FJ43 said:

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Morning gents! On watch today for sure given where we ended in the macro trend yesterday.

SPY and Qs opening a bit down from yesterday's close really early premarket here. Weird action as normally I see at least some flurry on a few things. But not so far.

This morning feels like....



But surely will be.....



Let's battle. Trade wisely.

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$30,000 Millionaire said:

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it's all in high beta stocks. Not doing anything with it.

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LOYAL AG said:

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This won't be a popular opinion but I think we see continued decline to 3678 ish in the S&P. The Fib drawn here is from the late October dip because it's the most recent pronounced dip we've seen. From this we broke 23.6% today and after flirting with the 50 dma since last Friday we finally broke it today. I could see tomorrow being pretty benign but I think next week we threaten 3678 before we see a reversal.

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agdaddy04 said:

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Finally made the decision to move my old 401k into a Fidelity IRA account to take more control over it. Will definitely take a different route than I did from February til this week in my TDA account. Seemed like nothing could go wrong when I was up 20% within the first two weeks. Now down 20%. Going to need to learn more about these hedges.

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$30,000 Millionaire said:

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p.s. if tomorrow is a down day, there is high potential for margin calls on Monday.

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LOYAL AG said:

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Some random thoughts from a guy that trades a bit different than most of the thread:

I feel like there are several here that are panicking over a six day downturn in stocks I THINK they're buying for a mass accumulation play. If so why? Mass accumulation isn't a short term flip it's building up shares for a future big win.

I'm a cash flow trader meaning I buy stocks and sell weekly covered calls fully expecting them to assign in roughly 1-4 weeks. My ideal play is buy Monday, sell the a weekly call at the next strike for a couple of dollars then sell the stock Friday. Target range is 2.5% - 5% for a one week trade.

Right now I hold:

APA - ITM in week 2
DPW
EBON
FUBO
MOMO
PLTR
RDS/A - ITM in week 1
RIOT
SIG - ITM in week 1 for back-to-back weeks
THC - ITM in week 4

Obviously some of those are not one week and some are way bigger than 5% any given week but I do like a good game of craps. Still the four noted ITM are all in that 1-4 week timeframe and I expect to see them all assign tomorrow and if I'm right I'll take $11+ in profit from those assignments. The rest except for MOMO I've held a short period of time and I'm not stressed about at all even though RIOT for example is down $27 from my purchase price and $19 from my cost basis. Why? I'll sell another call next week and keep accumulating premium until it returns to life and assigns. Same for FUBO which I bought at it's peak two weeks ago.

From my perspective as long as the positions are within my time tolerance and there is still a reasonable call option premium to be had for next week's calls I don't stress about a bad day or a bad week. I've had several winners over my life as a trader that I mistimed and 2-4 weeks later (sometimes longer) I'm out with 2x or more the expected profit just over a bit longer period of time.

The point here is when you get into this one of the things you have to figure out is what are your goals then trade to your goals. I've passed on a lot of what the board does because it's not my style. For example I don't buy naked calls and only buy naked puts as a hedge on a stock I'm holding. Yes I've missed out on huge winners and have gotten run over on pullbacks at times but I've not been run out of the game because I don't panic sell. I know my tolerances and I stay within my game. For the new guys that's important. Know what you're trying to accomplish and stick to trades that fit your model. Following OA, FJ, $30K, etc into a trade you don't understand and don't know how to manage is a recipe for disaster.

Right now I see a correction and if my earlier post of 3678 is correct it would amount to a 7.4% pullback from Feb 16 high. Rough but it should not kill you particularly if you're in the MA game most of this board seems to be playing. Heck that should hurt me more because of the week to week nature of what I'm doing. Until I see a broader retreat below that 3678 I'm just going to sit on the positions I have, take my profits tomorrow and enter new positions next week with the same weekly goals.

TLDR - Know yourself, know your goals, plan your work and work your plan. Check those four boxes and you'll be fine.

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Prognightmare said:

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agdaddy04 said:

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That's what I'm working on. Was just investing based on recommendations on this thread. However, the fact I dont understand how to execute the option plays has made some of it difficult to follow. Won't put in anymore until I understand it better.

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My advice is to not try and learn TA all at once or you'll overload yourself, focus on one indicator at a time. There are so many and everyone that uses charts on this thread have 3-4 primary indicators that they favor. Always do your own evaluation of stock ideas presented on this thread and if your favorite indicators confirm the recommendation, then you'll feel more confident making that trade. This will reduce your stress than blindly committing your capital into stock. We've all started at the same spot and I'm confident that everyone on this thread that is further down the path wants you to avoid a costly mistake that we've already made.

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agdaddy04 said:

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That's what I'm working on. Was just investing based on recommendations on this thread. However, the fact I dont understand how to execute the option plays has made some of it difficult to follow. Won't put in anymore until I understand it better.

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kyle field 94 said:

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LOYAL AG said:

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Some random thoughts from a guy that trades a bit different than most of the thread:...

TLDR - Know yourself, know your goals, plan your work and work your plan. Check those four boxes and you'll be fine.

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I am curious in your riot example

Do you sell the same strike as your original cc sale?

Do you sell sell original call less 27?

Sell original call less 19?

I do some of this same trading (buy writes), but i struggle with what strike price to sell after the first one expired worthless and the share price has fallen a good amount

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kyle field 94 said:

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LOYAL AG said:

---

Some random thoughts from a guy that trades a bit different than most of the thread:

I feel like there are several here that are panicking over a six day downturn in stocks I THINK they're buying for a mass accumulation play. If so why? Mass accumulation isn't a short term flip it's building up shares for a future big win.

I'm a cash flow trader meaning I buy stocks and sell weekly covered calls fully expecting them to assign in roughly 1-4 weeks. My ideal play is buy Monday, sell the a weekly call at the next strike for a couple of dollars then sell the stock Friday. Target range is 2.5% - 5% for a one week trade.

Right now I hold:

APA - ITM in week 2
DPW
EBON
FUBO
MOMO
PLTR
RDS/A - ITM in week 1
RIOT
SIG - ITM in week 1 for back-to-back weeks
THC - ITM in week 4

Obviously some of those are not one week and some are way bigger than 5% any given week but I do like a good game of craps. Still the four noted ITM are all in that 1-4 week timeframe and I expect to see them all assign tomorrow and if I'm right I'll take $11+ in profit from those assignments. The rest except for MOMO I've held a short period of time and I'm not stressed about at all even though RIOT for example is down $27 from my purchase price and $19 from my cost basis. Why? I'll sell another call next week and keep accumulating premium until it returns to life and assigns. Same for FUBO which I bought at it's peak two weeks ago.

From my perspective as long as the positions are within my time tolerance and there is still a reasonable call option premium to be had for next week's calls I don't stress about a bad day or a bad week. I've had several winners over my life as a trader that I mistimed and 2-4 weeks later (sometimes longer) I'm out with 2x or more the expected profit just over a bit longer period of time.

The point here is when you get into this one of the things you have to figure out is what are your goals then trade to your goals. I've passed on a lot of what the board does because it's not my style. For example I don't buy naked calls and only buy naked puts as a hedge on a stock I'm holding. Yes I've missed out on huge winners and have gotten run over on pullbacks at times but I've not been run out of the game because I don't panic sell. I know my tolerances and I stay within my game. For the new guys that's important. Know what you're trying to accomplish and stick to trades that fit your model. Following OA, FJ, $30K, etc into a trade you don't understand and don't know how to manage is a recipe for disaster.

Right now I see a correction and if my earlier post of 3678 is correct it would amount to a 7.4% pullback from Feb 16 high. Rough but it should not kill you particularly if you're in the MA game most of this board seems to be playing. Heck that should hurt me more because of the week to week nature of what I'm doing. Until I see a broader retreat below that 3678 I'm just going to sit on the positions I have, take my profits tomorrow and enter new positions next week with the same weekly goals.

TLDR - Know yourself, know your goals, plan your work and work your plan. Check those four boxes and you'll be fine.

---

I am curious in your riot example

Do you sell the same strike as your original cc sale?

Do you sell sell original call less 27?

Sell original call less 19?

I do some of this same trading (buy writes), but i struggle with what strike price to sell after the first one expired worthless and the share price has fallen a good amount

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OutlawAG04 said:

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Agreed great post. I use this strategy on one of my accounts. I often find myself using it on stocks I already have as MA plays, but I go a different route in the sense that I do not treat any of the profits on that account towards lowering my cost average of any MA play. Example:

If I buy Fubo on Monday morning and sell a call for Friday, I'm not booking those gains in my mind towards lowering my cost average on the shares I hold for fubo on a MA basis. it's strictly focused on growth and turnover on that account.

A correction like this does bring caution into play of the unknown. Cash covered puts are getting pretty attractive on a number of quality stocks.

Not sure I'm always hitting the 5% weekly you mentioned but there are usually a decent group on weeklies that hit 2.5-3.5%. Are you factoring the 5% based on mostly selling a cc slightly OTM and getting called out with the additional profit on your entry?

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