MGNI up over $43 now... I guess I am going to lose the shares on the $40 covered call I sold thinking there was no way it could get to $40 by 2/19...
Stock Markets
24,765,210 Views |
233459 Replies |
Last: 4 min ago by Marauder Blue 6
fightintxag13 said:I've already got a large portion of my portfolio in WWR. That's why I was thinking of playing a little more conservative and covering all of the new shares. I'd be tickled pink at putting idle cash to work and making that much on a "conservative" short term play. OA still loves this stock so if I get stuck with the shares, I trust his confidence enough to be ok with holding the bag on them with a $5.5 cost basis.BenRev09 said:certainly nothing wrong with that, but I think selling CC's on half would be a better way to go. And better yet, buy shares and wait for a pop above 8 before selling CC's on halfjwhitlock3 said:Could run to $10+ and you'd miss the rest of those gains, but yeah it's that simple. Volatility is propping those call premiums up a lot.fightintxag13 said:
Someone slap me if I'm wrong here, but if I've got idle cash sitting on the sidelines, I could go buy WWR shares for ~7.65 right now. Turn around and sell the Mar $7.5 calls against all those shares for $2.15. That nets you $2.00 or 26.7% for 6 weeks of tying up the cash.
It seems so simple, so someone tell me what I'm doing wrong here.
Moral of this story...those premiums are JUICED!
**** it, I had an old position sitting in MUB and just sold it to do this. Bigger return than in the last many years already, even after taxes.
I think this is a good example as I understand it.irish pete ag06 said:So this on the 5 min BFT day chart?FJ43 said:Long sell wick/shadow at the bottom of the V with reversal following.third coast.. said:
i thought a tricksy move coincided with crossing over a MA, whatever it may be. i must have been sleepwatching.
Wealth gained hastily will dwindle. but whoever gathers little by little will increase it.
Proverbs 13:11
Proverbs 13:11
Thanks. Seeing $2 premium now.FJ43 said:Yep. Sell to open on puts and you are paid the premium now but are on the hook to buy the shares at the strike if they are assigned to you. Your net costs basis is then the strike less the premium but you will pay the $10 per share in this case.AG 2000' said:I want to follow this one. Still new to options.FJ43 said:I have now sold the crap out of May $10 puts. I bought back the $12.50 March puts and cost me .15 each to buy back. Turned around and sold the May $10 for $1.90. Net to me was .20 cost each but at a $2.50 lower strike.third coast.. said:
im going to laugh when CLOV finishes green on the day
I will take the risk being on the hook for shares net costs basis of $8.10 on this one.
Just to confirm - I'd be selling to open a put on the May $10 strikes, right?
Beautiful Model T on NLS.
Wealth gained hastily will dwindle. but whoever gathers little by little will increase it.
Proverbs 13:11
Proverbs 13:11
the initial reaction to news tends to be the worst.Bob Knights Liver said:$30,000 Millionaire said:
If you're heavy in options for clov, I'd consider bailing. I'm in shares and I am holding. The worst of the news is typically the first reaction.
I don't follow. What do you mean by that last sentence? Explain it to me like I'm 5. And an engineer, so inherently slow.
IBIO keeps making its way higher today
SNDL
If you sold covered calls you can buy most of them back for about half right now on Feb calls. I just did and if/when has a run will resell.
If you sold covered calls you can buy most of them back for about half right now on Feb calls. I just did and if/when has a run will resell.
Wealth gained hastily will dwindle. but whoever gathers little by little will increase it.
Proverbs 13:11
Proverbs 13:11
I have in my notes from LONG ago that OA had it targeted for $1.5 or higher. I took some profits at $1 and have a sell order in for $1.5 but will still have 10k shares net free if/when that triggersCrazyRichAggie said:Yes, net free, so going to let it ride.KT 90 said:CrazyRichAggie said:
ONTX in beast mode today.
Are you sitting on net free shares as well? Just sit an watch, or consider cashing in a portion? They are net free, so inclined to just sit back and watch.
If CLOV keeps dipping I might end up with a bunch of shares put to me at 12.50.
And I'm not sure I'll be dissapointed.
And I'm not sure I'll be dissapointed.
Bob Knights Paper Hands
Joined:
Dec 22, 2010
Posts:
11,951
How long do you want to ignore this user?
fightintxag13 said:
Someone slap me if I'm wrong here, but if I've got idle cash sitting on the sidelines, I could go buy WWR shares for ~7.65 right now. Turn around and sell the Mar $7.5 calls against all those shares for $2.15. That nets you $2.00 or 26.7% for 6 weeks of tying up the cash.
It seems so simple, so someone tell me what I'm doing wrong here.
I like this idea. You make 26% in 6 weeks or you buy WWR shares for $5.35. I'll have to think about pairing this with something but it looks nice.
$BLNK - Possible cup forming on the hourly?
FJ43 said:
SNDL
If you sold covered calls you can buy most of them back for about half right now on Feb calls. I just did and if/when has a run will resell.
Unless you entered by selling the 0.5c, lol. Those will cost you almost triple to buy back. Ask me how I know.
I'm riding with you. Couldn't get it to fill at $5.50 though. Had to raise my price to $5.60. Still good for 25.3% profit in 6 weeks.
WWR a buy under $8?
Bob Knights Paper Hands
Joined:
Dec 22, 2010
Posts:
11,951
How long do you want to ignore this user?
Ok so you meant anyone that's bearish in options in $Clov you should bail here since this is likely the biggest part of the (over)reaction?
$NLS seller at 26.10 needs to cut that out.
yesBob Knights Liver said:
Ok so you meant anyone that's bearish in options in $Clov you should bail here since this is likely the biggest part of the (over)reaction?
Hopefully cup and handle and rocket upward from here. (i min chart)krosch11 said:
$NLS seller at 26.10 needs to cut that out.
I think we've jumped the shark on cup & handles. Was this a focal point on the seminar?
If you already have a large amount of shares you could go ahead and sell the puts also and get close to the same entry if you are assigned the sharesBob Knights Liver said:fightintxag13 said:
Someone slap me if I'm wrong here, but if I've got idle cash sitting on the sidelines, I could go buy WWR shares for ~7.65 right now. Turn around and sell the Mar $7.5 calls against all those shares for $2.15. That nets you $2.00 or 26.7% for 6 weeks of tying up the cash.
It seems so simple, so someone tell me what I'm doing wrong here.
I like this idea. You make 26% in 6 weeks or you buy WWR shares for $5.35. I'll have to think about pairing this with something but it looks nice.
Bob Knights Paper Hands
Joined:
Dec 22, 2010
Posts:
11,951
How long do you want to ignore this user?
WWR
If I sell $7.5 calls for $2.15 and $12.5 puts for $6.00 for March does that work? If it closes below $7.5 I buy shares for $4.35 net. If it closes between $7.5 and $12.5 I keep the premium. If it closes above $12.50 I turn around and buy shares to cover bit I'd come out ahead as long as I buy those for less that $20.65. In the meantime I get to keep the premium. Am I doing that right?
If I sell $7.5 calls for $2.15 and $12.5 puts for $6.00 for March does that work? If it closes below $7.5 I buy shares for $4.35 net. If it closes between $7.5 and $12.5 I keep the premium. If it closes above $12.50 I turn around and buy shares to cover bit I'd come out ahead as long as I buy those for less that $20.65. In the meantime I get to keep the premium. Am I doing that right?
If we hit SPY $385 i think im going to go ahead and add some more to the hedge book
a bit. It is also one of the more common and actionable set ups.McInnis 03 said:
I think we've jumped the shark on cup & handles. Was this a focal point on the seminar?
$EGOC might be getting ready to move up.
McInnis 03 said:
I think we've jumped the shark on cup & handles. Was this a focal point on the seminar?
I think post seminar a lot more people are able to identify them and we hear about them more often. That and they are easier to spot than most.
Goodness Tibbers, $TSNP is killing it.
agdaddy04 said:
Goodness Tibbers, $TSNP is killing it.
I listened....
The greatest argument ever made against democracy is a 5 minute conversation with the average voter.
Got him!krosch11 said:
$NLS seller at 26.10 needs to cut that out.
AAPL gettting tight
At the time I wrote it, it was below. Hit it exactly, bounced off it and rocketed up.AgCPA95 said:Same question. Just trying to learn.cisgenderedAggie said:Touchless said:
ONTX just hit model T
From what point?
Look at $FTCH on the 1m chart if you want to see a tricksy move breaking below the earlier intraday low and then shooting back up. Also look at the volume for that bar.
Thanks for the heads-up! Just bought them all back for half what I sold them for! Will watch for the pop to resell.FJ43 said:
SNDL
If you sold covered calls you can buy most of them back for about half right now on Feb calls. I just did and if/when has a run will resell.
1) If I sell $7.5 calls for $2.15 - In this instance, you have to deliver shares to the buyers of your calls if the close is $7.50 or above on expiration, or if exercised.Bob Knights Liver said:
WWR
If I sell $7.5 calls for $2.15 and $12.5 puts for $6.00 for March does that work? If it closes below $7.5 I buy shares for $4.35 net. If it closes between $7.5 and $12.5 I keep the premium. If it closes above $12.50 I turn around and buy shares to cover bit I'd come out ahead as long as I buy those for less that $20.65. In the meantime I get to keep the premium. Am I doing that right?
2) If I $12.5 puts for $6.00 for March - In this instance, if the close on March Expiry is below $12.50, you're taking possession and you need $1250 cash per put sold to cover this debt.
3) If it closes below $7.5 I buy shares for $4.35 net - No, you would be buying shares for $6.50 (12.50 put minus $6 in premium received).
4) If it closes between $7.5 and $12.5 I keep the premium - No, you'd owe the call buyer 100 shares per call sold, and you'd be buying shares at $12.50 for ea put sold.
5) If it closes above $12.50 I turn around and buy shares to cover bit I'd come out ahead as long as I buy those for less that $20.65 - Here you owe shares to the person paying you $7.50 ea, and if it's above $12.50 you're working at a loss as you got a total of $9.65 for each share (call + premium).
I think you may have calls and puts mixed up. Maybe you're thinking sell $7.50 puts and sell $12.50 calls.
Method Man
Joined:
Oct 26, 2010
Posts:
26,612
How long do you want to ignore this user?
Featured Stories
See All
13:00
1h ago
1.3k
Key Matchups: No. 15 Texas A&M vs. New Mexico State
by Olin Buchanan
11:34
3h ago
1.3k
Ags host Buckeyes with an early-season Quad 1 opportunity at stake
by Olin Buchanan
Bid on Legacy Club tickets to Saturday's Texas A&M vs. NMSU game!
by Texas Aggies United
ConfidentAg
Michigan to Offer 5 Star LSU QB Commit 8 Figure Deal
in Billy Liucci's TexAgs Premium
36