sold WYNN 45p for 3/20 expiration Monday, was thinking I would end up with the stock this morning, now who knows. Either get the stock put to me or sell more puts
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Last: 2 hrs ago by EliteZags
I haven't sold a single stock this year but in the past 10 days I've purchased Google, Amazon, Apple, Microsoft, and Disney (along with a healthy dose of VTI). I'm hoping this forms the foundation of easy living in 25-30 years.Aggiesincebirth said:I don't disagree as I am in Apple, Facebook (oof), Amazon (king), Disney (going to start getting more of a tech value soon enough I think), and Roku (prayers up).bmks270 said:Aggiesincebirth said:
Do you think Disney will be higher by 10% year over year 5 years from now?
You may not scoop the bottom but do you think Disney is a company that won't ever recover because of this?
Okay, yes, but MSFT and google and Apple have done like 20%+ YOY for the past few years, and Id be looking at software and tech for growth. Disney will lag for as long as this virus hangs around. I'd be waiting for a cure or treatment to come out before touching anything in hospitality.
But for a long term hold, I don't think you will get a chance to buy Disney down here ever again. I am talking about a Roth IRA 30 year hold.
brd79 said:bmks270 said:Aggiesincebirth said:
Do you think Disney will be higher by 10% year over year 5 years from now?
You may not scoop the bottom but do you think Disney is a company that won't ever recover because of this?
Okay, yes, but MSFT and google and Apple have done like 20%+ YOY for the past few years, and Id be looking at software and tech for growth. Disney will lag for as long as this virus hangs around. I'd be waiting for a cure or treatment to come out before touching anything in hospitality.
Disney and a world of social distancing go together like trailer parks and tornadoes
I'm not the best to answer this, but that's because the current premium someone would pay you for that same option is higher than the $2.66 premium you paid. So you profit on the change in the premium, not by exercising the options and then selling them at market price at the same time.Exsurge Domine said:Talon2DSO said:Exsurge Domine said:
So my call is in the money now, at 94.68 vs 94. But I'm still out of the money due to the premium correct?
Yes.
Thanks for some reason it's showing a massive gain in my positions folder on Ameritrade
Touchless said:I'm not the best to answer this, but that's because the current premium someone would pay you for that same option is higher than the $2.66 premium you paid. So you profit on the change in the premium, not by exercising the options and then selling them at market price at the same time.Exsurge Domine said:Talon2DSO said:Exsurge Domine said:
So my call is in the money now, at 94.68 vs 94. But I'm still out of the money due to the premium correct?
Yes.
Thanks for some reason it's showing a massive gain in my positions folder on Ameritrade
Wait can you explain that? I've always found the best way to do something is just to dive in. Are you saying if I sell the call options I own, I can profit off of the bid/ask spread but I expose myself to the same environment that I was originally trying to take advantage of by buying the call option?
You will look back on those recent purchases as one of the best decisions that you've ever made, IMO.M.C. Swag said:I haven't sold a single stock this year but in the past 10 days I've purchased Google, Amazon, Apple, Microsoft, and Disney (along with a healthy dose of VTI). I'm hoping this forms the foundation of easy living in 25-30 years.Aggiesincebirth said:I don't disagree as I am in Apple, Facebook (oof), Amazon (king), Disney (going to start getting more of a tech value soon enough I think), and Roku (prayers up).bmks270 said:Aggiesincebirth said:
Do you think Disney will be higher by 10% year over year 5 years from now?
You may not scoop the bottom but do you think Disney is a company that won't ever recover because of this?
Okay, yes, but MSFT and google and Apple have done like 20%+ YOY for the past few years, and Id be looking at software and tech for growth. Disney will lag for as long as this virus hangs around. I'd be waiting for a cure or treatment to come out before touching anything in hospitality.
But for a long term hold, I don't think you will get a chance to buy Disney down here ever again. I am talking about a Roth IRA 30 year hold.
You sell the options you hold, you close the trade. And if you have profit you have profit. But it's done.
UpstateAg said:
You sell the options you hold, you close the trade. And if you have profit you have profit. But it's done.
That's what I thought, what is ameritrade showing me then?
Exsurge Domine said:Touchless said:I'm not the best to answer this, but that's because the current premium someone would pay you for that same option is higher than the $2.66 premium you paid. So you profit on the change in the premium, not by exercising the options and then selling them at market price at the same time.Exsurge Domine said:Talon2DSO said:Exsurge Domine said:
So my call is in the money now, at 94.68 vs 94. But I'm still out of the money due to the premium correct?
Yes.
Thanks for some reason it's showing a massive gain in my positions folder on Ameritrade
Wait can you explain that? I've always found the best way to do something is just to dive in. Are you saying if I sell the call options I own, I can profit off of the bid/ask spread but I expose myself to the same environment that I was originally trying to take advantage of by buying the call option?
Absolutely.
Apologies for the short answer earlier, I got distracted. If you were to exercise the option, you need to calculate your break even price which would mean factoring in your premium.
What I do is buy and sell the option. I dont allow it to get to expiration. I pocket the profit from the option price and use that for my long positions or to buy another contract.
BOOM LADR!!!
wait for tomorrow... options shenanigans could happen across the board. If so, DIS could be back on sale.Aggietaco said:
So much for my $81 DIS order going through.
Oh, I know. I'm in the camp that we still have a ways to go down. Set the order until cancel.
Talon2DSO said:Exsurge Domine said:Touchless said:I'm not the best to answer this, but that's because the current premium someone would pay you for that same option is higher than the $2.66 premium you paid. So you profit on the change in the premium, not by exercising the options and then selling them at market price at the same time.Exsurge Domine said:Talon2DSO said:Exsurge Domine said:
So my call is in the money now, at 94.68 vs 94. But I'm still out of the money due to the premium correct?
Yes.
Thanks for some reason it's showing a massive gain in my positions folder on Ameritrade
Wait can you explain that? I've always found the best way to do something is just to dive in. Are you saying if I sell the call options I own, I can profit off of the bid/ask spread but I expose myself to the same environment that I was originally trying to take advantage of by buying the call option?
Absolutely.
Apologies for the short answer earlier, I got distracted. If you were to exercise the option, you need to calculate your break even price which would mean factoring in your premium.
What I do is buy and sell the option. I dont allow it to get to expiration. I pocket the profit from the option price and use that for my long positions or to buy another contract.
Absolutely, but the issue is I'm not sure why ameritrade is showing me in the money, with the current value of 3250
[url=https://ibb.co/7SJjZ0y]
[/url]
Short term covered call time?
Exsurge Domine said:Touchless said:I'm not the best to answer this, but that's because the current premium someone would pay you for that same option is higher than the $2.66 premium you paid. So you profit on the change in the premium, not by exercising the options and then selling them at market price at the same time.Exsurge Domine said:Talon2DSO said:Exsurge Domine said:
So my call is in the money now, at 94.68 vs 94. But I'm still out of the money due to the premium correct?
Yes.
Thanks for some reason it's showing a massive gain in my positions folder on Ameritrade
Wait can you explain that? I've always found the best way to do something is just to dive in. Are you saying if I sell the call options I own, I can profit off of the bid/ask spread but I expose myself to the same environment that I was originally trying to take advantage of by buying the call option?
Study "the Greeks".
Two big ones for a beginner to know are theta (time decay) and delta (correlation between changes in the stock and option price).
Theta is the rate the option price declines per day. Options buyers don't hold to expiration usually unless using the option as a hedge for another position.
When the price of the underlying stock moved in a short time, the option price moved according to the equation:
Changing in option price = change in stock price * delta.
So if call option delta is 0.4... and the stock moves $3 up, the option price goes up by $1.20.
But now add theta... if it takes 7 days to move $3, and theta is 0.10, the option loses $0.10 per day or $0.70 over the week.
So after 7 days the option is now priced at +1.20 - 0.70
= + $0.50
For a buyer to profit the price action has to outpace the time decay. Option sellers are usually betting that it won't. Option buyers are betting that it will.
Now that is assuming the volatility is constant.
That current value was probably the last trade. By the looks of that screen you could sell it at 3.30 or 3300.
So to add, if you hold the option until expiration, it's value will keep declining from the theta, time decay, until it ends up being a loss, unless the price keeps moving up to overcome the theta decay.
If you click on the position (where it says "DIS Mar 20...."), that will take you to the option itself and give you the ability to buy, sell, set triggers or view the option train. Since you paid $2,600 for the options, someone is currently willing to buy those options from you for the $3,250. The difference is the profit.Exsurge Domine said:Talon2DSO said:Exsurge Domine said:Touchless said:I'm not the best to answer this, but that's because the current premium someone would pay you for that same option is higher than the $2.66 premium you paid. So you profit on the change in the premium, not by exercising the options and then selling them at market price at the same time.Exsurge Domine said:Talon2DSO said:Exsurge Domine said:
So my call is in the money now, at 94.68 vs 94. But I'm still out of the money due to the premium correct?
Yes.
Thanks for some reason it's showing a massive gain in my positions folder on Ameritrade
Wait can you explain that? I've always found the best way to do something is just to dive in. Are you saying if I sell the call options I own, I can profit off of the bid/ask spread but I expose myself to the same environment that I was originally trying to take advantage of by buying the call option?
Absolutely.
Apologies for the short answer earlier, I got distracted. If you were to exercise the option, you need to calculate your break even price which would mean factoring in your premium.
What I do is buy and sell the option. I dont allow it to get to expiration. I pocket the profit from the option price and use that for my long positions or to buy another contract.
Absolutely, but the issue is I'm not sure why ameritrade is showing me in the money, with the current value of 3250
[url=https://ibb.co/7SJjZ0y]
So you have two options, continue to hold the option to buy all of those DIS shares which is only advantageous if the share price exceeds the $94 strike plus your premium, or you sell the option that you purchased and take the profit that is based on the premium you paid to someone else and the current premium that someone is willing to pay you for your option(s).
Prognightmare said:
That current value was probably the last trade. By the looks of that screen you could sell it at 3.30 or 3300.
But if I sell it does it close out? Or do I have a short call position at that point where I'm screwed if it goes above 94
How do you plan to profit from a collapse? Physical precious metals?Prognightmare said:I agree with this but you either profit by this bubble expansion or you try to stand on the tracks in front of the FED train because of principle. I myself plan to profit by this extremely loose monetary policy and then hopefully profit when it collapses.claym711 said:
Fed is pouring up to $7T if fully subscribed Into reserves (AND LOANING WITH EQUITIES AS COLLATERAL - so you can buy stocks, bring them to the fed as collateral for more reserves, then go buy more, and cycle in more reserves to continue buying).
Combine this with the Treasury sending Fed dollars out into the hands of consumers, essentially suspending all debt (which will be serviced by the Fed and Treasury), bailing out everyone, AND buying equities.
I don't see how this will not result in a massive artificial inflation of stock prices in the coming months.
Touchless said:If you click on the position (where it says "DIS Mar 20...."), that will take you to the option itself and give you the ability to buy, sell, set triggers or view the option train. Since you paid $2,600 for the options, someone is currently willing to buy those options from you for the $3,250. The difference is the profit.Exsurge Domine said:Talon2DSO said:Exsurge Domine said:Touchless said:I'm not the best to answer this, but that's because the current premium someone would pay you for that same option is higher than the $2.66 premium you paid. So you profit on the change in the premium, not by exercising the options and then selling them at market price at the same time.Exsurge Domine said:Talon2DSO said:Exsurge Domine said:
So my call is in the money now, at 94.68 vs 94. But I'm still out of the money due to the premium correct?
Yes.
Thanks for some reason it's showing a massive gain in my positions folder on Ameritrade
Wait can you explain that? I've always found the best way to do something is just to dive in. Are you saying if I sell the call options I own, I can profit off of the bid/ask spread but I expose myself to the same environment that I was originally trying to take advantage of by buying the call option?
Absolutely.
Apologies for the short answer earlier, I got distracted. If you were to exercise the option, you need to calculate your break even price which would mean factoring in your premium.
What I do is buy and sell the option. I dont allow it to get to expiration. I pocket the profit from the option price and use that for my long positions or to buy another contract.
Absolutely, but the issue is I'm not sure why ameritrade is showing me in the money, with the current value of 3250
[url=https://ibb.co/7SJjZ0y]
So you have two options, continue to hold the option to buy all of those DIS shares which is only advantageous if the share price exceeds the $94 strike plus your premium, or you sell the option that you purchased and take the profit that is based on the premium you paid to someone else and the current premium that someone is willing to pay you for your option(s).
You guys are awesome for explaining this all to me, if I sell is everything over, zero positions in Disney options?
Correct. Assuming you sell all options.
Correct. Sell to close will get you out of the option and you will not be on the hook for anything.
Exsurge Domine said:Touchless said:If you click on the position (where it says "DIS Mar 20...."), that will take you to the option itself and give you the ability to buy, sell, set triggers or view the option train. Since you paid $2,600 for the options, someone is currently willing to buy those options from you for the $3,250. The difference is the profit.Exsurge Domine said:Talon2DSO said:Exsurge Domine said:Touchless said:I'm not the best to answer this, but that's because the current premium someone would pay you for that same option is higher than the $2.66 premium you paid. So you profit on the change in the premium, not by exercising the options and then selling them at market price at the same time.Exsurge Domine said:Talon2DSO said:Exsurge Domine said:
So my call is in the money now, at 94.68 vs 94. But I'm still out of the money due to the premium correct?
Yes.
Thanks for some reason it's showing a massive gain in my positions folder on Ameritrade
Wait can you explain that? I've always found the best way to do something is just to dive in. Are you saying if I sell the call options I own, I can profit off of the bid/ask spread but I expose myself to the same environment that I was originally trying to take advantage of by buying the call option?
Absolutely.
Apologies for the short answer earlier, I got distracted. If you were to exercise the option, you need to calculate your break even price which would mean factoring in your premium.
What I do is buy and sell the option. I dont allow it to get to expiration. I pocket the profit from the option price and use that for my long positions or to buy another contract.
Absolutely, but the issue is I'm not sure why ameritrade is showing me in the money, with the current value of 3250
[url=https://ibb.co/7SJjZ0y]
So you have two options, continue to hold the option to buy all of those DIS shares which is only advantageous if the share price exceeds the $94 strike plus your premium, or you sell the option that you purchased and take the profit that is based on the premium you paid to someone else and the current premium that someone is willing to pay you for your option(s).
You guys are awesome for explaining this all to me, if I sell is everything over, zero positions in Disney options?
Yeah you want to close that position by selling the contract you bought, and not writing a new one.
Awesome, I didn't know you could do that. Thanks for the info. I'm learning this stuff much quicker just diving in and peppering you guys with questions
Exsurge Domine said:Touchless said:If you click on the position (where it says "DIS Mar 20...."), that will take you to the option itself and give you the ability to buy, sell, set triggers or view the option train. Since you paid $2,600 for the options, someone is currently willing to buy those options from you for the $3,250. The difference is the profit.Exsurge Domine said:Talon2DSO said:Exsurge Domine said:Touchless said:I'm not the best to answer this, but that's because the current premium someone would pay you for that same option is higher than the $2.66 premium you paid. So you profit on the change in the premium, not by exercising the options and then selling them at market price at the same time.Exsurge Domine said:Talon2DSO said:Exsurge Domine said:
So my call is in the money now, at 94.68 vs 94. But I'm still out of the money due to the premium correct?
Yes.
Thanks for some reason it's showing a massive gain in my positions folder on Ameritrade
Wait can you explain that? I've always found the best way to do something is just to dive in. Are you saying if I sell the call options I own, I can profit off of the bid/ask spread but I expose myself to the same environment that I was originally trying to take advantage of by buying the call option?
Absolutely.
Apologies for the short answer earlier, I got distracted. If you were to exercise the option, you need to calculate your break even price which would mean factoring in your premium.
What I do is buy and sell the option. I dont allow it to get to expiration. I pocket the profit from the option price and use that for my long positions or to buy another contract.
Absolutely, but the issue is I'm not sure why ameritrade is showing me in the money, with the current value of 3250
[url=https://ibb.co/7SJjZ0y]
So you have two options, continue to hold the option to buy all of those DIS shares which is only advantageous if the share price exceeds the $94 strike plus your premium, or you sell the option that you purchased and take the profit that is based on the premium you paid to someone else and the current premium that someone is willing to pay you for your option(s).
You guys are awesome for explaining this all to me, if I sell is everything over, zero positions in Disney options?
Once you sell the option contract is closed. You now have the profit from the sale and you no longer have an interest in that DIS transaction.
Puts and/or outright shorting stocks.PearlJammin said:How do you plan to profit from a collapse? Physical precious metals?Prognightmare said:I agree with this but you either profit by this bubble expansion or you try to stand on the tracks in front of the FED train because of principle. I myself plan to profit by this extremely loose monetary policy and then hopefully profit when it collapses.claym711 said:
Fed is pouring up to $7T if fully subscribed Into reserves (AND LOANING WITH EQUITIES AS COLLATERAL - so you can buy stocks, bring them to the fed as collateral for more reserves, then go buy more, and cycle in more reserves to continue buying).
Combine this with the Treasury sending Fed dollars out into the hands of consumers, essentially suspending all debt (which will be serviced by the Fed and Treasury), bailing out everyone, AND buying equities.
I don't see how this will not result in a massive artificial inflation of stock prices in the coming months.
Your question has already been answered. Nice first trade but I'd be leery of getting too greedy with it expiring tomorrow because if this market turns they'll strip the hell out of that premium. In this type of market environment I like to trade longer term options because it gives more protection.Exsurge Domine said:Prognightmare said:
That current value was probably the last trade. By the looks of that screen you could sell it at 3.30 or 3300.
But if I sell it does it close out? Or do I have a short call position at that point where I'm screwed if it goes above 94
Thoughts on LADR 5/15 7.50c at 1.80?
Picked some HCA up yesterday. Its popped to 75 today but I still think its at a discount.
Every knee shall bow and every tongue shall confess
Not at that price. The bid is at .15. Don't pay the askTalon2DSO said:
Thoughts on LADR 5/15 7.50c at 1.80?
Every knee shall bow and every tongue shall confess
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