Stock market rubes

[bubu dubu.]

nVidia?

From what I’m seeing it never went over $515??

The stock price, yes; the run it went on pushed the price of my contract from $385 to $1,900. Sorry for the confusion.

Most people don't play options here. Just boring stocks.

Can you explain options to me? I want to explore them a bit, but have basically zero knowledge of how it works. Any links to articles or podcasts would be greatly appreciated as well. Thanks in advance.

[SHAFA]

Pioneer Aviation should skyrocket as soon as the defense contract gets the OK from the Air Force, in the next couple of weeks, to start retro-fitting certain aircraft with SCRAM-jet engines (think project Aurora, but more Black OPsy and more current) . Looks to possibly be north of 400 as soon as mid-November.

I’m assuming this is the Mayhem project they’re working on, but I have no idea who Pioneer is. I can’t find any information on them.

[Flexin']

Can you explain options to me? I want to explore them a bit, but have basically zero knowledge of how it works. Any links to articles or podcasts would be greatly appreciated as well. Thanks in advance.

It's fairly complicated, I can't even explain it myself and I knew nothing about this 5 months ago.

These videos helped me when I first started.


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Options can make you ridiculous amounts of money in minutes but on the flip side you can easily lose a lot in minutes.

[j2j]

The stock price, yes; the run it went on pushed the price of my contract from $385 to $1,900. Sorry for the confusion.

Most people don't play options here. Just boring stocks.

Can you explain options to me? I want to explore them a bit, but have basically zero knowledge of how it works. Any links to articles or podcasts would be greatly appreciated as well. Thanks in advance.

I'm still learning myself, but have lucked into a few Cash Secured Puts for free money. Sold a bunch of puts on WKHS last week that expired yesterday for free cash.

[SHAFA]

The stock price, yes; the run it went on pushed the price of my contract from $385 to $1,900. Sorry for the confusion.

Most people don't play options here. Just boring stocks.

Can you explain options to me? I want to explore them a bit, but have basically zero knowledge of how it works. Any links to articles or podcasts would be greatly appreciated as well. Thanks in advance.

They’re a good tool, but you really have to be careful. I took some lumps when I first started, and I’m still trying to become more consistent. Make sure you understand the effects of the greeks and volatility when it comes to the contracts you choose.

Delta and theta are the most important ones. A contracts delta will tell you how much value will be gained by each dollar move in the share price (delta x 100 = $ move/contract); theta tells you how much that contract loses value each day. The more nearer-dated your contract is, the higher the theta will be and the more value your contract will lose. Example: say you chose a call for Target at a strike of $160 that expires Sept 4th. Being that near dated before expiration, you could see the share price move up, but the contract lose value, assuming the move in the share price is slow and doesn’t get close enough to hitting that strike.

Volatility is another killer if you’re not careful, and I found that out the hard way. One of the first contracts I bought was for an earnings play. I bought it a week out from the earnings date and held through it. Earnings was a slight beat, and even though there was a marginal gain in the share price, the value of my contract took an 80% hit even with over a month left. There are times you can take advantage of the volatility, but now I rarely hold anything with a high IV% for extended periods. I’m in and out pretty quick.

Lastly I’d probably push looking at open interest and volume. Open interest tells you how many of a specific contract is currently held; volume tells you how man have traded hands that day. I tend to make sure there’s a decent amount of both, so that I can get rid of the contract easily if I want to. It’s a shitty feeling to be sitting with a busted contract, having no buyers and being stuck watching it expire worthless.

To start I’d suggest sticking with stocks you’ve followed for awhile to get a hang of how options work. Getting into any of the really volatile, boom-or-bust movers like some of the bigger tech companies is a bad place to start. Bad, bad, bad. Especially if you’re just buying simple calls and puts.

I’m happy to help with what I can if you have any questions. I won’t pretend to know everything though.

[j2j]

I sold some puts on XOM, then XOM dropped and I was assigned. Technically lost money because my cost is like 42.65, and I could have bought it for cheaper, but it's, for now, a good dividend producer. Though who knows how long that will last due to their debt. If it returns to normal, awesome, not a huge deal. If not...

Little frustrating, but not terrible.

[Face The Facts]

Last couple days I've seen some sizable increases.

TSLA and AAPL both up about 30% in the last 60 days.

[Mr Bill]

I've made some ridiculous money on AAPL and SQ in the last 4 days.

[CasualObserverGuy]

Last couple days I've seen some sizable increases.

TSLA and AAPL both up about 30% in the last 60 days.

I'm waiting for the splits to be fully digested by the options market then looking to open a few puts on TSLA. I'll probably lose but it's such a no-brainer asymmetrical trade.

[Chet Manly]

I sold some puts on XOM, then XOM dropped and I was assigned. Technically lost money because my cost is like 42.65, and I could have bought it for cheaper, but it's, for now, a good dividend producer. Though who knows how long that will last due to their debt. If it returns to normal, awesome, not a huge deal. If not...

Little frustrating, but not terrible.

You should sell immediately. I just initiated a position at $40 so it will assuredly drop like a rock. I’m watching it close and have a stop-loss set at $36. With my luck, you’re fucked!

Wishing I picked TSLA when it was $40 instead of backing up the truck and blowing $20k on a now bankrupt company. 500 shares (pre-split) of TSLA would be pretty nice now! Them’s the breaks...

Couldn’t dare initiate a position in AAPL or TSLA after these run-ups. Of course, I said that a month or two ago, too!

[j2j]

I sold some puts on XOM, then XOM dropped and I was assigned. Technically lost money because my cost is like 42.65, and I could have bought it for cheaper, but it's, for now, a good dividend producer. Though who knows how long that will last due to their debt. If it returns to normal, awesome, not a huge deal. If not...

Little frustrating, but not terrible.

You should sell immediately. I just initiated a position at $40 so it will assuredly drop like a rock. I’m watching it close and have a stop-loss set at $36. With my luck, you’re fucked!

Wishing I picked TSLA when it was $40 instead of backing up the truck and blowing $20k on a now bankrupt company. 500 shares (pre-split) of TSLA would be pretty nice now! Them’s the breaks...

Couldn’t dare initiate a position in AAPL or TSLA after these run-ups. Of course, I said that a month or two ago, too!

Same on AAPL and TSLA. I've been regretting not getting more in to both, and Amazon, since like June. And since then I've said, "oh it cant go much higher and I dont want to be stuck as the greater fool". Well damnit...

[j2j]

The one I'm still nervous about is OXLC.

Bought 5k shares at $2.7/share. Got a couple months of a monthly $.135 dividend, reinvested, then they cut their dividend to $.0675 through the end of the year, which is still awesome. It's sitting at $4.41 today, so I've made good money on it. And I love the monthly income. Just wish it was a stronger company/situation, though I wouldnt be reinvesting at such a low price if it were. It's NAV is in the high $2s last I looked.

Probably should just set a stop at like $4 and forget about it.

[SHAFA]

Last couple days I've seen some sizable increases.

TSLA and AAPL both up about 30% in the last 60 days.

I'm waiting for the splits to be fully digested by the options market then looking to open a few puts on TSLA. I'll probably lose but it's such a no-brainer asymmetrical trade.

I wouldn’t touch puts on TSLA right now unless you’re scalping really quickly. There’s way too much momentum behind them, and with battery day and an expected S&P inclusion this month. With the cost of the premiums, the volatility and the bonkers delta-theta ratios...no, that’s a damn widow maker.

[SHAFA]

I haven’t been holding a lot overnight recently, but this week’s been a boon so far. AMD, AAPL, PTON filled me up. My holdings as of right now:

Apple: 11/20/20 $140 call; 9/16/22 $120 call
AMD: 9/11/20 $92 call; 4/16/21 $100 call
CLDR: 9/11/20 $14 call - earnings play
NIO: 9/11/20 $21 call - deliveries report play

[CasualObserverGuy]

Last couple days I've seen some sizable increases.

TSLA and AAPL both up about 30% in the last 60 days.

I'm waiting for the splits to be fully digested by the options market then looking to open a few puts on TSLA. I'll probably lose but it's such a no-brainer asymmetrical trade.

I wouldn’t touch puts on TSLA right now unless you’re scalping really quickly. There’s way too much momentum behind them, and with battery day and an expected S&P inclusion this month. With the cost of the premiums, the volatility and the bonkers delta-theta ratios...no, that’s a damn widow maker.

Gotta be bold to hit a home run... I'm only talking 1 or 2 puts. Not like 10+ or some stupid crazy number.

[Face The Facts]

I looked at Amazon in early July and thought I might be "too late", but since I use Amazon so much, I bought. Now I'm up 20%.

Similar stories for Tesla and Apple. I was fighting the idea I was getting in too late, but it's going to look like getting in early if this continues.

[SHAFA]

I'm waiting for the splits to be fully digested by the options market then looking to open a few puts on TSLA. I'll probably lose but it's such a no-brainer asymmetrical trade.

I wouldn’t touch puts on TSLA right now unless you’re scalping really quickly. There’s way too much momentum behind them, and with battery day and an expected S&P inclusion this month. With the cost of the premiums, the volatility and the bonkers delta-theta ratios...no, that’s a damn widow maker.

Gotta be bold to hit a home run... I'm only talking 1 or 2 puts. Not like 10+ or some stupid crazy number.

How far out, on both date and strike, are you talking? Even looking at the mid-October timeframe and going $40 out of the money on strike, you're looking at premiums in the $5,500 range with a theta 2.5 times the delta and an IV over 120%.

That's just ugly.

[bubu dubu.]

rough day. Taking a beating

[Face The Facts]

rough day. Taking a beating

I was down really big earlier (about 4.5%) but it has come back a bit (maybe 3%) right now.

[bubu dubu.]

rough day. Taking a beating

I was down really big earlier (about 4.5%) but it has come back a bit (maybe 3%) right now.

Yeah, it came back a bit almost right after I posted that. DOW, nasdaq and S and P all down between 2.5%-4.5%, I'm down 1.16%, so really not that bad of a day....yet.

[SHAFA]

I hedged my Apple and AMD positions late yesterday, then added to my VXX calls this morning and trotted out some SPY puts.

I cashed out all of the puts now, but my long-term positions are still dragging me down.

[nigel]

loving this market...we'll drop some moar but this isn't THE drop yet

[SHAFA]

loving this market...we'll drop some moar but this isn't THE drop yet

Bounce tomorrow? I've been seeing a few people hitting the 288's on DIA for tomorrow.

[Face The Facts]

loving this market...we'll drop some moar but this isn't THE drop yet

I thought you were saying we're on an upward trend to 2030?
But short-term a big drop????

Why didn't you explain this better.

My retirement is at stake here!

[j2j]

The best part about buying shit at the bottom, it cant drop any lower.

[nigel]

loving this market...we'll drop some moar but this isn't THE drop yet

I thought you were saying we're on an upward trend to 2030?
But short-term a big drop????

Why didn't you explain this better.

My retirement is at stake here!

it's not a straight shot brah...we're going to have ridiculous drops between then and now, including one early 2021...right now, we'll dip and then bounce into year end. Going to be tricky AF. The easy money is OVAH.

[Face The Facts]

loving this market...we'll drop some moar but this isn't THE drop yet

I thought you were saying we're on an upward trend to 2030?
But short-term a big drop????

Why didn't you explain this better.

My retirement is at stake here!

it's not a straight shot brah...we're going to have ridiculous drops between then and now, including one early 2021...right now, we'll dip and then bounce into year end. Going to be tricky AF. The easy money is OVAH.

What's your source?
What data do you base this off of?

[Hornets]

I giggle reading the takes of you financial "experts" here! 99% of the time you're not even close!

[nigel]

I thought you were saying we're on an upward trend to 2030?
But short-term a big drop????

Why didn't you explain this better.

My retirement is at stake here!

it's not a straight shot brah...we're going to have ridiculous drops between then and now, including one early 2021...right now, we'll dip and then bounce into year end. Going to be tricky AF. The easy money is OVAH.

What's your source?
What data do you base this off of?

Source? Lol. I built a time machine.

[Kenneth Noisewater]

I thought you were saying we're on an upward trend to 2030?
But short-term a big drop????

Why didn't you explain this better.

My retirement is at stake here!

it's not a straight shot brah...we're going to have ridiculous drops between then and now, including one early 2021...right now, we'll dip and then bounce into year end. Going to be tricky AF. The easy money is OVAH.

What's your source?
What data do you base this off of?

He watches Mad Money bro.