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Topic	Stock Topic 13
Lopen 01/04/21 12:38:58 PM #287:	CoolCly posted... If I just own the 100 shares to begin with, am I just able to sell the covered call directly with the shares I have? Yes CoolCly posted... I'm assuming you think that because this is the price it was at before it's December run? Pretty much. It moved up above the 20s on no news just hype, and down and no news. Fair value right now is in the $20 to $30 range imo. It's highly volatile because of its relatively low market cap. I guess you could be afraid they might do another offering but eh. Stock has a lot of buy ratings from analysts and a growing subscriber base/sports betting being built into the platform. It's a growth stock but it's a growth stock on the bottom. CoolCly posted... If I'm understanding the theory right, it seems that the primary benefit is when I'm just holding something like AMD for the long term, but don't think it's going to rise in the next few weeks, I can sell a call for a few dollars more than current price and expect the shares not to sell and to keep the premium, and worst case my shares just sell at a gain from the current price, and I harvest the gain I've already made holding AMD till now anyways. That's one way. Or you can do it with a highly volatile stock like this one, only go slightly out of the money, and just get a quick short term gain because the contracts are expensive. Heck if you have minimal faith in the stock you can just sell the contract at very close to the market value and while you won't make any money from the stock you pocket the more expensive contract. I ideally want to hold it and think it's going to rebound fairly quickly so I'm shooting a bit higher than the current price in hopes that it expires out of the money so I get free contracts. --- No problem! This is a cute and pop genocide of love! <cite>Lopen posted [p:949092150] in Stock Topi... [t:79161174]...</cite> <quote>CoolCly posted... </cite> <quote>If I just own the 100 shares to begin with, am I just able to sell the covered call directly with the shares I have?</quote> Yes CoolCly posted... </cite> <quote>I'm assuming you think that because this is the price it was at before it's December run?</quote> Pretty much. It moved up above the 20s on no news just hype, and down and no news. Fair value right now is in the $20 to $30 range imo. It's highly volatile because of its relatively low market cap. I guess you could be afraid they might do another offering but eh. Stock has a lot of buy ratings from analysts and a growing subscriber base/sports betting being built into the platform. It's a growth stock but it's a growth stock on the bottom. CoolCly posted... </cite> <quote>If I'm understanding the theory right, it seems that the primary benefit is when I'm just holding something like AMD for the long term, but don't think it's going to rise in the next few weeks, I can sell a call for a few dollars more than current price and expect the shares not to sell and to keep the premium, and worst case my shares just sell at a gain from the current price, and I harvest the gain I've already made holding AMD till now anyways.</quote> That's one way. Or you can do it with a highly volatile stock like this one, only go slightly out of the money, and just get a quick short term gain because the contracts are expensive. Heck if you have minimal faith in the stock you can just sell the contract at very close to the market value and while you won't make any money from the stock you pocket the more expensive contract. I ideally want to hold it and think it's going to rebound fairly quickly so I'm shooting a bit higher than the current price in hopes that it expires out of the money so I get free contracts. --- No problem! This is a cute and pop genocide of love!</quote> ... Copied to Clipboard!
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