Homeless, millennials, homeless millennials or all of the above.
OT: Stock and Investment Thread
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Homeless, millennials, homeless millennials or all of the above.
Speaking of millennials, I read a WSJ article this week that said millennials were managing to afford insane housing prices by tapping their retirement accounts and by purchasing houses with friends/family. The latter struck me as odd but I noted that a few houses in the $1M+ range that recently sold near me had like 5 cars in the driveway and what appeared to be multiple families standing at the foot of the driveways when I was stuck behind a school bus. And the parents were all relatively young. Bizarre if true.
Let's wait for the fall inflation #'s to start rolling in, shall we? Even tomorrow's data is mostly summer. Sorry, the calendar is what it is.
The cost savings is nothing new. Companies have tried to relocate operations to FL or India since early 2000. There are too many type A personalities that will allow remote work on the business side.
Interesting article on Tech stocks vs. Bond yields:
Vast oversimplification. There are benefits, but having their tax cake and eating it too because of remote working is a myth. In you have EMPLOYEES, not independent contractors, working in a state you still have presence in that state and subject to taxation in that state. You'll save money in many cases due to allocation rules but you're anything but home free.
#homefree
Most companies couldn't move in the past, but now can do so with enhanced workplace flexibility.
Twaddle. And if you look back companies can and did move in the past. The only thing home free is your fact free oversimplification.
they also expect to retire earlier than all other gen groups. delusional group they are
That's litigation waiting to happen. The problem is for them that with land prices insane builders are building as big as they can. I see little construction of what were called starter homes. Of course I also see a tendency, and it began with the latter part of Gen X, an expectation to be able to get one of the McMansions.
Rolling over in-the-money covered calls.
I own a fairly small position in EDU. And I've sold the Oct 15th $2 calls against it. The stock is currently selling at $2.35, and the calls are selling for about .36 cents.
The Nov 19th $2 calls are selling for .55 cents. So I can earn about 8% additional premium in a month if I roll that call over till next month. Now I do not take part in what ever upside the stock may enjoy(say it goes to $3), but I'm also so far in the money, that the stock price could drop 15% and the contract would still hit, thus my downside is limited.
Am I missing any considerations here?
I own a fairly small position in EDU. And I've sold the Oct 15th $2 calls against it. The stock is currently selling at $2.35, and the calls are selling for about .36 cents.
The Nov 19th $2 calls are selling for .55 cents. So I can earn about 8% additional premium in a month if I roll that call over till next month. Now I do not take part in what ever upside the stock may enjoy(say it goes to $3), but I'm also so far in the money, that the stock price could drop 15% and the contract would still hit, thus my downside is limited.
Am I missing any considerations here?
8%, pre paid, in a month is pretty good.Yes, you will make more money by buying and holding.
Are you saying that you wrote a covered call that was in the money and now you want to write another call at the same strike price that is longer dated? Did you get called out for the Oct 15th call option?
As you pointed out, you will “…not take part in whatever upside the stock may enjoy…”. I think I relayed the story early on in this thread that what you point out is what keeps me out of covered calls if I like the company. I almost did with Amgen, Microsoft, and JNJ in the early ‘90s. Had I gone down that road I would have made a few bucks at the time but missed out on a substantial six figure gain I got by holding on. That left me convinced that if I liked the company, industry, and it’s position in the industry, then stay with buy and hold. Of course, if you are indifferent or something changes that makes the stock less attractive, then maybe covered calls are fine. Just my opinion for me, and not necessarily others. I really am not an active “trader.”
We are of the same mindset. Buy quality and hold. We are on track for a retirement beyond our most bullish dreams by doing this. Thank you PNHSX, PRHSX, TRBCX, PRGTX, FDGRX, and a few newer others.
And I'm just a fund/etf guy. Absolutely no stocks until earlier this year.
Everyone is different and no real right or wrong but I’m with you. When people ask me, I generally recommend a well diversified portfolio of funds/ ETFs that have low expense ratios. I have about 18% of my portfolio in individual equities but don’t trade often and will hopefully leave these to my kids who will get a stepped up basis (unless tax laws change…). Have no problem with people having some fun with “play money” but suggest people draft a personal investment plan plan and generally adhere to it to avoid behavioral finance mistakes.We are of the same mindset. Buy quality and hold. We are on track for a retirement beyond our most bullish dreams by doing this. Thank you PNHSX, PRHSX, TRBCX, PRGTX, FDGRX, and a few newer others.
And I'm just a fund/etf guy. Absolutely no stocks until earlier this year.
1)It was out of the money when I wrote it.
2)Yes. Though I could, if I go far enough out, roll to a higher strike, with a similar call price.
3)I still hold the call as of now.
EDU in particular I have no attachment to. But I do have some calls out on stocks I do want to hold long term.
Part of this is trying to see how viable it is to sell calls on stocks I want to hold long term, but I'm stumbling on these situations where in a case like EDU can I just keep this option ball rolling down the road for awhile.
Your trade is not what I envision “rolling a call”. I think of it as buying a call and then closing it out and using the proceeds to purchase a higher strike call. For example, stock XYZ is at $2 and I buy the $3 call expiring October 22 for $0.50. The stock runs up to $7 and the call is now worth $6. I would then close my $3 call option for $6 and use the proceeds to buy another call option for December 22 at strike price of $8 for let’s say $2. I would make $6 for closing my call and spent $2.50 for the two call options. I made $3.50 and now playing with house money while still maintaining my upside call. I don’t think of “rolling a call” when writing a call and definitely not in the money options.
A good place to roll calls would be in the high beta energy stocks. There is likely more upside room. You can lock in your gains and still make more money if the price of oil and high beta energy stocks go up.
Kind of along those lines my aunt just recently bought some PLUG, and it immediately jumped.
It is a trade for her, so I asked what price she wants to sell at. She said $40. Which would be good for a 50ish% return. So I said she could sell the March $40 strike calls good for a 10% premium.
So in this case she has a price she would look to sell at. So she would not miss out on upside, the downside here is holding the stock longer then she may want, say it gets to $40 in Dec, the $ is tied up for 4 additional months, but I would think that if you get a 60% return, if the downside is waiting a couple extra months, that is not so bad.
It is a trade for her, so I asked what price she wants to sell at. She said $40. Which would be good for a 50ish% return. So I said she could sell the March $40 strike calls good for a 10% premium.
So in this case she has a price she would look to sell at. So she would not miss out on upside, the downside here is holding the stock longer then she may want, say it gets to $40 in Dec, the $ is tied up for 4 additional months, but I would think that if you get a 60% return, if the downside is waiting a couple extra months, that is not so bad.
I just learned the term myself, but I think I'm using it accurately. Pretty sure actually given I can click the "roll" button on my call holdings and that is what comes up.
Anyone in on CRSP? I was talking to a buddy of mine and they are a cancer research company working on different therapies for patients. Anyone have any DD or thoughts? Seems to be down 50% from its ATH and about 30% down over the last 3M, down 18% over the last 1M. Feel this would be a great time to get in on a product that could potentially be ground breaking in a couple years.
A Cathie Woods ARKK stock so many here will sing it's praises. However some disappointing test results were released yesterday so I hope your time horizon is years and not weeks.
Kathy Wood stock, I know that, so definitely a fwd looking company and fwd looking investment. Current P/E is reasonable around 20, but it did not make money in 2020, and it's not projected to make money in the next couple years.
Rev's are funny too, $800 million in 2021, but projected $46 million in 2022. Current market cap of $7.4B, so current price to sales(sales not earnigs) is a reasonable 8x, next years price to sales look to be about 140x, which is super expensive. It's 2019 revs were $719K
Projections are for it to get back to $600 mil in revs by 2024.
So again, fwd looking investment, very long term.
I'd look into how it made money in 2020, was that covid related? And does that give an inkling as to how viable their platform is.
CRSP is really pushing the bounds of medical science and understanding of gene editing therapy. It may be the next big thing like CAR-T or traditional gene therapy or it may lead nowhere. Or it may take 20 years to figure it out. I have no idea what it will be. Betting on individual winners and losers in the health sciences industry is a tough game.
My industry screams for a fund/etf strategy.
Ha, so I've definitely realized the downside of selling calls just out of the money.
Yes, I can roll those calls out, but I need to buy that call back to do so, as opposed to originally selling it further out of the money, where the chances are better I can let it expire, and then resell the next week.
I really want to be this guy.
Yes, I can roll those calls out, but I need to buy that call back to do so, as opposed to originally selling it further out of the money, where the chances are better I can let it expire, and then resell the next week.
I really want to be this guy.
Had to roll out my call option on board recommendation OCGN.
Sold the $8 strike early this week, but the stock took off, and is currently at $9.71
Was able to roll out to the Nov 12th $10 strike and collect a little more premium. So that one rolled well. Not too far out, 25% higher strike, and still collected additional premium.
I'm up 50% in this one, not including the option premiums.
Sold the $8 strike early this week, but the stock took off, and is currently at $9.71
Was able to roll out to the Nov 12th $10 strike and collect a little more premium. So that one rolled well. Not too far out, 25% higher strike, and still collected additional premium.
I'm up 50% in this one, not including the option premiums.
I feel like genomics breakthroughs have been 2 years away for the last 15 years. Agree with you... long term play with an enormous upside.
Genomics is to medicine as solid state batteries is to energy.
Well at least it's not fusion electric generation, which has been 20 years away for the last 50.
It’s a good thing you are only doing cover calls. I think most trading platform offers option trading classes. I also think they should not have given you the ability to trade option unless you didn’t answer the questionnaire honestly.
Everyone that can sign their name gets the option level that allows covered calls.
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Your goal should be to have the calls that you are writing to expire worthless, but it seems like you are well in the money on the calls you are writing. Do you have enough stock to cover all of these calls that you are writing?
yes everything is covered. And when I wrote the calls they were just out of the money. Previously(granted I've been trading options for about weeks) I was writing calls pretty far out of the money, but I wanted to try out writing calls closer to the money for the higher premium. and yeah now that I'm having to roll some over, and yes I do have a couple stocks that took off this week and thus the calls are now well in the money, I'm realizing the lesser premium, and the higher calls for those stocks I want to hold, is the better strategy.
Though, on a stock like EDU, which I don't care about holding long term, rolling calls well in the money(for a future call well in the money) and earning 8% premium in a month, on a stock I don't care about, is an interesting strategy as well. It being well in the money limits the downside of the stock dropping 15% this month.
I just hope the positions didn't have significant unrealized capital gains if they were in a taxable account.
Take the win and move on. Also, Google option Greeks. It might help you determine which strike you want to sell your call at.