Anyone have any thoughts on nibbling on some SNAP shares? It gapped down today after another bad earnings. However, 6 of their last 7 earnings have resulted in a next day gap down, and it then goes up until the next earnings. Rinse and repeat.

Ag13 said:

---

CC09LawAg said:

---

Ag13 said:

---

CC09LawAg said:

---

Someone explain this like I am 4 because it seems too simple and I must be missing something.

If I have 100 shares of Stock A, and sell a covered call at a $10 strike when it is at $9 and the stock price shoots up to $10.50, what is to prevent me from just rolling that covered call indefinitely if the stock price continues to go up week after week if I want to hold on to this particular stock?

And if it does happen to go way down, I just buy it back at dirt cheap and start the cycle all over again?

---

The issue would be if it shoots up to $15 and then rolling does not making any real sense and you lose out on $5/share upside when your shares get called out at $10.

If it just shoots up to $10.50, then yes you could roll to an $11 or $12 strike in a future period, and likely come out ahead (for the time being) without giving up shares or upside.

---

That makes sense. I guess you would hope that with that kind of increase in stock price, you could sell a call further out at maybe a $17 strike price or something like that and end up with a net positive or even bid to keep from getting called out?

---

Maybe but at a $15 share price, the intrinsic value of a $10 call option is $5.00. This does not include all the other elements of pricing an option (including time to expiration, implied volatility, etc) so the actual price of the contract you are short and looking to roll will be higher than $5.00.

Selling a $17 covered call when the stock price is $15 for > the value of the $10 contract you already have sold is probably unlikely. So you could roll out the date, but you would likely be losing money on the transaction.

---

What exactly does it mean to roll it over? Does that mean buying to close the contract then selling to open at the higher strike value?

And out for more time. Yes.

I listened to the whole thing this morning and it was EYE OPENING!

Think whoever watched got woken up a bit if they didn't already believe in something like this.

I'll need to see one to believe anything. Hunter Biden and Biden family did...hey look aliens!
Sorry again for derail.

Go LUMN

DeangeloVickers said:

---

Anything we can buy to battle aliens?

A guy just testified under oath in Congress that we’ve removed alien bodies from crashed UFOs. pic.twitter.com/jGa8VKVHRx

— Clay Travis (@ClayTravis) July 26, 2023

And sorry a distraction. Thanks to all, this is one of my favorite threads on Texags.

---

Definitely Not A Cop said:

---

DeangeloVickers said:

---

Anything we can buy to battle aliens?

A guy just testified under oath in Congress that we’ve removed alien bodies from crashed UFOs. pic.twitter.com/jGa8VKVHRx

— Clay Travis (@ClayTravis) July 26, 2023

And sorry a distraction. Thanks to all, this is one of my favorite threads on Texags.

---

Preparation H and Astro glide. A lot of probing is about to happen.

---

They expose this stuff to the public and continue to keep the Kennedy Assassination documents "Classified".

Talon2DSO said:

---

Ag13 said:

---

CC09LawAg said:

---

Ag13 said:

---

CC09LawAg said:

---

Someone explain this like I am 4 because it seems too simple and I must be missing something.

If I have 100 shares of Stock A, and sell a covered call at a $10 strike when it is at $9 and the stock price shoots up to $10.50, what is to prevent me from just rolling that covered call indefinitely if the stock price continues to go up week after week if I want to hold on to this particular stock?

And if it does happen to go way down, I just buy it back at dirt cheap and start the cycle all over again?

---

The issue would be if it shoots up to $15 and then rolling does not making any real sense and you lose out on $5/share upside when your shares get called out at $10.

If it just shoots up to $10.50, then yes you could roll to an $11 or $12 strike in a future period, and likely come out ahead (for the time being) without giving up shares or upside.

---

That makes sense. I guess you would hope that with that kind of increase in stock price, you could sell a call further out at maybe a $17 strike price or something like that and end up with a net positive or even bid to keep from getting called out?

---

Maybe but at a $15 share price, the intrinsic value of a $10 call option is $5.00. This does not include all the other elements of pricing an option (including time to expiration, implied volatility, etc) so the actual price of the contract you are short and looking to roll will be higher than $5.00.

Selling a $17 covered call when the stock price is $15 for > the value of the $10 contract you already have sold is probably unlikely. So you could roll out the date, but you would likely be losing money on the transaction.

---

What exactly does it mean to roll it over? Does that mean buying to close the contract then selling to open at the higher strike value?

---

That's pretty much exactly what it means to roll a covered call. Here's an example from my portfolio (I'm not doing this trade, it was just the first covered call I spotted).



Current stock price of XLE is $86.22. I previously sold 2 covered calls for 8/18/23 expiration with a strike of $90. Using the mid-point numbers to make this easier - I could cover them right now for $62 per contract. At the same time I could sell 2 new contracts for 9/15/23 expiration with a strike price of $92 for $90 per contact.

So end result:
I have $54.70 in cash ($90-$62)*2 contracts - associated fees
I am short 2 call contracts with a longer maturity and a higher strike price

Hope this helps

Fed days always follow the same script.

Initial spike, big drop, then a slight recovery before the close.

storey979 said:

---

FJ43 said:

---

storey979 said:

---

First buy .78 yesterday

---

You can likely trade that for net free shares. Premiums on covered calls you'll have to go out a ways so trading it up and down and gaining free shares from this level the RR isn't much risk.

---

You just mean future options to sell and use the premium on shares? Im still fairly ignorant.

---

Sell covered calls to reduce your cost per share on long tern holding. As you do that over and over you will eventually have reduced your cost per share. Hopefully to nothing.

Trading it for free shares can be looked at several ways. Selling covered calls per the above or as an example:

Buy 1,000 shares for $1.00. Moves to $1.30 you sell enough shares to regain your original capital invested. You'll have 230 shares free or the balance is 'net free' or riding on 'house money'. Ideally you have a larger move ( as an example $1 to $2 and sell half) but you can go net free on some quantity of shares (assuming you bough enough) on many shares buys.

For me I only target net free if I think the chart or company has longer term potential. Otherwise I just trade it and move on.

Many ways to work a share buy……

Edit: Wrong emoji. Not sure why that posted.

10thYrSr said:

---

AT&T looks to be going low now. Concerns over lead wrapped lines and liabilities concerning that. People seem to think that they will need to spend billions to dig up old lines to remove the lead, but I have other opinions as an environmental consultant. They are at 13, but could go lower based on sentiment. Watch the price and invest at the uptick. This company isn't going away and the costs will be minimal. Investing heavy at the bottom myself.

---

You did alright here!

Goalpost alert on xxii? Looks like they just did a cash raise of some sort and canned their ceo, it used to be a weed stonk but now i guess their jam is low nicotine varieties of tobacco. Several years ago i had a lot of shares and they sent me a christmas card, which was nice!

Wow ostk

Spoony Love said:

---

FTAG 2000 said:

---

Stinks only go up.

---

That's why the farter sleeps on the top bunk

---

https://www.instagram.com/reel/CvAa7IbNYOL/?utm_source=ig_web_button_share_sheet

INMD

I need to do some digging but i refuse to believe LUV is dead. Grabbed aug 18 34c and I'll trim some if we retrace and touch 34.64, but I'm considering also selling some itm puts to add shares. Afraid of pead though

looks like SPY might fill yesterday's gap...and then do we rocket to the moon?? this market stops for no man

I kind of need a market crash just to motivate me to actually show up to work

Brian Earl Spilner said:

---

I'm buying more MSFT at $340.

---

I picked up additional shares yesterday at $334.76.

RightWingConspirator said:

---

Brian Earl Spilner said:

---

I'm buying more MSFT at $340.

---

I picked up additional shares yesterday at $334.76.

---

Gonna add at $330.