OT: Stock and Investment Thread
- Thread starter RU05
- Start date
Aright, I'm doing something I haven't done since I was a novice investor. I'm buying a stock on a tip, a sure way to lose money but I'm doing it anyway. I bought some IDEX on your recommendation, and I'm coming after you if I lose any money :YesNo
Hey man, you tipped me off to GBTC so the investing gods owe you one.
Or do they punish you after a hot tip pans out? I'm still new to this. Let us know how it works out.
So looking at OLN's 3 yr chart. Late Sept it was trading around $12. Currently $50, so monster move, but very steady climb upwards, no huge spikes, and only a few minor dips.
During this run the daily volume is significantly lower then the proceeding 2 years of trading. I assume this is a bullish signal in the short term, and the time to sell, or at least think about selling, is when you start to see volume's increase?
During this run the daily volume is significantly lower then the proceeding 2 years of trading. I assume this is a bullish signal in the short term, and the time to sell, or at least think about selling, is when you start to see volume's increase?
Not in on this one but BBBY is up 40% today.
Is this the why?
Is this the why?
Yikes. Okay well in that case we’re in this together, so let’s go! PS, what price did you get?
A few weeks ago I bought 100 shares of AMC at 9, sold it at 14 and thought I was a genius. Jeez, just looked and now it’s at 64. Unbelievable.
I had it at $5 in Dec, before it was a meme stock, thinking it merely a reopening play. Think I lost some money on it and then sold.
I don't sweat it too much because no way I would have held till $64.
I'll repay you with a tip. LC, trading around 16, potential for a 10X growth. Highly recommended by a fintech/Wall St guy I respect.
And those that bought GME $350 puts are thanking their lucky stars that AMC has become the meme stock de jour.
You mean those that sold puts. it needs to hit 350 by Friday to lose money.
I’m still short. Actually shorted more to cost avg. it’s just like going to the casinos.
Who would have thought the market manipulation would continue and now the AMC CEO is buddies with the Reddit crew. The SEC is full of incompetent knuckleheads.
My other tip, Ocugen (OCGN), just spiked. I mentioned it here this morning when it was at 8.30, it went down to 8.07 so I bought more. Hit 9.55 a few minutes ago...
So here's a question regarding selling calls.
Say I own a couple hundred shares of a stock, and I want to sell.
Could I not sell calls for a couple days/weeks out at a slightly higher then current price, and if it hits great I got the higher price plus the option premium? And if it doesn't hit I at least got the option premium?
Say I own a couple hundred shares of a stock, and I want to sell.
Could I not sell calls for a couple days/weeks out at a slightly higher then current price, and if it hits great I got the higher price plus the option premium? And if it doesn't hit I at least got the option premium?
Selling calls is to generate income on a stock you expect it to be trading sideways. Shouldn’t sell calls is you expect a run up on stock price because you limit your upside.
But let's say the stock has been on a run, and I want to trim down anyways, take profits. I have a target price. Why just sell at that price? Why not try and collect the option premium(is this the proper terminology?) as well? Maybe it goes up I get that higher price and I get the options premium.
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You don't limit your upside - you lose money selling calls on a stock whose value increases
Wait what? Just when I thought I was beginning to get a handle on this.
Maybe you mean uncovered as opposed to covered calls?
I've read a few things on options and still have no f'ing clue, which is fine. It's something that I shouldn't bother with.
FYI - ends with an option idea:
If you write/sell a covered call and if the stock reaches the price of the call, then your stock could get called away at the strike price and you get to keep your premium.
Example would be as following:
Write/Sell 1 covered call (100 stocks) of stock ABC at a strike price of $15 for $1 premium at expiration of 1 month from now and the current price is $10. If the stock moves up to $18 by expiration date, then you would essentially lose $2 (really $200) since you would collect $15 for the stock and $1 premium instead of selling the stock for $18.
But would you agree whit this:
I own 1000 shares of ABC and the plan is to trim when the price hit's 15. Why not sell a call and collect that premium? In either case if it continues to go up beyond your strike point you lose out on the upside, but in the case of selling the call, you collect the premium.
It would depend on the premium of the written call, implied volatility, etc. Most people don't sell covered calls just to collect the premium. You could end up really regretting it. An example would be the following. If you purchased ABC at $10 and plan to sell it at $20. If you say to yourself, well I am planning to sell it at $20, so why not make a little extra and write a covered call. But there is usually a reason that a stock would jump, perhaps a catalyst such as strong earnings or a new product which will make the company lots of money. At which point, you would typically say, no way I would sell it at $20, but in a covered call situation, you would have no choice.
Real life example would be a stock like AMC. If you bought at $10 and plan to sell at $20. Yes you even collect $1 premium, but you would miss out on the further upswing. Remember, for most stocks in most times, there is a reason the stock moves up.
Well, the price could drop. From risk perspective, you are not trimming down by writing cover calls.
Do you mean why don’t they? Options trading and short trading is in many ways very abstract and difficult to imagine. The derivative market is mostly for expert traders. There is a tremendous amount of math involved. My suggestion would be to read a basic book like Options playbook by Brian Overby (although there are many other out there). The best way to get a feel of options and short trading is to just start doing it. I would start by trading at or near the money call options and get the feel of how they work. Then branch out and do the same for put options. If you still like it and are starting to understand it especially how the Greeks work then start writing covered calls/puts. Finally, when you feel really good about it then move into writing uncovered puts and calls. This is the advice I give to all our junior most associates.
That's what this line of questioning is leading to.
Think I'm going to sell calls on a position I own but wouldn't mind losing if it hits the strike price.
Been looking over a couple options chains(?).
It’s math. If you collect $1 prem and the stock dropped by $2 vswhere you could’ve sold, not good.