$30,000 Millionaire said:

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I have moved to a mental stop model. I generally buy ATM/ITM calls or puts to reduce volatility, but I will go OTM if its a vertical depending on price, etc.

I am okay with an option losing 50% if there is time AND I think it will turn around. If there is no evidence of turn-around, regardless of price, cut. On the flip side, I sell when the stock has made the move I was looking for or when I think it is starting to peter out. I miss out on a theoretical max profit in a lot of cases doing this, but I'm not gambling / hoping.

By sell, I mean scale out. If I wake up and a stock gaps up 5%, I will just profit take normally.

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Well said. I tend to buy ITM or ATM as well if I'm waiting on an expected move. I buy OTM more often when a stock has signaled a breakout already and I want to pile on to profit from continuation. I also buy OTM if I perceive an unwarranted drop or a sell off on a cyclical stock. Typically in that case I review strikes between current and target prices to subjectively evaluate risk versus potential profit.

No such thing as a sure thing, but this trendline has been holding decently the last ten days as a top.

Also I wanted to note that I've had a good week until today but this morning the market has absolutely done dirty things to me without buying dinner first.

Here's to the last few hours of today not being as rapey as this morning was.

Brian Earl Spilner said:

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My LUV stock is up 40% overall, some shares up by 70%.

I'm tempted to start selling some. Should I sell or just keep holding?

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Remember tax implications as well. If you sell now make sure you sell selected lots so you can pick the long term lots or lots where you may have less short term taxable gains.

Bob Knights Liver said:

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$30,000 Millionaire said:

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I have moved to a mental stop model. I generally buy ATM/ITM calls or puts to reduce volatility, but I will go OTM if its a vertical depending on price, etc.

I am okay with an option losing 50% if there is time AND I think it will turn around. If there is no evidence of turn-around, regardless of price, cut. On the flip side, I sell when the stock has made the move I was looking for or when I think it is starting to peter out. I miss out on a theoretical max profit in a lot of cases doing this, but I'm not gambling / hoping.

By sell, I mean scale out. If I wake up and a stock gaps up 5%, I will just profit take normally.

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Well said. I tend to buy ITM or ATM as well if I'm waiting on an expected move. I buy OTM more often when a stock has signaled a breakout already and I want to pile on to profit from continuation. I also buy OTM if I perceive an unwarranted drop or a sell off on a cyclical stock. Typically in that case I review strikes between current and target prices to subjectively evaluate risk versus potential profit.

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Thanks 30k and Bob Knights...Just seen this and I guess I missed it. All of this helps me frame a strategy and system I can implement regarding options. Really appreciate the input.

What the heck RKT !!! Big spikes and man those options are turning around.

Those 10/30 22C went from 40% down to 10% up in about 5 minutes.

DKNG reports earnings on 11/13. Thoughts?

interesting bear thesis... US Treasury 10 yr along with SPX etc...

Prognightmare said:

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I'm about to buy shares in ARLO. I think it takes out it's high in 2 weeks. JMO

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IN with you. Looks like it is ready to make a move.

Do y'all know what time MBIO is supposed to be presenting today?

Touchless said:

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Do y'all know what time MBIO is supposed to be presenting today?

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2:50

Brian Earl Spilner said:

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My LUV stock is up 40% overall, some shares up by 70%.

I'm tempted to start selling some. Should I sell or just keep holding?

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Take some profits, set a stop on the rest. I would think if airlines don't get any sort of bail out on stimulus package, the SP will drop.

Ok Options guys....
RKT I got up 33%+ since yesterday so scaled as suggested and sold a few contracts. May have left some on the table or not but took some profit now to try the strategy. Also familiarize myself with how quickly this moves up and down.

Prognightmare said:

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KT 90 said:

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CrazyRichAggie said:

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Soooo, there won't be a deal then . At least not until after the election.

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Polls are shifting Trumps way and the Rasmussen poll of Black likely voters today has dems petrified, there's not a chance Pelosi gives Trump this win to brag about at his 4 rallies a day while Joe is in his basement.

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"polls" are only showing you what media wants you to see. You are onto something here though. Trump is going to win this in a landslide. 1. There are more registered GOP voters in almost every state than 4 years ago 2. In NC, black voter numbers are down and some have switched from 4 years ago. 3. Mail in ballots have been a disaster (over 3 mil returned/ denied in CA, similar in other states) -- many dems are voting mail in, while GOP is going for in person.

to make this stonk related, options can be gambling and so is vegas. Trump is a 2.6 to 1, while Biden is still hovering just above 1. Very tempted to put some on the GOP

I'll admit it may have been a bad move, but I sold my MGNI shares at $9.98 after accumulating in the high $5 and low $6.

I just feel like we may have some dips coming up in the market as a whole where I can buy in again.

BREwmaster said:

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interesting bear thesis... US Treasury 10 yr along with SPX etc...

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I guess this indicates when the bonds start getting to a certain level the money leaves the equities to take the sure yield?

QD's Having a day and had a decent week. Wondering where it may be heading. I'm averaged in at $1.63.

Touchless said:

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Esteban du Plantier said:

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Not seeing any news on why SNSS is up 13%. Just normal biotech volatility?

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I got tired of holding it for so long with no real movement and keeping funds tied up so I had a GTC sell order at $1.35. So I'd like to attribute the run up today to my selling

If I remember right, OA had said something along the lines of selling 75% of shares around $1.75 or something along those lines. I just wanted to deleverage some with all of this volatility and how much my account has hurt this week. I got a very small gain out of it after a month of holding.

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Naturally it's up 15% today, the day I just happened to decide to sell and get out of it. Y'all are welcome.

FJ43 said:

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Ok Options guys....
RKT I got up 33%+ since yesterday so scaled as suggested and sold a few contracts. May have left some on the table or not but took some profit now to try the strategy. Also familiarize myself with how quickly this moves up and down.

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I think that's the right call, but I'm curious to hear others chime in.

This was my problem, I'm in a tiny account to learn options, and trading 3-4 contracts at a time. I think selling off a % of your stake for guaranteed profit just continues to reduce your overall downside and is a good call. Selling into the upside seems like the way to handle it with naked calls but my experience here is extremely limited.

jwhitlock3 said:

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FJ43 said:

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Ok Options guys....
RKT I got up 33%+ since yesterday so scaled as suggested and sold a few contracts. May have left some on the table or not but took some profit now to try the strategy. Also familiarize myself with how quickly this moves up and down.

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I think that's the right call, but I'm curious to hear others chime in.

This was my problem, I'm in a tiny account to learn options, and trading 3-4 contracts at a time. I think selling off a % of your stake for guaranteed profit just continues to reduce your overall downside and is a good call. Selling into the upside seems like the way to handle it with naked calls but my experience here is extremely limited.

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I sold a small amount at what ended up being 37%. Did not sell any when I hit 50+% just to watch and learn. Set my next group to be at 60%. They are weeklies good until next Friday so if RKT reclaims $21 I will have spoiled myself. If not it was a great learning experience and worth the skin.

We're getting a little life back into MBIO.

MBIO getting some action. AT $2.91 now. Maybe a leak before they present.

FJ43 said:

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MBIO getting some action. AT $2.91 now. Maybe a leak before they present.

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Just noticed that.

McInnis 03 said:

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BREwmaster said:

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interesting bear thesis... US Treasury 10 yr along with SPX etc...

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I guess this indicates when the bonds start getting to a certain level the money leaves the equities to take the sure yield?

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I think you're spot on. HP said he's already seeing some big selling in equities. That has really given me caution on long positions.

FJ43 said:

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11/20 $6C at .40ish may not be a bad idea? 5c at .70ish

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Looking at this and thanks for pointing it out. I don't normally look at options for $5 stocks. I'll still purchase the shares but I will be buying some of the $6c. They report earnings after the election. I think their earnings will be solid and going into the Christmas season. Every 10 contracts only cost you $400 and the time is favorable at 11/20. Personally I think it goes to 8.5-10, that's great ROI, IF I'm right.

You guys like $DIS?

What is going on with Tesla? Keeps going down after a good earnings! Craziness.

Prognightmare said:

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FJ43 said:

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11/20 $6C at .40ish may not be a bad idea? 5c at .70ish

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Looking at this and thanks for pointing it out. I don't normally look at options for $5 stocks. I'll still purchase the shares but I will be buying some of the $6c. They report earnings after the election. I think their earnings will be solid and going into the Christmas season. Every 10 contracts only cost you $400 and the time is favorable at 11/20. Personally I think it goes to 8.5-10, that's great ROI, IF I'm right.

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I'm going to roll the same. Some shares and also the $6c for 11/20. Didn't look at covered calls side but will as well.

FJ43 said:

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jwhitlock3 said:

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FJ43 said:

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Ok Options guys....
RKT I got up 33%+ since yesterday so scaled as suggested and sold a few contracts. May have left some on the table or not but took some profit now to try the strategy. Also familiarize myself with how quickly this moves up and down.

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I think that's the right call, but I'm curious to hear others chime in.

This was my problem, I'm in a tiny account to learn options, and trading 3-4 contracts at a time. I think selling off a % of your stake for guaranteed profit just continues to reduce your overall downside and is a good call. Selling into the upside seems like the way to handle it with naked calls but my experience here is extremely limited.

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I sold a small amount at what ended up being 37%. Did not sell any when I hit 50+% just to watch and learn. Set my next group to be at 60%. They are weeklies good until next Friday so if RKT reclaims $21 I will have spoiled myself. If not it was a great learning experience and worth the skin.

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RKT close over 20.42 is reclaiming its 5DMA. First bullish indicator. Monday opportunity for the big move will be to build and push past today's high (21.07) If it does that, should see a move to $22.10sh.

BREwmaster said:

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McInnis 03 said:

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BREwmaster said:

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interesting bear thesis... US Treasury 10 yr along with SPX etc...

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I guess this indicates when the bonds start getting to a certain level the money leaves the equities to take the sure yield?

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I think you're spot on. HP said he's already seeing some big selling in equities. That has really given me caution on long positions.

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$TLT
Nov20 165C
10,000 contracts
$.65

txaggie_08 said:

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QD's Having a day and had a decent week. Wondering where it may be heading. I'm averaged in at $1.63.

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$1.70 here

In with you MCI03.

3 less 0s on my order.

In at $.61

I'm looking forward to their earnings. I'll only cover my shares after they report.

McInnis 03 said:

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BREwmaster said:

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McInnis 03 said:

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BREwmaster said:

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interesting bear thesis... US Treasury 10 yr along with SPX etc...

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I guess this indicates when the bonds start getting to a certain level the money leaves the equities to take the sure yield?

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I think you're spot on. HP said he's already seeing some big selling in equities. That has really given me caution on long positions.

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$TLT
Nov20 165C
10,000 contracts
$.65

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Wow McInnis thats Whale status for you now!