Board 8 > Stock Topic 7

(+) Yeah! (+)

I'd ignore watching anything airlines right now but I know you wont, you'll probably sell for break even

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Aka airlines arent going away ever so it sucks short term but in 2 years you'll be fine so ignore it unless you really need cash

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Oh Im not selling AAL until Im profiting.

Well wait another year then

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One company that isn't going bankrupt is GNUS. They announced that they are using the surge in their stock price to pay off all of their debt by issuing stock to bondholders to replace their bonds. With zero debt on the books, bankruptcy should be impossible.

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It turned out to be a meme stock after all :(

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I know I should stay away but I've spent all day contemplating getting back into GNUS. Would probably get out by the end of the week if I did.

Someone convince me not to do it please and thanks

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Good luck on your meme stock

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I recommend buying amazon 4 months ago.

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Recommend you buy Amazon tomorrow and today btw

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I have 1 Amazon

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StartTheMachine posted...

I know I should stay away but I've spent all day contemplating getting back into GNUS. Would probably get out by the end of the week if I did.

Someone convince me not to do it please and thanks

I recommend against it. The company hasn't turned a profit in like a decade or something. The new channel would have to be a smash hit to justify the current price (still more than 10x the pre-channel price). You're basically betting on hype.

also have exactly 1 Amazon share ^5 neonreaper. and greengravy why do you get so mad that people make money on meme stocks

I made 9k on GNUS and 8.5k on LK (actually looked at my cost basis on these and it wasn't 10k and 9k respectively; the other money was from playing the traditional stocks, where NKLA made me the most at 3.1k alongside multiple BAC trips and SAVE made me a cool grand). Yes, the temptation to get rich quick is a problem; as I said earlier, I lost 3.4k of my previous gains on CLIR, which I frankly was just trying to day trade and had horrible timing and no stop limit. But do you not realize how easy it is to play these stocks with smart timing? I just don't get the elitism against penny stocks, especially against people who are actually successful with them.

After CLIR, I'm taking every trade with the mindset of "will I be happy going long with this stock?" Maybe even that company will be up in a year, who knows, but I didn't believe in it enough. GNUS, on the other hand, has insane upside now that it's debt-free and clearly investors believe in it since they converted all of their debt into shares. I haven't pulled the trigger, but just to dismiss it while clearly having done no research on it is quite silly. (I would only go long on GNUS for the toys that will roll out at Wal-Mart this holiday season but I'd still be willing to bet it's hit its lows for now.)

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Remember the days when pharmaceutical stocks were all the rage?

Wow. What timing. I just looked up INO our resident first cash cow of these topics and it was up 40% today.

There's hype stocks on the way up and hype stocks on the way down. On the way up, you make money hand over fist like it's the easiest thing in the world. On the way down, you lose big and no amount of effort can stop it. If you can figure out the timing there are fortunes to be made. But that's a big if.

I think if you are comfortable holding for a year you won't feel psychologically stressed by it and should make better decisions. If you are holding a stock you know will have no value in the future, you are constantly trying to find opportunities to sell it to a "greater fool" and that causes stress, which leads to poor decisionmaking.

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You 100% nailed it red sox. Shit, my whole mentality after that depressing CLIR loss was "I should just short this thing to make my money back." That burn was another growing pain for me but now I refuse to invest in anything I don't believe in long term.

To add: I also agree that GNUS stock is overvalued as fuck but it's a speculative stock by nature so of course it is. It's a lot of people hoping the next ER is huge.

Regardless, I'm likely staying away because it's too much hype for me. Again, I'd only get in for this week or so and be out, though their toy line is a tempting moneymaker to play. But really, I think XELA, AVCT and ATHX are the stocks to play long under $5 right now.

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Moonroof posted...

Remember the days when pharmaceutical stocks were all the rage?

A Israeli company, Kamada ($KMDA) rose by 7% yesterday and additional 16% for saying they made a breakthrough in a COVID-19 treatment
It's funny...because in the past it used to make stocks rise by 300%, I assume the market already know a bluff when they see one

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Back in 2017 Long Island Iced Tea went up by like 200% by changing their name to Long Blockchain at the height of the crypto bubble.

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It feels like you could make a bunch of money buying stocks at the end of a red day and selling at the end of a green day with how bouncy everything has been

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StartTheMachine posted...

people make money on meme stocks

Not mad, just urging caution

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I've had my wins and my losses on meme stocks for sure, but I can't say I am unhappy with my average stock price of AAL now being 15.04.

Like, yeah I am heavily leveraged but I have full faith in the stock long term it just sucks to take such a hit right after investing ;/

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I know the feeling, Chris. My average is $18 for AAL! But as long as it doesnt go bankrupt, Im sure it will rise up above $20 eventually.

Holy shit, you all have talked about AAL so much but I never actually checked it until now. I had no idea it was that low. I'm definitely going to be hopping on that when it starts its comeback.

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I bought more yesterday. Some of my lack of worry comes from the fact that a good bit of my meme stock money I put out of the stock market already and into future plans/purchases/my business which eases the pain a fair bit but yeah.

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Yeah. Getting in now is definitely a smart play. I just cant put over $25k into an airline at this point.

Relevant

https://seekingalpha.com/amp/article/4355155-american-airlines-high-iv-brings-excellent-put-selling-opportunity

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Can you explain that to me like Im five

Moonroof posted...

Can you explain that to me like Im five

https://www.fanfiction.net/s/13532680/1/Harry-Potter-and-the-Magic-of-Options-Trading

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So if I bought AAL at $18 and its currently at $13, I should Put Sell at $10 and the worst that happens is I end up owning more AAL at $10?

You buying aal before is irrelevant.

but the rest of your post is correct yes

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And how exactly do I make money? It has to go below $10?

Moonroof posted...

And how exactly do I make money? It has to go below $10?

The contrary. If it doesnt go below $10

or it goes below $10 and you keep it and it later goes above $10

its why selling puts is great. Its hard not to make money.

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Why not sell the put at like $2 since it will be er go that low?

Also, when would I be getting money, so I put an expiration date?

You wont make much selling it for $2. Its worth less.

and yes, all options have a strike date.For big stocks there are options that expire every Friday

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I think I'm just gonna sell everything and put into Amazon, Q2 is in a month and nothing I have makes me really feel better than Amazon Q2. I feel like these airline stock prices will be here waiting for me after Q2.

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Interesting. And I dont have to own in order to Sell Put?

How will I know how much money I can make?

Moonroof posted...

Interesting. And I dont have to own in order to Sell Put?

How will I know how much money I can make?

Whatever the sale price is

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Got it. I just looked in my platform, is this referred to as Sell Short

Flipped the two RCL contracts I bought yesterday afternoon for a $130 profit.

not bad. Might sell my other 3 if RCL keeps tanking

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When I select Sell Short, it only lets me put in an amount greater than the current price of the stock.

Moonroof posted...

When I select Sell Short, it only lets me put in an amount greater than the current price of the stock

You might be looking at a different thing. Are you in options?

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I have no idea where that is. I might have to call vanguard.

Turns out I dont have an account that allows for puts. So Im going to sign up.

Annnnd I closed out of my RCL position.

Should of held on to those two for another 20 minutes would have made an extra $100

Final profit

10 bought at 2.13
2 bought at 1.95

2 sold 2.60
3 sold at 2.70
2 sold 2.86
1 sold 3
1 sold 3.10
3 sold 3.15

$937 made on the endeavor

Nice

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I wonder how much Id stand to gain if I did a Sell Put of $11 and I put in $25k

Moonroof posted...

I wonder how much Id stand to gain if I did a Sell Put of $11 and I put in $25k

I can tell you exactly this.

you could sell 20 contracts, (2000 shares)

For strikes expiring a week from Friday they are trading for .17

so you would make $340 if they didnt go below 11 or would end up with 2000 shares if they did.

you would make more money at a higher strike obviously

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Only $370 for a $25k input. And whats a higher strike?

Sold off my NKLA again. This has been easy money but man a lot of indicators are looking like this puppy is gonna tank soon. I was hoping to hold through the pre orders but I cant stomach it

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2000 * 11 is less than $25000. How does that work?