Shockwave Posted March 4, 2021 Share Posted March 4, 2021 And just like that the Nasdaq goes .5% positive lol Quote Link to comment Share on other sites More sharing options...
UncleAdamz Posted March 4, 2021 Share Posted March 4, 2021 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. Quote Link to comment Share on other sites More sharing options...
Shockwave Posted March 4, 2021 Share Posted March 4, 2021 (edited) 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 March 4, 2021 by Shockwave 1 Quote Link to comment Share on other sites More sharing options...
El Ramster Posted March 4, 2021 Share Posted March 4, 2021 This is a blood bath. Buying so many options for 2 years ahead. Best time to buy. Hurt now but ball later Quote Link to comment Share on other sites More sharing options...
Shockwave Posted March 4, 2021 Share Posted March 4, 2021 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. 1 Quote Link to comment Share on other sites More sharing options...
El Ramster Posted March 4, 2021 Share Posted March 4, 2021 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 ? Quote Link to comment Share on other sites More sharing options...
Shockwave Posted March 4, 2021 Share Posted March 4, 2021 (edited) 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 March 4, 2021 by Shockwave 1 Quote Link to comment Share on other sites More sharing options...
Shockwave Posted March 4, 2021 Share Posted March 4, 2021 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. Quote Link to comment Share on other sites More sharing options...
El Ramster Posted March 4, 2021 Share Posted March 4, 2021 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 Quote Link to comment Share on other sites More sharing options...
El Ramster Posted March 4, 2021 Share Posted March 4, 2021 By gawd this is aids. Nio at 37 LOLOLOL YO Quote Link to comment Share on other sites More sharing options...
bcb1213 Posted March 4, 2021 Share Posted March 4, 2021 (edited) 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 March 4, 2021 by bcb1213 Quote Link to comment Share on other sites More sharing options...
Ty21 Posted March 4, 2021 Share Posted March 4, 2021 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 Quote Link to comment Share on other sites More sharing options...
bigbadbuff Posted March 4, 2021 Share Posted March 4, 2021 1 hour ago, El Ramster said: By gawd this is aids. Nio at 37 LOLOLOL YO My option in NIO is from $42 so if I get over $50 I make 2 grand Quote Link to comment Share on other sites More sharing options...
UncleAdamz Posted March 5, 2021 Share Posted March 5, 2021 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. Quote Link to comment Share on other sites More sharing options...
UncleAdamz Posted March 5, 2021 Share Posted March 5, 2021 How can everything be down 5+% AH lol Quote Link to comment Share on other sites More sharing options...
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