NRD09 said:

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62strat said:

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Talon2DSO said:

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Picked up AAPL 225c Jan 15, 2021 at 1.60

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so can you explain exactly what this is?

Aapl call at $225 strike price? Obviously jan 15 expiry date, what is the 1.60?

So what exactly is the situation/outcome if it hits 225 before 1/15 and if it doesn't.

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Mcinnis already covered it but i just typed this all on my phone so here goes anyway

If market closes 1/15 and aapl price is 225.00, your option is at the money (atm) and worth nothing. You lost the $160 (1.60 per share) you paid for the contract. Any price below that (out of the money/otm) and it's also worth nothing. Any price above (in the money/itm) and you have the option (get it?) to exercise and buy the shares at the discounted price of $225/shr. You can also exercise at any time before the expiration date, whether it's it., atm, or otm. But it usually doesn't make sense to do so (unless you're trying to snag a dividend but let's keep it simple). For the most part we sell options before they expire, as the price fluctuates with the price of the underlying equity as well as a few other factors, and generally your premium decays as you get closer to expiration.

Really you need to just do it and it'll make sense. Buy a call and sell it. Buy a call and exercise it. Sell a covered call of something you have 100 of and let it expire worthless. Do it again and get your shares called out. Sell a cash covered put and let it expire worthless, do it again and get assigned shares, then you'll have a pretty good understanding of how most of this stuff works.

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I do want to do a couple. There are that have unlimited downside right? Selling options and selling puts, is that right?
I want to stay away from that until I really understand what's going on. So buying call and buying puts are the 'safer' options?

AMD

You can sell calls on stocks you own and your stocks will act as the collateral. So if they get called out, you have to sell your shares at that strike price + premium collected. Selling puts, it is a way to own the shares at a strike price you decide.
Buying calls is a limited amount of loss, it's just the premium you pay to own the right to buy 100 shares. But those things can go down quick. They can also go crazy sky high too.
My strategy for my retirement accounts has been to sell covered calls on the few stocks I own (VTSAX and chill method for me right now, and some Fidelity 500 in my 403). I sell them at a strike I am comfortable selling at, plus the premium. Some months, its an easy grand added to the IRA.
So, for example, I just bought 100 shares of Apple. I will start to sell covered calls on it once I get a better feel for its movement. My goal is to recoup 2-3% a month on the contract. I take that 2-3% of premium and either buy more apple or VTSAX.

ROKU waking up today...

UpstateAg said:

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You can sell calls on stocks you own and your stocks will act as the collateral. So if they get called out, you have to sell your shares at that strike price + premium collected. Selling puts, it is a way to own the shares at a strike price you decide.
Buying calls is a limited amount of loss, it's just the premium you pay to own the right to buy 100 shares. But those things can go down quick. They can also go crazy sky high too.
My strategy for my retirement accounts has been to sell covered calls on the few stocks I own (VTSAX and chill method for me right now, and some Fidelity 500 in my 403). I sell them at a strike I am comfortable selling at, plus the premium. Some months, its an easy grand added to the IRA.
So, for example, I just bought 100 shares of Apple. I will start to sell covered calls on it once I get a better feel for its movement. My goal is to recoup 2-3% a month on the contract. I take that 2-3% of premium and either buy more apple or VTSAX.

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So do you Sell To Open?

So does ONTX has some next "thing" coming out to be bullish about?

Yes. Sell to open calls at a set strike price. I use a limit order with the minimum premium I want to receive. Then either submit.

QD at $1.57 ? Down almost 6% today.

patiently waiting on my NDX short....

Sold OSTK $65 put.

Another ROKU blastoff about to happen? Please?

62strat said:

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NRD09 said:

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62strat said:

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Talon2DSO said:

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Picked up AAPL 225c Jan 15, 2021 at 1.60

---

so can you explain exactly what this is?

Aapl call at $225 strike price? Obviously jan 15 expiry date, what is the 1.60?

So what exactly is the situation/outcome if it hits 225 before 1/15 and if it doesn't.

---

Mcinnis already covered it but i just typed this all on my phone so here goes anyway

If market closes 1/15 and aapl price is 225.00, your option is at the money (atm) and worth nothing. You lost the $160 (1.60 per share) you paid for the contract. Any price below that (out of the money/otm) and it's also worth nothing. Any price above (in the money/itm) and you have the option (get it?) to exercise and buy the shares at the discounted price of $225/shr. You can also exercise at any time before the expiration date, whether it's it., atm, or otm. But it usually doesn't make sense to do so (unless you're trying to snag a dividend but let's keep it simple). For the most part we sell options before they expire, as the price fluctuates with the price of the underlying equity as well as a few other factors, and generally your premium decays as you get closer to expiration.

Really you need to just do it and it'll make sense. Buy a call and sell it. Buy a call and exercise it. Sell a covered call of something you have 100 of and let it expire worthless. Do it again and get your shares called out. Sell a cash covered put and let it expire worthless, do it again and get assigned shares, then you'll have a pretty good understanding of how most of this stuff works.

---

I do want to do a couple. There are that have unlimited downside right? Selling options and selling puts, is that right?
I want to stay away from that until I really understand what's going on. So buying call and buying puts are the 'safer' options?

---

My advise, start with some small call options on stocks you think are gonna move up a bit and watch how they behave. The AAPL 225C or 250C for Jan is probably a great place to start. Low cost, there will be some movement, but your max loss is the price you paid to enter.

"BUY TO OPEN"

Don't write any contracts until you have a full understanding of what's going on.

WKHS is doing well today

NIO said to hell with that offering

McInnis 03 said:

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62strat said:

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NRD09 said:

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62strat said:

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Talon2DSO said:

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Picked up AAPL 225c Jan 15, 2021 at 1.60

---

so can you explain exactly what this is?

Aapl call at $225 strike price? Obviously jan 15 expiry date, what is the 1.60?

So what exactly is the situation/outcome if it hits 225 before 1/15 and if it doesn't.

---

Mcinnis already covered it but i just typed this all on my phone so here goes anyway

If market closes 1/15 and aapl price is 225.00, your option is at the money (atm) and worth nothing. You lost the $160 (1.60 per share) you paid for the contract. Any price below that (out of the money/otm) and it's also worth nothing. Any price above (in the money/itm) and you have the option (get it?) to exercise and buy the shares at the discounted price of $225/shr. You can also exercise at any time before the expiration date, whether it's it., atm, or otm. But it usually doesn't make sense to do so (unless you're trying to snag a dividend but let's keep it simple). For the most part we sell options before they expire, as the price fluctuates with the price of the underlying equity as well as a few other factors, and generally your premium decays as you get closer to expiration.

Really you need to just do it and it'll make sense. Buy a call and sell it. Buy a call and exercise it. Sell a covered call of something you have 100 of and let it expire worthless. Do it again and get your shares called out. Sell a cash covered put and let it expire worthless, do it again and get assigned shares, then you'll have a pretty good understanding of how most of this stuff works.

---

I do want to do a couple. There are that have unlimited downside right? Selling options and selling puts, is that right?
I want to stay away from that until I really understand what's going on. So buying call and buying puts are the 'safer' options?

---

My advise, start with some small call options on stocks you think are gonna move up a bit and watch how they behave. The AAPL 225C or 250C for Jan is probably a great place to start. Low cost, there will be some movement, but your max loss is the price you paid to enter.

"BUY TO OPEN"

Don't write any contracts until you have a full understanding of what's going on.

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So how do I do that in fidelity? Like.. baby steps, where do I look to begin? I don't see anything in my fidelity account that resembles 'options' or 'calls', other than in my rollover IRA, there is a thing that says 'option summary' and if I click it brings up a page that I have no idea what is going on.

62strat said:

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McInnis 03 said:

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62strat said:

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NRD09 said:

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62strat said:

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Talon2DSO said:

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Picked up AAPL 225c Jan 15, 2021 at 1.60

---

so can you explain exactly what this is?

Aapl call at $225 strike price? Obviously jan 15 expiry date, what is the 1.60?

So what exactly is the situation/outcome if it hits 225 before 1/15 and if it doesn't.

---

Mcinnis already covered it but i just typed this all on my phone so here goes anyway

If market closes 1/15 and aapl price is 225.00, your option is at the money (atm) and worth nothing. You lost the $160 (1.60 per share) you paid for the contract. Any price below that (out of the money/otm) and it's also worth nothing. Any price above (in the money/itm) and you have the option (get it?) to exercise and buy the shares at the discounted price of $225/shr. You can also exercise at any time before the expiration date, whether it's it., atm, or otm. But it usually doesn't make sense to do so (unless you're trying to snag a dividend but let's keep it simple). For the most part we sell options before they expire, as the price fluctuates with the price of the underlying equity as well as a few other factors, and generally your premium decays as you get closer to expiration.

Really you need to just do it and it'll make sense. Buy a call and sell it. Buy a call and exercise it. Sell a covered call of something you have 100 of and let it expire worthless. Do it again and get your shares called out. Sell a cash covered put and let it expire worthless, do it again and get assigned shares, then you'll have a pretty good understanding of how most of this stuff works.

---

I do want to do a couple. There are that have unlimited downside right? Selling options and selling puts, is that right?
I want to stay away from that until I really understand what's going on. So buying call and buying puts are the 'safer' options?

---

My advise, start with some small call options on stocks you think are gonna move up a bit and watch how they behave. The AAPL 225C or 250C for Jan is probably a great place to start. Low cost, there will be some movement, but your max loss is the price you paid to enter.

"BUY TO OPEN"

Don't write any contracts until you have a full understanding of what's going on.

---

So how do I do that in fidelity? Like.. baby steps, where do I look to begin? I don't see anything in my fidelity account that resembles 'options' or 'calls', other than in my rollover IRA, there is a thing that says 'option summary' and if I click it brings up a page that I have no idea what is going on.

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I'll defer that to fidelity users, I'm not one. Though your account likely has to have options access enabled, it's a security thing they do so you don't jump into the piranhas head first.

You need to apply for options approval probably? Just search "options approval" in the serach bar.

I've heard it's really difficult to get options approval at Fidelity without lying your ass off about experience.

I feel like I already got approval for options when I considered doing this a few years ago. I don't see anything when I search that.. so again I'm at a loss of how to even begin.

It's more of an exaggeration than a lie.


Level 1 and 2 shouldn't need much embellishment, level 3 takes some if you're brand new.

Sounds like strat is just interested in level 2.

McInnis 03 said:

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McInnis 03 said:

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Playing this new IPO today, AUVI. UV company specializing in disinfection. I want to rig my entire pantry with this type of ***** May be bad for the bread though!

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HOOOOOWEEEEEEEEEEEEEEE BOYYYYYYYYYYYYYY

(1,000,000 SHARE FLOAT, THAT'S IT)

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HAHAHA, FROM 5.15 TO 12.50 SAME DAY AHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH

When you open the trade window there should be a drop down box under transaction type. The default is stocks/etfs, if you already have approval there will be options as the second selection.

Charlie Kelley said:

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It's more of an exaggeration than a lie.


Level 1 and 2 shouldn't need much embellishment, level 3 takes some if you're brand new.

Sounds like strat is just interested in level 2.

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Well, took Vedenov's Futures/Options/Commodities class 15 years ago, so I have 15 years experience trading options.

Charlie Kelley said:

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When you open the trade window there should be a drop down box under transaction type. The default is stocks/etfs, if you already have approval there will be options as the second selection.

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ahh ok.. yes so on my rollover ira, 'options' is available. It's not on my individual and roth ira. So I found out how to apply on those accounts.

DIS in a free fall today. Anyone still in this play?

Beerosch said:

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DIS in a free fall today. Anyone still in this play?

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here

I am, unfortunately. I might wait to see what it does tomorrow before I cut my losses.

Would be nice to see it finish above 132

Beerosch said:

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DIS in a free fall today. Anyone still in this play?

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-2.86%

Idk if id call that a free fall. Unless I'm missing something or my etrade hasn't updated.

Running with the Bulls said:

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GOCO might have found a bottom in the $13.25-$13.50 range.

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It cant be held down much longer. Still a great price right now to get in.

There is plenty of time for the 9/11 136C. I bought a couple of the calls for 2.00 less than I sold them for last week at the close. I know we are all waiting for OA to give his thoughts, but everything has been pouring into AMD, TSLA, and AAPL today. Things rotate.

AAP VOLUME, ACCUMULATION