Board 8 > Stock Topic 26

(+) Yeah! (+)

That makes sense. My losses might have been bad timing as the market isn't looking so bullish anymore. I have positions I'm holding for the long term, but if the market has more major dips, I might end up selling when I see they're at a high.

I'm kind of concerned about this becoming a bear market for a lot of 2021, because soon there will be normalcy and fewer people wanting to throw money at stocks. At least, I think part of the reason why stocks have done so well is because of a lot of retail traders that suddenly had time and resources to play with stocks (can't take that vacation? Might as well put it in stocks!) and when they can do normal activities, they'll sell some stocks to pay for that. If the market dips, some retail traders will probably want to cash out.

I don't know, just kinda feeling that stocks are overvalued in general right now compared to how the economy is performing during the pandemic.That's why I'm really thinking I have ETFs long term and stocks short term, if I don't exit the market.

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why is ATNF up so big that I can now buy a car with it

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neonreaper posted...

why is ATNF up so big that I can now buy a car with it

I've been seeing some chatter on r/WallStreetBets about it

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Anyone who wants in on this FUBO now looks like a great time.

I only had 700 bucks to throw at it but it brought my average down by $2.

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Too busy losing $10k today.

Lopen posted...

Anyone who wants in on this FUBO now looks like a great time.

I only had 700 bucks to throw at it but it brought my average down by $2.

i doubled my share count in it today lol.

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I really want to liquidate and throw all my money into FUBO. Seems like the easiest money double of all time at this level.

I'm being responsible but man.

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The market seems determined to crash. Fubo looking interesting. Since I'm not too bullish on it long term I'm gonna wait a little longer until I really feel the vibe of capitulation. If it never hits, oh well.

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Averaged down a bit more on FUBO with some more shares at $21.50 or so.

Shaved $8 off my average today. Now liking my price overall.

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Goddammit I sold ATNF a little while back (sticking with my plan of closing all profitable positions to focus more on day/swing trades in this market) and that thing hit 13 at 8 a.m. this morning. I hope you took the money and ran neon!

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Lopen posted...

I really want to liquidate and throw all my money into FUBO. Seems like the easiest money double of all time at this level.

I'm being responsible but man.

This is how I feel about IEA honestly. Really hard to resist YOLOing it.

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I didn't YOLO but I now have like 30% of my portfolio in FUBO

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Bought 15 shares of FUBO as well.

Also been averaging down on QQQJ but it keeps on dipping. Staying with it of course, but I'm hoping the 50 shares I now own will be profitable and stop dipping.

Not sure if I should gamble with AMC while it's down today or just wait for it to drop some more.

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StartTheMachine posted...

Goddammit I sold ATNF a little while back (sticking with my plan of closing all profitable positions to focus more on day/swing trades in this market) and that thing hit 13 at 8 a.m. this morning. I hope you took the money and ran neon!

sold half at $10.45 so its all gravy from here on out. I think it actually has good potential long term but also nice to have a few extra grand in my pocket for no reason

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Fubo is terrible and no one should own it.

Sold EVRI for like $200 gain. Wanted to clear up some cash so I could sell puts...

Moonroof, you realize you can lose just as much (less the premium) by selling puts as you can owning the stock right? It's your gains that are capped.

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At least I would own the stock at a lower price.

If the stock goes down, you can just buy the stock on the market at an even lower price.

With selling puts and holding cash, compared to holding the stock, you win if the stock doesn't go up or down a lot.

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Im trying to mitigate losses at this point, not get big gains. Im totally content with small gains.

How do you see what the premium would but if you buy a call or put and the strike price hits? This is showing me a tiny $20 premium?? What am I doing wrong?

That put expires in less than 20 minutes. No wonder it's almost worthless.

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Oh I meant to do next week. Oops.

Okay fixed. So here I either gain $968 (peloton goes below $103) or lose $4 (peloton doesnt go below $103). Is that right?

Sunroof posted...

Okay fixed. So here I either gain $968 (peloton goes below $103) or lose $4 (peloton doesnt go below $103)

If it doesn't go below $103 you lose $972. If it does, you can make a lot more than that. If it goes to $90 you make about 13k.

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Oh wow. How do I tell how much money I make depending on the various prices under $103?

For each dollar X under $103 it goes, you make 400X. That's assuming you exercise and sell your newly acquired shares on the market at the market price. In almost all situations, you will do at least as well and sometimes better than that by selling the put instead of exercising.

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FYI I am not betting against peloton at this time. I have too much riding on it going up. I just want to understand how this works.

What is the difference between selling the put versus exercising? I thought you just wait until the expiry date and it auto exercises if the strike price hits.

Oh wait, sorry, you wouldn't make 13k if it went to $90, it would be more like $5,200 less the premium. So net profit of $4,228. For some reason I thought you had 10 contracts instead of 4.

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Sunroof posted...

What is the difference between selling the put versus exercising? I thought you just wait until the expiry date and it auto exercises if the strike price hits.

You can do that, but you can also sell it early. For example, if you think the stock has fallen enough and it will go up - then you want to sell the put to lock in your profits.

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You know a lot about options trading. Always makes
me laugh when I see your joke politic polls.

Also, sorry everyone I have been flooding these topics with options questions. I will get it eventually then we can go back to focusing solely on which stocks will lose me the most money.

Got it. Thanks.

oh man that last NASDAQ surge did wonders for my NASDAQ heavy portfolio

Nice gain for me today, even if I'm still down overall since I started playing with stocks 2 month ago. Today might have been my highest single day dollar increase.

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Yeah that last minute rise was nice. Only lost $5k today instead of $10k.

Huh, that was a really nice final hour. Really wasn't expecting to end up green today.

So I will say, I have been thinking about why investors like Warren Buffett and Cathie Wood generally do not sell options. I think it's because they have high confidence in their stock picks, enough confidence that their stocks are going to go up that the option premiums are not high enough for selling covered calls to gain EV. If the options market expects a stock to rise 20%, and you expect it to rise 100%, and a call buyer is willing to pay you a premium that would be fairly valued if the stock were to go up 30% on average, then selling the option is +EV if the market is right about its valuation but it is -EV if you are right.

And, ultimately, you make money if you are right. If you want to make big returns, you have to be right. You have fun by testing if you are right. So selling options for a small stream of income just doesn't appeal to me.

Zachnorn posted...

oh man that last NASDAQ surge did wonders for my NASDAQ heavy portfolio

Nice gain for me today, even if I'm still down overall since I started playing with stocks 2 month ago. Today might have been my highest single day dollar increase.

*Checks the date*

Yup, I'm down from 2 months ago. I think most people here are or at least will be down for the 2 month period on Monday (Jan 27 was the big surge day for AMC).

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The reason Warren buffet and cashier woods don't sell options is they have too much money to invest and need to be able to freely rebalance

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Okay

FUBO cost average down to $30, doubled my stake with that last $20.50ish dip

Come at me bro. Ready to make all the money.

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Only way to make money on FUBO is to buy puts on it.

I'm actually pretty green on FUBO overall. Bought a ton at $16 and flipped them at $25. Bought a ton at $25 and flipped them at $30.

This time I bought a ton at $40 and a ton at $20.

Back to $60!

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Wow, really wish I had jumped on those VIAC puts after mentioning it last week - that stock dropped like a stone this week. Would have made a killing.

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https://finance.yahoo.com/news/ray-dalio-on-bitcoin-and-probability-of-ban-130008375.html

How come I dont see my covered call on PENN in my cost basis? The expiry date was yesterday and it didnt hit. Shouldnt it show my premium gain?

How do you even ban bitcoin? Tell banks they aren't allowed to put money into coin sites? Good luck. People will take cash to somewhere it's legal

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Making bitcoin transactions illegal would be huge. It would be back to dark web currency.

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We should absolutely crack down on bitcoin.

It is bad for the environment and destined to be monopolized heavily by China.

Sunroof posted...

How come I dont see my covered call on PENN in my cost basis? The expiry date was yesterday and it didnt hit. Shouldnt it show my premium gain?

I would guess it's realized income already?

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It doesnt show under my realized gains, Im saying. I might have to wait until Monday.

Viacom CBS is mighty tempting for a quick gain on Monday... Who's with me?!

Might be too late if you didnt buy it Friday