Board 8 > Stock Topic 35

(+) Yeah! (+)

I honestly think EVRI is never going to go down. I am excited to see its earnings report on 3/1.

Hey Lopen, what do you think is a good price entry for BBIG assuming my call strikes? Im debating buying back in depending on the price.

My personal feeling on BBIG is that anything under $12 is a good entry price imo

TYDE will happen, it's just a matter of when. When TYDE happens we will at minimum break all time high of $12.49 in my opinion.

If I just wanted to make gains at the lowest risk possible, the obvious choice is to sell cash secured puts at the same strike your calls got exercised at. So sell a bunch of $3.50 puts. At current prices you would gain $39 per put which is a bit over 10% return on investment, and you would only lose money if it went below $3.11. The premium will be a hair lower next week probably but the general idea remains.

Now if you want a higher chance of getting assigned and think moon is possible, then you can sell at a higher strike. For instance if you were to say sell a bunch of $8 puts that expire next week your effective purchase price, even if assigned, becomes $3.40 (you'll probably have to sell them close to the bid, so I'm giving you the bid-- if you're patient you could probably get something closer to the Ask). If you DON'T get assigned it's much better than the $3.50 puts as you make that huge premium.

That's because the Bid is $4.60 on the 8p is currently $4.60. $8 - $4.60 = $3.40 effective purchase price.

So like I guess it boils down to this Moonroof

How much faith do you actually have in this stock.

If faith is fairly low, sell puts at $3-$4. If you think this might actually be something, sell puts at as high as possible that would give you a profit pretty much. Because if it does moon you don't care about being assigned (or outright won't be assigned if it goes past your price), and if it doesn't you still make money as long as it doesn't go down.

Mind the Bid and the Ask. If you're doing the deep in the money put strategy I'm suggesting, it's not viable on say Feb 25 because the Bid/Ask spread is too high. Like the Bid on the 8p for Feb 25 is $4.35 which if assigned means you break even at $3.65, which is bad. You could do it as a limit order, which might go off, but definitely do not do it as a market order. If you do a limit order just subtract the price of the contract to get the effective price. For instance if you do a 8p, you would not want to sell puts for anything less than $4.55 as 8-4.55 = 3.45 which is about where the stock is now. Honestly limit orders in general might be a good idea if you can mental math. Just know that if you're opening contracts on a large bid/ask spread you're going to get hosed without them.

Anyway I don't really want to tell you exact prices because as far as exact price goes your guess is almost as good as mine, but these are the strategies available to you. Selling puts is definitely the answer the rest just comes down to risk tolerance.

Got it. Though Ive never sold a put at a price higher than what its currently at and am not sure what exactly happens.

What happens is such. We'll use the prices I said above as an example.

$8 put
2/18
$4.60 price

You get the premium up front. So in my example you'd get $4.60 x 100 or $460 per put.
At any time until expiry, you can be forced to buy BBIG at $8 per share. You must put up $800 in collateral per sold put to account for it.

With those two numbers you're basically buying BBIG at $3.40. $8 per share - $4.60 per share = $3.40 per share.

Because it's so deep in the money you're not really making a lot of value if it doesn't go up, $0.07 share-- not nothing but pretty small. The point is you're still getting it at a slightly better price than you would normally which is the key. If it does go up you make a ton of money.

Honestly though from what I've seen of you (you were getting worried a few days ago when it was hovering at $3), selling puts at $3 or $3.50 seems much better. Like even the $3 put isn't bad-- you make around $0.15 currently (at $3.42) which makes your effective buy in price $2.85 if assigned, and if not you get a cool 5% return on investment.

Interesting. I think Ill do the put idea honestly and low key hope it gets called so that I can own the stock at a low price.

I guess the market isn't done falling yet.

Oh dear, there's an emergency Fed meeting scheduled for Monday.

Likely bad news?

Looks like you'll likely be keeping your BBIG shares.

Which means you can sell 3.5c again!

Although I actually kinda expect the TYDE news to be really soon as Tyde just filed some securities registration SEC form yesterday. I'm gonna be loading around 5k more on Monday-Tuesday. For less skittish people, good time to get in.

And then a massive boost just came!

I won't complain if it moons today ahead of my 5k. I can always put that somewhere else.

Moonroof posted...

Likely bad news?

Probably. I mean I don't think it can be good, right? Best case is they do nothing.

That said, it could have already been priced in. Markets have fallen a good deal over the last 24 hours or so.

This is pretty frustrating and an example of when its bad to do a call. BBIG peaked mid-week and appears to end lower than where it was on Monday.

This is why selling calls is much better than buying them

(Says the guy with over 400 calls in BBIG)
(It's different when they have longer durations!)

GOFF absolutely killing it on the daily. .50s next week and any Sharp tweet sends us flying. Hopefully we get the official name change next week. I could see it busting .70s again with that.

Now whenever GVSI goes current I'll be looking real good again. Just have so much money locked in it doing nothing, but it'll be back soon :)

red sox 777 posted...

I guess that hearing must have went well for shareholders. I need a Fidelity account too it seems.

Did you never get in GOFF in the .20s @red_sox_777 ? I thought you said you were getting in this time :( You can trade GOFF on Ameritrade.

Unfortunately no. There was a confluence of being busy with work and not having an account at a place that'll let me buy.

Ahhh, that stinks. I thought you were on TD.

Vanguard allows it too.

Vanguard does? I had no idea

I was surprised, makes it much easier to trade since I already have a margin account setup there.

I would get into GOFF if I wasnt down $30k in BBIG. I think it has better option premiums.

Edit. GOFF has no options.

Got $14k premium for $3.50 Friday call BBIG. I should break even if it strikes this week.

Nice. Glad you got that peak

Grabbed 2100 BBIG shares at $3.22 and sold 10 puts at $3.50

As they say on the streets lfg

I also got some calls on Alibaba, Quantumscape, and FUBO.

Think we're going to see tech pop with the Russia tension dropping. And these 3 all have earnings soon.

I did a small $3 put on BBIG worth around $1k in premium. Pretty much all in on BBIGs weekly premium

Market maker apparently wants BBIG at $4 this week based on open interest. No guarantees but it does make me more confident it goes up at least a little this week

Im having the hardest time calculating my break even point for BBIG due to the wash sales. Im pretty sure its around $3.45 at this point but as of market close yesterday ($3.11) I was up $100. This is not taking into account premium gains.

We've got a huge rear wall of over a million dollars worth of shares back at $3.20. Pretty sure last time it ran this was happening too.

I'm being a bit irresponsible here. Part of the reason I was able to load so much was I'm using income I need to pay back in a month for some of it (BBIG would need to fall to around $1.60 for it to actually be a real risk-- pretty sure the absolute floor is $2.20 at this point). So I'll be playing a little moonroofish with some of these shares.

Its going up! Hopefully it doesnt lose all this traction end-week though.

Homie stock EVRI doing homie stock things. Has anyone gone into it? Its such a boss though at this price it might not be worth it anymore.

Just did the math. Average price is $3.59. Meaning if I get exercised at $3,50, then I lose around 2.4% aka $8,000ish. But with all the premium Ive made, Id be on top like $20k.

I have a feeling you'll be exercised. Feeling $3.95 end this week.

Fine with me. I wonder how long we will keep being able to get these juicy premiums.

my break even on BBIG is about 5 bucks >_>

Keep doing calls, neon. Theyre insanely advantageous right now.

We'll get well above $5 when the Tyde dividend hits

The fact that we keep trying to run with no news whatsoever is a testament to how much pressure is built up here. Filings say we really shouldn't have much longer to wait.

BBIG to $12?

https://gamefaqs.gamespot.com/boards/8-gamefaqs-contests/79900364

I'm putting the floor at around $12 when we get that dividend. I honestly think it goes much higher because there are a ton of good news items lining up here on top of through the roof short interest (which I feel is actually being underreported based on price movement)

95% of my calls are $12 strike or less though

Are you basing $12 on its ATH?

It ran to $12 on the same catalysts it has now. Then got shorted a ton at the top. Forced cover from dividend means your floor is where the latest wave of short positions started is the basic logic. Realistically there are a lot more things at play but that's where I got $12 as the floor.

If you want to actually play it long you can always put your banked call/put money into shares you're holding long. That feels like a good way to gradually put some in at minimal risk imo.

Man, if it actually goes to $12 Im gonna be annoyed if I set a strike at like $4. Once I break even, I may start setting much higher strike prices. But knowing this stock, its totally liable to go from $3.50 on Monday to $15 mid-week back to $3.50 by Friday.

Overstock money is my high end. Overstock ran to $100+ with a similar dividend from around $3 after being shorted to heck. $100 per share seems absurd given we're at $3 but if you consider the assets the company has its not really that strange. It's only like 15-20 billion market cap. You look at the big boys in the social media sector not named Facebook you get snapchat and Twitter with 60 and 30 billion, Tiktok with 50 billion. I won't be holding till $100 or anything but I won't fully scale out until then. A fledgling Lomotif being worth a like 1/2 Twitter, 1/4 Tiktok or Snapchat really isn't that weird if it starts to execute.

I forgot how insane OSTKs ascent was. Thatd be sick if BBIG makes it like that.