I don't get what DELL is doing. Really thought we had a bull flag and earnings were solid.

Added Sep $26, Oct $27, and Nov $27 calls in SLV.

Heineken-Ashi said:

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Added Sep $26, Oct $27, and Nov $27 calls in SLV.

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So, to clarify for the amateur investor, you expect SLV to exceed these prices in those months so you can purchase SLV at the above-mentioned prices and automatically create profit? Or you will sell the calls at a higher premium and book profit - and not own any SLV shares?

South Platte said:

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Heineken-Ashi said:

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Added Sep $26, Oct $27, and Nov $27 calls in SLV.

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So, to clarify for the amateur investor, you expect SLV to exceed these prices in those months so you can purchase SLV at the above-mentioned prices and automatically create profit? Or you will sell the calls at a higher premium and book profit - and not own any SLV shares?

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September will be selling for quick profits if it goes back up. Oct will likely be quickish profits too. November I am looking for SLV $30+

I have a boat load of shares in SLV. I don't need more. Calls will be sold or expire worthless.

Ideally, I want $28-$29 by September. The original thesis of an August/September boom in an election year is waning. So these Sep and Oct calls are an attempt to grab a little profit to offset the higher calls I've held for months that might not pan out as expiration approaches. Ideally, we would see $30+ by the election. These Nov $27's are my second tranche of November calls. I already have December $28 and $30 calls. Also bought some Nov $28's earlier in the week.

If silver continues to go down over the rest of the month, all September calls will expire worthless. I'm mostly net free on total positions (all strikes and dates), so it would suck, but not be catastrophic. But Nov, Dec, and Jan positions are starting to be built, as I'm still very bullish long term and need to replace the Septembers in case they don't pan out.

Heineken-Ashi said:

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ALB has dropped below the 61.8% retrace of its last move up and now recovered. Really need that to hold as bottom. If so, I've got some targets going up and applied a loose wave count as possible path. Yellow is an alternate bullish path showing a choppy diagonal up which does grow in probability when Wave ii drops below the 61.8%.

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Did not hold and has gotten quite deep. Yellow is best case if previous low can hold. I'd honestly prefer it sell to a marginally lower low and provide a better bounce off that low to project even higher moving into next year.

For those of you who like selling puts. CLSK October $8 net you over 12% in premium right now. I'm selling some here to lower basis on existing shares and close to doubling my share position.

I normally sell puts when I have a decent cash position and do it with rock solid companies like AAPL, MSFT, AMZN, etc about 10-15% out of the money where I either clear the premium or own the stock at a discount to current MTM...just curious, how do you generally trade short put positions???

EnronAg said:

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I normally sell puts when I have a decent cash position and do it with rock solid companies like AAPL, MSFT, AMZN, etc about 10-15% out of the money where I either clear the premium or own the stock at a discount to current MTM...just curious, how do you generally trade short put positions???

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I usually only do it during dips in bull markets. Haven't done one in months. But this one is coming into my target zone, I already have a position, I plan to add to the position, so this is a great way to lower basis. But like any put sale, it's risky in that there's over a month to expiration, and should the stock slip substantially lower I'll be assigned shares at a likely premium to where the price might be. But with this one, I'm ok with that.

South Platte said:

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Heineken-Ashi said:

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Added Sep $26, Oct $27, and Nov $27 calls in SLV.

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So, to clarify for the amateur investor, you expect SLV to exceed these prices in those months so you can purchase SLV at the above-mentioned prices and automatically create profit? Or you will sell the calls at a higher premium and book profit - and not own any SLV shares?

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Since H-K has mostly addressed this, I'll just add a few thoughts.

• It seems that H-K and I have very similar views on buying calls - I consider it a pretty risky speculative play, which to me means I am comfortable with the "hero or zero" outcome. I will make a good profit (usually in the 50% - 100%+ range), or they will expire worthless, meaning I lost all my investment. This is not investing with a mind to own the stock for me, it's simply a relatively low-cost (compared to buying the stock) leveraged way to profit from an upside potential I feel strongly about. I almost always close an option position before expiration.
• Ditto on buying put options. Same story, different direction.
• Selling either put options or call options without holding the underlying equity has a whole different risk profile. I would recommend against either, until you've written covered calls (or initiated buy/writes) on existing positions for a while to see how they behave.
• Obviously, the biggest downside is that these suckers expire at a given point, so they constantly "decay" due to the diminishing time left to achieve your goals. This is part of what makes them so risky. They are also relatively illiquid (they're traded in MUCH lower volumes than equities), which makes it tougher to both enter and exit a position at your chosen transaction price. The main exceptions are SPY and QQQ options, which are heavily traded.

At the end of the day, options are like dating: buying calls is essentially speed-dating a stock, buying equities are more of a marriage type of commitment. You can still divorce them, but when dating, you can drop them anytime a better option comes around. There are some serial breakup/makeup people on this thread - - Brian Earl Spilner has an interesting relationship with TNA, as an example.

Early next week is going to be very telling. If you made me attempt to predict the next two months right now, I'd say we sell into FOMC, explode out of it and trade up through middle of October. I wouldn't trade on that though. We're short gamma and in the midst of a period of heightened volatility. Could last a lot longer too.

Good write up and accurate. Options are extremely risky and risk management is significantly harder. Noviced should stick to buying shares where you can set stops.

I bleed maroon said:

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South Platte said:

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Heineken-Ashi said:

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Added Sep $26, Oct $27, and Nov $27 calls in SLV.

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So, to clarify for the amateur investor, you expect SLV to exceed these prices in those months so you can purchase SLV at the above-mentioned prices and automatically create profit? Or you will sell the calls at a higher premium and book profit - and not own any SLV shares?

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Since H-K has mostly addressed this, I'll just add a few thoughts.

• It seems that H-K and I have very similar views on buying calls - I consider it a pretty risky speculative play, which to me means I am comfortable with the "hero or zero" outcome. I will make a good profit (usually in the 50% - 100%+ range), or they will expire worthless, meaning I lost all my investment. This is not investing with a mind to own the stock for me, it's simply a relatively low-cost (compared to buying the stock) leveraged way to profit from an upside potential I feel strongly about. I almost always close an option position before expiration.
• Ditto on buying put options. Same story, different direction.
• Selling either put options or call options without holding the underlying equity has a whole different risk profile. I would recommend against either, until you've written covered calls (or initiated buy/writes) on existing positions for a while to see how they behave.
• Obviously, the biggest downside is that these suckers expire at a given point, so they constantly "decay" due to the diminishing time left to achieve your goals. This is part of what makes them so risky. They are also relatively illiquid (they're traded in MUCH lower volumes than equities), which makes it tougher to both enter and exit a position at your chosen transaction price. The main exceptions are SPY and QQQ options, which are heavily traded.

At the end of the day, options are like dating: buying calls is essentially speed-dating a stock, buying equities are more of a marriage type of commitment. You can still divorce them, but when dating, you can drop them anytime a better option comes around. There are some serial breakup/makeup people on this thread - - Brian Earl Spilner has an interesting relationship with TNA, as an example.

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Fully agree with the exception of selling puts. I do that to buy the stock at a price I want or collect the premium if it doesn't get that low. The decay works in my favor there.

I only buy calls on SLV to avoid a K-1

FishrCoAg said:

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Fully agree with the exception of selling puts. I do that to buy the stock at a price I want or collect the premium if it doesn't get that low. The decay works in my favor there.

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I will stick with my assessment in advising novice traders. Selling $90 puts on a $100 Enron stock that's headed for $1 virtually overnight can be pretty bad, especially in an illiquid trading market. At least you could have some hope to sell the Enron stock before it tanked too badly.

Selling naked calls - - unlimited risk of loss (not too many are brave enough for this)

Selling naked puts - - risk is up to the underlying stock going to $0

Hey guys, my wife and l are unable to make tomorrow's game at Kyle Field. If anyone is interested in my 2 tix (free), send me an email at username @ flash.net. They'll have to be transferred via 12thman app. Sorry, no parkiing pass available.

Game is at 1145 am..seats are in sec 117, so it'll be toasty if sunny. Let me know.

FishrCoAg said:

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I bleed maroon said:

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FishrCoAg said:

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Fully agree with the exception of selling puts. I do that to buy the stock at a price I want or collect the premium if it doesn't get that low. The decay works in my favor there.

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I will stick with my assessment in advising novice traders. Selling $90 puts on a $100 Enron stock that's headed for $1 virtually overnight can be pretty bad, especially in an illiquid trading market. At least you could have some hope to sell the Enron stock before it tanked too badly.

Selling naked calls - - unlimited risk of loss (not too many are brave enough for this)

Selling naked puts - - risk is up to the underlying stock going to $0

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No more risk than buying the stock itself if a free fall like that happens.

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Disagree. You can easily set stops for stocks. Not advisable for illiquid positions like puts.

But, we're getting technical and philosophical, here. I mostly agree with your advice, but only for experienced traders.

frankm01 said:

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Hey guys, my wife and l are unable to make tomorrow's game at Kyle Field. If anyone is interested in my 2 tix (free), send me an email at username @ flash.net. They'll have to be transferred via 12thman app. Sorry, no parkiing pass available.

Game is at 1145 am..seats are in sec 117, so it'll be toasty if sunny. Let me know.

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Email sent!

EliteZags said:

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LFFFFGGGGGGGGGGGGGGGGGGGGGGGGGGGGG

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Yessir I bought some 33C and some 35C just in case.

IEP bag-holder here, JFC.

I'll be buying X (US Steel next week). I think it has one more leg up into the $60's. Stop will be this week's low.

Reward 6x risk. I do that all day.

For those that care to get technical, this has the classic makings of an ending diagonal. Meaning a choppy pattern that progresses price in the predominant direction with buyers slightly inching out sellers. It usually happens in series of 3-wave moves both up and down. But once it terminates, it retraces back to point of origin which is under $20. So I'll set intial target at $59, stop at $26.90, and then file it away until one of those price levels hits. If it surpasses the previous high of $50, I'll move my stop up to that level to guarantee profit and not risk a sudden reversal.

is this a play that the Biden administration is bluffing about blocking the sale to Nippon?

Seems like they're SOL if they get blocked.

Diggity said:

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is this a play that the Biden administration is bluffing about blocking the sale to Nippon?

Seems like they're SOL if they get blocked.

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Yup. And could be. Lots of negative news this week.

What changed today versus yesterday? 3 pages back you said you weren't going to touch steel with too many headwinds. And I still agree about the hurdles in the industry. Just trying to understand what the chart is showing now.

IMO, the sale will go through. It's an immediate jump to $55/share.

I'll be buying next week as well. Forgot to jump in today.

Heineken-Ashi said:

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So about that rotation into small caps.. do yall now see why I said dont trust it?

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I ended up listening and took a chunk of profit in both XBI/ARKG and the Russell on August 29th when the Russell was a little over 2200


I still have some of each but I'm OK with where I stand

PLTR and DELL to join SP 500

Well done!

Spoony Love said:

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What changed today versus yesterday? 3 pages back you said you weren't going to touch steel with too many headwinds. And I still agree about the hurdles in the industry. Just trying to understand what the chart is showing now.

IMO, the sale will go through. It's an immediate jump to $55/share.

I'll be buying next week as well. Forgot to jump in today.

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I looked at the X chart and saw a pattern I liked. Coupled with the potentially overreacted selloff.

Still bearish steel. But if the sale goes through, like you said, it's got a magnet on its price. Once it tops though, it's going to roll hard. I'm also very bearish on CLF, one I gave so many opportunities to for years.