I find a stock I want to buy and then either buy it, or if options are rich, I sell a short-dated put to net some premium. You've got to be comfortable not owning the stock if you don't get put the shares. But it all begins the same--what company and at what price do I like?
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Stock Thread (24 Viewers)
- Thread starter St. Louis Bob
- Start date
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Steeler
Footballguy
What constitutes "rich" for you? Is there some standard amount for options trading?
And do you do the same thing with covered calls? For example if you want to sell a stock you already own at a certain price, you will look for an option that meats you criteria?
McBokonon
Footballguy
Pipes
Footballguy
McBokonon
Footballguy
Nick Vermeil
Footballguy
Every crypto stock on my watchlist is up except for RIOT.
Bob Sacamano
Footballguy
JD - StarLink IOT platform?
GOOGL - Sky Map?
NFLX - Lost in Space, Space Force, Reeeeeeeacher
Not really much in the way of pure space plays in there.
Dwayne Hoover
Footballguy
Hopefully this thing has some life in coming weeks. I'd like to think it does but today's high sure didn't last long.Pipes said:
So far risk reward was not that great.
Upcoming catalysts should be
EUA in USA (hopefully not priced in already)
Good sources of media coverage
results of trial with Remdesivir
interest from other countries, if they could get a surprise country or four, would definitely help
possible sale to a BP
paging @Whyatt
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BassNBrew
Footballguy
You briefly mentioned it, but the Philippines allowing the purchase of one dose would be huge.
dkp993
Footballguy
dkp993
Footballguy
I moved from GME to RIOT and am losing more money over there. Guess I’m getting a free gamma squeeze.
Do we expect RIOT earnings to be bad? That’s the only way it shouldn’t be moving up with BTC
.I don't have a strict metric because the degree to which I want to own a stock varies so, like for TDOC, if I don't get put the stock, I'm not going to be bumming which means I'd be happy with a decent return of that premium. That one is roughly 6% of the cash used to secure the put and the time horizon is under three weeks. That's an easy one for me to pull the trigger on. (6% in three weeks, yes please). With something like PLTR that is very volatile, I may sell some puts and also buy some stock outright to give some flexibility. And, yes, I do sell covered calls on stocks that I wouldn't mind selling but I have soured on covered calls lately. That will happen in a bull market, as huge gains are lost for meager premiums. I don't sell as many covered calls in this environment but, as growth stocks have been beaten down and I find myself wanting to buy them, cash-secured puts are my trade of choice, claiming those juicy premiums and getting the stock if it is put to me.Steeler said:
One thing I will NOT say, which I know bossman has claimed, is that this is "free money". For instance, I sold puts on QS after the dilution and at the time, I was happy with a strike price of $55. It is down more than 15% from that level and that was a losing trade. Now, I am going to be put that stock and I will hold QS, and hopefully it will turn profitable. And, yes, I would have lost even more money had I bought QS when it was trading at $59 rather than selling the put against it. But even so, it was a losing trade so I don't want to paint selling puts as foolproof. But to your original question, I am always looking at one month or less, and hoping to get 5% to 8% ROI in premiums. That, to me, is rich (unless some crazy catalyst / risk is on the horizon.)
Bob Sacamano
Footballguy
You didn't ask me, but for me it depends.Steeler said:
1. I'm not a big fan of covered calls, especially for growth stocks. The premium is rarely sufficient to compensate for the upside you're selling off.
2. I will, however, sometimes use them in exactly the situation you described. But...*
a. It depends on the situation and the stock. If I've been sitting on RDSA for 5 years, and I just want out at $50, there's no way I'm chancing it touching $50 and missing my exit. So, despite having a defined exit point, no, I would not sell a $50 covered call on that.
b. If I'm sitting on a boatload of PLTR, and I know I'm planning to sell a tranche at $35, but I'm also comfortable holding it long-term, then yes, I might sell $35 covered calls for that tranche knowing it's both my exit point on those shares AND that I'm comfortable if I have to hold a little longer to get there.
*The examples used in #2 are totally fictional and in no way, shape, or form represent real life situations as far as you know.
Even in the face of the best Covid top line data to date, there remains a lot of skepticism in HGEN, most of the reasons which were mentioned previously in this thread.
No way the value of EUA, expected sales in US/ex US, and a fully approved drug by the end of the year which will likely have value in helping cancer treatments is captured in today’s closing price.
Just my opinion. I bought more shares this afternoon at $21.66.
I’d tell you to do your own DD, but you’ve already shown to ignore my perspective previously.
JAA
Footballguy
Physical game media will always exist. This is reason 69 as to why: https://arstechnica.com/gaming/2021/03/sony-will-shut-down-online-stores-for-legacy-playstation-games-this-summer/
JAA
Footballguy
Physical game media will always exist. This is reason 69a as to why: https://arstechnica.com/gaming/2021/03/activision-releases-online-only-pc-game-without-online-content-cracked-in-one-day/
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Dwayne Hoover
Footballguy
Second largest holding is PRNT (Cathie's 3d printing etf)
Hmmmmm
Definite pass on this one for me
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Dwayne Hoover
Footballguy
Haha, we're on the same team bud. I don't like your fondness for Adam Feuerstein but I bought into HGEN pretty hard.I’d tell you to do your own DD, but you’ve already shown to ignore my perspective previously.
KGB
Footballguy
Kinda BS. It was up like 10% when I checked at like 2AM I think that market opens
KGB
Footballguy
FreeBaGeL
Footballguy
RIOT was up the day before when bitcoin was down a good bit. Just falling back in line by doing the inverse today I think.
David Dodds
Administrator
Regarding GME:
Major shares were borrowed this morning. I can't predict the markets, but the last time this happened the bad guys drove the price to $120 (It rebounded a day later to $180).
https://gme.crazyawesomecompany.com/
Major shares were borrowed this morning. I can't predict the markets, but the last time this happened the bad guys drove the price to $120 (It rebounded a day later to $180).
https://gme.crazyawesomecompany.com/
NVIDIA, Lockheed, Boeing and Alibaba as well.
Ok, I know some of you in here are familiar with DNMR. I bought a small amount as a recommendation but still need to finish the position. It’s getting hammered today after announcing earning. It looks like based on their capacity and growth that next years P/S will be about 10, which for a growth of almost 50% looks really cheap. No idea what numbers were expected or if this is just sell the news regardless.
I wish I held off on adding partial positions over the past couple months as things kept moving down but it does feel oversold (not just DNMR) where buying now could be a great long term win once tech or growth stocks aren’t out of favor.
I wish I held off on adding partial positions over the past couple months as things kept moving down but it does feel oversold (not just DNMR) where buying now could be a great long term win once tech or growth stocks aren’t out of favor.
I feel like I should jump in on some things but they keep going down. I own some IPOE, SKLZ and OPEN (sold all at $30, bought some back at $29. All down a ton now but I haven’t finished positions. Some are starting to get close to day 1 SPAC merger announcement prices. Lots of others like CRWD and FSLY looking interesting as well.
JB Breakfast Club
Footballguy
GME seems really comfortable in the 180-200 channel. I'll be looking to buy if we see another attack on the price. More executives named today as the overhaul continues.
NajehHejan
Footballguy
I have one account that is just getting killed. Last week I was close to capitulation and just selling off everything but a cooler head prevailed and I decided to hold. Fast forward a week and I’m probably down another 10-15%. I guess I ‘ll keep holding (you can’t lose if you don’t sell for a loss) but does anyone have confidence any of these will ever recover? Here are my total losses so far on these dogs.
ZOM – 16%
UWMC – 14%
PLTR –13%
BNGO -27%
CPNG – 6%
ZOM – 16%
UWMC – 14%
PLTR –13%
BNGO -27%
CPNG – 6%
McBokonon
Footballguy
Do you really mean "ever" or in 3 weeks or something? I only ask because most in this thread get fed up after a month of holding something without 300% gains.
NajehHejan
Footballguy
Good point. It's money in an IRA that I can't touch for 15+ years. So in true reality 15 years out but I guess I really mean in the next 6-12 months.....
Texas Football
Footballguy
I'm in and down on UWMC. I'm holding a bit longer. Everything is getting smashed and I think this will rise soon. I should say I "hope".
Can't comment on the others.
fruity pebbles
Footballguy
With as much as rates rose this morning, I’m surprised the market is holding up as well as it is. I would have expected a full tank in the Nasdaq particularly.
McBokonon
Footballguy
6-12 months is really still very short term, so it's hard to say.
I don't know ZOM at all, BNGO is a promising spec but it's a spec, so it could take a while, I don't like any mortgage lender really but at least UWMC will pay you a fat divvy while you wait, PLTR, I dunno, seems to be getting hammered along with all growth. CPNG is interesting but you'll need to navigate lockup expirations probably (those aren't always bad). They lose most of their advantages if/when they try to expand outside of Korea (logistically) but it's growing fast.
Depends on the rest of your IRA, like if you have some bedrock stocks along with these.
I’m a bit confused on why rates going up affects the Nasdaq more than other stocks.
fruity pebbles
Footballguy
Rising rates discounts future earnings which is a big component of a lot of tech stocks and their future growth.
-OZ-
Footballguy
I'm in for ten whole shares
Todem
Footballguy
When interest rates rise it will cause these short term price movements and create long term opportunity to get into some names you never had, or wanted to add too.
At some point rates will stabilize and the adjustment to the economy will take shape and people will keep consuming long term.
If you believe in this....you invest in this. For the long term.
If you are overweighted like most people are in names like AAPL, AMZN, GOOGL, NFLX, FB etc etc. This is a great chance to take some profits and rebalance your portfolio into more defensive names. There has already been a clear rotation into value stocks.
Here are some names to consider to diversify your portfolio:
BA
CAT (has had a monster run but nibble here)
EXC
GIS
MCD
PEP
KO
PM
RTX
LMT
T
VZ
WMT
AMT
BMY
DEO
NKE
LLY
DE (it has had a monster run so I would nibble here and wait for a pull back to take a full position here)
CMI
GCV
MDU
PEO (to have a nice diversified oil/energy portfolio)
CVX - if you want to own big oil and own the stock
XOM - ditto
CYBR (has come down and this is a great cyber security name that has a nice upside from here)
GM (I am for the first time in a very long time saying yes to a car company. GM is well positioned and poised for a major multiple expansion over the next decade this is a great entry point IMO).
ADX - (A great growth closed end fund if you do not have a lot of funds to spread out. If you want to own big tech and some other great blue chip growth names....take a look at this fund)
Of course wee have a highly speculative names here:
BLDP
QS
Those are my top picks in hydrogen and EV.
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-OZ-
Footballguy
I'm holding UWMC, mostly because I've actually liked using the company. Also the numbers look good from my pov.
dkp993
Footballguy
Capella
Footballguy
There was a PR today about some good news (allegedly good) but I dunno. This stock is so insane nobody can really figure it out.
