very good point. Thanks for that. Selling/buying covered calls are just continuation of a longer dated traded of the underlying. The selling and buying back are themselves their own trade. A 65% winner is a winner all day everyday. Regardless of the stock price.$30,000 Millionaire said:i don't view the trade as complete until I close the transaction.Ragoo said:it is tough because the call, ie: being short, is working in your favor but your underlying is also falling. So now you have the mental battle of taking money out of my pocket to buy back "protection" on an asset that is losing value.$30,000 Millionaire said:
when to buy back covered calls is complicated. If there is a lot of time left, i'll take them between 75-80% of max profit. If time is short, I make judgment calls on whether to hold out for every nickel or go for 90-95% of max. Normally 90-95% of max is good enough for me. I did hold WWR and SNDL to the bitter end on Friday.
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When you let them expire, how is that transaction handled? Does the brokerage firm still charge a commission (fee) to close it out?$30,000 Millionaire said:
when to buy back covered calls is complicated. If there is a lot of time left, i'll take them between 75-80% of max profit. If time is short, I make judgment calls on whether to hold out for every nickel or go for 90-95% of max. Normally 90-95% of max is good enough for me. I did hold WWR and SNDL to the bitter end on Friday.
Uvxy down below 6. That seems pretty low to me. Anyone else have a more educated thought on that?
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emac0002 said:When you let them expire, how is that transaction handled? Does the brokerage firm still charge a commission (fee) to close it out?$30,000 Millionaire said:
when to buy back covered calls is complicated. If there is a lot of time left, i'll take them between 75-80% of max profit. If time is short, I make judgment calls on whether to hold out for every nickel or go for 90-95% of max. Normally 90-95% of max is good enough for me. I did hold WWR and SNDL to the bitter end on Friday.
No. If they expire at zero there is no trade and nothing to charge commission on.
Fightin_Aggie said:
Uvxy down below 6. That seems pretty low to me. Anyone else have a more educated thought on that?
Sounds about time for another reverse split
I reckon I'll keep posting this weekly S&P until it's broken either way. Still seeing a bullish chart here. We're getting pressed against that 3946 level we first touched on 2/16 and the fact we can't get past it worries me but I won't feel bearish until the end of this week at the earliest. We're slightly more than +1 ATR so still room to run without getting overextended. How many times have you seen a chart where it takes several attempts to get past ATH resistance before it finally breaks through? That's what this looks like to me.
A fearful society is a compliant society. That's why Democrats and criminals prefer their victims to be unarmed. Gun Control is not about guns, it's about control.
fidelity does t charge a commission on closing contracts under a certain value. Like $0.65 or something.emac0002 said:When you let them expire, how is that transaction handled? Does the brokerage firm still charge a commission (fee) to close it out?$30,000 Millionaire said:
when to buy back covered calls is complicated. If there is a lot of time left, i'll take them between 75-80% of max profit. If time is short, I make judgment calls on whether to hold out for every nickel or go for 90-95% of max. Normally 90-95% of max is good enough for me. I did hold WWR and SNDL to the bitter end on Friday.
Yeah recently they started not charging commissions under .10 which is awesome. For plays like SNDL where I might sell a call at .15 and buy back at. 05, the commission on the buy back added up for larger numbers.
Irish 2.0 said:emac0002 said:When you let them expire, how is that transaction handled? Does the brokerage firm still charge a commission (fee) to close it out?$30,000 Millionaire said:
when to buy back covered calls is complicated. If there is a lot of time left, i'll take them between 75-80% of max profit. If time is short, I make judgment calls on whether to hold out for every nickel or go for 90-95% of max. Normally 90-95% of max is good enough for me. I did hold WWR and SNDL to the bitter end on Friday.
No. If they expire at zero there is no trade and nothing to charge commission on.
Additionally, TOS will occasionally let me buy back options with no commission, but I'm not sure what the exact situation is that allows that. Might be if I'm specifically buying back for a penny.
.
$IO running AH on news of a contract extension. Up 20%.
Thanks
Popped my cherry and became the newest member of the TA degenerate options traders club. Sold 1 $15 cc 5/21 EBON for 2.02 this morning. Bought it back for 1.69 this afternoon. No idea if that was a decent move or not but I just wanted to learn the mechanics of this. Not life changing money either way. To all you silent newbies out there, test it out. Slowly! Funny how you can understand things in theory but the reality of risk suddenly becomes more evident when you have real skin in the game.
The beauty of covererd calls is that its only a risk in terms of opportunity costRenoAg said:
Popped my cherry and became the newest member of the TA degenerate options traders club. Sold 1 $15 cc 5/21 EBON for 2.02 this morning. Bought it back for 1.69 this afternoon. No idea if that was a decent move or not but I just wanted to learn the mechanics of this. Not life changing money either way. To all you silent newbies out there, test it out. Slowly! Funny how you can understand things in theory but the reality of risk suddenly becomes more evident when you have real skin in the game.
And of course you still have the risk of the underlying stock you own that you sold the cc against potentially going to 0. I know it might not be likely and that's an extreme hypothetical. I just point this out because for a while I had to think about how it was possible to lose $ with a strategy of buying stocks and selling CCs against them. Seemed to be foolproof and too good to be true until I considered that you still own the shares and have the risk of that dropping just like you do simply owning the shares. But generating premium against them over time helps reduce that exposure until (if) you can get to a net free position. I'm sure that's very basic stuff to you veterans. Verrrrry basic. But as a newbie to options it took me a while to figure that out. Maybe I'm denser than most but I'm guessing there have been others trying to figure out why everyone doesn't do this and quit their day job. It's a sure thing, right? LOL.
The only think I don't like about it is you lose control of the shares. If you sell calls, and the underlying stock takes off, and you want to sell your position, you have to buy the call back at a loss and it cuts into your profits. Of course, if it's something you are holding long term, it doesn't really matter. If I'm wrong here, one of you experts can let me know.
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The math is easy.
It's why you don't cover all of your shares. Do you buy back at a loss or get your shares called away. It's why having a plan is important when these things start to run earlier than expected.
It's why you don't cover all of your shares. Do you buy back at a loss or get your shares called away. It's why having a plan is important when these things start to run earlier than expected.
losing control of shares is not necessarily a bad thing, by the way. It means that your trade probably worked out to your benefit and you have freed up capital you can deploy elsewhere.
You don’t trade for money, you trade for freedom.
I'm getting on an airplane this week for the first time in forever. It's gonna be weird.
In the mean-time, let's look at some charts.
$GOOGL looks good. Lots of energy being built up. when this moves, it will move bigly.
In the mean-time, let's look at some charts.
$GOOGL looks good. Lots of energy being built up. when this moves, it will move bigly.
You don’t trade for money, you trade for freedom.
$UPWK
Reasons for being in the trade are still valid. I want to see this be above $49 by the end of the week. At this point, a likely cut if it closes below $43. Notice that this does not yet have a reversal on the daily (close above high of low bar), but it is very close. It appears to be setting a higher low.
Reasons for being in the trade are still valid. I want to see this be above $49 by the end of the week. At this point, a likely cut if it closes below $43. Notice that this does not yet have a reversal on the daily (close above high of low bar), but it is very close. It appears to be setting a higher low.
You don’t trade for money, you trade for freedom.
$BTWN - I expect we get the stock's decision tomorrow on direction. It's either going to break the wedge or it's going to puke. No middle ground, really. Close below 11.5 and I think I'm out.
You don’t trade for money, you trade for freedom.
$ASAN - a little disappointed this didn't power through the 8 EMA today. I want to see $32+ by the end of the week and I'd like to see a confirmed reversal tomorrow / wed. This is pretty similar to BTWN. It's at support and it needs to power through . I'm probably out with a close below $28.5. I think this one has potential, though. Reasons for being in still valid.
You don’t trade for money, you trade for freedom.
$AAPL solid reversal, want to see this clear $130.
You don’t trade for money, you trade for freedom.
30K - mind showing us PLTR? Thoughts?
hold $24 and you should feel good about an entry.TMOOSE said:
30K - mind showing us PLTR? Thoughts?
Break and $22 is the next spot.
I am in April $30c I rolled from last month.
What are the pink dots?
Parabolic SAR study
GME earnings tomorrow. Chances they stink and it tanks?
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This, so much this....$30,000 Millionaire said:
losing control of shares is not necessarily a bad thing, by the way. It means that your trade probably worked out to your benefit and you have freed up capital you can deploy elsewhere.
I decided to go ahead and take profit and sell out of my BLNK shares today. With other stocks in my portfolio reacting a little more horizontally today, I figured I would rather have the cash to play in other positions.
I do like BLNK and think it may climb against rapidly soon, but there may be better opportunities and right now I'm learning so I am working to get my cash position stronger.
I do like BLNK and think it may climb against rapidly soon, but there may be better opportunities and right now I'm learning so I am working to get my cash position stronger.
Jet Black said:
GME earnings tomorrow. Chances they stink and it tanks?
By and large the idiots still holding aren't going to be run off by bad earnings.
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I exited BTWN today. Yes, I like who is running the SPAC, but SPACs have a huge target on their back, even in these mini monster rallies over the last 3 weeks (since the first sizeable dip). They really haven't done well versus the market.
I suspect, I can find a better entry later, and if not, there are plenty out there.
As for ASAN and UPWK, the other two largely followed newbie options trades, I am firmly in them and added today.
I should have gone played BTWN differently, but no sweat.
I suspect, I can find a better entry later, and if not, there are plenty out there.
As for ASAN and UPWK, the other two largely followed newbie options trades, I am firmly in them and added today.
I should have gone played BTWN differently, but no sweat.
I think for a large portion of retail who are holding, it doesn't matter what earnings show. They're holding and even buying, looking for huge returns.Jet Black said:
GME earnings tomorrow. Chances they stink and it tanks?
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I expect to make a lot of money due to PLTR, and if I don't, I'll be very disappointed.
I expect that we all should make a large % gain on PLTR before the top blows off and the escalator macro ride southward takes shape.
I expect that we all should make a large % gain on PLTR before the top blows off and the escalator macro ride southward takes shape.
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AG
leoj said:
I think another stock worth checking out is $CURI, they do documentary and factual type content. Recently offered a round at $13.50 just yesterday and you can look at the chart for the reaction, it got absorbed like nothing and then bounced 12% today which makes me really interested.
Curi reports after close tomorrow, insiders been buying, premiums all juiced up. Sold some 17.5 puts and some 20c on shares i bought a while back...
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