All things STOCKS

[Carp]

$NCMI filling that gap nicely.

 

[Go aeiou]

$NCMI filling that gap nicely.

Ha, ha
Lucky call.

 

[mr.checkerboards]

Wow these two days have been ugly

 

[BigOrangeMojo]

At the risk of a TWSS comment..

When you decide to initiate a position, do you go all in at once or do you buy slowly over several days/weeks?

Just curious what the consensus is here.

 

[BigOrangeMojo]

$NCMI beasting today. Good chance it fills the gap up to 4.50 if it can break $4

Sold at 4.50 (actually 4.52). Good pick there....

 

[VolAllen]

At the risk of a TWSS comment..

When you decide to initiate a position, do you go all in at once or do you buy slowly over several days/weeks?

Just curious what the consensus is here.

If say I wanted 2,000 shares of SAVE. I’d buy 500, then buy 500 more a few hours later and either average down or average up depending on which way it went. Do the same the next day.

 

[VolAllen]

So I bought some calls this morning. Admittedly my first time and I have no clue what I’m doing, so I eased in. Can someone break this down for me please...

 

[Thunder Good-Oil]

So I bought some calls this morning. Admittedly my first time and I have no clue what I’m doing, so I eased in. Can someone break this down for me please...

View attachment 304354

Up nearly 20% with 2 weeks left on the contract I’d sure cash out. But that’s just me.

Whenever I look at options the spreads just seem too ridiculous to draw me in.

 

[Firebirdparts]

That screen doesn't even show what you bought. But through guesswork, we can see that you have a $19 strike price call on CCL. You have the right to buy 1,000 shares of CCL for $19 a share. You paid $1.02 for that right, which is not trivial. That's 5% of the stock price. This expires on 9/18, which is the third Friday of the month. That is when monthly options expire. Some companies have weekly options expiring today and next Friday, and some don't. Spy is so popular it even has options that expire during the week.

The break even price, I guess you see, is that CCL would have to hit $20.02 so that when you bought at $19 and sold at 20.02, you'd get your $1.02 back. In reality, it doesn't work that way. If the call expires in the money, you'll wake up Monday morning (September 21) to discover you have 1000 shares and you'll be missing $19,000 dollars. The actual outcome will depend on how much you can sell the stock for for that day (or ever). If the call expires out of the money, nothing happens. You can sell the calls at any time, so this will be a good experience for you to watch the value move around.

 

[bignewt]

I sold some CCL today and moved into AAPL, doing the opposite of @VolAllen lol

 

[BigOrangeMojo]

*Raises hand*

At least I purchased IDEX before trading out of Disney. I don't recall what I traded out of Disney for, but I feel like it was some other penny stock that I either took an L on, or took less than 10% gains. I was also in PINS around the $19 mark and sold for only like a 15% profit. And I also traded out of $GRPN for a pretty significant loss and watched it shoot over $30 after ER.

My initial purchases when I started (GRPN, DIS, PINS)were all good. Had I stuck to that plan, I'd be up at least $800 right now instead of down $1k. That's an $1800 swing all because I tried to get rich quick. I'm doing better now though. NCMI and PINS got me back on track. I'll be playing those awhile. UBER is another that is pretty easy and safe to play. PLAY will be another I want to be in long term, just looking for a pull back from this breakout.

My main thing is I have to know what I'm investing in. With IDEX, I'm still not sure I can explain what that company does. I know I was vocal long before the Hindenburg article that something didn't smell right here.

You knocked it out of the park with NCMI. At least with NCMI, I knew that company was legit, I knew of its product. I was able to take a look at financial statements and realized there weren't liquidity concerns as long as movie theaters opened up before 2022. My thought was if we aren't opened up by 2022, my portfolio will likely be shot anyways.

 

[Carp]

My main thing is I have to know what I'm investing in. With IDEX, I'm still not sure I can explain what that company does. I know I was vocal long before the Hindenburg article that something didn't smell right here.

You knocked it out of the park with NCMI. At least with NCMI, I knew that company was legit, I knew of its product. I was able to take a look at financial statements and realized there weren't liquidity concerns as long as movie theaters opened up before 2022. My thought was if we aren't opened up by 2022, my portfolio will likely be shot anyways.

My main attraction to NCMI was the dividend, it had quite a bit of recovery left to pre-covid levels, and it has enough cash on hand to support it's business activities through 2022 and deliver dividends through 2021, and theaters were set to open soon.


I'm like CNK and IMAX for many of the same reasons, but looking for a pull back for entry.

Debating on getting back into PINS. Love the company long term, and it's down to support levels currently, but I have a feeling it might fill that gap back down to the $25.

 

[Go aeiou]

My main attraction to NCMI was the dividend, it had quite a bit of recovery left to pre-covid levels, and it has enough cash on hand to support it's business activities through 2022 and deliver dividends through 2021, and theaters were set to open soon.


I'm like CNK and IMAX for many of the same reasons, but looking for a pull back for entry.

Debating on getting back into PINS. Love the company long term, and it's down to support levels currently, but I have a feeling it might fill that gap back down to the $25.

I think the ncmi dividend was cut to .28/yr. Still an excellent return of 6% + -.

 

[VolAllen]

So here’s an update on my first options play...So if I’m happy with +$230 I can sell on Tuesday, correct?

 

[VolAllen]

I think the part I’m confused about is the “break even” price of 20.02, but yet it says I’m +$230, or 23%.

 

[Thunder Good-Oil]

I think the part I’m confused about is the “break even” price of 20.02, but yet it says I’m +$230, or 23%.

I think that the break even is the current stock price plus the current call option price plus commissions rather than YOUR break even.

I assume that that is a purchased call option. I don’t see a strike price though.

 

[BigOrangeMojo]

I think the part I’m confused about is the “break even” price of 20.02, but yet it says I’m +$230, or 23%.

Your option price was 1.02 and since the stock has gone up, the option is now worth 1.25. (1,000 * (1.25-1.02) = $230

As it gets closer to 9/18, the option value will go down unless the stock price continues to increase.

The $20.02 is what the stock price will need to be for you to breakeven if you held all the way til 9/18.

 

[Thunder Good-Oil]

I did a quick scan through one of my watch lists and it was kind of shocking how many are so close to their 52-week highs. Looking for possible bargains though, SAVE is still way down. I might cancel my limit sell order or raise it into the 30s. Might even add to my current position.

DGX (Quest) hasn’t taken off from its 52-week low. Without digging I’m confused how their year over year Q2 revenues are down. Perhaps they do a lot of business related to elective procedures and not a large mix of COVID-19 testing. I do see their vehicles almost every time I’m out and about during banking hours.

Martin Marietta Materials is off the high and the low. I think that they can do well if the government gets serious about getting the nation’s infrastructure fixed.

Then I’m torn on the 2 dentals. HSIC seems like a better liked company compared to Dentsply (XRAY), but HSIC is pretty close to its high share price plus doesn’t have a dividend.

I’d like to put some capital to work before COVID-19 is in the rear view mirror, but i’m still cautious that there is still some downward pressure on markets ahead. But these names don’t seem too risky if I’m patient.

 

[VolAllen]

Your option price was 1.02 and since the stock has gone up, the option is now worth 1.25. (1,000 * (1.25-1.02) = $230

As it gets closer to 9/18, the option value will go down unless the stock price continues to increase.

The $20.02 is what the stock price will need to be for you to breakeven if you held all the way til 9/18.

I do believe the price of CCL will continue to rise next week, but I’ll be selling before 9/18 for any amount of green. This is pretty neat.

 

[Sudden Impact]

I do believe the price of CCL will continue to rise next week, but I’ll be selling before 9/18 for any amount of green. This is pretty neat.

If I am assuming correctly you purchased 10 CCL Contracts Strike Price (SP) 19 @ 1.02. The simple calculation is 19.00 plus 1.02 is your break-even which equals 20.02 underlying for the underlying stock price.

Three things to be aware of are Delta, Theta, and your Broker's policy on automatic exercise. For example, if the underlying Stock Price drops to 19.01 Some firms automatically Exercise the Option.

 

[Sudden Impact]

Has anybody been tracking or invested in SRNE -- Sorrento Stock? Just curious about anybody's thoughts. I have done thorough DD and just wondering if others have any skin in the game...Very Volitatle Stock and if you are in it you will know why I am asking....

 

[Freak]

I think that the break even is the current stock price plus the current call option price plus commissions rather than YOUR break even..

It's his breakeven if he actually purchases the shares at the strike price. His basis would be the strike price plus the amount he spent on the option ($19 + $1.02).

 

[VolAllen]

So am I actually +$230 or not?!

 

[Freak]

So am I actually +$230 or not?!

You're up $230 if you sell the option for $1.25 before expiration.

You paid $1020 for the 10 contracts and if you sell them for $1250 ($1.25 x 10), you profit $230.

 

[BigOrangeMojo]

I do believe the price of CCL will continue to rise next week, but I’ll be selling before 9/18 for any amount of green. This is pretty neat.

Personally, I'd sell Tuesday if CCL is green. You paid a decent premium for an out of the money option. Even if CCL is up 1% Tuesday, your option value may not go up since you are another day closer to the strike date.