Board 8 > Stock Topic 27

(+) Yeah! (+)

Has the NASDAQ recovered? Will there be an overarching correction? Is crypto really the future?

tag

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Sunroof posted...

Is crypto really the future?

Yes

I'm at the point where I'm skeptical GME will actually surge through $500 anytime soon but I also find the seemingly concerted media blitz against it LOL-worthy. Maybe I should sell puts.

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Ford wins my MVP Stock of the week. It just keeps going up! Granted only a little bit, but man what a great options stock.

ChainLTTP posted...

Yes

no

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https://finance.yahoo.com/news/denison-mines-stock-estimated-significantly-181222770.html

Should we sell?

No. That's empty graph analysis not based on news about the company and the Uranium sector as a whole. I would guess a bot generated it if it wasn't a yahoo article

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Man I got in Ford back when it was 6 - knew it was a good long term hold but I didn't do that.

In other news, I got back in ENZC today...what's wrong with me! It ran crazy yesterday and I was hoping it'd sell off today so I could buy the dip. Just a 1 day hold most likely for me. I really gotta stop messing with these penny stonks. I'll sell if it hits .25 tomorrow. And add if it drops a bunch more (but not until a significant drop).

Today's action at least proves how reliable Google trend data is. Crazy, I got in right when the Google trend chart was topped and now it's nothing. That's why I only have a small position. Just feels like a cult stock to make quick money from. A few grand would be nice to throw back in IEA warrants. It's already my biggest position but I just keep adding under 3 there.

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Oh and I also sold most of my DNN yesterday at 1.31. Looks like a good move so far. The only shares that I kept were the couple thousand I bought high that I'll just hold onto for now. Hoping the chart pattern repeats and it dips back to around 1 to buy again.

E: Just saw seph's post lol. Yeah those are auto-generated bot articles. What is this stocktwits

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So far my strike prices arent even close to being touched. This is mostly due to a strong Monday, but most are red today. I reckon Im in great shape for Fridays exercise date.

I read that DNN will need to raise capital, I think I mentioned that. I sold some yesterday. I have a little bit left that I'll keep long term and then buy back if the stock drops below 1. I had too much tied up in DNN given my usual strategies.

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What the hell is UTME? Looks like it IPOd yesterday and has gone up 2,400% in two days?!

FUBO looking like an attractive play for open tomorrow.

If I were to buy a call on FUBO for strike price $22, 36 contracts, expiry date this Friday, it says the cost is $1,584. How do I know how much money Id earn if it closes at $22.05, for example?

I just checked an online options calculator and it says Id break even at like $22.40 even though the strike price is at $22. Presumably because of the commission I would have to pay. It went on to say that Id profit around 5% after that? Doesnt seem worth it to me, though I wish I understood the math so I could do it in my head myself.

https://www.optionsprofitcalculator.com/calculator/long-call.html

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Sunroof posted...

I just checked an online options calculator and it says Id break even at like $22.40 even though the strike price is at $22. Presumably because of the commission I would have to pay. It went on to say that Id profit around 3% after that. Doesnt seem worth it to me, though I wish I understood the math so I could do it on my head myself.

With you really getting into the pricing math here, I'm curious if you'd enjoy reading up on Black Scholes.

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Colegreen_c12 posted...

https://www.optionsprofitcalculator.com/calculator/long-call.html

Haha thats the site I used! I just dont understand the math.

Peace___Frog posted...

With you really getting into the pricing math here, I'm curious if you'd enjoy reading up on Black Scholes.

Ill check it out, thanks

Sunroof posted...

Haha thats the site I used! I just dont understand the math.

I mean simply put.

strike price + premium paid per share is your breakeven.

so if your paying 40 cents a share for a 22 strike, your breakeven is 22.40

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You can get into put-call parity concepts and overlook the calculus involved

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So it seems you don't entirely understand what options actually do

When you buy a FUBO call for $22 strike it lets you buy 100 shares at $22

So if you pay $0.40 for the option your break even point on expiration is $22.40, so generally for something so short term you'd need to reach that price to make money.

The volatility calculation can skew this as can the time remaining. Say it got to $22.22 tomorrow morning then it's going to be worth more than $0.40 but I wouldn't try to game that. That's the path to ruin

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Interesting. That makes it much more easy to understand. So youre essentially buying the stock at $22.40, and if it closes Friday at $23 how much extra do you make from if you had just bought it at $22.40 without using an option?

Separately, what is the deal with FUBO anyway? Why has it been going down relentlessly, and what is its actually fair value?

Unless there are some huge catalysts (even then it's sketchy), I would not be doing options with such short expiration dates. I tossed away like 3 or 4 grand doing options with 2-4 week expiries when I first started trading them. Easy way to lose money.

But FUBO is looking oversold and tempting to buy right now.

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Agreed. I just want to understand the pros to buying calls. It seems youre buying the stock at a price higher than its currently at, and paying a commission to do so. Whats the upside?

Another reason I like FUBO is strictly for the timing play. It went up yesterday and even a week ago randomly. I feel like it can shoot back up to those prices after a major red day like its having today. 6.2% in one day without any news seems too much in one day.

Sunroof posted...

Agreed. I just want to understand the pros to buying calls. It seems youre buying the stock at a price higher than its currently at, and paying a commission to do so. Whats the upside?

I see now that any gains above your break even price are magnified. Im still not sure how much theyre magnified, but its worth more than if you had just bought the stock outright.

So my next question is, can you lose all the money you invested if the stock falls super low, or are your losses capped at the commission cost?

commission cost is the most you can ever lose when buying an option.

If you are looking to buy a speculative option look at 3 months+ (Ideally 6 months or more). Anything less gives you less time for your play to pan out as well as you start running into thetha decay.

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If you bought the call, then your largest potential loss is the price you paid for it

https://i.stack.imgur.com/U9VpQ.png

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Makes sense. So the opposite of doing short term options sells.

Thanks.

God Im really liking FUBO. It just keeps dropping more and more today. But looking at its chart, it had back to back big drops 3/24 and 3/25, so whos to say it wont happen again.

All of this with no negative news, too.

FUBO is getting shorted to hell. Huge upside from here

But shares + sold covered calls when it spikes is the way imo. EOW calls are just gambling at this point because shorting isn't going to stop any time soon.

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I bought shares at end of day today. We will see what happens in the AM, I plan on selling tomorrow unless
it goes down a ton again.

I feel like GME is about to rocket again. I base this off of absolutely nothing. Will check back here to either gloat or deride myself in a few days.


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Lol what is your average price for GME right now anyway?

https://www.stocktitan.net/news/AVCT/avc-technologies-announces-receipt-of-unsolicited-non-binding-whkthet85v2o.html

This seems like huge news. The discord is discussing it right now so I'll wait for smarter people to explain what all this means for investors. I think this means warrants go to 0 unless there is a tender offer though. Of course, shareholders have to approve of this offer to make it happen. $9 for a stock trading at 5.80 is the most generous offer I've seen before.

Basically thank god I sold all my warrants but a 1000. Will try to dump those tomorrow if it lets me. And a damn shame I didn't buy commons because tomorrow they will moon right?

Really weird that AH right now the bid/ask size is 0x0 on both commons and warrants. It let me put in a sell order for my warrants too but it's not showing up or anything. Wonder what that means.

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If you want to get in on a different warrant play that should actually pan out CREXW is looking as good as ever

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AVCT up 50% AH

Still below the peaks that most people bought it. I hate that stock.

That was the stock I sold a day before it exploded 100%.

son of a bitch I was about to invest more into it today

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Which was a day after I sold NKLA via stop gain by accident, the same day it exploded 100%...

Sunroof posted...

That was the stock I sold a day before it exploded 100%.

I <3 you Moonroof

The fact that you made like 200 grand despite all of this is inspiring

Yeah Im not complaining too much. That week sucked though.

I think I had only $10k in NKLA and $25k in AVCT. Those were back in the days before I transferred a lions share of my money. But missing out on $35k really annoyed me. I remember being so annoyed I didnt go into work that week.

I was literally waiting for commons to hit 5.50 and planning on dropping 25k back in them since warrants were too high. What a fascinating turn of events. Yeah, I like GSMG more than CREX but to be fair I haven't looked into CREX much. I'll do that. GSMG warrants are still tasty at these prices.

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That sounds like bad luck, Moonroof, then you remember I literally sold AVCT three times in a row before their biggest spikes. Like imagining doing exactly what you did two more times. I felt like I was Truman in the Truman Show and the world was playing a cruel trick on me.

Like I should have made three times the money I made from AVCT, and they're still my second biggest trade ever after holding bags for 6 months.

So someone bought my warrants high (.89) just now. I have 500 left still. Do I get rid of these while there are buyers or see if they do a tender offer or something?

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Yeah thats tough. Its a shitty feeling. Id just get rid of the warrants now though.