The rule for playing ERs straight up is it better be money you're ok losing entirely.
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Last: 4 hrs ago by EliteZags
Mostly Foggy Recollection
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Still feel like we are melting up in Q1. With that said, I did add to some hedge positions today.
Took out a starter position in UVXY, and will look to add to it late Q1/Q2.
Added to January 2022 SPY puts and March puts. Not much, but it's never a bad idea when you're printing highs to add a little here and there.
Took out a starter position in UVXY, and will look to add to it late Q1/Q2.
Added to January 2022 SPY puts and March puts. Not much, but it's never a bad idea when you're printing highs to add a little here and there.
Thanks. Where's the 700 coming from?Irish 2.0 said:Bid/Ask is cost/share. If it's showing 1.77, that means it is $177/contract. You don't need the have the money to exercise the contract. I would strongly suggest not buying AMZN 1/29 Calls that are ~$700 OTMAG 2000' said:
Disclaimer: rookie on options (waiting for next Thursday with OA really), in the middle of a big work project go live, no time to read up on or look to get into options.
AMZN. If I wanted to go after $4k strikes for 1/29, it's showing 1.65 bid, 1.92 ask.
Is my cost 165-192 depending on bid?
Is Fidelity going to let me make that trade as is, or is there an expectation I have enough in my account to buy the 100 shares at 4000 a pop if it hits?
Once all you options veterans finish laughing, thanks in advance.
AMZN closed at $3265ish, so you're ~$700 outside of the moneyAG 2000' said:Thanks. Where's the 700 coming from?Irish 2.0 said:Bid/Ask is cost/share. If it's showing 1.77, that means it is $177/contract. You don't need the have the money to exercise the contract. I would strongly suggest not buying AMZN 1/29 Calls that are ~$700 OTMAG 2000' said:
Disclaimer: rookie on options (waiting for next Thursday with OA really), in the middle of a big work project go live, no time to read up on or look to get into options.
AMZN. If I wanted to go after $4k strikes for 1/29, it's showing 1.65 bid, 1.92 ask.
Is my cost 165-192 depending on bid?
Is Fidelity going to let me make that trade as is, or is there an expectation I have enough in my account to buy the 100 shares at 4000 a pop if it hits?
Once all you options veterans finish laughing, thanks in advance.
Yeah. Life got in the way of trading. I'll try to pop in a little more oftenThundergon said:
https://images.app.goo.gl/Zv3Kn5TR8f7WB7fq6
Irish 2.0 said:
The rule for playing ERs straight up is it better be money you're ok losing entirely.
If you need to talk to anyone about this, talk to me or $30k.....password : NETFLIX
***If this post is on Business and Investing, take it with a grain of salt. I am wrong way more than I am right (but I am less wrong than I used to be) and if you follow me you will be too.***
B&I Key:
ETH - Extended Trading Hours --- RTH - Regular Trading Hours
ORH - Opening Range (1st 30min) High --- ORL - Opening Range Low
R1, R2, R3 - Resistance 1, 2, or 3 --- S1, S2, S3 - Support 1, 2 or 3
B&I Key:
ETH - Extended Trading Hours --- RTH - Regular Trading Hours
ORH - Opening Range (1st 30min) High --- ORL - Opening Range Low
R1, R2, R3 - Resistance 1, 2, or 3 --- S1, S2, S3 - Support 1, 2 or 3
I'm not in Amazon, I wish I was, but the likelihood of Amazon increasing 18.5% by 1/29 is near zero. In fact, I might sell a naked Amazon 4000 call to get that money.Irish 2.0 said:AMZN closed at $3265ish, so you're ~$700 outside of the moneyAG 2000' said:Thanks. Where's the 700 coming from?Irish 2.0 said:Bid/Ask is cost/share. If it's showing 1.77, that means it is $177/contract. You don't need the have the money to exercise the contract. I would strongly suggest not buying AMZN 1/29 Calls that are ~$700 OTMAG 2000' said:
Disclaimer: rookie on options (waiting for next Thursday with OA really), in the middle of a big work project go live, no time to read up on or look to get into options.
AMZN. If I wanted to go after $4k strikes for 1/29, it's showing 1.65 bid, 1.92 ask.
Is my cost 165-192 depending on bid?
Is Fidelity going to let me make that trade as is, or is there an expectation I have enough in my account to buy the 100 shares at 4000 a pop if it hits?
Once all you options veterans finish laughing, thanks in advance.
A smarter way to play Amazon is to enter a Feb 5 3300/3350 vertical. This is buying a 3300 call and selling a 3350 call.
I was OK losing it, but I was annoyed by it.
Bob Knights Paper Hands
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Irish 2.0 said:
The rule for playing ERs straight up is it better be money you're ok losing entirely.
Tru dat
gig em 02 said:
NFLX - gambled on some 590C, will probably expire worthless after this run
CX - dumped my shares a while ago for 2023 7C and they are up 170%, OA with a very well thought out lesson in patience with this one
BB - seeing more chatter on this, those 2023s could end up being vv nice
Update on your nflx 590c please
***If this post is on Business and Investing, take it with a grain of salt. I am wrong way more than I am right (but I am less wrong than I used to be) and if you follow me you will be too.***
B&I Key:
ETH - Extended Trading Hours --- RTH - Regular Trading Hours
ORH - Opening Range (1st 30min) High --- ORL - Opening Range Low
R1, R2, R3 - Resistance 1, 2, or 3 --- S1, S2, S3 - Support 1, 2 or 3
B&I Key:
ETH - Extended Trading Hours --- RTH - Regular Trading Hours
ORH - Opening Range (1st 30min) High --- ORL - Opening Range Low
R1, R2, R3 - Resistance 1, 2, or 3 --- S1, S2, S3 - Support 1, 2 or 3
The only time I'll ever play earnings is if I have a net free option position going into the earnings. For me, I try to build up a few net free naked calls but there are other ways to do it. Do not look at all the social media posts about how people made 500%+ on NFLX earnings because that isn't the norm. If playing straight up calls/puts, unless the stock moves more than the factored in move, you will get burned every time. There are some advanced strategies like what 30K and McInnis play that have higher probabilities of working in your favor.
Bob Knights Paper Hands
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Bob Knights Liver said:Irish 2.0 said:
The rule for playing ERs straight up is it better be money you're ok losing entirely.
Tru dat
Also my strategy for a lot of these earnings may be to buy ahead of the rise before earnings and sell all or most a couple days before the earnings hit. Based on last summer that seemed to work out pretty well for consistent small gains.
The expected move iron condor or iron butterfly are excellent strategies when the expected move is high.Thundergon said:
The only time I'll ever play earnings is if I have a net free option position going into the earnings. For me, I try to build up a few net free naked calls but there are other ways to do it. Do not look at all the social media posts about how people made 500%+ on NFLX earnings because that isn't the norm. If playing straight up calls/puts, unless the stock moves more than the factored in move, you will get burned every time. There are some advanced strategies like what 30K and McInnis play that have higher probabilities of working in your favor.
Taking Netflix for example, the expected move was less than $30, so McInnis and I set short strikes $40 out from the closing price on each side. These trades work out more than half the time, but you have to be careful and play small (e.g. less than 0.5% of your account value at risk). I prefer to use Wed/Thurs/Fri AM earnings plays with expiration the same Friday, and I use them as premium grabbing opportunities. The goal is to take the theta decay from time and lack of movement. Normally, these stocks will go inside the expected move on expiration day where you can get out for a profit. I normally target 30-50% of the premium as a quick hit.
Our netflix trade yesterday blew up on us and was max loss. What I did was 1) accept I was in a max loss situation and let it go, 2) this morning, I bought 570C shortly after open knowing that after initial profit taking, NFLX was likely to keep on going. I bailed out of it at 585C and I recouped my entire loss from yesterday's trade + some profit. I am not saying I am a trading genius or anything, but this is a good example for when you have to change your bias and trade what you see. I saw a stock that blew out earnings and was likely to keep trending. Should I have held longer on the 570C? Probably, but my goal was to recoup my loss yesterday and go flat on NFLX.
Mostly Foggy Recollection
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This is what happened to me on NFLX. Bought the 540s at 5, sold 7.50 before. They were $46 near close today.
I'll take the profit, but damn, I should have held onto 5 of them, at least.
I'll take the profit, but damn, I should have held onto 5 of them, at least.
Ah, light bulb clicked. Got it, thanks.Irish 2.0 said:AMZN closed at $3265ish, so you're ~$700 outside of the moneyAG 2000' said:Thanks. Where's the 700 coming from?Irish 2.0 said:Bid/Ask is cost/share. If it's showing 1.77, that means it is $177/contract. You don't need the have the money to exercise the contract. I would strongly suggest not buying AMZN 1/29 Calls that are ~$700 OTMAG 2000' said:
Disclaimer: rookie on options (waiting for next Thursday with OA really), in the middle of a big work project go live, no time to read up on or look to get into options.
AMZN. If I wanted to go after $4k strikes for 1/29, it's showing 1.65 bid, 1.92 ask.
Is my cost 165-192 depending on bid?
Is Fidelity going to let me make that trade as is, or is there an expectation I have enough in my account to buy the 100 shares at 4000 a pop if it hits?
Once all you options veterans finish laughing, thanks in advance.
Awesome job! Great post on the strategy.
Jet Black said:Ags2013 said:
Was anyone able to place an order on EGOC? If so, what did you use. We called Fidelity and they said it was too risky even after being approved for penny stocks.
Was able to buy it through E*TRADE.
Bought some via RBC thru my IRA. It wasn't easy but picked up 500,000 shares lol!
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Jet Black said:Ags2013 said:
Was anyone able to place an order on EGOC? If so, what did you use. We called Fidelity and they said it was too risky even after being approved for penny stocks.
Was able to buy it through E*TRADE.
Appears td was going to let me. I had an order in for a mil at .0015 all day yesterday but it never filled. Should have gone .0016 and I'd have been net free now
If anyone has suggestions on where to buy EGOC, I'd love to know. I have fidelity and Schwab. Don't think they'll let me .
McInnis 03 said:gig em 02 said:
NFLX - gambled on some 590C, will probably expire worthless after this run
CX - dumped my shares a while ago for 2023 7C and they are up 170%, OA with a very well thought out lesson in patience with this one
BB - seeing more chatter on this, those 2023s could end up being vv nice
Update on your nflx 590c please
I'm laughing a little, but wish I'd played it! I can echo thundergon, earnings are a crapshoot. IV usually nukes the call buyers (and sometimes the put buyers too). but for now it seems tech is happy they have a chinese dictator now in power, lol.
Sold 1 at 6.3 and 2 at 6.6 (from .86 - only bought 3) and rolled into 2/5 700s at 1.4 (they closed at 1.695). Guess I could've held to see how the week ended but I prefer to sell the open and roll but I definitely bought the 700s too early.
E*TRADE
SNDL was once a $12 stock. Why is it half a buck now, and what makes people think it's got room to go?
it's a pot stock, probably came out with a lot of hype and sold off. As legalization becomes more widespread it will continue to reverse trend (up).AG 2000' said:
SNDL was once a $12 stock. Why is it half a buck now, and what makes people think it's got room to go?
From a technical standpoint the last 6 months look like a nice big cup and handle. Then there is a gap back up to $1+.
I have no position in it personally though.
Me too. Hoping we get to $12 this year
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Man i don't think pharmas ever announce anything material at conferences (someone please correct me if I'm wrong) They always pump up to them then fade. I only have net free shares but may sell some calls into this hype in the morning
BREwmaster said:it's a pot stock, probably came out with a lot of hype and sold off. As legalization becomes more widespread it will continue to reverse trend (up).AG 2000' said:
SNDL was once a $12 stock. Why is it half a buck now, and what makes people think it's got room to go?
From a technical standpoint the last 6 months look like a nice big cup and handle. Then there is a gap back up to $1+.
I have no position in it personally though.
I took a starter position in it today. Will add potentially. Speculation play for me other than having a history and support/resistance levels to measure against. The volume over last 60 days I couldn't ignore though.
Wealth gained hastily will dwindle. but whoever gathers little by little will increase it.
Proverbs 13:11
Proverbs 13:11
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I think it started this morning
Expecting DIS to pop soon before earnings its been hanging around 174 for a few days and is making support from the looks of it.
Earnings are gonna be great, so I can see it hitting 200 from that and 185-190 few days before pulling back a bit. Would be super surprised if this isn't one of those 7% earnings gainers overnight and another 5% the next day.
Earnings are gonna be great, so I can see it hitting 200 from that and 185-190 few days before pulling back a bit. Would be super surprised if this isn't one of those 7% earnings gainers overnight and another 5% the next day.
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I missed my entry this morning and chalked it up to lessons learned. I wanted to sell puts this week, get assigned, sell calls next week and hopefully bank, but when it gapped up this morning i let it go. Maybe next time
Edit: for your scenario i like the 135 weeklies. I think you're safe and will get to sell them again next week. After that it's up to you if you wanna hold through er and see what happens, sell more calls into iv, or take profits in the run up. With a 109 basis you really can't lose
Edit: for your scenario i like the 135 weeklies. I think you're safe and will get to sell them again next week. After that it's up to you if you wanna hold through er and see what happens, sell more calls into iv, or take profits in the run up. With a 109 basis you really can't lose
From my past experience (mostly bad) I definitely agree, but like you I'll be looking to sell some calls in the a.m.! I'm close to net free, should be after another month of CC's.NRD09 said:
Man i don't think pharmas ever announce anything material at conferences (someone please correct me if I'm wrong) They always pump up to them then fade. I only have net free shares but may sell some calls into this hype in the morning
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