Board 8 > Stock Topic 20

(+) Yeah! (+)

Haha BTC and ETH were clutch buys regardless. I still reckon theyll dip hard and long but the rebound will be inevitable.

Just got scared okay

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Lopen posted...

Yeah but you'd have to buy the call back at a loss to do so would you not

Yes, but if you are selling the underlying at the same time its exactly the same, save maybe a little bit of slippage if you don't do both transactions at the same time

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masterplum posted...

Yes, but if you are selling the underlying at the same time its exactly the same, save maybe a little bit of slippage if you don't do both transactions at the same time

It's not exactly the same. Depending on how much it goes up at once and your duration the volatility multiplier might "trap" you and put you in a worse place than if you hadn't sold the call to begin with.

I mean not by a lot generally but it still kinda sucks.

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The Z / SHOP tandem is booming. Combined 11% at the moment! Im proud of myself for actually identifying this, even if no one else listens to me. I feel like Naruto wanting to become Hakage or whatever and no one takes him seriously. But Ill show you all!

I didn't doubt you on SHOP, I actually have owned it for 2 months. Admittedly only 1 share but still lol

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ZM has been quietly on the rebound for a while.

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AVCT dipping today. Might be able to load the boat on more warrants in the .50s soon. Lovely.

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I have $29k liquid ready for a risky play, Blur

Lopen posted...

It's not exactly the same. Depending on how much it goes up at once and your duration the volatility multiplier might "trap" you and put you in a worse place than if you hadn't sold the call to begin with.

I mean not by a lot generally but it still kinda sucks.

I thought we were talking about the stock going up, where the volatility doesn't matter much once you are so far ITM that option price loses all intrinsic value.

If we are talking about the stock going down I suppose that can happen, but it would have to have been pennies you were making for the volatility shake to make you lose more than just naked buying the stock.

I mean, don't pick up pennies in front of a steam roller. If you are selling ten cent options what are you doing

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Wouldn't really call AVCT risky. Still speculative since they have to prove revenue growth, but you know how long I am on it. With the best management team in the game, they'll be fine. It will do great things for my portfolio this year.

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masterplum posted...

where the volatility doesn't matter much once you are so far ITM that option price loses all intrinsic value.

If you pick a really long duration on a somewhat volatile stock you would need to be VERY ITM for this to happen

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If you want risky, check HCMC. That's one that I wouldn't touch! It did have a 100% day yesterday lol. Think the WSB guys were pumping it.

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Lopen posted...

If you pick a really long duration on a somewhat volatile stock you would need to be VERY ITM for this to happen

Wouldnt a volatility spike not affect that long of an option then? Honest question. I dont know.

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I mean that being said if you're selling covered calls yes the "risk" on a sold covered weekly is pretty much nil.

I would not want to be "locked in" to say a yearly sold $140 call on APPL though if it just went up like $8 in a session. Sounds like a recipe to lose a few hundred bucks.

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masterplum posted...

Wouldnt a volatility spike not affect that long of an option then? Honest question. I dont know.

I think volatility affects across the board pretty significantly. Usually the underlying will change enough but for instance that GME calendar put I got is still positive net value despite the price going way up and down (I don't still own it I've just been following the price) and it pretty much has been for its life including when it was up in like the $300s.

I don't really know the exact math vs price on longer term though. I just know if something spikes it can suck. I've "lost" money on 2 week FUBO calls that I bought back due to wanting to free up funds in a hurry. Like the stock price went up $10 and I had a covered call at the $7 gain and my adjusted gain ended up being net of $6 gain or so.

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Yeah, super long term covers doesnt make sense to me. Anything more than 21 days out or so and Im not super interested.


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Lopen posted...

I think volatility affects across the board pretty significantly. Usually the underlying will change enough but for instance that GME calendar put I got is still positive net value despite the price going way up and down (I don't still own it I've just been following the price) and it pretty much has been for its life including when it was up in like the $300s.

If thats true I think there is a play here of selling long term puts of volatile options than buying them back when they inevitably stop being volatile.

Hmm

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On HCMC: wow, it's literally below a penny! Do we still call it a penny stock? Maybe a farthing stock - four farthings to a penny in the old British system.

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masterplum posted...

If thats true I think there is a play here of selling long term puts of volatile options than buying them back when they inevitably stop being volatile.

Hmm

Yeah. This was my theory with AMC but then the price cratered a bit more than I expected. Had I did it more than a few weeks though they'd still probably be green though.

I think Cole did this strat with the longer $4 put on AMC though and I imagine he's green by now even though the price has tanked considerably

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Lopen posted...

I think Cole did this strat with the longer $4 put on AMC though and I imagine he's green by now even though the price has tanked considerably

Yep, got paid .68 a share and its currently .52 a share. It was only till next month though so not that long.

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Lol not touching HCMC, way too crazy. AVCTW > AVCT?

Yeah even the $7 strat would've worked for me probably had I chose that duration

Mine was only this week. I actually did make $200 off my 11 puts I ended up buying back-- I should have just bought all 21 puts back live and learn. Selling back the $7 weekly call should still make me a decent little weekly income (since it's 10 of em) as long as the price doesn't go too far further down.

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Sunroof posted...

AVCTW > AVCT?

Again, when AVCT commons hit the strike price of 11.50, the warrants will start growing exponentially. Whereas if you're in the commons and they go 11.50 to 15, well that's a nice gain. Meanwhile the warrants would double or triple from that movement.

This is generally why people load the boat with warrants and wait patiently for the big trade. You're basically buying super long calls.

If you need me to literally guide you play by play: if the warrants dip after ER and the call, I will sit patiently on them or buy some more. But this will be their first call, so I think they likely have some good stuff planned. I just want them to finally give guidance.

So yes buy and hold AVCTW and if you don't get a 100% gain from it bare minimum you're doing it wrong. Not worried about timing the market personally here on this one. The lower the warrants get, the more I want to buy and hold for the inevitable.

If something regarding AVCT's gameplan goes wrong at any point, I will be the first one to let you all know.

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You mentioned before that the .50s were the price point. So I should not go in now, since it is low .60s (not sure why there is a dip?).

Also I am strongly considering investing another $10k in BTC and ETH ($5k each).

I am down like 40% on GME which is a new record for me in % loss

(this is one stock and only like $30 loss so who the fuck cares though)

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GME is so last month

Sunroof posted...

Also I am strongly considering investing another $10k in BTC and ETH ($5k each).

Be prepared to hold both for 1-2 years but I will personally guarantee you'll profit mightily eventually

Yeah I would have no problem holding the crypto. I just have to check myself and make sure Im not wanting to invest more solely due to the recent jump. Id much rather invest during a dip, but the question is, will the dip not happen for a few weeks/months at which point itd be a higher price than now anyway?

It's $30, relax and consider it the cost of a meal at a restaurant.

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Remember when I said BTC is going to hit $50k within two weeks like 5 days ago? Well it's 70% there already. It isn't dipping in the immediate future.

Yeah but if Im not selling for a long ass time, then it would behoove me to wait for that inevitable dip.

I'm holding off buying more AVCTW hoping for the .50s, so yeah that's my plan. I also have 40,000 warrants right now though.

I put about 30k in bitcoin (well GBTC) right after I sold ENZC and 40k in IEAWW. I think the IEA warrants likely only have like a 2x upside at this point long term (say, this year), but they seem easy enough to buy around 4 and sell around 5. I was doing that for a while with less money. Now it seems like I can make some easy 5 to 10k trades if the pattern repeats.

I'm also going to load up on GSMGW soon. Sucks that had to take off when I got out. I originally had a .13 average! Saw a dip to .18 today so going to try and get warrants around there.

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Sunroof posted...

Yeah but if Im not selling for a long ass time, then it would behoove me to wait for that inevitable dip.

Then decide on a number irrespective of its current value where you would buy. Is it sub-40? sub-35?

One could argue that it will never drop below $30k again.

What's the GSMGW strike/expiry

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https://gamefaqs.gamespot.com/boards/8-gamefaqs-contests/79286456

Im trying to learn more about both crypto and warrants. Tough task but I can do it.

Lopen posted...

What's the GSMGW strike/expiry

February 2025 expiration and I think the usual 11.50 strike price. I asked in the discord and will update you if that's incorrect.

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GameStonk posted...

Then decide on a number irrespective of its current value where you would buy. Is it sub-40? sub-35?

One could argue that it will never drop below $30k again.

Yeah its just tough to guess what the new floor is. I mean it definitely dropped hard from the first surge many years ago. But I agree that it wont go beneath $30k again.

https://apple.news/ARvQij40URYeSiXmBpbEGvw

Shopify added a new payment platform through FB and IG. This is why it spiked so hard today!

So avctw is free money?

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Sounds like it. But only when its under .60 price point.

Sunroof posted...

Sounds like it. But only when its under .60 price point.

Moonroof dude you are never going to time things perfectly and you have to stop looking at things this way. .50s are just what I'm hoping for. Who knows. It's a good long term investment eithef way

greengravy294 posted...

So avctw is free money?

In my opinion, yes! Do your own DD and understand why we're so bullish on it though. Actually, I just remembered someone on the discord made a tidy googledoc DD summary with a lot of our bullish points.

https://docs.google.com/document/d/1drTVbBuGJ2VnojlLc287r1nKPT_6Btyvnx7CIK7XURw/edit?usp=sharing

There ya go!

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StartTheMachine posted...

February 2025 expiration and I think the usual 11.50 strike price. I asked in the discord and will update you if that's incorrect.

May actually be in for a decent little sum if these numbers are accurate. Let me know if it's incorrect or correct as soon as you know.

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I was thinking a longer time table than that, but I won't complain if it happens!

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Well thats for AVCT. I will post for AVCTW.