OT: Stock and Investment Thread
- Thread starter RU05
- Start date
You don’t have to answer every question. Sometimes less is more. I respect your knowledge but I start to wonder about you when you do this.
Sorry, no idea! I don't do options.
You don't have to read every post. Lighten up, this is an online message board for a college sports program.
I would have but Schwab wouldn't let me. Apparently I can buy and subsequently close both puts and calls but no naked calls. I wonder if I have bought 100 shares back when GME was at 20 I would be allowed to sell a covered call. There are some maniacs out there who would basically be giving me money.
There is tremendous risk in selling naked calls in a stock like GME. It moves for unclear reasons and could end up moving up to $1000 by the time you are done taking a piss. You could use a strategy like call spreads or sell covered calls to mitigate risks. Selling covered sells in some ways is like getting a dividend on a stock.
I still don't understand this but Jon Najarian talks about using calls in Apple in this way. Says he yields 20ish%.
Eventually I'll put the time in to figure this stuff out.
As per GME, I don't think the energy is there for this thing to take off again. Those guys may be able to hold the line, but back over $500? I'm thinking that mania is over.
Last edited:
I think you're overstating the risk of a stock moving from 200 to 350 in 2 weeks, though risk clearly exists.
E-Trade has a thing.
And dare I say, Youtube??? Though, I'm sure the quality of instruction varies widely, which would bring us back to your question.
Politics is tricky. Even with a deal, will the deal meet the expectations of the street?
Done. Sold CAT. Great run, but current p/e just way high relative to historical, even with expected growth it looks very pricy.
Going to transition to AMZN, whose P/E is currently higher then CATs, but AMZN's P/E is significantly lower then what it has been historically, and it's fwd growth is better and I'd assume more sustainable then CAT's. While CAT has been on a great run the past 9 months, AMZN has been pretty stagnant. Thinking AMZN is ready to break out of it's 9 month range.
Still own OSK in the industrial sector. Fairly high historical P/E but not as drastic as CAT, yet it looks to have better growth prospects. Also looks to have more in roads in the EV market having recently signed a deal with US Gov't to make EV(and other lower carbon vehicles) for the postal service.
Going to transition to AMZN, whose P/E is currently higher then CATs, but AMZN's P/E is significantly lower then what it has been historically, and it's fwd growth is better and I'd assume more sustainable then CAT's. While CAT has been on a great run the past 9 months, AMZN has been pretty stagnant. Thinking AMZN is ready to break out of it's 9 month range.
Still own OSK in the industrial sector. Fairly high historical P/E but not as drastic as CAT, yet it looks to have better growth prospects. Also looks to have more in roads in the EV market having recently signed a deal with US Gov't to make EV(and other lower carbon vehicles) for the postal service.
Bought more TELL on 5/13, which is up about 40% in two weeks. That's been a great add.
Bought REI on the same day and only up a couple points.
Not sure why these guys trade so differently. I'll have days where REI is atop my board while TELL is near the bottom, and vice versa. I'd think they would trade much closer together.
Still like them both though in the medium term, both still way below pre covid levels.
Bought REI on the same day and only up a couple points.
Not sure why these guys trade so differently. I'll have days where REI is atop my board while TELL is near the bottom, and vice versa. I'd think they would trade much closer together.
Still like them both though in the medium term, both still way below pre covid levels.
Personally, I would go to B&N and get a book on options investing that is 5+ years old with breakeven illustrations. I wouldn't trust anything the internet or today's generation of Greater Fools tried to teach me.
I write naked puts against roughly 25% of my margin buying power to generate income for myself and sell covered calls against any stocks I'm assigned to cover the margin interest. In an up market, it's money for nothing. In a down market, I'm leveraging up for a potential rebound. It's not as exciting as watching CNBC all day and buying the same thing that 400,000 other people are buying at the same time, but it gets the job done.
+1
There are a bunch of solid China companies, but they are caught in the political BS (via China itself and the ongoing US/China issues).
Agreed. Selling naked calls (or uncovered calls) means you don’t own any shares of the underlying security so you’d potentially have to purchase shares at the then market value. Theoretically, the exposure and risk is huge and unlimited.
Selling a covered upside call when you don’t think the stock is going to go up will generate cash for you. Same as dividend. I used the same philosophy with TSLA at $800-900. It generated income of more than 20% which was then deployed elsewhere. This also allows you to create income stream from growth stocks that don’t have dividends. The risk is that you can be wrong and the stock will go up and you will get called. That’s why selling naked calls in a highly volatile stock can be dangerous. If the millennials decide to put all of their stimulus check into GME then the stock could skyrocket. It only has to be up above the strike price for a moment and you could lose big.
I bought mlm, etn and cat when infrastructure $ started, looks like might be slowing down due to nothing being passed and different definitions of infrastructure in the bill
Another post for the archives.
I would like to thank Ford for the free Tesla advertising.
The key word in your post is THEORECTICALLY. Just like THEORETICALLY, every stock can go up unlimited.
Ford makes the big announcement! 40% of all cars to be EV in 2030. Uh? Can't be 40% pregnant. They will never be an EV player.
Ford’s F Series trucks have been its best-selling vehicle for 44 years, with annual volumes exceeding 600,000 units. I think the Cybertruck is interesting but the novelty will wear off. Then you have Rivian, GM Hummer, etc. Only time will tell.
I always laugh when you bring the stupid. LOL. Zip it and let the adults talk about EVs.
FYI, great proactive move by TSLA.
Tesla set to pay for chips in advance in bid to overcome shortage
Ah yes, “talk” about EVs…you meant to say pump Tesla. Amazing how quickly all of the Tesla homers disappeared while Tesla’s stock cratered. The Ford Lightning is just another example of a serious EV challenge for Tesla. When Joe Farmer in Nebraska takes the EV plunge he’s going Ford. That truck will eat up the Midwest and South. Who’s the target market for the Cybertruck - Martians and rappers?
“Stupid” is losing money…and you seem pretty good at that…