BTC hit $32K.
MARA and GBTC gonna be lit
MARA and GBTC gonna be lit
E said:
Almost net free on DOGE over here... should I just take the $175 and run??
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.
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?
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?
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!
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
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
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.
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?
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
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.
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?
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?
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
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?