Board 8 > Stock Topic 31

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masterplum
07/26/21 9:09:34 AM
#351:


It depends on how much time value is left. If there isn't any theta decay left you can just close them and open new positions

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Sunroof
07/26/21 9:21:07 AM
#352:


Well since the current price is well above the strike price, its a hefty commission.
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masterplum
07/26/21 9:23:59 AM
#353:


Sunroof posted...
Well since the current price is well above the strike price, its a hefty commission.

That's not a commission, that's the value of the option.

Assuming you are holding the stock as well your stock also went up in value so you can sell the stock at the same time

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Sunroof
07/26/21 9:35:27 AM
#354:


I thought its a zero sum game meaning if I close the option Id have to pay back whatever the gain from the strike price is?
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masterplum
07/26/21 9:39:31 AM
#355:


Sunroof posted...
I thought its a zero sum game meaning if I close the option Id have to pay back whatever the gain from the strike price is?

If you dont sell your shares

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Sunroof
07/26/21 10:00:09 AM
#356:


Ask and bid are at $0. Not sure why. Ugh.
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Sunroof
07/26/21 10:06:39 AM
#357:


Im assuming I cant close a call thats in the money?
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greengravy294
07/26/21 10:34:25 AM
#358:


Why are you trading options when you literally have no idea what you're doing? Seriously...

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Sunroof
07/26/21 10:36:05 AM
#359:


Why are you misusing the word literally? I clearly have an idea as Ive made tens of thousands of dollars from options, but simply never encountered a time when I wanted to close one when it was in the money.
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Sunroof
07/26/21 10:40:09 AM
#360:


Man, who wouldve thought itd go up so much in one weekend. If only I waited until today, RIOT is up 20%!
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Lopen
07/26/21 10:45:18 AM
#361:


You've made tens of thousands of dollars with options? Weird all the posts in here about them seem like you open contracts then close them at about break even for like $100 gain

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Sunroof
07/26/21 10:46:28 AM
#362:


I didnt mean netted. But does anyone know the answer to closing options that are in the money? This is annoying me.
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Lopen
07/26/21 10:49:05 AM
#363:


Oh so you didn't mean anything worth saying

Anyway I have no idea why your option would not be able to be closed very easily if it was in the money. What strike and expiry did you get

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Forceful_Dragon
07/26/21 10:49:55 AM
#364:


Sunroof posted...
Man, who wouldve thought itd go up so much in one weekend.

The person who bought your options thought this.

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Sunroof
07/26/21 10:50:11 AM
#365:


*rolls eyes*

8/6, $29.50.
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Lopen
07/26/21 10:51:35 AM
#366:


I see the bid on that at $5.20x100. Not sure why you can't just limit sell it at $5.20

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Sunroof
07/26/21 10:53:53 AM
#367:


Must be vanguard being glitchy. Looks like it wasnt my fault for not knowing then. Gravy, Id like an apology.
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Sunroof
07/26/21 10:57:29 AM
#368:


So $5.20 * 38 contracts is nearly $20,000. Thats way more than the $6200 in premium I got. Not worth.
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masterplum
07/26/21 11:00:34 AM
#369:


I kind of agree with Gravy. The bid-ask spread on options is high enough that if you don't know what you are doing, never close them. If you sell options just ride them to expiration and don't worry about it.

Sunroof posted...
So $5.20 * 38 contracts is nearly $20,000. Thats way more than the $6200 in premium I got. Not worth.

That's not how....

never mind

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Lopen
07/26/21 11:16:04 AM
#370:


Sunroof posted...
So $5.20 * 38 contracts is nearly $20,000. Thats way more than the $6200 in premium I got. Not worth.

... wait did you SELL $29.5 calls on Riot?

So I mean yeah just ride them out. Don't close them then you're setting yourself up to lose $14k

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Sunroof
07/26/21 11:31:54 AM
#371:


But if I were to then sell RIOT shares Id make up that amount?
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Sunroof
07/26/21 11:44:50 AM
#372:


Looks like I misspoke. I am up $12k in options, and this doesnt include the $6200 from Friday that hasnt registered on my cost basis yet.
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LordOfDabu
07/26/21 11:46:21 AM
#373:


A lot can happen between now and 8/6. I wouldn't do anything today.

If the price stays where it is, your call will be assigned and you will sell your shares at the $29.50 strike price (but keep your premium). Hopefully, that is still profitable for you.

If you close it this far from expiration, it is unlikely selling the shares will make up for the difference. Right now, Riot is 33.61. Since 33.61-29.50=4.11, you would make $4.11 more per share selling them at this price instead of $29.50, which is less than the amount it takes to close them (apparently 5.20 per share according to the above). So, it is not advisable to close them if you plan to just turn around and sell. The only reason I can think of to close is that you have good reason to think the price will go up considerably. Keep in mind the price might go back down!

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Sunroof
07/26/21 11:48:11 AM
#374:


Youre right. That makes sense. I was just getting confused on whether the difference in my entry price ($32.90) and current price if I were to sell ($34) would make up for the loss that Id endure in closing the contract.

Thanks.
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Sunroof
07/26/21 3:06:15 PM
#375:


I really want to get into Wynn. I just have a feeling.
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greengravy294
07/27/21 12:04:04 PM
#376:


Well today kinda hurts. Looking like a bad earnings season for tech

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Zachnorn
07/27/21 1:31:28 PM
#377:


ow my portfolio

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greengravy294
07/28/21 11:56:21 AM
#378:


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Sunroof
07/29/21 6:11:27 AM
#379:


Robinhood IPOing. Reminder to not buy it because its a shady company they will likely lose its lawsuit if it ever happens.
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masterplum
07/29/21 9:08:08 AM
#380:


Would be amusing if it got crushed by short sellers

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red sox 777
07/29/21 9:55:37 AM
#381:


Not sure whether to root for or against Robinhood here, as I have a fairly big position in SCHW. Usually all players in an industry are correlated, even though they are competitors.

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red sox 777
07/29/21 9:57:25 AM
#382:


Also, Nikola founder Trevor Milton has been charged with fraud.

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Zachnorn
07/29/21 11:47:28 AM
#383:


ACI is making me a lot of money today. Wish I bought more but that already makes a good chunk of my portfolio.

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neonreaper
07/29/21 12:01:10 PM
#384:


red sox 777 posted...
Also, Nikola founder Trevor Milton has been charged with fraud.

I feel like if they can ever make a truck that doesn't need to be pushed down a hill, you could double your money based on the hype (I would sell quickly though)

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greengravy294
07/29/21 6:46:13 PM
#385:


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Sunroof
07/30/21 8:18:32 AM
#386:


Id feel sick if I owned them
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masterplum
07/30/21 8:43:42 AM
#387:


Sunroof posted...
Id feel sick if I owned them

Which is more an indictment on you to be honest

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neonreaper
07/30/21 8:48:25 AM
#388:


imo the short term AMZN play is to buy before the holidays and sell around prime day.

If you bought them in the last couple of months, there was a p. obvious risk for Q2 and going forward. Buying AMZN after Q1 must be a long term move.

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greengravy294
07/30/21 12:14:14 PM
#389:


I need some good ideas on what to do with my free capital

:(

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Menji
07/30/21 12:27:56 PM
#390:


KOD might be a nice 1-year play. Need to dig into it some more but risky since it's biotech.

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greengravy294
07/30/21 1:42:25 PM
#391:


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greengravy294
07/30/21 1:43:29 PM
#392:


Fubo does too but I believe in Lopen

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Menji
07/30/21 1:58:37 PM
#393:


Sold just a little bit of NET, because it always runs up to earnings and then crashes. Plus needed some cash to buy some of these stocks are low prices.

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Sunroof
07/31/21 6:58:44 AM
#394:


masterplum posted...
Which is more an indictment on you to be honest

What? The stock went down over 7% in one day. It doesnt matter how reliable of a stock it is, thats a ton of lost money in one day, and it will take awhile to climb back from given the reason why it went down. Your post was useless.
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red sox 777
07/31/21 3:01:26 PM
#395:


Sunroof posted...
What? The stock went down over 7% in one day. It doesnt matter how reliable of a stock it is, thats a ton of lost money in one day, and it will take awhile to climb back from given the reason why it went down. Your post was useless.

It's not a surprising amount to be down though. If you have a lot of money invested in any stock, going down by even a small amount will result in a lot of lost money. If you are going to be sick about that because the total dollar amount lost is big, you're going to be sick a lot. So at some point one should learn not to get too upset about downward movements in stocks for personal happiness purposes.

As far as investment management goes, avoiding tilt is important. The kind of tilt where you get frustrated and close your positions and move to cash will hurt your returns but won't result in life-changing losses. The kind of tilt where you close your positions and buy short term options hoping to make back your losses quickly can lead to bankruptcy.

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Sunroof
08/02/21 1:35:45 PM
#396:


Recommendations on what to do on Monday once my call gets exercised? Im thinking continual RIOT puts.
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greengravy294
08/02/21 2:04:39 PM
#397:


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Sunroof
08/02/21 2:06:28 PM
#398:


The cool thing about the blockchain stocks is IF you believe in crypto then you can sell options on them and not really stress if they get exercised.
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greengravy294
08/02/21 2:12:52 PM
#399:


Also I'm pretty sure TA will support a FUBO breakout since I'm pretty certain it formed a cup and handle. But you hate that stock.

Also AMD, but you'd be buying the top.

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Sunroof
08/02/21 5:34:38 PM
#400:


Wow TA crushing earnings AH!
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