Jump to content

Stock Investing


rickyt31

Recommended Posts

37 minutes ago, UncleAdamz said:

How can this even happen to the market? This is one of the craziest days I've ever seen. Looks like it wants to pop either up or down 3%, just can't decide.

Papa Powell goosed it being dovish but then started talking about inflation and it crashed again

Odd kind of day. Indexes all down deep red but the "safe havens" GOLD and BTC also down...while Oil which typically trades with the overall market up huge. Granted OPEC extending production cuts to May was the catalyst but everything just seems off today

Edited by Shockwave
  • Like 1
Link to comment
Share on other sites

9 minutes ago, El Ramster said:

This is a blood bath. Buying so many options for 2 years ahead. Best time to buy. Hurt now but ball later 

When buying leaps like that you should look into selling out of the money short term calls against them (poor mans covered call). Lets you collect some extra premiums while you hold the leaps.

  • Like 1
Link to comment
Share on other sites

7 minutes ago, Shockwave said:

When buying leaps like that you should look into selling out of the money short term calls against them (poor mans covered call). Lets you collect some extra premiums while you hold the leaps.

Watcha mean. Like puts ?

Link to comment
Share on other sites

14 minutes ago, El Ramster said:

Watcha mean. Like puts ?

No. So when you sell covered calls your shares are your collateral. So my average on RIOT is 47.50. I sold $60 calls for April for $14.00 ($1,400) a pop. So if by April 16th RIOT is under $60 I keep all that premium on the calls and just resell the next month for another shot of premiums and I still keep the shares. If it's over $60 the shares will get called away and i keep the capital gains and the premiums or I can choose to roll out the sold calls to a later date for a credit.

In a poor mans covered call your leap is the collateral. Because your leap controls 100 shares it can be exercised for the shares. So you can sell covered calls as long as you hold it.

So say you bought an AMD leap, the 75 strike for June 2022 costs you $1750. You could sell weekly 85 calls for $80 a pop. If AMD stays below 85 then you keep the $80 for nothing, and then sell the next Fridays for another $80-$100.  If AMD gets up around that price you then roll out the call to a later date at a higher strike for a premium credit and in the meantime your leap gains more and more value because it's Delta is much higher then the calls your selling.

Edited by Shockwave
  • Like 1
Link to comment
Share on other sites

Right now I'm absolutely losing my pants on my RIOT shares....

But... my covered calls I sold are rapidly losing value as well plus suffering time decay. My shares won't expire due to time and can come back if held. Granted RIOT could go to $0 and I lose all my investment in the shares but the calls I sold WILL eventually expire. So the guy that bought my calls is in a much worse situation overall. He's fighting the stock dropping and time decay. He needs the shares to go all the way back to $55 plus a good bit more to get back to even on his position because time and IV drop have eaten away at his contracts.

Link to comment
Share on other sites

11 minutes ago, Shockwave said:

No. So when you sell covered calls your shares are your collateral. So my average on RIOT is 47.50. I sold $60 calls for April for $14.00 ($1,400) a pop. So if by April 16th RIOT is under $60 I keep all that premium on the calls and just resell the next month for another shot of premiums and I still keep the shares. If it's over $60 the shares will get called away and i keep the capital gains and the premiums or I can choose to roll out the sold calls to a later date for a credit.

In a poor mans covered call your leap is the collateral. Because your leap controls 100 shares it can be exercised for the shares. So you can sell covered calls as long as you hold it.

So say you bought an AMD leap, the 75 strike for June 2022 costs you $1750. You could sell weekly 85 calls for $80 a pop. If AMD stays below 85 then you keep the $80 for nothing, and then sell the next Fridays for another $80-$100.  If AMD gets up around that price you then roll out the call to a later date at a higher strike for a premium credit and in the meantime your leap gains more and more value because it's Delta is much higher then the calls your selling.

I remember now ty

Link to comment
Share on other sites

Now that I have time, the SPAC I got into is spgs.u

 

Simon property is one of the smartest retail companies around.  I thought about getting into their regular stock a few weeks ago at 90 but waited too long.  I'm extremely interested to see what their SPAC comes up with acquisition wise .

 

I also love the fact you get an option to buy more shares in the future at a preset price if you get in now 

Edited by bcb1213
Link to comment
Share on other sites

In the biggest diamond hand move ever, I’ve watched my $490 in AITX and HCMC inflate to $3300 at its peak and fall all the way back down to $900 now lol. It very well could come back down to its original numbers or lower but idc. This was always money I was okay with losing since I understood these stocks are the worst stocks to take a chance on 

Link to comment
Share on other sites

5 hours ago, Ty21 said:

In the biggest diamond hand move ever, I’ve watched my $490 in AITX and HCMC inflate to $3300 at its peak and fall all the way back down to $900 now lol. It very well could come back down to its original numbers or lower but idc. This was always money I was okay with losing since I understood these stocks are the worst stocks to take a chance on 

Literally every stock I've owned this year did this lol, went from up 100% on NPA to barely down now. 

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...