Investing General Discussion

Locnar said:

Ok i'll tell my PLTR story. Bought 4k shares @10 opening day, then the next few days dollar cost averaged it down to 9.50ish a share for 7k shares. When it popped I set a trailing stop loss on 2k shares and it hit around 9.8 or so. So make a few hundred and got the share # amount I want long term at under IPO.

I'm trying to read about covered calls and what not, but not sure if I should be tempted to go down that road. It just ups and risk and rewards overall right?

I'm happy holding my 5k shares long term. IF it crashes back down to 9, i'll buy more and repeat what I did above and get my DCA down more. This is my pie in the sky holding. Part of me WANTS it to crash back to 9 so I can buy more, but maybe thats foolish.

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Covered calls are ideally used when you think the stock will go flat or down. You sell the calls at a strike you believe won't be hit and the options expire worthless and you keep the premium. Selling them on a stock that is very new without any track record is risky and I dont think the reward would outweigh the risk. The risk of course if you sell calls for like $12.50 and it shoots up to $15 and you are forced to sell them at $12.50

I do them regularly with DAL but I am always deep out of the money and very short duration. If they do get exercised I am ok with the strike as profit.

Locnar said:

Super pissed because this is supposed to be my long "I bought amazon when they just sold books" play.

Who comes up with the date 10/16? Is it just a every friday thing? What if the stock goes above 12.5 before 10/16? Can the person who bought the calls be like "ok gimme" or does he have to wait for 10/16 (and when on 10/16? market close?)

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Most options expire the 3rd friday of the month. Some companies actually trade weekly options.

There are American and Euro style options. Some can be called at will and others only on expiry.

My honest advice is you really need to do some reading/watching on at least the basics of options. There is a ton of info out there. I would hate to see you make a rookie mistake that costs you $$$. Spend some time reading. This thread has a ton of links on options (I did the posts myself), or just spend some time on Google.

Wake up to this bs. You trying too hard yahoo. My stonks are going up while you bear.

Pelosi just torpedoed the airlines. No standalone airline bill. I'm sure those tens of thousands of union airline workers getting canned will go vote blue in a few weeks. On the brightside, my DAL calls are looking pretty safe now.

LachiusTZ said:

Sanrith Descartes any advice on where to set covered puts on X / GE?

Have enough of it I might as well start churning it weekly like you guys were talking about

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I bow to Blazin as the options expert, but it starts with what your cost basis is and what you are willing to take as a profit. Also, i assume you mean covered calls and not puts. With low price stocks, there isnt a lot of play in the strikes.

A couple of caveats. I am not very familiar with the stocks besides knowing who they are of course.
Earnings is on 10/28 for GE and 10/29 for X. Because I dont follow them I cant advise you to do anything before earnings as I dont know what to expect.

Here is an example if earnings werent in a few weeks...
GE
If you go out about 20% upwards you are looking at about a $7.50 strike.
The october 30 $7.50 is going for 8 cents.
The november 6 $ 7.50 is going for 11 cents.
So $8 or $11 for each hundred shares you option.
Increase the risk and the $7 strikes are 18 cents and 24 cents respectively.
It sounds pathetic but realize 6 cents is 1% of the current price. that 11 cents a share is roughly a 2% gain if you can swipe the premium without being exercised.
Its got intermediate resistance at 6.60 (which is right where it is). This is another reason I would wait until earnings. Its price is currently at a technical resistance level.



X
Earnings are 10/29. You could try to squeeze in a quick flip.
The 10/23 $9.5 strike paying 13 cents could be dicey but the $10 strike only pays 7 cents. The $10 is about 20% above current. It has resistance at $9.25 and hasn't touched $9.50 since june, so $9.50 could be a safe play for 15 days. That $9.50 strike pays $13 per hundred shares for 15 days.
The 10/16 is only 8 days out but pays 9 cents and 6 cents (9.50 and 10 strikes). The advantage is you are only holding until next Friday.
If you go the $10 strike there is only a penny difference to risk the extra week so I wouldnt play that. On the $10 strike I would go the 8 days on 10/8. There is a much bigger reward for the extra week's risk on the $9.50 play. If I did $9.50 I would add the extra week.




So at this point it depends on your cost basis and are you willing to be called and forced to sell at those prices (keeping the premium of course).

Hope this helps.

NFIN - someone started moving big chunks of this SPAC this afternoon. 100,000 blocks, 50,000 blocks etc. One block took out the asks and the stock broke upwards about 5% and took out the old high before settling back. 90-day volume is 200k. Today over 1.6m. The conference call Triterras had with investors went well according to all reports I have seen.

Khane said:

LOL at the chart for NFIN from April through June. It looks like a interval setting graph on a stairmaster.

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Trust me I know. I have been on that bitch for a while now. Be nice if they close the deal at the end of the month as planned.

Borzak said:

My energy buy two days ago is up almost 4% today.

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Ride that bitch like you stole it.