BTC hit $32K.
MARA and GBTC gonna be lit
MARA and GBTC gonna be lit
Stock Markets
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Last: 5 hrs ago by ProgN
The first time I got paid out from 5dimes it was through Bitcoin. Bitcoin was $700. I had a friend to told me to leave it there but instead I sold.
Almost net free on DOGE over here... should I just take the $175 and run??
E said:
Almost net free on DOGE over here... should I just take the $175 and run??
Buy a nice meal!
Goes back to the principle of simply playing the wheel. I like using this method with stocks that I want to own long term as I don't mind being on either side of the call or put. It's a way to increase yield on a stock that would otherwise not yield the same return simply holding and waiting for a larger increase.
I struggle sometimes utilizing this method on stocks that I want to cycle with the wheel vs. net free accumulation. Think we have all had our fair share on some with MARA and others where you set it well outside the current price only to see it blow past that price.
Love hearing the stories as well and would encourage us all to share thoughts on stocks that look good on the weekly and monthly premiums. There are plenty out there that can hit 100% plus annualized return as he noted in the example.
I struggle sometimes utilizing this method on stocks that I want to cycle with the wheel vs. net free accumulation. Think we have all had our fair share on some with MARA and others where you set it well outside the current price only to see it blow past that price.
Love hearing the stories as well and would encourage us all to share thoughts on stocks that look good on the weekly and monthly premiums. There are plenty out there that can hit 100% plus annualized return as he noted in the example.
OutlawAG04 said:
Goes back to the principle of simply playing the wheel. I like using this method with stocks that I want to own long term as I don't mind being on either side of the call or put. It's a way to increase yield on a stock that would otherwise not yield the same return simply holding and waiting for a larger increase.
I struggle sometimes utilizing this method on stocks that I want to cycle with the wheel vs. net free accumulation. Think we have all had our fair share on some with MARA and others where you set it well outside the current price only to see it blow past that price.
Love hearing the stories as well and would encourage us all to share thoughts on stocks that look good on the weekly and monthly premiums. There are plenty out there that can hit 100% plus annualized return as he noted in the example.
So do you just rotate stocks you use this strategy for? and then keep re-evaluating the stock and scanning for new ones?
Doesn't this strategy usually underperform in bull markets but out perform in sideways and bear markets?
Galveston checking in.McInnis 03 said:NRD09 said:
You're in galveston right? I'm in galveston atm. How about i drink your bourbon, we talk watches and stonks, something something, profit!
McInnis and I live in Galveston County
bmks270 said:OutlawAG04 said:
Goes back to the principle of simply playing the wheel. I like using this method with stocks that I want to own long term as I don't mind being on either side of the call or put. It's a way to increase yield on a stock that would otherwise not yield the same return simply holding and waiting for a larger increase.
I struggle sometimes utilizing this method on stocks that I want to cycle with the wheel vs. net free accumulation. Think we have all had our fair share on some with MARA and others where you set it well outside the current price only to see it blow past that price.
Love hearing the stories as well and would encourage us all to share thoughts on stocks that look good on the weekly and monthly premiums. There are plenty out there that can hit 100% plus annualized return as he noted in the example.
So do you just rotate stocks you use this strategy for? and then keep re-evaluating the stock and scanning for new ones?
Doesn't this strategy usually underperform in bull markets but out perform in sideways and bear markets?
I have no issue with using a covered call strategy on any holding. Just not always 100% of my shares. Lowering cost basis, income generation, lock in a solid return if called away, etc. The strike and date are to two things I focus /play on based on net free or a trade. I also buy back calls and resell within a trade range if the opportunity presents itself to turn additional profits and/or reduce cost basis.
Wealth gained hastily will dwindle. but whoever gathers little by little will increase it.
Proverbs 13:11
Proverbs 13:11
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bmks270 said:
So do you just rotate stocks you use this strategy for? and then keep re-evaluating the stock and scanning for new ones?
I do. I've got a handful of stocks i keep an eye on and just check the options chain on them every Monday or tue and see what looks good. Look out for earnings and ex-dividends, as both will juice put premiums but earnings are risky and most stocks drop by the dividend amount after ex-div
Agree with FJ on this. That's why I said I struggle with using it on mass accumulation shares sometimes. You are correct that it could theoretically underperform in a bull market. There are always going to be stocks like that, but the strategy is to increase yield on more stocks, help to target net free on mass accumulation, and can act as a hedge.
FJ- is there a reason you try to work with not selling more than half covered calls? Example, WWR I have 20% shares selling covered calls, but I have equivalent to 35% of my shares selling $5 puts to lower basis but protect my share holding. This may be a bad strategy but curious how you are looking at it
FJ- is there a reason you try to work with not selling more than half covered calls? Example, WWR I have 20% shares selling covered calls, but I have equivalent to 35% of my shares selling $5 puts to lower basis but protect my share holding. This may be a bad strategy but curious how you are looking at it
Rice and Fries said:E said:
Almost net free on DOGE over here... should I just take the $175 and run??
Buy a nice meal!
Glad I hadn't sold yet, it's up to $220!! I might just treat my lady friend to a nice seafood feast at Red Lobster
OutlawAG04 said:
Agree with FJ on this. That's why I said I struggle with using it on mass accumulation shares sometimes. You are correct that it could theoretically underperform in a bull market. There are always going to be stocks like that, but the strategy is to increase yield on more stocks, help to target net free on mass accumulation, and can act as a hedge.
FJ- is there a reason you try to work with not selling more than half covered calls? Example, WWR I have 20% shares selling covered calls, but I have equivalent to 35% of my shares selling $5 puts to lower basis but protect my share holding. This may be a bad strategy but curious how you are looking at it
Some of my stocks have done so well I just don't think I could beat the buy and hold returns actively writing puts and calls on them. Also, considering return on time invested in evaluating options and managing positions, I think buy and hold may be the best route for me.
But I can see the benefits of writing options contracts so I'm just curious how you guys approach it. I actually did this on Slack for a while and did better than I would have done without writing the options.
Ah, the psychology of penny stocks that hit big. My wife and I decided to let all our crypto ride until we hit a target amount, then we pull out half and hold the rest.
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E said:Rice and Fries said:E said:
Almost net free on DOGE over here... should I just take the $175 and run??
Buy a nice meal!
Glad I hadn't sold yet, it's up to $220!! I might just treat my lady friend to a nice seafood feast at Red Lobster
I had forgotten about my DOGE buy until I saw one of my account values up a couple grand yesterday.
Then in remembered I had over-served myself when I bought it on a recommendation from someone.
I'll let it ride now that Elon is chirping about it and they have DOGE ATMs/kiosks in Asia and Australia.
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BTC just running right through the 30s... making a run for 33
Decay said:
Ah, the psychology of penny stocks that hit big. My wife and I decided to let all our crypto ride until we hit a target amount, then we pull out half and hold the rest.
If you bought bitcoins at $1, would you have held it the whole way up?
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bmks270 said:Decay said:
Ah, the psychology of penny stocks that hit big. My wife and I decided to let all our crypto ride until we hit a target amount, then we pull out half and hold the rest.
If you bought bitcoins at $1, would you have held it the whole way up?
After selling half? Yeah. That's the whole point, unless you're in a situation that requires you need to pull that capital.
OutlawAG04 said:
Agree with FJ on this. That's why I said I struggle with using it on mass accumulation shares sometimes. You are correct that it could theoretically underperform in a bull market. There are always going to be stocks like that, but the strategy is to increase yield on more stocks, help to target net free on mass accumulation, and can act as a hedge.
FJ- is there a reason you try to work with not selling more than half covered calls? Example, WWR I have 20% shares selling covered calls, but I have equivalent to 35% of my shares selling $5 puts to lower basis but protect my share holding. This may be a bad strategy but curious how you are looking at it
For stocks that I'm in long or accumulation I dont usually sell calls on 100% in the event a substantial move occurs and gets me called away. I also want to preserve the upside I'm targeting. Think MGNI as an example. If something is trading inside of a long darvas box it's a lot easier to trade the support and resistance levels selling and buying back calls. On those I may sell more than half my shares to covered calls. Also on stocks like WWR the premiums were high enough to buy the shares and immediately sell calls and was worth it. I sold Feb 12.50 for $.50 for example. Chances I get called...slim. If so, so be it for more than 100% return in 60 days.
MBIO I only did it on half as there has been potential for a quicker move and the premiums softened. So only did half to lower cost basis some.
CIDM - have to get your entry right as no options chain exists. That's a long position with a net free mindset through trades of the stock approach.
This is a little long but may provide some context. I guess I should say that I'm blessed to be active with trades daily. I now devote more time to gaining knowledge of technical trading. I made some larger decisions early last year (can say that now I guess since it's 2021) to begin a new chapter post 52 years of age. Since COVID began in early 2020 it's been a great time for me to reflect on things. I've always been going a zillion miles an hour over the years. Multiple start ups to liquidity events from starting several aerospace companies and selling to starting an apparel company and selling it. Traveling literally millions of miles across the globe. Now I want to transition more to cash flowing investments (mostly real estate related) and what I'm having fun with...all this. I'm a long way from being anywhere near having the skill sets to trade full time. But...God willing that's my goal. One dollar at a time.
Wealth gained hastily will dwindle. but whoever gathers little by little will increase it.
Proverbs 13:11
Proverbs 13:11
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BTC 33K
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bmks270 said:
Some of my stocks have done so well I just don't think I could beat the buy and hold returns actively writing puts and calls on them. Also, considering return on time invested in evaluating options and managing positions, I think buy and hold may be the best route for me.
I have been feeling the same way lately, it's almost like when i sell a put that's a ticker's signal to rip. I've sold crwd and gild puts that expired worthless several times in the last month or so and would have done a lot better just buying the shares and holding them. I do like being mostly cash going into each weekend though
third coast.. said:
so what is the purpose of buying back the calls? I guess you would try and sell the calls at the top of the box, or resistance, and then buy them back at the bottom, or support? Is that strategy just in case it breaks out of the top?
I'll chime in until the real experts do. Sometimes I can buy them back at near zero a day or so prior to expiry and the ones in the next cycle (week, month) have an extra few days of time value so can sell them for more. Especially on weeklies , quite a bit of decay from Friday to Monday. And I never can remember which Greek term is which!
Agree and thanks for the recap. I have been using similar strategy with mgni, WWR, and mbio. CIDM and ontx are a little different as you noted... I have tried scalping some additional shares on each during the chop to lower my basis. Net free on ontx but have a ways to go on CIDM.
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This works great if you can make the trade while it's still on a trajectory. When it starts encountering resistance the premiums plummet. I used vst as an example of this the other day
third coast.. said:
in that scenario though woudnt the only reason to buy them back be not to have to sell the underlying stock because you are headed for being called out?
Yes, or if the stock is just below the strike price at expiry and I want to sell another call before the weekend.
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NRD09 said:
This works great if you can make the trade while it's still on a trajectory. When it starts encountering resistance the premiums plummet. I used vst as an example of this the other day
Also works best when there is some degree of volatility. Volume is key. McInnis for example bought XL calls, sold them at the peak and rebought them again at a low all intraday. Not necessarily covered calls but could work the same.
It's just one way to generate income ,lower cost basis, etc but with the right underlying can be lucrative and a little fun.
Wealth gained hastily will dwindle. but whoever gathers little by little will increase it.
Proverbs 13:11
Proverbs 13:11
Look at buying some shares of PLTR and write CC. They have weekly options and have nice premiums. That's a conservative, yet profitable and fun trade.
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Net free on all original cryptos now! Let's ride
Yep. I will set alerts or monitor both the underlying the option premiums for different near term dates and strikes for covered calls I have in play. I especially pay attention to the underlying price action and volume and if trading in the range of resistance and support. When it gets near support/resistance and bounces/confirms generally the that is when the opportunity to buy back or resell is available. If I can buy back at less than 50% of what I sold them for (less is better of course) resell them again with a different date and strike at a higher premium I will do that as it moves within that channel of resistance back to support.third coast.. said:
so what is the purpose of buying back the calls? I guess you would try and sell the calls at the top of the box, or resistance, and then buy them back at the bottom, or support? Is that strategy just in case it breaks out of the top?
As someone mentioned earlier you can sometimes do this over and over lowering your costs basis and generating cash multiple times. Its more profit, cash flow, lowering costs basis, etc. I don't let this consume much of my time but periodic checks. Not every stock works this easily and I don't do this on all of them....just the ones that are 'easy'.
I found this great 'practice' and a learning experience early on before I began to explore expanding my trade opportunities and skill sets. Just doing this one time even for a small amount of your shares really helps drive things home being hands on. Nothing beats time and experience IMO and the only way is to do it once you are comfortable with the process.
Wealth gained hastily will dwindle. but whoever gathers little by little will increase it.
Proverbs 13:11
Proverbs 13:11
What are you all's plans for BTC? I'm up 70% right now and it has been parabolic, pullback seems necessary. Anyone selling and looking to rebuy lower?
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