stocks only? What else am I missing on the risk/potential to lose money here?

RThorp said:

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oldarmy1 said:

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Captain Obvious Post Time. Now that the S&P has made it all the way back to resistance you would expect the dancing around pullbacks. This is why you enter covered calls because it could take some time or bust through. The covered calls have eliminated downside, and most are resulting in added net gains, but if the markets bust through then you determine the decay versus just buying some calls above the price at that point because a breakout would mean another leg upward on stocks.

A child can see the resistance. We have a bullish reverse head and shoulders now forming.

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Interested in trying covered calls but am not sure I understand. Even after some internet searching I'm a bit lost. In short, you're hoping for the stock to go down to make money on the call and owning the stock leaves you break even on the call if the stock goes up?

The idea on the covered call would further be that you don't lose money on covering the call if the stock goes down because you are anticipating a swing back up at a later date?

Can you do a covered call on an entire index at once or specific stocks only? What else am I missing on the risk/potential to lose money here?

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Let's take NIO since it was most recent one. It was trading at $10.44 when I posted I was taking covered call positions on the $10 Strikes for $1.20 premium. That means I receive $120 for every option I sell to some call buyer. At $10 strike price and $1.20 premium means I would receive $11.20 total should the stock be trading above $10 into expiration.

If it is trading, say, at $10.20 into expiration then I would get called out at $10 but will have banked $11.20 and would then be free to buy shares again at the lower $10.20 price or wait to see if a better entry comes along. Now should the stock take off and be above $11.20 then I have to be happy with my $11.20 exit, and then look to see if it has a pullback for re-entry or not.

All of this under the reality that I rarely sell covered calls on 100% of my holdings unless I believe a more impactful correction is coming. For NIO I posted that I sold covered calls on 30% of my total holdings. I have a planned sale at $11 for 30%, so this covered call accomplishes many things. I make over 10% ROI on the covered call acting like a bank loaning my shares.

ROKU makes me smile

That CDE we sold at the highs around $5.75 and I said rinse and repeat. I've been buying the last 10 minutes.

jayelbee said:

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Do you ever buy your call back just before expiration to retain your shares if it's between strike and your total net?

In your example buy it back for $0.20-0.25 and pocket the $0.95 and keep the shares.

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I had NIO bid to buy back at $0.50 when it was around $9.30's this morning and it made it to $0.60. Would have loved catching that fill but doesn't always happen and I'm not willing to buy them back for more than 50 cents. And now that it bounced (which is why I was willing to buy them back - to re-enter at 90 cents again) I likely wouldn't buy them back at 50 cents now.

So in short no cash loss with a covered call but potentially missed gains if the stock takes off?

oldarmy1 said:

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That CDE we sold at the highs around $5.75 and I said rinse and repeat. I've been buying the last 10 minutes.

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Are you buying shares or options?

oldarmy1 said:

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That CDE we sold at the highs around $5.75 and I said rinse and repeat. I've been buying the last 10 minutes.

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Basing that off support formed since 2/7 @ $4.85 and the bounce off that today if it holds? Target?

RThorp said:

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So in short no cash loss with a covered call but potentially missed gains if the stock takes off?

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Correct. You sell covered calls when you either a) Have a net effect price that you were planning to sell anyways b) Believe a short term top is in play and that consolidation to its next base will occur c) You're already in a market correction early on and are selling premium to reduce the degrading value

Also, I should add that you have the ability to buy shares again if you see your entry was wrong. For example If NIO hits a new high then your still below $11 yet have $11.20 locked in. So I could approach that in several ways. I could buy equivalent number of shares OR, more likely, I would buy the next highest call. So in NIO's case I would buy the $12 calls on breakout so my risk is limited and my gains are locked in.

gotsand said:

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oldarmy1 said:

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That CDE we sold at the highs around $5.75 and I said rinse and repeat. I've been buying the last 10 minutes.

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Basing that off support formed since 2/7 @ $4.85 and the bounce off that today if it holds? Target?

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Precisely

tramaro1 said:

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oldarmy1 said:

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That CDE we sold at the highs around $5.75 and I said rinse and repeat. I've been buying the last 10 minutes.

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Are you buying shares or options?

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I went both last time and have shares filled but no fills on the options yet. I'm on the March 15th $5 Strikes at $0.15 but others are getting fills that have orders ahead of me. I wouldn't pay 20 cents since I have shares.

oldarmy1 said:

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RThorp said:

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So in short no cash loss with a covered call but potentially missed gains if the stock takes off?

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Correct. You sell covered calls when you either a) Have a net effect price that you were planning to sell anyways b) Believe a short term top is in play and that consolidation to its next base will occur c) You're already in a market correction early on and are selling premium to reduce the degrading value

Also, I should add that you have the ability to buy shares again if you see your entry was wrong. For example If NIO hits a new high then your still below $11 yet have $11.20 locked in. So I could approach that in several ways. I could buy equivalent number of shares OR, more likely, I would buy the next highest call. So in NIO's case I would buy the $12 calls on breakout so my risk is limited and my gains are locked in.

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Thanks for the explanations, this helps!

I admitted not knowing what to do with SFIX. Buying in the $18 area and it looks like its about to break out for another move higher. I could get $2 for March 15 $28 Strikes for a net effect of $30 but really don't want to lock these shares up until we see if breakout happens. If it does it will get to $29 and the options don't give enough premium right now.

If it doesn't break out I'm selling 50% if it touches $27 again.

Also buying GG and sitting on options there as well out to March 15 $11 Strikes.

Gold had a selloff but nothing has changed fundamentally on the play.

Want to see a block buy in real time. Pull up April 18th GG $12 Strikes. In 1 minute

Didn't post earlier, but bought some cheap weeklies of TWTR at 30.5. Was originally hoping to bounce off the 30 magnet tomorrow, but may day trade them if it keeps heading up

gougler08 said:

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Didn't post earlier, but bought some cheap weeklies of TWTR at 30.5. Was originally hoping to bounce off the 30 magnet tomorrow, but may day trade them if it keeps heading up

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Sorry I missed the post inquiry on TWTR. That is a long planted stock and I don't pay much attention to it anymore. That said under $30 looks to continue to be supported for entry bounces.

Is the general consensus here to hold on to SUM?

E said:

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Is the general consensus here to hold on to SUM?

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I had posted a planned sell on 2/6 as it pushed toward $18. I bought 100% of those back when posting it was a good entry pullback under $16 and I'm holding them all now looking for the flag breakout.

E said:

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Is the general consensus here to hold on to SUM?

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That gap at $24 is really enticing for a medium/long hold

gougler08 said:

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E said:

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Is the general consensus here to hold on to SUM?

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That gap at $24 is really enticing for a medium/long hold

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If it breaks out on this pattern then that likely moves to $20 and then that gap fill would be an almost guaranteed magnet.

Can you see it?

Triple minute volume on HEAR. could this finally be the start of something?

Prediction - HEAR hits $16.50 it won't be coming back down through earnings.