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Esteban du Plantier
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In reply to Ukraine Gas Expert • 5:55p, 2/28/21
AG
Ukraine Gas Expert said:
Can you sell puts in the same manner or is different? Why a call versus a put?

Sorry I'm also five


Selling puts is a way to buy shares, selling calls is a way to sell shares. The net free idea is generally to sell some shares to recoup investment.
.
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tsuag10
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In reply to Ukraine Gas Expert • 5:57p, 2/28/21
AG
Ukraine Gas Expert said:
Can you sell puts in the same manner or is different? Why a call versus a put?

Sorry I'm also five
IIRC, owning the underlying stock isn't necessary for selling puts. Someone smarter than me can chime in with more detail.
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Esteban du Plantier
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In reply to tsuag10 • 5:58p, 2/28/21
AG
tsuag10 said:
Ukraine Gas Expert said:
Can you sell puts in the same manner or is different? Why a call versus a put?

Sorry I'm also five
IIRC, owning the underlying stock isn't necessary for selling puts. Someone smarter than me can chime in with more detail.



Correct. Only need enough cash to be assigned to sell puts.
.
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jimmo
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In reply to Esteban du Plantier • 6:01p, 2/28/21
gosh, sorry - i missed that
but thanks for the feedback
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$30,000 Millionaire
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6:06p, 2/28/21
AG
$FUBO, it broke down in the wedge it was in, really no surprise given the macro markets. It has held the 89 EMA, which you want to see. I would not bet against this in earnings and you have risk of a major outsized move.

I might consider selling a $45 call against 100 shares and using the proceeds to buy one or more $60C and/or a $25P. I don't think it gets down there, but we'll see. Of course, it could also do the rational thing and stay within the expected move. I am not going to ER trade this one with an iron condor.

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Ornithopter
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6:12p, 2/28/21
AG
Futures looking like we are going to be going higher tomorrow.
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FJ43
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In reply to Esteban du Plantier • 6:12p, 2/28/21
Esteban du Plantier said:
Ukraine Gas Expert said:
Can you sell puts in the same manner or is different? Why a call versus a put?

Sorry I'm also five


Selling puts is a way to buy shares, selling calls is a way to sell shares. The net free idea is generally to sell some shares to recoup investment.
I think there is some mixing of some things here but I haven't read every post. But for clarification.

You sell puts to collect premium now. Either you don't think the share price will drop so you can keep the premium OR you are fine being assigned the shares at the strike as an entry. Whatever the strike your true basis cost if assigned would be the strike price you will pay per share less the premium paid to you. You will have to pay the strike per share if assigned.

Selling calls is a way to reduce cost basis and collect premium now. It's not a strategy to sell shares as much as a means to leverage the shares you own. You have the obligation to sell the shares so make sure the strike plus premium is ok with you to be called away on your shares. This is why often folks sell covered calls on only a portion of shares. In the event the stock ruins higher than the strike you've not lost potential upside on some of your shares.

Wealth gained hastily will dwindle. but whoever gathers little by little will increase it.
Proverbs 13:11

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Esteban du Plantier
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In reply to FJ43 • 6:16p, 2/28/21
AG
FJ43 said:
Esteban du Plantier said:
Ukraine Gas Expert said:
Can you sell puts in the same manner or is different? Why a call versus a put?

Sorry I'm also five


Selling puts is a way to buy shares, selling calls is a way to sell shares. The net free idea is generally to sell some shares to recoup investment.
I think there is some mixing of some things here but I haven't read every post. But for clarification.

You sell puts to collect premium now. Either you don't think the share price will drop so you can keep the premium OR you are fine being assigned the shares at the strike as an entry. Whatever the strike your true basis cost if assigned would be the strike price you will pay per share less the premium paid to you. You will have to pay the strike per share if assigned.

Selling calls is a way to reduce cost basis and collect premium now. It's not a strategy to sell shares as much as a means to leverage the shares you own. You have the obligation to sell the shares so make sure the strike plus premium is ok with you to be called away on your shares. This is why often folks sell covered calls on only a portion of shares. In the event the stock ruins higher than the strike you've not lost potential upside on some of your shares.



I'm on my phone so didn't want to type a book. You could sell puts forever to eventually go net free. Selling calls allows you to go net free earlier with less of a move in the underlying and/or selling fewer shares than waiting on the stock to double.
.
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$30,000 Millionaire
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6:16p, 2/28/21
AG
$CLOV - this obviously looks terrible and will scare people away. I have not sold a single share, but this is getting annoying. It is very oversold and it's below any type of support. Ticker is also newish.

It's worth pointing out that this is below -2 ATR on the daily and below -1 ATR on the weekly. Market makers don't think this will go below 8ish if you look at options pricing. You can sell May monthly 7.5P for $1.0. They also don't think this is going to get above $11 on the upside after earnings. Might be worth a 3/19 12.5C flyer for $0.40

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Mostly Foggy Recollection
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In reply to $30,000 Millionaire • 6:21p, 2/28/21
$30,000 Millionaire said:
$CLOV - this obviously looks terrible and will scare people away. I have not sold a single share, but this is getting annoying. It is very oversold and it's below any type of support. Ticker is also newish.

It's worth pointing out that this is below -2 ATR on the daily and below -1 ATR on the weekly. Market makers don't think this will go below 8ish if you look at options pricing. You can sell May monthly 7.5P for $1.0. They also don't think this is going to get above $11 on the upside after earnings. Might be worth a 3/19 12.5C flyer for $0.40



Woof.
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Mostly Foggy Recollection
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In reply to Brewmaster • 6:23p, 2/28/21
385/388. Depends on your sizing and what your target return is.

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Mostly Foggy Recollection
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6:31p, 2/28/21
I'll make my weekly target trades simple this week. Let's focus on SPY.

This one isn't going to be hard to understand. The weekly expiration this week is March 5th. Everything I reference below on the weeklies is based off this expiration.

- Key pivot range is 378-379 this week.

- For the Bears: We bottomed out in the 378-379 range last week. If we break through 380 to the downside, I would take out 370 puts, because if 378 breaks, we will most likely test 370-371. A lot of demand in the 370 area, so unless we get a larger correction, we should bounce off that area.

- For the Bulls: If we push through 385-386, bulls really need to take out 387.50 for there to be a nice move upwards. If we break 385.50, I'd take out some 390 calls.


**** I'm still in the April monthly 350 puts as a hedge. If we break 370 south, I'll cash the 350s. If for some reason we channel and no large moves either way, I'll roll these to May in mid-March.
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agdaddy04
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In reply to Mostly Foggy Recollection • 6:35p, 2/28/21
AG
So you'd be looking to do this early Monday or need to wait a day to see how it shakes?
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backintexas2013
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6:35p, 2/28/21
AG
BTC bounced back from $43,200. Hopefully it can take off and DPW and NXTD can pop. Will sell cc on any pop.
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Esteban du Plantier
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6:38p, 2/28/21
AG
Can I get some opinions on this one?

Back in Q1 2020, 2 funds bought a quarter of the company.



And on Friday, someone bought 1.70MM shares in a minute with essentially no volume rest of the day.



Financials don't look super, but $2 companies are $2 for a reason.
.
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Mostly Foggy Recollection
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In reply to agdaddy04 • 6:38p, 2/28/21
I'd be looking for levels to be breached and/or rejected, but if you don't have time to do it, you could take out weekly 370 puts and 390 calls on Monday and sell accordingly. Just understand the levels are posted because if we move through them up or down, there will be some acceleration to that side.
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$30,000 Millionaire
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6:41p, 2/28/21
AG
Curious if anyone is paying for stock dweebs newsletter, and if so, what do you think?

his picks for this week were:

  • CRON
  • UA
  • HOME
  • LLY
  • QS
  • FIZZ
  • BX
  • WIX
  • ICE
  • FDX

We have Home, LLY, and QS in common with him from posts here. I'm looking at charts and trying to see what he sees. These are my guesses:

  • CRON - oversold, gravestone doji on 55 EMA, volume declining. I'm guessing his buy zone is $9.4 or below. I don't see evidence of a reversal
  • UA - bullish consolidation near ATH, rejected 21 and consolidating between 9 and 21. you'd want to get this on a 21 dip. Option prices don't have much premium in them and will move with shares
  • HOME - this looks great. Probably worth getting in. Premiums sort of juiced. 22/32 vertical might be good. OK but not great premium for bull puts. a 26/21 would be $2 credit / $3 risk.
  • QS - looks OK, i'm in this. you want to see this show strength, though.
  • FIZZ - this has probably bottomed, keeps rejecting off 89 EMA. -1 ATR on daily. This has really good premium for put credit spread. On calls, lots of premium. 42.5/57.5 looks attractive.
  • BX - blackstone, those fers. rejection on 34, was up yesterday, but not on the week. Reclaimed 21, in a daily squeeze. also probably not bad. RSI neutral. Right on mean. this moves slower, could be more of a shares play
  • WIX - I am not very familiar with this, but I think the move is extended. Maybe a good iron condor candidate or call credit spreads. I'm going to watch this.
  • ICE - keeps rejecting 89, wondering if thought here is sympathy play with CBOE. Good support at 109
  • FDX - had relative strength this past week, good consolidation. It could move, but I don't see a trade.



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Mostly Foggy Recollection
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6:42p, 2/28/21
I could see us opening in the 3850 range in the morning. Touching 3840 right now.

Long night though.
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$30,000 Millionaire
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6:45p, 2/28/21
AG
big futures moves. I'm worried about gap and crap now.
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Mostly Foggy Recollection
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In reply to $30,000 Millionaire • 6:52p, 2/28/21
Exactly. Could see a 385-386 open and be at 378 in a flash
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FJ43
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In reply to Mostly Foggy Recollection • 6:55p, 2/28/21
Mostly Foggy Recollection said:
Exactly. Could see a 385-386 open and be at 378 in a flash
I carried the March 5 SPY 360s through the weekend not knowing what direction we would go based on Friday's close. Paid .69 and closed at 1.24. If we open higher I'll be back at break even or slightly down. Totally good with that whichever way it goes. Sleep better at night knowing I've got a weekly mover hedge on.

If we bounce 3855 again I'll put on the March 5 370 or even 380s. Also add an April date lower strike (360s most likely).

I expect this week will be a rinse and repeat of last Thursday and Friday for me trading weeklies. Buying SPY (and Qs) puts and calls until confirmation of direction. Didn't do any VIX.

I'll also be on watch for weakness. If so I'll trim shares into and strength and bounce at criticism levels to increase cash position. Add longer dated puts to fully cover.

Just my 2 cents and plan as of tonight.

Wealth gained hastily will dwindle. but whoever gathers little by little will increase it.
Proverbs 13:11

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$30,000 Millionaire
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7:05p, 2/28/21
AG
If we open above 3850 I will put new hedges on.
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$30,000 Millionaire
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7:12p, 2/28/21
AG
I'm actually really worried about this.
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FJ43
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In reply to $30,000 Millionaire • 7:15p, 2/28/21
$30,000 Millionaire said:
I'm actually really worried about this.
Same. Don't trust this at the moment.
Wealth gained hastily will dwindle. but whoever gathers little by little will increase it.
Proverbs 13:11

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Brewmaster
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In reply to backintexas2013 • 7:16p, 2/28/21
AG
backintexas2013 said:
BTC bounced back from $43,200. Hopefully it can take off and DPW and NXTD can pop. Will sell cc on any pop.
she running now maybe that stim bill will get it back to 50's.
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GigEmRangers75455
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7:21p, 2/28/21
My strategy tomorrow isn't complicated.

We move up, I hold my cash and try to trim some positions in the green to rebalance. I'm holding more shares than I want in a lot of stocks trying to average down.

We move down, I hold my cash and hope this isn't the sign of something worse.
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FJ43
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In reply to Brewmaster • 7:21p, 2/28/21
BREwmaster said:
backintexas2013 said:
BTC bounced back from $43,200. Hopefully it can take off and DPW and NXTD can pop. Will sell cc on any pop.
she running now maybe that stim bill will get it back to 50's.
NXTD following a BTC move wouldn't hurt my feelings at all.
Wealth gained hastily will dwindle. but whoever gathers little by little will increase it.
Proverbs 13:11

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backintexas2013
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In reply to Brewmaster • 7:21p, 2/28/21
AG
I wouldn't mind it sticking around 52,000 for a while.
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Brewmaster
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In reply to $30,000 Millionaire • 7:32p, 2/28/21
AG
$30,000 Millionaire said:
$FUBO, it broke down in the wedge it was in, really no surprise given the macro markets. It has held the 89 EMA, which you want to see. I would not bet against this in earnings and you have risk of a major outsized move.

I might consider selling a $45 call against 100 shares and using the proceeds to buy one or more $60C and/or a $25P. I don't think it gets down there, but we'll see. Of course, it could also do the rational thing and stay within the expected move. I am not going to ER trade this one with an iron condor.

not that this changes anything on it, but here's another thing I saw on the hourly. They worked it down in this channel (since Feb. 8th).
I will happily add more if we dip tomorrow, but adding spy puts if we open up 385+!!

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Cadet05
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7:44p, 2/28/21
AG
Started a small trading account at interactive brokers. My main account is Vanguard. Approved for options on both but I can't find where to do options on IB website other that using TWS. Is that the only place to do options?
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mazag08
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7:45p, 2/28/21
AG
I know this isn't the thread for this.. but I've reached the point where its time to buy a new computer. I've had a Microsoft Surface Pro since 2015. It's been awesome for my needs minus the small screen, no dedicated graphics, and relatively week processing power that is really showing its age these days.

I've looked at literally every laptop on the market and decided to stick with Microsoft but switch to the Surface Book 3. It has the flexibility that I can use it like a tablet while watching tv with the wife (she hates when I'm always upstairs in my office obsessing over stocks), but still has the power of an entry level gaming laptop.
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Vade281
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7:48p, 2/28/21
AG
Been waiting on fidelity to turn on options for a month now. Such a long wait
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BayAg_14
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8:01p, 2/28/21
If 385 confirms how high could we squeeze?
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BrokeAssAggie
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8:03p, 2/28/21
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ag94whoop
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In reply to $30,000 Millionaire • 8:04p, 2/28/21
AG
$30,000 Millionaire said:
$CLOV - this obviously looks terrible and will scare people away. I have not sold a single share, but this is getting annoying. It is very oversold and it's below any type of support. Ticker is also newish.

It's worth pointing out that this is below -2 ATR on the daily and below -1 ATR on the weekly. Market makers don't think this will go below 8ish if you look at options pricing. You can sell May monthly 7.5P for $1.0. They also don't think this is going to get above $11 on the upside after earnings. Might be worth a 3/19 12.5C flyer for $0.40



After OAs seminar Saturday I definitely feel a little better about things ...that said I am trying to figure out a good strategy with CLOV. $13.75 avg cost.
I am maybe in the minority but I actually think that after some time, this stock is going to be worth something. But I am trying to figure out the best go forward strategy at this point. Hopefully the stock jumps to a point to give me better CC pricing and maybe I will also trim a little.
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