I'm kind of looking at selling PUT spreads for AUG, 7.5/5 for maybe $1.5 or more.FJ43 said:
$WWR - you can sell Feb $12.50s right now for about $0,50. Kind of no brainer to me anyway if you haven't sold covered calls yet.
I'm kind of looking at selling PUT spreads for AUG, 7.5/5 for maybe $1.5 or more.FJ43 said:
$WWR - you can sell Feb $12.50s right now for about $0,50. Kind of no brainer to me anyway if you haven't sold covered calls yet.
tremble said:
What kind of accounts are people trading in? Is this IRAs or just regular taxable accounts? I love watching this thread but am a little intimidated by all the terms thrown around.
CastleRock said:
I'm holding Feb05 $30c PLTR net free.
Feels like a dumb question, but do I sell or exercise?
McInnis 03 said:I'm kind of looking at selling PUT spreads for AUG, 7.5/5 for maybe $1.5 or more.FJ43 said:
$WWR - you can sell Feb $12.50s right now for about $0,50. Kind of no brainer to me anyway if you haven't sold covered calls yet.
"Go Shorty....it's your birthday"Danwell Home said:
WWR feb $12.5 covered call gang
I'm the new 50 Cent
to hell with it, i jumped in the pool. let's see how this goes!FJ43 said:
$WWR - you can sell Feb $12.50s right now for about $0,50. Kind of no brainer to me anyway if you haven't sold covered calls yet.
So just for clarity, since I'm mostly a put seller... If you sell the Feb $12.50 covered call and it expires ITM, you get exercised and lose 100 shares. But you will collect approximately $50 premium plus $1,250 for the 100 shares. Is that correct?FJ43 said:
$WWR - you can sell Feb $12.50s right now for about $0,50. Kind of no brainer to me anyway if you haven't sold covered calls yet.
Yes that is my understanding as wellAgEng06 said:So just for clarity, since I'm mostly a put seller... If you sell the Feb $12.50 covered call and it expires ITM, you get exercised and lose 100 shares. But you will collect approximately $50 premium plus $1,250 for the 100 shares. Is that correct?FJ43 said:
$WWR - you can sell Feb $12.50s right now for about $0,50. Kind of no brainer to me anyway if you haven't sold covered calls yet.
The downside is if it runs way above $12.50 you lose the gains you could have had above $12.50.
Yep. If you get called away you keep the $0.50 X 100 + $12.50 X 100 for a total of $13 share. Not bad return eh?AgEng06 said:So just for clarity, since I'm mostly a put seller... If you sell the Feb $12.50 covered call and it expires ITM, you get exercised and lose 100 shares. But you will collect approximately $50 premium plus $1,250 for the 100 shares. Is that correct?FJ43 said:
$WWR - you can sell Feb $12.50s right now for about $0,50. Kind of no brainer to me anyway if you haven't sold covered calls yet.
The downside is if it runs way above $12.50 you lose the gains you could have had above $12.50.
Yes, but if I only had 1000 shares I'd go for the net free or reduced pricing by selling the May $10 at $1.7 instead.CastleRock said:oldarmy1 said:
I went all the way to May $7.50 to get $2.05 covered calls on my WWR trading portion. $9.55 or $2.05 taking effective hold price just below $3 is a win for 25% of shares towards net free one direction or the other.
Working through an example to see if I have this right, with round numbers:
Buy 1000 shares at $5/share
Sell 3 May21 7.50c @ 2.05 for $615?
Hold calls to expiry? If it's at $10/share on strike date, they get called away and you make $750, plus the $615 premium?
TexasAg2017 said:
Profit is profit but I'm feeling kinda dumb for selling those 7.5s on WWR when it was at 5.60 this morning.
CastleRock said:
Another fun hypothetical for the smart crowd, which I'm struggling to join:
Let's say you bought WWR at $5 and sold May21 7.50c. In March/April, WWR has drifted back down to $5.75-$6.00/share.
Do you close out your CCs?
I think you have to look at what the option price is. Are you happy with the gain? Do you want to wait for more decay?CastleRock said:
Another fun hypothetical for the smart crowd, which I'm struggling to join:
Let's say you bought WWR at $5 and sold May21 7.50c. In March/April, WWR has drifted back down to $5.75-$6.00/share.
Do you close out your CCs?
I can relate. When I see ticker PHUN, I can't get the word phuntang out of my head.jj9000 said:
Am I the only one that sees the WWR ticker...and has some variation of World Wrestling go off in their head?
oldarmy1 said:
We're going to spend a SIGNIFICANT amount of seminar time on options. The great equalizer to market makers.