Options gurus. I currently own 800 shares of FUBO. If I sell covered calls, MAR 12 55c, is that a smart move? What is my downside, I potentially have to sell at $55?

BREwmaster said:

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this guy is usually a permabear, but he's gone full bull here...

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I'm at day 14 for my IRA rollover. I may have timed it perfectly.

Though my taxable account is pretty beat up right now.

Essentially yes. If the option contract is exercised at the strike price you would miss out on any profits over $55.

So CCIV/Lucid gets officially announced today and it drops?

Jet Black said:

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Options gurus. I currently own 800 shares of FUBO. If I sell covered calls, MAR 12 55c, is that a smart move? What is my downside, I potentially have to sell at $55?

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What's the buy price of your 800 shares?

YNWA_AG said:

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Classic buy the rumor and sell the news case

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Man I get it, but dropping from a 57 close to 42 is crazy!

Is that normal for SPACs? Seems like CCIV to Lucid was the worst kept secret.

$42

Jet Black said:

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$42

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That's a good entry price. It's down AH so if that continues into the open then the 55 calls will be less than 2. The chart is kinda in no-mans land, it could go lower or reverse. If it were me, based on the firms that have taken large positions in FUBO the past couple of weeks, I'd nut up and hold off writing CCs at this level. The market could get a relief rally and if so, you could write the 60-65s for the same premium as the 55s today. JMO.

Prognightmare said:

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Jet Black said:

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$42

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That's a good entry price. It's down AH so if that continues into the open then the 55 calls will be less than 2. The chart is kinda in no-mans land, it could go lower or reverse. If it were me, based on the firms that have taken large positions in FUBO the past couple of weeks, I'd nut up and hold off writing CCs at this level. The market could get a relief rally and if so, you could write the 60-65s for the same premium as the 55s today. JMO.

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Thanks

BayAg_14 said:

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Essentially yes. If the option contract is exercised at the strike price you would miss out on any profits over $55.

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Thanks

Jet Black said:

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Options gurus. I currently own 800 shares of FUBO. If I sell covered calls, MAR 12 55c, is that a smart move? What is my downside, I potentially have to sell at $55?

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Smart move depends on your price bias; however, the implied vol seems reasonably healthy, although not sure how it rates over its short history, but assume its elevated given earning are within the exercise window. If this implied vol is much weaker than typical than maybe not so smart (unless your price bias is lower).

Your downside is the stock goes to zero and you only book the premium on the 55 calls.

Your opportunity loss is the stock settling above the 55 strike price, at time of expiration (less the premium you collected). Should you be called out, you will gain around $15/share from today's price plus the premium you collected.

$30,000 Millionaire said:

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not claiming to be a master trader, but if it is helpful to anyone, here is what I did:

• I knew /ES & /NQ were in no mans land last week, I significantly lightened up mostly by not rolling covered calls or intentionally selling ITM calls against shares I owned so that I would get assigned (or keep shares with major downside protection
• I hedged last week for March expiration
• I made a decision to trade very lightly this week, but would scoop up opportunities that I thought made sense (e.g. PSNL or DADA from today)
• I sold March covered calls this morning on everything I kept optimizing for OTM and premium bearing (not so far up there I couldn't command premium, but not so close it's highly likely to be assigned)
• Today, I sold puts on select items I want to get into and believe I can monetize if I have to through covered calls in the future to drive costs down
• Most importantly, I did not panic and I ignored the unrealized loss. Market is still in an uptrend

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Great post 30k

I'll likely load a few more shares in the AM.

guess what! we've got good setups.

Ags2013 said:

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UWMC at sub 8 is crazy. The financials don't support that at all.

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This is one of those stocks I truly dont understand. they are doing everything right except go up.
This could EASILY be a 1.5-2x stock given its 3 month history but its been falling this entire month.

I am curious where bottom will be. I thought I bought at bottom around $9 but it has continued to set historical lows every week. At some point it has to turn up given its financials, right? Where is bottom?

$30,000 Millionaire said:

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guess what! we've got good setups.

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Are you saying I should buy back my existing IVR covered calls at $4?

Aggie09Derek said:

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CCIV AH

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i feel your pain, somewhat... I have an 85C covered call, that should net me a pretty penny tomorrow.

this makes sense too:

This one was my only decent sized buy today. I nibbled on a few things to keep myself cash happy, but UWMC was my one solid add today.

On another topic - anyone know when the ticker is supposed to change for TSNP to become HUMBL? TSNP has been fantastic, but I'll probably take some profits the day before it changes. Then buy the dip.

I can't find any info about it in the 2 minutes I spent trying....

TIA.

ARK bought around 200 mil of Tesla today

YNWA_AG said:

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ARK bought around 200 mil of Tesla today

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TSLA is trading at -3ATR, hasn't traded at -3ATR since late last March.... up 9x since then.

Ragoo said:

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YNWA_AG said:

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ARK bought around 200 mil of Tesla today

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TSLA is trading at -3ATR, hasn't traded at -3ATR since late last March.... up 9x since then.

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What does -3ATR mean?

So, I assume HWMC is a buy sub $8?

Anyone in EDIT?

Researching for a starter position.