This is where I get confused.

Say I have 400 shares already in my account, do I drop a 400 in that "buy" field if I'm trying to write 4 contracts?

McInnis 03 said:

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gotsand said:

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McInnis 03 said:

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I need to figure out how to do covered calls on Ameritrade. Haven't figured it out yet.

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Sell (to open) one option contract for every 100 shares you own. If you don't own shares, you can do this in 2 transactions, or in ToS right click on the option you're interested in writing and look for 'covered stock' under buy. The latter will debit the call sale from the share price.

Since they went $0 stock transaction fees, it really doesn't matter which way you make the trade.

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Thank you, I'll have to dive in and maybe throw one out on one of my losers I'm still holding. (aka marijuana crap)

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You might have to click on some boxes or sign some paperwork about options. Not sure about ameritrade but some ask questions about your experience and you should always say "yes" or 3+ years, to make sure they don't limit or reject your application for options trading.

But that stock looks ripe for the calls I mentioned. Big volume day with blow off top forming. With the recovery you might place ask to sell covered call at $11 on the $70 March 20's. You either end up bought out and making $81/share or you pocket the $10-11/share. That's winning in my book on a stock that's had a large parabola and showing topping action.

McInnis 03 said:

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This is where I get confused.

Say I have 400 shares already in my account, do I drop a 400 in that "buy" field if I'm trying to write 4 contracts?

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Yes, you would place 4 in that box. Each contract equals 100 shares of stock, so if you have 400 shares and you want covered calls on all of them then place 4. If you want to just do it on 200 shares and hold 200 in case this current entended line gets bought back all the way up then you can risk it with 200 shares to hold and 200 covered calls.

If it was my money I take the 4 covered calls without question.

Something else you might consider is writing covered calls on the Feb 21 expiration and see if you can get a fill at $9, then after 5 minutes if no fill go to $8.50 then $8.

Reason being is that's a great short term covered call and come Feb 21 if the stock settles below $70 you earn that $8+ premium and can turn right back around and sale the March 20's at some factor.

McInnis 03 said:

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This is where I get confused.

Say I have 400 shares already in my account, do I drop a 400 in that "buy" field if I'm trying to write 4 contracts?

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This screen is saying it will buy the 400 shares and sell the 4 covered calls in one transaction, which is why it gives a net debit amount. I tried the same thing the other day on Tastytrade and realized that if I already owned the stock, then I just needed to sell short calls. Tastytrade was derived from TOS so I believe they have similar terminology and setups for certain types of orders. So I think in this case you just need to go select the "sell call to open" choice and then put in 4 contracts.

I am still very much a beginner and learning how to trade options. Is there any faith for the following calls or should I just cut my losses now? (They are sitting at about half the premium I paid)
PINS $25.5C 2/21
SHAK $80C 2/21

khkman22 said:

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McInnis 03 said:

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This is where I get confused.

Say I have 400 shares already in my account, do I drop a 400 in that "buy" field if I'm trying to write 4 contracts?

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This screen is saying it will buy the 400 shares and sell the 4 covered calls in one transaction, which is why it gives a net debit amount. I tried the same thing the other day on Tastytrade and realized that if I already owned the stock, then I just needed to sell short calls. Tastytrade was derived from TOS so I believe they have similar terminology and setups for certain types of orders. So I think in this case you just need to go select the "sell call to open" choice and then put in 4 contracts.

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I think this may have been the actual thing to do here as I already owned the stock in question. I'm going to try and execute this and see what happens. If I have to sell my shares at a premium, whatevs.

Barty said:

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I am still very much a beginner and learning how to trade options. Is there any faith for the following calls or should I just cut my losses now? (They are sitting at about half the premium I paid)
PINS $25.5C 2/21
SHAK $80C 2/21

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Depends on your risk tolerance, I once had an option at $0 that went to $2.50 the hour before the market closed.

Barty said:

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I am still very much a beginner and learning how to trade options. Is there any faith for the following calls or should I just cut my losses now? (They are sitting at about half the premium I paid)
PINS $25.5C 2/21
SHAK $80C 2/21

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Not likely. PINS is looking like it may be in the middle of back filling a gap it has from last Thursday (23.1) and then you're looking for a ~20% gain in a week post earnings PR. SHAK I haven't looked at.

McInnis 03 said:

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khkman22 said:

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McInnis 03 said:

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This is where I get confused.

Say I have 400 shares already in my account, do I drop a 400 in that "buy" field if I'm trying to write 4 contracts?

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This screen is saying it will buy the 400 shares and sell the 4 covered calls in one transaction, which is why it gives a net debit amount. I tried the same thing the other day on Tastytrade and realized that if I already owned the stock, then I just needed to sell short calls. Tastytrade was derived from TOS so I believe they have similar terminology and setups for certain types of orders. So I think in this case you just need to go select the "sell call to open" choice and then put in 4 contracts.

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I think this may have been the actual thing to do here as I already owned the stock in question. I'm going to try and execute this and see what happens. If I have to sell my shares at a premium, whatevs.

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This is my new "ownership"

Tasty trade is the the third iteration of the same platform. First was Dough, then TOS. TOS was sold to TD Ameritade. Once the noncompete expired the same group released tastytrade.

So my goal if I want to monetize my shares but not move them is to hope that tomorrow this contract expires without execution? And I just get to keep the premium? Yes?

If it were to be exercised I'd then sell the 100 shares of CGC I have on this docket for the strike and keep the premium?

McInnis 03 said:

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So my goal if I want to monetize my shares but not move them is to hope that tomorrow this contract expires without execution? And I just get to keep the premium? Yes?

If it were to be exercised I'd then sell the 100 shares of CGC I have on this docket for the strike and keep the premium?

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it can only be exercised if it closes above the strike price you sold the call at.

MOMO GOOOOGOOOO

Sold the remaining SPY Calls expiring tomorrow. All on stocks now with full SPY PUT hedge way profit free locked. WHOOP!

Did you just buy the MOMO stock OA? I got on the Feb 28 32.5c

did you go options or shares or both?

CX lost $4

Volume spike SDC over $15

McInnis 03 said:

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Did you just buy the MOMO stock OA? I got on the Feb 28 32.5c

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I bought both those options and a bunch of stock. I just kept buying as it was under $32 and sold half of the trading shares at $32.40 on the double top intraday, in case markets don't plow through yesterdays close.

If you notice that's exactly where the move up on S&P stalled after overrunning a bit (like we talk about ad nauseum) So that's where my SPY calls and trading share excess goes bye-bye.

used the ol Model T last night, added more BE shares on the after hours dump, up bigly today on them

boom boom boom boom!

oldarmy1 said:

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AgShaun00 said:

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Anyone play ESPR?

I bought back in 2016 for 10, and sold in 2017 for an average of 44, rebought in 2018 for 38 and now at 73.45. Not sure when to sell it.

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Today looks like a blow off top day. Do you have the ability to sell covered calls? I'd go out to March 20 and sell the $70 calls for $10 asap.

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only 60 shares

YNWA_AG said:

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CX lost $4

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Well, let's see if this meets with any buying other than my buys just now against all those 4 cent $4 puts

McInnis 03 said:

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oldarmy1 said:

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Volume spike SDC over $15

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COME ON SHORTS. GET COLD FEET, BUY YOUR SHARES BACK.

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Effing finally. I have 2/21 $17 calls I probably should have already bailed on. Plus long stock.

oldarmy1 said:

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Volume spike SDC over $15

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oldarmy1 said:

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SDC SDC SDC

SMILE!!!!

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I have 16.19 and 17.28 as next 2 levels up. Maybe it squeezes right past the 16!

BREwmaster said:

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oldarmy1 said:

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SDC SDC SDC

SMILE!!!!

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I have 16.19 and 17.28 as next 2 levels up. Maybe it squeezes right past the 16!

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I have sales in the $17 area targeted. They can't have any shares before there.

CVET close to flash $13

Hopefully flagging before headed higher. Fingers crossed.

I doubled up my calls here

I'm fishing for another 200 shares. Then time for covered calls once it spikes....

Good heavens I need to walk away. Today is very red on my position portal.

oldarmy1 said:

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CVET close to flash $13

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Been watching this one... think this is good entry on some shares for a swing trade?