I have two different accounts one that is strictly for stocks and the other is mutual funds (Roth). I like to play around more and add more funds with my stocks portfolio though even though it should be the opposite haha
OT: Stock and Investment Talk
- Thread starter RU-05
- Start date
So back on the options front.
I own TELL stocks. Trades for just under $3.
I already sold January $15 strike calls for .10.
But I can also sell the Oct 15th $3 strike for .40 cents. That's 13% in less then 2 months.
The potential drawbacks are it tanks and I'm forced to hold through the expiration, and the opposite it runs past $3 but I still sell it for $3.
As per the latter concern, if I go into the position with the understanding that it could, or is even likely to run past that level, but disregard that and focus strictly on the premium, is that not a fantastic guaranteed 2 month return?
Anything I might be missing here?
I own TELL stocks. Trades for just under $3.
I already sold January $15 strike calls for .10.
But I can also sell the Oct 15th $3 strike for .40 cents. That's 13% in less then 2 months.
The potential drawbacks are it tanks and I'm forced to hold through the expiration, and the opposite it runs past $3 but I still sell it for $3.
As per the latter concern, if I go into the position with the understanding that it could, or is even likely to run past that level, but disregard that and focus strictly on the premium, is that not a fantastic guaranteed 2 month return?
Anything I might be missing here?
I thought the first of the riots last summer, which occured on a Friday if I remember right, were going to crash the market when it opened up on the following Monday.
The market just shrugged it off.
I think it dipped a bit on Jan 6th, but it quickly shrugged that off too.
So maybe it dips, maybe moreso if it gets real ugly, but otherwise we probably get out of there and the market keeps doing it's thing.
Tell me if this strategy makes any sense.
Selling covered calls, and using that premium to then buy the same calls. Basically getting free exposure the calls for free.
Pretty sure I'm not allowed to buy calls at this point, just thinking aloud here.
Selling covered calls, and using that premium to then buy the same calls. Basically getting free exposure the calls for free.
Pretty sure I'm not allowed to buy calls at this point, just thinking aloud here.
So I hope @RU-05 is correct
But, the ramifications in Afghanistan could potentially extend beyond economic worries over failing American leadership. Instability in any region affects the supply chain, and from a micro perspective, the Lithium reserves is probably best example. Afghanistan sits on $3T in perhaps the most sought-after mineral in world at the moment, and China swooping in to partner with Taliban already.
From a geopolitical perspective, we just created a terrorist country out of thin air armed with our munitions, tech, and IP. Maybe won’t affect economy over night, but any major terrorist attack will and this situation now not going away lightly.
With Commander-in-Chief not communicating with any world leaders during the first 36 hours, it sowed distrust in international community, which many leaders have now vocalized. Perhaps it spills over into trade agreements or softened relations. But above all, it shows a more flighty/weakened American position, which potentially could lead to other conflicts in the world, such as China-Taiwan. That happens and we’d likely see a dive like none other.
With anywhere between 1000-5000 Americans stuck in a country under terrorist rule, we’re entering a hostage crisis like none other in history. And we’ll be at the whims of their demands. Imagine how a hanging of kidnapped American citizens will reverberate on international stage, and through the market.
And of course, not forgetting the displacement of hundreds of thousands, if not millions, of refugees. A new massive budget item out of nowhere for an economy already grappling with massive inflation.
Hard to imagine a worse withdrawal, and its economic impact may just grow with time rather than a flash crash.
Obviously the glowing Dow records are directly influenced by inflation, and obscure what the ‘real’ numbers are.
I think to RU-05’s point, it may be a jenga stack. Each crisis one block on a wobbly economy. They all contribute, but not sure what will be the block that topples the stack. From
my humble perspective, this crisis just yanked a few blocks out at once
Not that I disregard what you are saying, but I do think it's more of a geopolitical discussion, as you say, and this is probably not the best place for it.
This is a projection of a projection wrapped in another projection. Sorry, doesn't hold water in anyway. Wall Street doesn't care about Afghan. Way too much political conjecture.
The hand wringing in this post is really too much to handle. If you're a bear, fine. Get out of the market or short it. Meanwhile, it has been a bull market and there are many indicators to think the bull will continue.
Didn't realize this was the bullish news only Stock and Investment talk thread.
The other poster could have said they were bearish in about a paragraph. No need for a screed.
Market sold due to upcoming Fed announcement tomorrow (and the fact it hit another round of ATHs yesterday).
Linking someone who would have been bullish on October 29, 1929 doesn't prove a point.
got into FRBK today , banking
they have been slowly growing with the opening of new branches. Vernon Hill took over as CEO. Hill founded Commerce Bank a long time ago, as well as founded a successful bank in the UK... i don't think book value is out of reach (approx 4.60). about 60% institution owned.
they have been slowly growing with the opening of new branches. Vernon Hill took over as CEO. Hill founded Commerce Bank a long time ago, as well as founded a successful bank in the UK... i don't think book value is out of reach (approx 4.60). about 60% institution owned.
The market was up out of the gate today though. As the news began to come out, and then get worse through out the day, the market went south.
Going back to Feb 2020, FRBK, NYCB and WFC(I own the latter 2) are all dead even in terms of stock performance.
FRBK was outperforming in mid June, after more then doubling since last November, but after that run has since consolidated.
LRCX raised it's dividend 15%, from $1.30 per share to $1.50.
Wide moat company. Highly profitable. Stock has returned >500% the past 5 years. A cash machine. I'm long Lam Research.
Same time as Fed-related news reports were coming out. CNBC reported the dip in real time due to the Fed meeting.
Bullish on semis across the board. SOXX is my play, but we got tons and tons of NVDA via funds (leading the way with FDGRX).
I’m going to let you figure this one yourself. If you can’t figure it out, don’t trade options.
Trying to teach him or her how to fish. There is a reason brokerage firms ask questions to see if you are qualified to trade options (unless you use Robinhood).
At least one old curmudgeon thinks this will end badly.
https://www.cnbc.com/2021/08/26/soc...ng-investors-for-ideas-cnbc-survey-finds.html
In particular, look the the comparison between investors who started in 2019 or earlier and those (probably with stimulus money) who started in 2020. I guess it's easy come, easy go.
https://www.cnbc.com/2021/08/26/soc...ng-investors-for-ideas-cnbc-survey-finds.html
In particular, look the the comparison between investors who started in 2019 or earlier and those (probably with stimulus money) who started in 2020. I guess it's easy come, easy go.
Markets up very nicely across the board, the Russell, which has been lagging of late, is ripping.
They hope to have a bank charter by the end of the year. That seems to be the catalyst it needs to wake up.
Yup I suspect my shoulders going to hurt for a while holding this SoFi bag!
