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rickyt31

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1 hour ago, Heimdallr said:

I made my first ever option trade.

Sold 5 SNDL covered call options 5Feb19 (3d) $2.50 strike

No idea how this works but we'll see what happens!

 

 

It means you sold your obligation to someone to sell your 500 shares of SNDL at $2.50 on 2/19 if the owner of those calls chooses to exercise them. He won't if the shares are below $2.50. If that happens you keep all the premium you collected for the calls you sold, plus you keep the shares. If it's over 2.50 and he exercises the shares will be pulled away, you'll be credited $2.50 for each share and you keep all the premium for the calls you sold.

The downside is.. if SNDL pops to $7.00 by Friday...you're only entitled to the capital gain up to 2.50.

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4 minutes ago, Shockwave said:

It means you sold your obligation to someone to sell your 500 shares of SNDL at $2.50 on 2/19 if the owner of those calls chooses to exercise them. He won't if the shares are below $2.50. If that happens you keep all the premium you collected for the calls you sold, plus you keep the shares. If it's over 2.50 and he exercises the shares will be pulled away, you'll be credited $2.50 for each share and you keep all the premium for the calls you sold.

The downside is.. if SNDL pops to $7.00 by Friday...you're only entitled to the capital gain up to 2.50.

Yeah, that is why I wanted to get into covered calls, it seems like it is a good way to make money with very little risk. Just trying it out on SNDL because it is cheap. 

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I had to get out of CCIV. MY Option i got  Friday at 880 sold for 1860. ITS LOSING ITS MIND RIGHT NOW!!!! 
 

Theyre going to MERGE but I took profit. went from 38 bucks to 54 bucks in 10 minutes. It keeps getting Halted

Edited by GHARMON9
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30 minutes ago, Heimdallr said:

Yeah, that is why I wanted to get into covered calls, it seems like it is a good way to make money with very little risk. Just trying it out on SNDL because it is cheap. 

Once you get comfortable with selling calls. Next step is selling puts to open a position and acquire shares. Then sell calls to exit the position aka The Wheel.

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24 minutes ago, GHARMON9 said:

I had to get out of CCIV. MY Option i got  Friday at 880 sold for 1860. ITS LOSING ITS MIND RIGHT NOW!!!! 

There's no way it can jump much more at the announcement I would think. What I find so stupid about this is that the price of the company has yet to be set, so it could end up being ridiculously overvalued as the market cap is set by those involved in the deal, and based off the price at $10. Technically no SPAC, no matter the company, is worth more than another until you know the valuation. An oil company with $1 million in revenue is worth the same (stock price wise)  as a EV company with $1 billion in revenue, if the valuation is right.

Edited by UncleAdamz
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8 minutes ago, UncleAdamz said:

There's no way it can jump much more at the announcement I would think. What I find so stupid about this is that the price of the company has yet to be set, so it could end up being ridiculously overvalued as the market cap is set by those involved in the deal, and based off the price at $10. Technically no SPAC, no matter the company, is worth more than another until you know the valuation. An oil company with $1 million in revenue is worth the same (stock price wise)  as a EV company with $1 billion in revenue, if the valuation is right.

I'm taking notes.

I'm learning to just take profits and leave. I got burnt WAYY too much trying to go to the Moon. 

And the few companies where I've held shares or Option during Merges. I always LOST money.

I also bought  some shares in case it rockets again.

Edited by GHARMON9
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1 minute ago, GHARMON9 said:

I'm learning to just take profits and leave. I got burnt WAYY too much trying to go to the Moon. 

Yeah I'm still learning to do the same as well, my total value always seems to go up a bunch and then lose like half the gains, and repeat. It's so tough for me because it is more painful to watch a stock that you sold out of continue to go up then to watch a stock you own give up gains.

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3 minutes ago, GHARMON9 said:

I'm taking notes.

I'm learning to just take profits and leave. I got burnt WAYY too much trying to go to the Moon. 

And the few companies where I've held shares or Option during Merges. I always LOST money.

I also bought  some shares in case it rockets again.

Yup. If you can get your original investment out, and leave the profits to still have a nice position that's the way to go if you like a company long term 

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Here's some cheap companies I'm currently in to help people out. All the stocks are currently under 10 bucks.

IM NOT A FINANCIAL ADVISOR!!! 

SENS, XNET, OGI, CRNT, WATT, HEXO, TELL, OEG, ATOS, and PAVM

Technically (AMC, EXPR) but they're getting shorted to the core of the earth.

 

 

 

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29 minutes ago, GHARMON9 said:

Here's some cheap companies I'm currently in to help people out. All the stocks are currently under 10 bucks.

IM NOT A FINANCIAL ADVISOR!!! 

SENS, XNET, OGI, CRNT, WATT, HEXO, TELL, OEG, ATOS, and PAVM

Technically (AMC, EXPR) but they're getting shorted to the core of the earth.

 

 

 

Only under a dollar that I have that isn't a penny stock roll of the dice to get rich lol are 

Trx and San.  Thought about rgls but it shot up today.  Waited too long 

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