they're not going to let QQQ close red, are they?

Good place to buy more RIG?

FJ43 said:

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Added a few to the SPY 435P I held over. These are just in case as partial insurance against trades.

If they turn into red then my trades should easily offset.

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For this week or next?

The minute I sell RIG I bet it takes off to $5+

AG 2000' said:

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FJ43 said:

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Added a few to the SPY 435P I held over. These are just in case as partial insurance against trades.

If they turn into red then my trades should easily offset.

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For this week or next?

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This 7/16

Wow. Hat's off to the bears. After that initial move downward, I assumed we'd just melt up into another ATH to close out today's session, but that is obviously not happening.

can someone AH explain the OA twitter where he bought 436 @$1 calls then shorted stock... I would think lets say you buy 2 contracts for $200. Then when it hit $2 sell 1 c(net free) and sell 100 shares?? Was that the play. What would be total cash needed to cover this trade 100X436? in margin available?

What's the set up here?

I just gave you an advanced option strategy that has the potential to make you thousands. Even at 10 calls and 500 shares short you are positioned to score a huge gain.

If you have 50 calls or more and 2500 shares+ then at +0.70 on the short you can cover 20% to even the trade

— 2021 Opportunity Stocks Knock (@oldarmy1) July 13, 2021

what i posted above

I can't believe the allowed a red close on NDX. QQQ still has 10 more minutes.

Colt98 said:

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what i posted above

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So he bought 7/16 $436 calls and shorted SPY?

I'll explain OA's tweet a bit later.

$30,000 Millionaire said:

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I'll explain OA's tweet a bit later.

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Too late to get in?

yes

Colt98 said:

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yes

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Well poo

QQQ end of day.

Same. Possible Shooting Star candle with alternative graphic.

CrazyRichAggie said:

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What's the set up here?

I just gave you an advanced option strategy that has the potential to make you thousands. Even at 10 calls and 500 shares short you are positioned to score a huge gain.

If you have 50 calls or more and 2500 shares+ then at +0.70 on the short you can cover 20% to even the trade

— 2021 Opportunity Stocks Knock (@oldarmy1) July 13, 2021

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I never saw the bat signal to buy the 436c, and his methods are NOT for everyone, you can't even do it in an IRA or 401k....

but he usually does this...

1) Buy calls (ie: 436c here)
2) SHORT SHARES OF EQUITY ABOVE CALL (Short SPY shares above $436....probably .50mx worth, ie short 500 shares on 10 calls)

Ideally your short gains cover the cost of the remaining calls you're holding....you're playing with net free positions?

Am I wrong on that last part?

MBIO below 3 again if anyone is looking to add for MA.

It was in the replies to the tweet on triple descending top pattern. I didn't see it in real time but just found it.

Drill down to see the replies:

I like to buy $436 calls here under $1 and if it breaks above $436 I short shares on half of the calls. Take risk out of the trade.

— 2021 Opportunity Stocks Knock (@oldarmy1) July 13, 2021

IMO 30k may be best positioned for potential downside play tomorrow. Outside of OA of course.

Trying to understand this as well. I don't know how to recognize these opportunities or for that matter how to structure them to reduce the risk.

wanderer said:

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I've read this post and the tweets/replies many times, but I still can't wrap my head around how this becomes a risk-free strategy. (This is in no way doubting you or the trade)

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Me too

you would do the inverse of this on a put, by the way.

So let's play a fantasy game (this will never happen ever again) and say that the market limits down to -5%. I bought some QQQ 362P at the 2:45 PM spike today for about $2. In pre-market, QQQ would trade around $344. I would buy # contracts x 100 shares at $344, which gives me a guaranteed profit of $16/contract or $1,600.

I could then do the following:

• do nothing and let it expire how it expires
• Keep the shares and sell the put for a tidy profit of $14 per contract
• Sell ITM calls against the shares to allow for more downside protection (e.g. sell QQQ 320 calls)
• Sell ATM/OTM calls against the shares and then use the premium to buy more puts or put debit spreads at a lower strike price

$30,000 Millionaire said:

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you would do the inverse of this on a put, by the way.

So let's play a fantasy game (this will never happen ever again) and say that the market limits down to -5%. I bought some QQQ 362P at the 2:45 PM spike today for about $2. In pre-market, QQQ would trade around $344. I would buy # contracts x 100 shares at $344, which gives me a guaranteed profit of $16/contract or $1,600.

I could then do the following:

• do nothing and let it expire how it expires
• Keep the shares and sell the put for a tidy profit of $14 per contract
• Sell ITM calls against the shares to allow for more downside protection (e.g. sell QQQ 320 calls)
• Sell ATM/OTM calls against the shares and then use the premium to buy more puts or put debit spreads at a lower strike price

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The poor mans way to do this, by the way, is to sell puts against your long puts. So you gap down and you sell a an OTM put for greater than or equal to what your original put cost you. This creates a free trade where you can benefit from further downside and in the worst case of a full bounce, you break even. I wouldn't recommend this by the way, but it is an option.

Ok. I'm still new to this and I almost never post, but I want to take a stab at explaining what I got from OA's post.

Ex.
Buy 10 436 C for $1.00 Cost $1,000 If the calls were executed this could purchase you 1000 shares at $436 per share for a cost of $436,000.

Now sell 500 shares at $436.20. This gets you $218,100. But you don't need to pay back the amount just the 500 shares.

Next SPY dropped to $435.50. Buy 100 shares of SPY to cover 100 of the 500 shares you borrowed. The 100 shares cost $43,550. $218,100 - $43,550 leaves you with $174,500 in your account and 400 shares outstanding.

The above was the setup.
Now for the outcome

If SPY goes up:
If you execute 4 of your 436C that would cost you $174,400. Meaning you execute those calls and cover your outstanding shares and still have $100. Plus you still have 6 436 C. Also, if you had to execute your calls then SPY went up, which means the premium on your calls also went up.
So in this case if SPY went to $438 you would execute your 4 calls and cover the outstanding shares. So your short netted you $100. Also, you have 6 $436C remaining. and at $438 they'd be around $2.30. You could sell the 6 calls for $1,380. Total trade netting you $480.

If SPY goes down:
If SPY drops to $428 and you purchase 400 shares for $171,200. You'd be left with $3,400 in your account. At this point the calls are worth nothing or ($1,000) so you would net $2,400 on the whole trade.

Either way you stand to profit post setup.
This is what I understand.

I trade in an IRA
can't short stocks
assuming buying Puts can accomplish the goal here?
- Re: OAs Calls while also shorting stock

RenoAg said:

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MBIO below 3 again if anyone is looking to add for MA.

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what were the details behind this MA? looking to add another next to WWR as I only discovered this thread earlier this year.

or UWMC for that matter if anyone else has thoughts? Trying to decide on which one!

jimmo said:

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I trade in an IRA
can't short stocks
assuming buying Puts can accomplish the goal here?
- Re: OAs Calls while also shorting stock

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The rough equivalent would be to buy 10 calls, sell calls on a spike, use profits to buy puts.