ZM $400

As expected, AMZN chasing it (albeit, to a much smaller percentage gain.

$30,000 Millionaire said:

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So I have verticals in NVDA and ZM that are hilariously in the money.

this Tesla price movement is utter insanity. I don't want to short it, but I have no idea how much longer I'll be willing to trade it. Whenever it reverses, it will reverse HARD.

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The beauty of the TSLA split is you can more easily short it. I'll have to take a look again at puts. The last few times I looked at it unless you buy an expiry a day or two out, the premiums are were so big only a catastrophic fall would pay out.

my SPY 12/16/2022 525C hit 100% today, guess it's time to start selling covered calls at 550

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

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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?

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I think this is mostly covered but i think the main way you can lose your ass is selling a call naked (i.e. promising to sell someone shares at a given price on a given date, but you don't have the shares). Don't sell calls naked. In the case of a short squeeze, the stock price skyrockets and it becomes very very expensive to buy the stock when you get exercised. If you sell a cash covered put the worst thing that happens is the stock goes to zero and you have to buy shares of a worthless stock at your strike price. Buying options your loss is pretty much limited to the price paid for the option, i.e. it goes to zero and expires worthless. Try and think of these contracts as worst case scenario when you open positions (stock goes to infinity, stock goes to 0, stock gets halted until after your expiration...ahem luckin) and make sure you're OK with that outcome

Using the bid price for November on the 450 strike is a 110 premium. That's 340 before you break even. I agree it's likely to fall, but it's hard to know when that will happen. Maybe it's the first one we go look at when a major correction begins?

If you are trying to generate cash on shares currently owned I would look at selling calls out 20 years plus 20% juice. Say you own 200 shares of Apple. You could sell the 9/16/22 200c for $14. That is a healthy yoy return plus cash in your pocket.

Anyone see SHAK? Solid uptrend for the past month, but could be a hanging man pattern today signaling loss of upward pressure and a reversal coming?

Sep18 options are cheap considering the recent trajectory.

Theoretically a naked call is the only option that has unlimited loss potential.

Buy a call or put and you know your max loss (premium).
Sell a put and your max loss is company goes bankrupt to 0

bigbass1170 said:

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ZM $400

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F

I made a lot of money on ZM today.

But all it's done is make me continually look at how much money I left on the table when I sold in May.

For those looking to buy TSLA puts, how about buying calls on TECS? Or those hedging with SPXS calls out to 2021, is TECS liquid enough for similar hedge with higher upside?

OA1, in my notes for CHNG I had that once it goes above 14 to sell covered calls against ~1/3 of shares. $15 on 30+ days

It surpassed $14 early on today and closed at $14.15.

Looks like 9/18 $15c bid is $.20, while 10/16 $15c bid is $.57. Seems like premiums aren't overly attractive. Are you still looking at sells calls here?

Grown Pear said:

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Theoretically a naked call is the only option that has unlimited loss potential.

Buy a call or put and you know your max loss (premium).
Sell a put and your max loss is company goes bankrupt to 0

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Put sellers remain obligated to sell the shares at the strike price. The put holder will get full value at the strike.

Zm 424. Gonna "tesla" to 500?

ONTX down near .21XX
Tesla hit near 540 and falling down.

Tesla to sell up to $5 billion in stock amid rally

CNBC.com

UpstateAg said:

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Elon is sitting there thinking, I tweeted that the stock was too high, I tweeted the star spangled banner, I put a hole in the bullet proof glass of my truck...what else can I do? 5 billion offering? Surely people aren't that insane, right?

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Was he using an assault pistol or put the wrong kind of shells in his clip?

Anyone going to play the model T on ZM? If those Sept 4 405-410P get down to $4-$5 that could potentially pay off big. Is that too short of a window to test to mid-point? Does a model T after an earnings beat have some additional time lag? Maybe target the Sep18 around $6.50?

Maybe make that the 420-425P as this thing is up to 450 now.

If you want something to compare against go look at last weeks earnings jumps from CRM and WDAY. They didn't jump quite like ZM, but neither are real near the 50% retracement.

UpstateAg said:

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Elon is sitting there thinking, I tweeted that the stock was too high, I tweeted the star spangled banner, I put a hole in the bullet proof glass of my truck...what else can I do? 5 billion offering? Surely people aren't that insane, right?

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I woke up to see TSLA AH up around 530. Maybe he thought it was an unlucky number.

Maybe all of those 3 as a model T play to hedge your bet a bit? ZM 425, WDAY 225, CRM 255? I would feel more comfortable with more time until expiry, but the premiums jump up as you get into October and November with all of the election volatility bets.

SLV and GLD are up 3% this AM. Hopefully offsets the pain from those $DIS calls.

Did crwd just touch 140 premarket?

Bob Knights Liver said:

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UpstateAg said:

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Elon is sitting there thinking, I tweeted that the stock was too high, I tweeted the star spangled banner, I put a hole in the bullet proof glass of my truck...what else can I do? 5 billion offering? Surely people aren't that insane, right?

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Was he using an assault pistol or put the wrong kind of shells in his clip?

Anyone going to play the model T on ZM? If those Sept 4 405-410P get down to $4-$5 that could potentially pay off big. Is that too short of a window to test to mid-point? Does a model T after an earnings beat have some additional time lag? Maybe target the Sep18 around $6.50?

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Do not short this because it's "too high". People will pay for growth and nothing has the potential to grow like ZOOM right now.

Anyone having trouble with Schwab today? They've removed my AAPL calls and show a deficit in that amount on the positions page but it is showing up on the gains/losses and history page.

I'll be watching NFLX and FB today for potential coiled releases on their bull flags. I'm also long on CRM thinking they have another up move coming........

ZM and DOCU could continue their power gap ups.....DOCU is a sympathy play, why? I have no idea, but don't challenge robinhood bros, they'll kick your ass.

SQ is another one that looks ready to go.

gotsand said:

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Grown Pear said:

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Theoretically a naked call is the only option that has unlimited loss potential.

Buy a call or put and you know your max loss (premium).
Sell a put and your max loss is company goes bankrupt to 0

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Put sellers remain obligated to sell the shares at the strike price. The put holder will get full value at the strike.

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They're obligated to BUY the shares at the strike price. They know their max loss.

Is the model T on hold right now when the primary move is positive? I haven't been paying attention to that recently. Or does it work after it stalls a bit and RHbros move back to their next new hotness?

McInnis 03 said:

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DOCU is a sympathy play, why?

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DOCU looks nice and has an earnings 9/3. That Sept18 227.5 is <$14. A 10% or more pop on chance of good earnings to profit sounds like a good idea.

Now that I look at pre-market it's up to 250, so premiums will jump already. Would have been a great play yesterday.