Stock market.... What are you doing?

[hoosierdoc]

it is getting REALLY complicated

I rolled BE and AAL calls today. I'm up $4.32/share on the covered calls on AAL now, in 7 days.

the BE i bought long at 26.5, sold $28 calls at for jan 15. today it was at 30.50 so I bought them back at 4.35. then I sold feb 33 for $4. I didn't want shares called aWay from me. so now my long shares are up $3 and I have $2.30 on premiums. The calls I just sold to open are already $0.70/share in the green, selling at $3.30

so much craziness right now.

 

[CHCRandy]

Another trade I am looking at is AMPE, very dangerous. Think I will add shares and turn and sell covered Jan. $2.50 calls @ 45-50 cents each. Then use the premium to add some puts on AMPE Jan $1 or 1.50 puts for a 5 to 10 cents.....using the other 30-40 cents to add TRVN and NRZ calls, for free. If I am thinking right.....worse case I should get out even.

Thoughts?

Geeze, Don't follow this trade now. AMPE just spiked 20%....didnt get all my shares before it happened.

 

[CHCRandy]

it is getting REALLY complicated

I rolled BE and AAL calls today. I'm up $4.32/share on the covered calls on AAL now, in 7 days.

the BE i bought long at 26.5, sold $28 calls at for jan 15. today it was at 30.50 so I bought them back at 4.35. then I sold feb 33 for $4. I didn't want shares called aWay from me. so now my long shares are up $3 and I have $2.30 on premiums. The calls I just sold to open are already $0.70/share in the green, selling at $3.30

so much craziness right now.

Doc, You ready to make being a Dr your side gig yet? lol.....

 

[hoosierdoc]

Doc, You ready to make being a Dr your side gig yet? lol.....

no, I am getting SO CONFUSED. I need one single spreadsheet that lists all active contracts and then can summarize in other sections.

there is a guy who sells spreadsheets in his easy store, I think I'm going to join his patreon also, drawbridge finance. he is so plain spoken and humble. so many of these options guys act like complete goobers

oh, and I did my first bull put split spread

 

[hoosierdoc]

went long in SURF a few days too late. sold two feb 12.5 calls at 1.60

 

[hoosierdoc]

did a dumb buy of NNDM at day high so I could sell covered calls.

I'm played out until I close things or written options expire worthless

 

[Mauser Fanatic]

Fingers crossed that they print enough money that we can get negative interest rate credit cards lol.

 

[CHCRandy]

lol, Mauser......I think this will end badly for many.

I had a good day with NRZ, added a bunch of Jan. $11 calls this week(very dangerous), just as gamble. I had ADXS today, so that was my big winner. I have no idea what it will do now. TRVN still looking good, still have not sold my covered calls on it. Dodged a bullet on AMPE, but man it rebounded quickly. Looking at AAOI now...and bought a little weed today when I added SNDL....risky, but I am hearing rumbles of merger maybe coming, and they are now debt free.

A company I am really doing DD on is DAN....that is Dana Corporation. I think that is a solid company, and now they have a footprint in electric vehicles. They make parts for a lot of the big companies.

 

[hoosierdoc]

talked to someone making 50% annually on MSFT covered calls. Basically 1%/week. AMD has same returns right now

 

[hoosierdoc]

sucked back in to MVIS again. sold some covered calls for January at a 15% return in 23 days. also bought some naked puts for $5 in January. 12% return in 23 days. if stock tanks and I buy, I'm in at $4.43, trading at 6.70 now

 

[NyleRN]

sucked back in to MVIS again. sold some covered calls for January at a 15% return in 23 days. also bought some naked puts for $5 in January. 12% return in 23 days. if stock tanks and I buy, I'm in at $4.43, trading at 6.70 now

Been on the MVIS train since August. Had 1250 shares with $1.77 ACB. I sold 1050 shares Tuesday afternoon for $9.21/share. Holding my other 200 shares for possible buyout. If it dips back into the 5's on Monday then I may buy back more. Merry Christmas to me

 

[hoosierdoc]

Been on the MVIS train since August. Had 1250 shares with $1.77 ACB. I sold 1050 shares Tuesday afternoon for $9.21/share. Holding my other 200 shares for possible buyout. If it dips back into the 5's on Monday then I may buy back more. Merry Christmas to me

nicely done!

that USOI tanked after dividend but went back up again

 

[***Ironhead***]

Let it ride.

 

[nonobaddog]

A call is a call, right? I mean does a naked call have the same dollar value as a covered call?

 

[CHCRandy]

A call is a call, right? I mean does a naked call have the same dollar value as a covered call?

Yes, same value. A naked call is bearish though.....or you expect stock to fall and not a very good way to go short a stock. I have never did a naked call, only naked puts. A covered call is bullish and the worse thing that can happen to you is you are forced to sell your shares at the strike price of the call you sold and you keep the premium, and secured with your shares, hence covered calls. Naked calls your loss is infinite if the stock rises....you would be better off buying puts if you thought stock was falling, I think.

 

[nonobaddog]

Yes, same value. A naked call is bearish though.....or you expect stock to fall and not a very good way to go short a stock. I have never did a naked call, only naked puts. A covered call is bullish and the worse thing that can happen to you is you are forced to sell your shares at the strike price of the call you sold and you keep the premium, and secured with your shares, hence covered calls. Naked calls your loss is infinite if the stock rises....you would be better off buying puts if you thought stock was falling, I think.

Thanks. If I do start trying options I would only do a few covered calls and nothing else except watching.
It seems that way is less likely to lose anything except opportunities and missed potentials.

 

[foszoe]

EVERY person starting out in options should do covered calls only. There's a reason brokerage firms make you sign all the disclosures for options trading and several 401K plans will allow covered calls but not full blown options.

 

[CHCRandy]

Thanks. If I do start trying options I would only do a few covered calls and nothing else except watching.
It seems that way is less likely to lose anything except opportunities and missed potentials.

Yes, I would recommend starting very small. The safest way to try options is just buy a standard call or put.....then you can only lose what you pay for options. A very good play right now if you want to try, is buy 1 contract of January $11 call at a dime or less. 1 contract is 100 options, so it would cost you $10 to try it. The most you can lose is that $10 + your commission, so with TDA your max loss would be like $10.70. Then if that stock would get news before expiration and pop in price....you could make $200 return on your $10, if it don't.......you will probably lose that $10. Little risk to high reward potential, that's what I like.

Covered calls is usually a way for people who are very long a stock, to use for income purposes. I have a buddy who has owned Apple since we were young men, I am serious when I say he has like a $5 average on it, and owns thousands of shares. He will never sell it...it will go to his kids. I taught him to trade options last year and told him about covered calls and how they work. He worked with his broker......since he didn't trust me, which I didn't blame him and suggested he check with his broker. He now sells covered calls constantly on his AAPL shares. He generates $15,000 or more a month on just his covered call premiums. The worst that can happen to him is he gets his shares called away, which he just rebuys the calls.....even if he loses money to buy em back occasionally. He now does this with his V and MC as well. It is just an income stream with no risk. If you do this you want to sell covered calls like weekly and make sure you sell calls far enough out of the money that you would be happy selling the stock for. The idea is to collect the call premium, but not losing your stock. People with deep pockets can do the same thing by selling naked puts, but to me it is much more dangerous since your downside risk is unlimited.

Here is a nice calculator you can play with and see effects of different trades. I always back test my trades, just to see what the max pain could be. https://www.optionsprofitcalculator.com/


Is it Monday yet? Merry Christmas guys!

 

[CHCRandy]

EVERY person starting out in options should do covered calls only. There's a reason brokerage firms make you sign all the disclosures for options trading and several 401K plans will allow covered calls but not full blown options.

I don't fully agree with that. Straight buying a call or put is easiest, safest and simplest option trade there is without a doubt. What you pay is what you can lose. No share price to be worried about, no stock being called, no covering if stock falls, no collateral.

If you are in a covered call and stock starts falling, like AMPE or BABA did.....you have done made all the upside you can make(when you sold call for premium), so now if stock loses 30-50%.....you will lose more on stock than you made on premium, unless you also bought puts, or buy puts when your stock breaks support. Just makes the trade complicated because you can not abort the trade and sell your shares without buying back the covered calls then selling shares. You kind of get your hand forced upon you.

I would agree if you are forever long a stock, regardless of what it does price wise.......by all means a covered call is the way to go.

 

[hoosierdoc]

I regret having bought long into some companies I wanted to sell options on