oldarmy1 said:
If you are following the ONTX buys under $0.30 and selling 50% above $0.45 then get on it again!!!
Sold at $0.445 after hours. Will do it all again if it comes back down
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Sold at $0.445 after hours. Will do it all again if it comes back down
CrazyRichAggie said:oldarmy1 said:
If you are following the ONTX buys under $0.30 and selling 50% above $0.45 then get on it again!!!
I'm confused. It's trading at 0.44 You want to get in at that price? Or something under 0.30?
We've been buying at $0.30 and this is the time to sell as it always seems to come back down shortly after
We buy ONTX anytime its under $0.30 and sell 50% when those buys reach $0.45. This will be the 5th cycle successfully doing that and at $0.15 profit per cycle selling 50% you are net free after two cycles. Fun eh?CrazyRichAggie said:oldarmy1 said:
If you are following the ONTX buys under $0.30 and selling 50% above $0.45 then get on it again!!!
I'm confused. It's trading at 0.44 You want to get in at that price? Or something under 0.30?
Gotcha. I will put it on my watch list
the man himself beat me to it!
I'm convinced we are going to breakout to SPY $313.IrishTxAggie said:
Between 3309-3340 before a pullback
oldarmy1 said:I'm convinced we are going to breakout to SPY $313.IrishTxAggie said:
Between 3309-3340 before a pullback
That wouldn't suck
oldarmy1 said:I'm convinced we are going to breakout to SPY $313.IrishTxAggie said:
Between 3309-3340 before a pullback
SPY 297C fixing to be popping!
I use to look at posts like this with the attitude that I don't have the capital to even execute such a strategy so why bother.oldarmy1 said:You should follow the same principal.AggiePeeps06 said:
Ah makes sense. I only had 4 contract so size is probably too small to trade it that way
I have $1.67 in Puts X 100 = $16,700 invested.
My 100 calls cost me $1.78 x 100 = $17,800 invested.
Total Calls Plus Puts invested = $34,500
The Puts closed at $2.61 so those are valued at $26,100
The Calls closed at $1.31 or $13,100
Total ending Call + Put = $39,200
So I closed at a net gain of $4,700
HOWEVER - Markets move so when you get a stock at or close to one or the other Puts with 4 days to expiration you don't want to risk losing what you've successfully achieved. So I buy 50% of shares against the Puts. Now take a look at SPY right now. It's trading at $294.93. Guess what that means for your $294 Puts if we open up tomorrow. They'll lose all of your gains plus deterioration factor on premium.
5000 shares purchased x average gain of $0.82 = $4100. Now I also sold a May 22 $294 cover call for $1.64 on those 5000 shares. $164 x 50 covered calls = $8,200
So I just guaranteed $8,200 in gains if SPY closes above $294 tomorrow and those shares will be called out. But what if we close at $293.80 or below? I just earned $8,200 premium. My $294 Puts are in the money. I can write another 50 covered calls on those same 5000 shares earning another $8000+ premium.
Now those are bigger numbers but the principle should be the same. You have 4 options. Even if its 2 calls and 2 Puts. When we got to $294.05 you'd at least buy the stock on one of those. And either 1 covered call on that 100 shares or since smaller i'd have only bought shares. And then when it traded to $294.90+ you can either sell it or wait to see if that buying after hours continues. But you are in a much better leveraged position.
When I'm laying out $34k in options that have a designated lifespan of 5 days you think I'm going to just wait and see if we tank from $294.05 close? Neither should anyone.
That attitude is a losing attitude. I still don't have the capital to pull this off, but why turn down the opportunity to learn chess? OA is playing chess. He knows how to take a winning hand and make it can't lose (no risk! that's what you want). I had to go back and walk through all his posts I just skimmed over thinking it didn't apply to me. The greatest thing about trading is you have so many angles you can take advantage of to insure you have a winning hand.
You have to be proud at how your thread has grown and helped so many others. My hat's off to you Sir, and thank you!
I completely agree. I'm a semi experienced young trader with stocks, but not confident at all to "put my money where my mouth is" yet on options. So it's still a slow crawl for me compared to you big guns. But because of the education and community on this thread, I've turned $40,000 into $51,000+ during WFH, and really appreciate the education and answers you guys all freely give. Thank you!
Agreed. I'm fairly new to this and aren't brave enough to do options but have got good advice on stocks and picked up some on suggestions and have turned 23k in 32k so far
oldarmy1 said:You should follow the same principal.AggiePeeps06 said:
Ah makes sense. I only had 4 contract so size is probably too small to trade it that way
I have $1.67 in Puts X 100 = $16,700 invested.
My 100 calls cost me $1.78 x 100 = $17,800 invested.
Total Calls Plus Puts invested = $34,500
The Puts closed at $2.61 so those are valued at $26,100
The Calls closed at $1.31 or $13,100
Total ending Call + Put = $39,200
So I closed at a net gain of $4,700
HOWEVER - Markets move so when you get a stock at or close to one or the other Puts with 4 days to expiration you don't want to risk losing what you've successfully achieved. So I buy 50% of shares against the Puts. Now take a look at SPY right now. It's trading at $294.93. Guess what that means for your $294 Puts if we open up tomorrow. They'll lose all of your gains plus deterioration factor on premium.
5000 shares purchased x average gain of $0.82 = $4100. Now I also sold a May 22 $294 cover call for $1.64 on those 5000 shares. $164 x 50 covered calls = $8,200
So I just guaranteed $8,200 in gains if SPY closes above $294 tomorrow and those shares will be called out. But what if we close at $293.80 or below? I just earned $8,200 premium. My $294 Puts are in the money. I can write another 50 covered calls on those same 5000 shares earning another $8000+ premium.
Now those are bigger numbers but the principle should be the same. You have 4 options. Even if its 2 calls and 2 Puts. When we got to $294.05 you'd at least buy the stock on one of those. And either 1 covered call on that 100 shares or since smaller i'd have only bought shares. And then when it traded to $294.90+ you can either sell it or wait to see if that buying after hours continues. But you are in a much better leveraged position.
When I'm laying out $34k in options that have a designated lifespan of 5 days you think I'm going to just wait and see if we tank from $294.05 close? Neither should anyone.
Just a point of order, isn't 5,000 shares of SPY like $1,500,000?
OA = True TexAgs Whale
IrishTxAggie said:
OA = True TexAgs Whale
Absolutely, just doesn't seem as fun when I'm making $41.00 instead of $4100
It is. But most margin accounts with option abilities dont require you to have the full price in cash.
Example: stock is at $100. You buy 10 $105 calls for $1.50 and short 1000 shares. The short position would net you $100,000 in cash and you paid $1,500 in premium. Now, depending on your account level and brokerage, you will have to hold $5,000 additional cash so that you can potentially exercise your options to cover your short position if the stock closes above $105. This is pretty typical as opposed to a true "naked" short, ie, a short stock position w/o an offsetting call option. In summary, to initiate such a position would require $6,500 in cash; $1,500 to buy the options, and another $5,000 to be in "reserve" added to the $100,000 you receive when you "short sell" the stock for $100. You make money when stock drops below $98.5 (the $100 a share less the premium you had to pay to buy the call to avoid a "naked short" position).
Example: stock is at $100. You buy 10 $105 calls for $1.50 and short 1000 shares. The short position would net you $100,000 in cash and you paid $1,500 in premium. Now, depending on your account level and brokerage, you will have to hold $5,000 additional cash so that you can potentially exercise your options to cover your short position if the stock closes above $105. This is pretty typical as opposed to a true "naked" short, ie, a short stock position w/o an offsetting call option. In summary, to initiate such a position would require $6,500 in cash; $1,500 to buy the options, and another $5,000 to be in "reserve" added to the $100,000 you receive when you "short sell" the stock for $100. You make money when stock drops below $98.5 (the $100 a share less the premium you had to pay to buy the call to avoid a "naked short" position).
The same principle replies in reverse too for buying stocks on margin (ie, money thats not yours).
So you lose here if the stock ends up at like $295? You'd get $8100 from the covered calls and I guess make like $5000 from the stock but lose the initial premiums on both sides. Am I missing something here? Understand the market is super volatile right now and you prob factored in the risk, just making sure I didn't miss a step.
topher06 said:
So you lose here if the stock ends up at like $295? You'd get $8100 from the covered calls and I guess make like $5000 from the stock but lose the initial premiums on both sides. Am I missing something here? Understand the market is super volatile right now and you prob factored in the risk, just making sure I didn't miss a step.
Yeah that's what scares me ****less with buying $1,500,000 of stock. Obviously I'm not a pro, but I'd probably accidentally press "short sell" and then have a mild heart attack while frantically changing my trailing stops every time the stock moves .01
leoj said:
Not the best entry, but I'm long the stock for now.
Man it always makes me sad seeing posts like that, it seems you can literally make pivots out of anything. A diagonal channel, a moving average, drawing the line straight across from a high, yesterday's low, Fibonacci level, etc etc. I think so much of technical analysis is just getting use to the behavior of stocks. I have been studying all the different types of indicators and come to the conclusion that you can use some sort of indicator to justify literally anything
Exsurge Domine said:leoj said:
Not the best entry, but I'm long the stock for now.
Man it always makes me sad seeing posts like that, it seems you can literally make pivots out of anything. A diagonal channel, a moving average, drawing the line straight across from a high, yesterday's low, Fibonacci level, etc etc. I think so much of technical analysis is just getting use to the behavior of stocks. I have been studying all the different types of indicators and come to the conclusion that you can use some sort of indicator to justify literally anything
I'm suffering from paralysis by analysis. It's time to fugure out how to make it work
I see so many people on here succeeding and that gets me excited. I'm just now starting to see some tactics working for me. Gotta stay hopeful that I can follow y'alls lead.
McInnis 03 said:Exsurge Domine said:leoj said:
Not the best entry, but I'm long the stock for now.
Man it always makes me sad seeing posts like that, it seems you can literally make pivots out of anything. A diagonal channel, a moving average, drawing the line straight across from a high, yesterday's low, Fibonacci level, etc etc. I think so much of technical analysis is just getting use to the behavior of stocks. I have been studying all the different types of indicators and come to the conclusion that you can use some sort of indicator to justify literally anything
I'm suffering from paralysis by analysis. It's time to fugure out how to make it work
I see so many people on here succeeding and that gets me excited. I'm just now starting to see some tactics working for me. Gotta stay hopeful that I can follow y'alls lead.
Just want to point out that he usually posts simple horizontal resistance, new highs, and cups. Nothing crazy about those setups. And FSLY may be chasing at this point, but I think the action shows continued accumulation and demand.
leoj said:McInnis 03 said:Exsurge Domine said:leoj said:
Not the best entry, but I'm long the stock for now.
Man it always makes me sad seeing posts like that, it seems you can literally make pivots out of anything. A diagonal channel, a moving average, drawing the line straight across from a high, yesterday's low, Fibonacci level, etc etc. I think so much of technical analysis is just getting use to the behavior of stocks. I have been studying all the different types of indicators and come to the conclusion that you can use some sort of indicator to justify literally anything
I'm suffering from paralysis by analysis. It's time to fugure out how to make it work
I see so many people on here succeeding and that gets me excited. I'm just now starting to see some tactics working for me. Gotta stay hopeful that I can follow y'alls lead.
Just want to point out that he usually posts simple horizontal resistance, new highs, and cups. Nothing crazy about those setups. And FSLY may be chasing at this point, but I think the action shows continued accumulation and demand.
That's what I mean, some of it is extremely technical, some of it is as easy as "hey if it crosses the yearly high, or confirms below the low, it's probably good/bad"
Exsurge Domine said:leoj said:McInnis 03 said:Exsurge Domine said:leoj said:
Not the best entry, but I'm long the stock for now.
Man it always makes me sad seeing posts like that, it seems you can literally make pivots out of anything. A diagonal channel, a moving average, drawing the line straight across from a high, yesterday's low, Fibonacci level, etc etc. I think so much of technical analysis is just getting use to the behavior of stocks. I have been studying all the different types of indicators and come to the conclusion that you can use some sort of indicator to justify literally anything
I'm suffering from paralysis by analysis. It's time to fugure out how to make it work
I see so many people on here succeeding and that gets me excited. I'm just now starting to see some tactics working for me. Gotta stay hopeful that I can follow y'alls lead.
Just want to point out that he usually posts simple horizontal resistance, new highs, and cups. Nothing crazy about those setups. And FSLY may be chasing at this point, but I think the action shows continued accumulation and demand.
That's what I mean, some of it is extremely technical, some of it is as easy as "hey if it crosses the yearly high, or confirms below the low, it's probably good/bad"
Yeah I'm with you. Sometimes it pays to keep it simple. Look at AMZN overcoming a long consolidation and going into new highs. FB just did it. There is a lot to be said for there being no overhead supply in a stock.
Also, futures not looking great but maybe we come back by the morning. Keep trying to remind myself to be aware that even with the run up we are below the 200d on the indices and the majority of stocks.
leoj said:tam2002 said:
Trump said at the Ford plant today he thinks we need another stimulus package and they are gonna be working on it
Going to have a tough time getting that through the senate at this point. Not to mention reconciling with the house. I'm skeptical.
Maybe I'm wrong a bit, but it will still be harder negotiation than anything they have passed so far
That's odd, because the Trump administration already said yesterday we aren't doing additional bailouts anymore. I wonder if he will sign anything that comes out of Congress?
Exsurge Domine said:leoj said:McInnis 03 said:Exsurge Domine said:leoj said:
Not the best entry, but I'm long the stock for now.
Man it always makes me sad seeing posts like that, it seems you can literally make pivots out of anything. A diagonal channel, a moving average, drawing the line straight across from a high, yesterday's low, Fibonacci level, etc etc. I think so much of technical analysis is just getting use to the behavior of stocks. I have been studying all the different types of indicators and come to the conclusion that you can use some sort of indicator to justify literally anything
I'm suffering from paralysis by analysis. It's time to fugure out how to make it work
I see so many people on here succeeding and that gets me excited. I'm just now starting to see some tactics working for me. Gotta stay hopeful that I can follow y'alls lead.
Just want to point out that he usually posts simple horizontal resistance, new highs, and cups. Nothing crazy about those setups. And FSLY may be chasing at this point, but I think the action shows continued accumulation and demand.
That's what I mean, some of it is extremely technical, some of it is as easy as "hey if it crosses the yearly high, or confirms below the low, it's probably good/bad"
Notice no one every posts ttm or annualized returns, likely few actually know their basic KPIs, much less risk adjusted performance. All of these TA tools have been extensively backtested and do not work as long term strategies. That's why they're free.
Hang Seng getting destroyed.
Carlo4 said:
That's odd, because the Trump administration already said yesterday we aren't doing additional bailouts anymore. I wonder if he will sign anything that comes out of Congress?
I can't find it but I know I saw trump say something today or yesterday. Some republican senators want to make it an infrastructure/work program. We will see
Spaceship said:
I completely agree. I'm a semi experienced young trader with stocks, but not confident at all to "put my money where my mouth is" yet on options. So it's still a slow crawl for me compared to you big guns. But because of the education and community on this thread, I've turned $40,000 into $51,000+ during WFH, and really appreciate the education and answers you guys all freely give. Thank you!
I'll follow up. I was a completely inexperienced trader. Didn't even have an account. Dad was an Ag teacher and mom a hygienist. If you would have asked me what option I was looking at I would have responded "between what?"
It took me 6 months to read this thread start to finish, and I'll be honest I'm still reading through the technical analysis handbook to learn. I grasp some things easily and others take longer. I'm still cautious around options strategies. I've learned some but there are still many I don't fully understand . I practice on the paper money side and take courses continuously to try and grasp some of the strategies I read about on here.
All that being said. Because of this thread , I started with 10K in late February and I'm up to 21K. I have a long way to go and play cautious still. But I would have learned nothing without the guidance of this thread . So a big thank you to all the contributors . All the discussion leads me to new data points to research and practice . I check this thread More than my emails on most days .
If you are a lurker , ask questions , seek information, and learn. If I can make progress so can you.
S&P futures down 18 handles. Guess Chinese tension concerns is one of the only things that can weigh down this market.
For those that are following, China is seeking to assert greater authority in Hong Kong, which could impact US/CN relations.
For those that are following, China is seeking to assert greater authority in Hong Kong, which could impact US/CN relations.
The Put side for the win. Wow Hang Seng
Bet we get some positive vaccine or stimulus talk today. Going into the long weekend someone gonna try something
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