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Stock Thread (7 Viewers)
- Thread starter St. Louis Bob
- Start date
Not entirely true. Options are easily misunderstood and often dismissed as extremely risky. Some are. Some involve selling calls or selling puts in which risk is mitigated, they are safer than stocks, and returns are muted not amplified. I’m mostly a seller of options which I will not explain here. The interested reader can do a search on selling calls or selling puts to get comprehensive info from the pros.
ConstruxBoy
Kate's Daddy
Selling out of the money options is the way to go, IMO
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Insoxicated
ConstruxBoy
Kate's Daddy
Let's say there is a stock I like at $50/share but it's currently at $65/share. So I can sell a put to buy 100 shares of that stock at $50 in the next month. Someone will pay me $400 to do that. So now I have $400. If the stock stays above $50, then I just have $400. If it drops to $50, I use $5000 to buy the stock from the person who bought my put. I wanted the stock anyway and I got an extra $400 for waiting until it dropped to $50.
Of course, the "cost" of doing this is that I need to have that $5000 in cash in my account, or I should, in case I need to buy the stock. But I'm paid $400 to keep that cash on hand, which is an 8% return and usually would be better than investing that $5000 for a month.
Of course, the "cost" of doing this is that I need to have that $5000 in cash in my account, or I should, in case I need to buy the stock. But I'm paid $400 to keep that cash on hand, which is an 8% return and usually would be better than investing that $5000 for a month.
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Insoxicated
Gotcha. And the risk is if the stock goes to 40 you're stuck for $1000 loss (unrealized)
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ConstruxBoy
Kate's Daddy
Yes, true. You need to have the conviction that $50 is a good price for that stock and you really should be investing longer term, not trading. At least in my opinion.
Is that Chicago Bulls player Michael Jordan or Charlotte Hornets owner Michael Jordan? He’s fantastic as a player but he’s been extremely below average in the front office type stuff.
It’s a high profile name but I can’t say that his “business” acumen has been anything to write home about. He does like to gamble however so maybe this is to rope him in as a user as he’s got the money to lose.
beef
Footballguy
Portnoy had a good line on twitter, in that the 13% rise makes sense if it means DKNG is getting Jordan's gambling action.
Yep. We’ve officially now hit the peak of silliness. Jordan getting added to the board couldn’t be more of a share price mania. I mean he’s been terrible running an NBA franchise. He’s the goat at basketball but outside of his well known gambling, he hasn’t shown anything that tells me he helps DKNG grow. He’s window dressing but RHs are going to eat that up.
Don Hutson
Footballguy
Seems similar to Shaquille O'Neal's relationship with Papa Johns. The companies want these guys for ads. But Shaq and Jordan are "businessmen" and want to be taken seriously. Doesn't hurt to add them to the board. The other board members now get to rub elbows with a legend. And we get pepperoni that goes all the way to the edge.
Lol on the edge. I agree, it’s window dressing for ads. The only difference is that Shaq is in the ads, he’s not doing it to help them run their company.
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Capella
Footballguy
ChiefD
Footballguy
Papa John’s went through all the racial issues with John and he joined the board/became an ambassador and partial store owner. He has a deal to get paid to be an ambassador (said $8M over 3 years), which probably includes the ads.
I don’t want to say the company isn’t trying because they were and they did that before all the protests this year. That said, I don’t think Shaq is heavily involved in the business as much as being a paid ambassador that also does add diversity to their board. I thought he was just doing ads but I do think the situations are more alike than I realized. If it brings in new business then it’s good advertising.
Agreed. Was up almost a percent and now down about the same. Can’t complain after yesterday’s rally for me.
SHLL is one of the EV stocks I don’t get. They do big rig up fits to get them to hybrids or something like that. Seems like a very niche business that could work but then get overwhelmed by actual EV/hydrogen big rigs. It’s rallied way more than any of the other EV truck stocks and I have no idea why.
@BassNBrew FMCI has been running. It’s one of the SPACs I do like for the future.
-OZ-
Footballguy
SouthJersey
Footballguy
Caesar
Footballguy
beef
Footballguy
If FVAC is moving on more news, I can't quite seem to find it. Jumped 10%+ late last week on filing news. Not sure what is causing today's 10% rise.
cosjobs
Footballguy
cosjobs
Footballguy
I've traded them several times with goof success, buying in the 120s and selling in the 140-150s
cosjobs
Footballguy
MMEDF
Psychedelic drug mfr. Lots of positive indicators on mental health applications. Currently in a Phase2.
Gonna be lots of mental health issues on the horizon. Currently at .37
Price history relatively stable for a six month old, otc penny stock drug dealer
eta- don't be afraid to be rich
Psychedelic drug mfr. Lots of positive indicators on mental health applications. Currently in a Phase2.
Gonna be lots of mental health issues on the horizon. Currently at .37
Price history relatively stable for a six month old, otc penny stock drug dealer
eta- don't be afraid to be rich
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The General
Footballguy
cosjobs
Footballguy
BLMN up another 2.5% so far today.
If you are an amateur chartist like myself, real good chart here. Jumped past a resistance gap at 16.30, but we are getting awfully close to that upper trend line in the low 17’s.
If you are an amateur chartist like myself, real good chart here. Jumped past a resistance gap at 16.30, but we are getting awfully close to that upper trend line in the low 17’s.
The General
Footballguy
I believe right after I got in at the 140's you (someone in here for sure) talked about getting in when it got back to the 120's. Hopefully you (or whoever) did, was a great call.
eaganwildcats
Footballguy
cosjobs
Footballguy
Another one Cramer loves. I stupidly bought at 20 and sold at 18 two days later and happy to get it. It will need to touch 15 for me to bite again
Steeler
Footballguy
What software do you use for looking at charts? I'm just getting started and use market watch.com with some SMA and EMA lines on it... but it doesn't have the ability to add trend lines and things like that (at lease that I could see).
cosjobs
Footballguy
Wish I could help more, I used to have stuff I used but my job for the last few years doesn’t allow me to day trade so I stopped actively doing it (I have to hold a stock for at least 30 days before I can sell, stupid insider trading laws even though I have zero access to insider info.) So I generally just look at some of the free articles and sites that have them like the one I linked. I personally like candlestick charts and looking at some basic things like 50 & 200 EMA.
We have a few guys on here that are bigger chartists than me and might can offer better advice. I think there are some posts buried in this thread with advice too.
Shula-holic
Footballguy
Back after a short break, only still holding JPM and PPL from earlier. Looked up the onion after I sold in the 10s and that was like a gut punch. Oh well, on to the next one.
Sand
Footballguy
Selling covered calls = safe, downside limited
Selling naked calls = unlimited loss potential
Buying Puts, Calls = safe, downside limited
Selling puts = unlimited loss potential
Sorry - have to disagree with you on that one. When evaluating whether to get into these vehicles (futures, options, leveraged ETFs), it's always good to see the worst that can happen. A good story to peruse the the optionsellers saga. On levered items, the TVIX debacle.
Totally IMO, but I believe that just buying and selling stocks is hard enough. Adding a time component makes options so incredibly difficult that I highly doubt most amateurs come out ahead. Options are a zero sum game - there is a winner and a loser. At least in the markets if you just buy and forget you have a ~70% chance that it'll rise over time.
eaganwildcats
Footballguy
beef
Footballguy
This one might start hurting me a bit to the point I cut some losses and shave it a bit. Not there yet, but not sure I want to buy it down more either.
