I went with $4500 strike. It's in my Roth, and I'm just gonna ride the wave up, with a strict stop loss set at $5750. I also own 5 shares of AMZN in the same account, so I sold two of those to help fund the purchase.AgEng06 said:Which one? Premiums are crazy!Rice and Fries said:
Just bought a longterm AMZN leap. Bezos take the wheel.
That's a personal decision. If you have a position that's up 65% currently, you may want to ensure you gain at least 50%, so you set a stop (or trailing stop, which I prefer) at that price. If it never executes, you're still riding the upwave. However, it's a great tool to enforce trading discipline, and remove some emotion from the equation. I have found it works best if you place trailing stops on a portion of your position (half?).AGSmith said:
What is considered to be a normal/tight trailing stop for an options trade?
Just depends on your goals.mavsfan4ever said:
In taxable accounts, how do y'all determine whether to keep stocks over a year or not. For instance, I'm up big on Amazon and Roku this year. I feel like I should just keep them for at least a year to get the lower tax rate because, on average, I'll make more from the better tax rate than selling when they are high and locking in profits.
Obviously, they could fall and do away with all of my profits before the end of the year. But in the long run, when factoring in all of the trades, I feel like keeping them over a year is the more +EV play.
Am I looking at anything wrong? This may be a better question for the swing trade thread.
Yep. I have AMZN in taxable and never plan to sell. I have way too much ROKU in non taxable retirement so I'll probably sell at least some at some point if it gets super extended above all time highs. But would buy it back on dips. I wouldn't sell if it was in taxable most likely. Just too much long term upside.TecRecAg said:
If you're holding shares in AMZN or ROKU you should do nothing but buy dips. Don't sell. Ever.
Try to go net free. Just sell what you put into your initial purchase and let the rest of the shares ride for the long term. You are only taxed on the profits. Great way to preserve capital and lower tax exposure.mavsfan4ever said:
In taxable accounts, how do y'all determine whether to keep stocks over a year or not. For instance, I'm up big on Amazon and Roku this year. I feel like I should just keep them for at least a year to get the lower tax rate because, on average, I'll make more from the better tax rate than selling when they are high and locking in profits.
Obviously, they could fall and do away with all of my profits before the end of the year. But in the long run, when factoring in all of the trades, I feel like keeping them over a year is the more +EV play.
Am I looking at anything wrong? This may be a better question for the swing trade thread.
You are going to call me crazy but my whole retirement is riding on these 2 stocks. Wish I had the laugh/cry emoji.TecRecAg said:
If you're holding shares in AMZN or ROKU you should do nothing but buy dips. Don't sell. Ever.
See this is the stuff I need to learn... I think there is a roll button on Fidelity so I assume if I roll it I just do whatever price will cover my loss?AGSmith said:You could always roll the call out and upAggiesincebirth said:
I am so happy with Roku this week but also need it to take a lunch break and end the day at 159.99... I don't want to miss the train on this run... Sold calls at $160 after the initial move yesterday past $145 and it just can't stop won't stop.
I'm debating buying them back but its a 500% loss. Or I just hope it doesn't run too far on Monday and I can buy the shares back.
Aggiesincebirth said:See this is the stuff I need to learn... I think there is a roll button on Fidelity so I assume if I roll it I just do whatever price will cover my loss?AGSmith said:You could always roll the call out and upAggiesincebirth said:
I am so happy with Roku this week but also need it to take a lunch break and end the day at 159.99... I don't want to miss the train on this run... Sold calls at $160 after the initial move yesterday past $145 and it just can't stop won't stop.
I'm debating buying them back but its a 500% loss. Or I just hope it doesn't run too far on Monday and I can buy the shares back.
Ex. If my call is down $4k i would roll it forward and lets say next weeks 180 calls will pay me $4k so it will wash out?
I LOVE hearing this. I've been called crazy and maybe I am. I went all in Amazon in my roth 27 shares average cost at $1,100 and buy any really big dips about 3 years ago... Roku is a new one for me as of Feb. but I have done a lot of research since and believe it will be a high flyer long term or get bought by someone to keep up in the streaming wars.59 South said:
Yo, ROKU (from 44) and NIO (from 4.66) were calculated max risk in my retirement accts and have now become by far my 2 largest holdings by dollar amount. I am letting them run because the upside is worth it imo and I have seen no technical reason to sell either. I'm mentally prepared for it if they retreat and I have to sell because I knew the risk and am ok with it. When the price action says to sell I will sell.
Thank you that is exactly what I needed.gougler08 said:Aggiesincebirth said:See this is the stuff I need to learn... I think there is a roll button on Fidelity so I assume if I roll it I just do whatever price will cover my loss?AGSmith said:You could always roll the call out and upAggiesincebirth said:
I am so happy with Roku this week but also need it to take a lunch break and end the day at 159.99... I don't want to miss the train on this run... Sold calls at $160 after the initial move yesterday past $145 and it just can't stop won't stop.
I'm debating buying them back but its a 500% loss. Or I just hope it doesn't run too far on Monday and I can buy the shares back.
Ex. If my call is down $4k i would roll it forward and lets say next weeks 180 calls will pay me $4k so it will wash out?
Generally yes, but you are also getting $20 more per share in this instance so even if you only got $3k for the call next week, you'd still be way ahead
My only concern is to make the most +EV play in the long run, which means I'm not worried about a certain trade not working out. I want to make the most +EV decision when considering all of my hundreds/thousands of trades over the upcoming years. I'm also not worried about risk on a single trade. I don't need the money and won't be pulling it out. I basically treat my taxable account like another retirement account. If I sold anything, I would just invest it in something else.M.C. Swag said:Just depends on your goals.mavsfan4ever said:
In taxable accounts, how do y'all determine whether to keep stocks over a year or not. For instance, I'm up big on Amazon and Roku this year. I feel like I should just keep them for at least a year to get the lower tax rate because, on average, I'll make more from the better tax rate than selling when they are high and locking in profits.
Obviously, they could fall and do away with all of my profits before the end of the year. But in the long run, when factoring in all of the trades, I feel like keeping them over a year is the more +EV play.
Am I looking at anything wrong? This may be a better question for the swing trade thread.
Personally I'm holding AMZN for as long as I can but that's because I don't have any use for the funds in the short term (<5 years). If you think you'll need the money from your brokerage account anytime in the near future (especially in the next calendar year), I can see the logic of taking the profits. Otherwise, why sell? What is stopping AMZN in the next 5 years? 10? 20? I'll be acquiring as much as I can for the foreseeable future.
Yup!tamu2009 said:
Thank you for that reminder, still new to this one.
In this case, if I sold the call for $1 and it's trading at .2 close to expiry, I basically make the $80 (100 sell - 20 buy back) because in theory the time value reduces the value of the option even if it comes closer to being ITM.
gougler08 said:
So for those in TTOO (or just bought like me), you call sell the Jul 2.50 covered call for $0.05 to just scalp a little cash or if somehow there's news and it runs to 2.50 you just get the $1.20/share
Seems like an easy win/win
I sell covered calls on T. Be wary, she moves very slow, and lately it's been trending downward.AGSmith said:
I got options authorization last week, but was slammed at work this week, so I finally made my first 2 options buys this morning...
T 7/17 30C and PFE 9/18 35C
