Sanrith Descartes
Von Clippowicz
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Investing General Discussion
- Thread starter Furious
- Start date
Hateyou
Not Great, Not Terrible
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Ive got 25 PFE from a couple weeks ago, so not much but it’s up 14%, I’ll take it.
- 2
Sanrith Descartes
Von Clippowicz
- 41,536
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I'm pretty picky with most of my SPACs. I really have to like the underlying company they are merging with.
TZAC is an exception. I got it hoping for a quick flip if it catches fire. NFIN, FVAC, SHLL and PSTH (hopefully) are ones I can get behind for a longer term hold.
Blazin
Creative Title
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Sanrith Descartes
Von Clippowicz
- 41,536
- 107,628
Loser Araysar
Chief Russia Correspondent / Stock Pals CEO
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TJT
Mr. Poopybutthole
- 41,086
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JAMF IPOd this week too. Expecting strong growth here for two reasons. They specialize in corporate mobile device management that will only increase. They've displayed strong growth leading up to the IPO.
Second. They're a Vista Equity Partners company. Which has one of the best track record of any venture capitalist company out there. They only invest in tech companies and just about everything they've touched turns to gold. Although a lot of their portfolio stays private.
www.jamf.com
www.vistaequitypartners.com
Might be worth a buy. I'm only holding off right now because I want all of the cash I have available to put into Snowflake.
Second. They're a Vista Equity Partners company. Which has one of the best track record of any venture capitalist company out there. They only invest in tech companies and just about everything they've touched turns to gold. Although a lot of their portfolio stays private.
Mobile Device Management
Jamf is the standard for Apple mobile device management (MDM). Visit us to learn more!
www.jamf.com
Portfolio – Vista Equity Partners
The Vista portfolio of enterprise software companies drives positive change, innovation and growth across industries. Explore Vista companies.
www.vistaequitypartners.com
Might be worth a buy. I'm only holding off right now because I want all of the cash I have available to put into Snowflake.
Blazin
Creative Title
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I don’t have much to add to the wall street bets type of gambli...I mean investments that seem to be the topic de jure but I did buy First Energy (FE) which declined about 40% on investigation reports. Seemed way over done, up 7% so far on it.
This is rather basic for those who are familar with trading options but I know we have some who are new or unfamiliar with it so I wanted to share the downside of selling calls on positions. For those not familiar a covered call is when you sell a contract to agree to sell your shares at an established price at a set future date if the stock is trading at or above that price (the strike) on the day the contract expires. For example, I've bought Walmart around $116 about a month and a half ago and I began selling calls against it usually that would expire 1-2 weeks out at a strike price of $122-125. Each time I did that I would only collect maybe $40-60 per 100 shares which isn't much but over a period of time can easily triple the income on top of the dividend. Now the downside, Walmart+ info is leaked and the stock jumps up to $133 and the week that happened I had a call sold against it with a strike of $126 so my shares were sold at that price. So I missed out on $7/Share of gains but I only collected $1.23/share in total from selling calls.
So was it worth it? In this particular case the answer is no, now obviously it is still a nice problem to have as having your shares called away means you made money on the principal plus your collected premiums, but there was an opportunity cost. I watch every month and track how much I collect in call premiums vs the loss of potential gains from having them called away. For July I'm running a pretty bad streak for losing my shares. This is because the market is so strong that when it relentlessly climbs it becomes far more likely for this method to struggle as stocks hit their strikes repeatedly. I have lost WMT, XLU, BRKB and now will likely lose PFE this month. All great trades, all good money makers but money left on the table, and the month isn't over I have a few others that are close to their strikes, KO and XLF. Despite this however, I have still collected more premium in July than I have lost in potential upside even with the record number of names being called away.
You can mitigate this by selling strikes that are further out and simply collecting less premium, the higher the premium you collect the more likely you are to lose your shares so some of it is striking the right balance. I have been doing this for awhile and it takes time and data to really min/max properly. Adapting your behavior to the market, knowing when to pull those strikes in and when to push them out.
As one more aside, if for example you have an option on Coke (KO) at $48 and it's the day of expiration and it's trading at $48.10, you don't have to lose your shares. You can simply buy to close the trade and give 0.10 of your collected premium back, and then roll it (sell a new call further out) at a higher strike. So being close to the strike is fine blowing it out by 3-5% is when you normally will just let the shares go.
When this does happen I usually immediately begin selling cash covered put on that name to get my shares back usually at a significant price improvement. But that's another post...
This is rather basic for those who are familar with trading options but I know we have some who are new or unfamiliar with it so I wanted to share the downside of selling calls on positions. For those not familiar a covered call is when you sell a contract to agree to sell your shares at an established price at a set future date if the stock is trading at or above that price (the strike) on the day the contract expires. For example, I've bought Walmart around $116 about a month and a half ago and I began selling calls against it usually that would expire 1-2 weeks out at a strike price of $122-125. Each time I did that I would only collect maybe $40-60 per 100 shares which isn't much but over a period of time can easily triple the income on top of the dividend. Now the downside, Walmart+ info is leaked and the stock jumps up to $133 and the week that happened I had a call sold against it with a strike of $126 so my shares were sold at that price. So I missed out on $7/Share of gains but I only collected $1.23/share in total from selling calls.
So was it worth it? In this particular case the answer is no, now obviously it is still a nice problem to have as having your shares called away means you made money on the principal plus your collected premiums, but there was an opportunity cost. I watch every month and track how much I collect in call premiums vs the loss of potential gains from having them called away. For July I'm running a pretty bad streak for losing my shares. This is because the market is so strong that when it relentlessly climbs it becomes far more likely for this method to struggle as stocks hit their strikes repeatedly. I have lost WMT, XLU, BRKB and now will likely lose PFE this month. All great trades, all good money makers but money left on the table, and the month isn't over I have a few others that are close to their strikes, KO and XLF. Despite this however, I have still collected more premium in July than I have lost in potential upside even with the record number of names being called away.
You can mitigate this by selling strikes that are further out and simply collecting less premium, the higher the premium you collect the more likely you are to lose your shares so some of it is striking the right balance. I have been doing this for awhile and it takes time and data to really min/max properly. Adapting your behavior to the market, knowing when to pull those strikes in and when to push them out.
As one more aside, if for example you have an option on Coke (KO) at $48 and it's the day of expiration and it's trading at $48.10, you don't have to lose your shares. You can simply buy to close the trade and give 0.10 of your collected premium back, and then roll it (sell a new call further out) at a higher strike. So being close to the strike is fine blowing it out by 3-5% is when you normally will just let the shares go.
When this does happen I usually immediately begin selling cash covered put on that name to get my shares back usually at a significant price improvement. But that's another post...
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- 2
Sanrith Descartes
Von Clippowicz
- 41,536
- 107,628
How does JAMF compare to IBM's Maas360? I thought that was the gold standard of business device management. I ended up not using it at my company because after my partner saw what it could do he was like "fuck that NSA shit".JAMF IPOd this week too. Expecting strong growth here for two reasons. They specialize in corporate mobile device management that will only increase. They've displayed strong growth leading up to the IPO.
Second. They're a Vista Equity Partners company. Which has one of the best track record of any venture capitalist company out there. They only invest in tech companies and just about everything they've touched turns to gold. Although a lot of their portfolio stays private.
Mobile Device Management
Jamf is the standard for Apple mobile device management (MDM). Visit us to learn more!
Portfolio – Vista Equity Partners
The Vista portfolio of enterprise software companies drives positive change, innovation and growth across industries. Explore Vista companies.
Might be worth a buy. I'm only holding off right now because I want all of the cash I have available to put into Snowflake.
Sanrith Descartes
Von Clippowicz
- 41,536
- 107,628
I have been doing this with DAL for a while now. Its a solid, albeit some risk involved, revenue generator.
Sanrith Descartes
Von Clippowicz
- 41,536
- 107,628
Sanrith Descartes
Von Clippowicz
- 41,536
- 107,628
Sanrith Descartes
Von Clippowicz
- 41,536
- 107,628
Pretty soon there will be as many Coronachan stimulus bill sequels as their are Fast and Furious sequels. 
- 2
Sanrith Descartes
Von Clippowicz
- 41,536
- 107,628
I called this a few months ago.. If you are unfamiliar with the investing term "boiler room" or have never seen the movie I suggest watching it. Really good film. And relevant subject matter.
Sanrith Descartes
Von Clippowicz
- 41,536
- 107,628
Sanrith Descartes
Von Clippowicz
- 41,536
- 107,628
NKLA trading under $35
SHLL trading under $20
TSLA has sucked in all of the electricity in the EV space the last couple of weeks. Pun intended.
SHLL trading under $20
TSLA has sucked in all of the electricity in the EV space the last couple of weeks. Pun intended.