$77.58 !!!oldarmy1 said:Give us $77.50 and we'll get paidFJ43 said:
ATVI getting its feet under it again.
Seriously fast scalp. Was in and out in about 3 min and got 30%McInnis 03 said:Puts engaged.FJ43 said:
This type of knowledge is invaluable to a new trader like me OA, thank you so much for what you do!oldarmy1 said:
When I first started trading I needed to build my equity so I'd use covered calls to do it in increments.
Prime example I see right now is MARA. I would buy MARA right here and hold to see if it breaks and runs like TRIL and the other connected bitcoin plays. On half of the shares bought you immediately sell the Dec 18 $2.50 covered call for $1.25. You either get $3.78 or reduce your buy in to $2.15 on that half. $350/1000 shares gained on called out above $3.75. You hold the other half to see if explosion happens and then decide whether to move to the $4 covered call or lock in added profits with a premium pop added with the $2.50 calls.
Some times I would use 50% of my equity doing these and less than 30 days away you have built your account.
Nope...you just have a longer tie up of the trade but patience is a winning strategy too!cptthunder said:
Very new to the covered call world so am I crazy for selling a March 2021 6C on MARA for $1.30 which makes my cost basis $1 and if I get called out I make a 5X return
Just missed OAs post on this
FJ43 said:$77.58 !!!oldarmy1 said:Give us $77.50 and we'll get paidFJ43 said:
ATVI getting its feet under it again.
Thanks to your advice I actually started this position by selling the 3P about a month ago and getting assigned and this is my 2nd round of covered calls on this position nowoldarmy1 said:Nope...you just have a longer tie up of the trade but patience is a winning strategy too!cptthunder said:
Very new to the covered call world so am I crazy for selling a March 2021 6C on MARA for $1.30 which makes my cost basis $1 and if I get called out I make a 5X return
Just missed OAs post on this
Also, I almost always get the covered call in place BEFORE buying the stock. Eventually I got to where I would wait to see if it pullback for even more spread between the covered call and stock buy. For example $1.25 covered call placed when stock was at $3.38 and now its at $3.33. You actually have a naked call going on and the ask is down to $1.20 so you are up $0.50 on 10 covered calls AND the stock price is at $3.30
Judge your willingness to hold off buying as long as you want and if it just keeps dropping then your calls are gaining in value to you and you determine when to enter the stock. I would NOT hold naked calls over night on stocks like these because they could race at any time leaving you bankrupt. Must have constant eye on it once you sell the call.
I am in the 82.5s and have close orders set for $2 but watching it. Have an alert set at $1.50 as well.zwhag2010 said:FJ43 said:$77.58 !!!oldarmy1 said:Give us $77.50 and we'll get paidFJ43 said:
ATVI getting its feet under it again.
On target for 2.70 for 80 calls and 2 for 82.5 still then?
A trading firm is shorting the stock with an expected price target of $2. So it is saying be careful if youre planning on holding the stock long term.cmk10 said:
what does that Tweet mean?
If you're not in this yet would selling the $2.50 put for .38 make sense here? Would give you either 15% return or shares at $2.11.cptthunder said:Thanks to your advice I actually started this position by selling the 3P about a month ago and getting assigned and this is my 2nd round of covered calls on this position nowoldarmy1 said:Nope...you just have a longer tie up of the trade but patience is a winning strategy too!cptthunder said:
Very new to the covered call world so am I crazy for selling a March 2021 6C on MARA for $1.30 which makes my cost basis $1 and if I get called out I make a 5X return
Just missed OAs post on this
Also, I almost always get the covered call in place BEFORE buying the stock. Eventually I got to where I would wait to see if it pullback for even more spread between the covered call and stock buy. For example $1.25 covered call placed when stock was at $3.38 and now its at $3.33. You actually have a naked call going on and the ask is down to $1.20 so you are up $0.50 on 10 covered calls AND the stock price is at $3.30
Judge your willingness to hold off buying as long as you want and if it just keeps dropping then your calls are gaining in value to you and you determine when to enter the stock. I would NOT hold naked calls over night on stocks like these because they could race at any time leaving you bankrupt. Must have constant eye on it once you sell the call.
Really interesting to hear a different side this this strategy, cant say thanks enough for all the knowledge you share
Turned 1K into 5K the last 3 months since diving in and trying to turn some positions into more stable patient growth now
this is how I'm accumulating OSTK and CWH. I am selling ****loads of puts and putting the premium into shares. if I get assigned, f it. I'll just sell a cc against it.McInnis 03 said:
Traded one of my net free ROKU calls for 100 Academy shares plus some cash.
I just graduated from the OA1 school of Net Free.
This is in the IRA, so looooooong hold on ASO.
I think my next move here will be when I liquidate the next net free option (currently holding AMZN, BABA, GE, QQQ, ROKU, SQ, and TSLA there) I'll add some MARA or RIOT or both. Blockchain and crypto mining has to be worth something in the next 20 yrs, maybe?McInnis 03 said:
Traded one of my net free ROKU calls for 100 Academy shares plus some cash.
I just graduated from the OA1 school of Net Free.
This is in the IRA, so looooooong hold on ASO.
I'm getting assigned CWH and RKT today on puts, I'll be ok with it as the premium makes it a nice discount.$30,000 Millionaire said:this is how I'm accumulating OSTK and CWH. I am selling ****loads of puts and putting the premium into shares. if I get assigned, f it. I'll just sell a cc against it.McInnis 03 said:
Traded one of my net free ROKU calls for 100 Academy shares plus some cash.
I just graduated from the OA1 school of Net Free.
This is in the IRA, so looooooong hold on ASO.
Get net free on this push...smaller equity builders should sell it alltopher06 said:
Net free on some SNAP calls with a minor profit booked. Sure I sold too soon, but this lets me leave and head out for an outside lunch with my wife without caring what antics may be played the rest of the day before the Thanksgiving weekend.
Thanks again OA1, everyone in this thread owes you and Ranger a lot.
topher06 said:
Net free on some SNAP calls with a minor profit booked. Sure I sold too soon, but this lets me leave and head out for an outside lunch with my wife without caring what antics may be played the rest of the day before the Thanksgiving weekend.
Thanks again OA1, everyone in this thread owes you and Ranger a lot.
Answering my own question here but I've re-read it 10 times now and I think I'm seeing the move better. You are essentially locking in 12% gain on half, and leaving half open for a big move. You're selling the calls on margin, and then purchasing shares later. Doing this as opposed to selling puts at least guarantees entry into the stock, but I suppose has more risk to the downside in the short term.jwhitlock3 said:
Couple questions
1) how do you sell a covered call without owning the underlying shares first?
2) If you bought at 3.34, and sold the 2.50 covered call for 1.25, wouldn't you get called out guaranteed and then you'd be selling at effectively 3.75, that's a gain of $41 or 12% (gig em). Why would you go this route instead of selling the $4C Dec 18 for .80? That leaves more upside, and still reduces your risk and cost of ownership to $2.50ish per share.
Is this just a way to turn a quick 12% in 30 days and you're banking on being called out for sure?
Good thinking. I'm using the ultra conservative no lose way to build. If you have more risk tolerance then its not too risky to use the $4 calls. If the stock dropped back to retest support at $2.06 though the $0.80 helps but you are left waiting for the next build. A good way is to do both! 50% $2.50 and 50% $4. Again, this is equity build strategies so I want most all the risk off the table for those people.jwhitlock3 said:
Couple questions
1) how do you sell a covered call without owning the underlying shares first?
2) If you bought at 3.34, and sold the 2.50 covered call for 1.25, wouldn't you get called out guaranteed and then you'd be selling at effectively 3.75, that's a gain of $41 or 12% (gig em). Why would you go this route instead of selling the $4C Dec 18 for .80? That leaves more upside, and still reduces your risk and cost of ownership to $2.50ish per share.
Is this just a way to turn a quick 12% in 30 days and you're banking on being called out for sure?
McInnis 03 said:I'm getting assigned CWH and RKT today on puts, I'll be ok with it as the premium makes it a nice discount.$30,000 Millionaire said:this is how I'm accumulating OSTK and CWH. I am selling ****loads of puts and putting the premium into shares. if I get assigned, f it. I'll just sell a cc against it.McInnis 03 said:
Traded one of my net free ROKU calls for 100 Academy shares plus some cash.
I just graduated from the OA1 school of Net Free.
This is in the IRA, so looooooong hold on ASO.
I am 100% in the equity build strategy, so I'm going to make a move on this today with 200 shares. Thank you!oldarmy1 said:Good thinking. I'm using the ultra conservative no lose way to build. If you have more risk tolerance then its not too risky to use the $4 calls. If the stock dropped back to retest support at $2.06 though the $0.80 helps but you are left waiting for the next build. A good way is to do both! 50% $2.50 and 50% $4. Again, this is equity build strategies so I want most all the risk off the table for those people.jwhitlock3 said:
Couple questions
1) how do you sell a covered call without owning the underlying shares first?
2) If you bought at 3.34, and sold the 2.50 covered call for 1.25, wouldn't you get called out guaranteed and then you'd be selling at effectively 3.75, that's a gain of $41 or 12% (gig em). Why would you go this route instead of selling the $4C Dec 18 for .80? That leaves more upside, and still reduces your risk and cost of ownership to $2.50ish per share.
Is this just a way to turn a quick 12% in 30 days and you're banking on being called out for sure?
such a great description.oldarmy1 said:
Rocket volume....do something you scud missile you
got out at 2.40 for a nice profit. Thanks OA!oldarmy1 said:Get net free on this push...smaller equity builders should sell it alltopher06 said:
Net free on some SNAP calls with a minor profit booked. Sure I sold too soon, but this lets me leave and head out for an outside lunch with my wife without caring what antics may be played the rest of the day before the Thanksgiving weekend.
Thanks again OA1, everyone in this thread owes you and Ranger a lot.
gigemJTH12 said:got out at 2.40 for a nice profit. Thanks OA!oldarmy1 said:Get net free on this push...smaller equity builders should sell it alltopher06 said:
Net free on some SNAP calls with a minor profit booked. Sure I sold too soon, but this lets me leave and head out for an outside lunch with my wife without caring what antics may be played the rest of the day before the Thanksgiving weekend.
Thanks again OA1, everyone in this thread owes you and Ranger a lot.