All things STOCKS

#7,401
#7,401
Firebirdparts said:
I had a goal too when I started experimenting with active trading; My goal was to make 1% a week in a taxable account at fidelity. It hasn't been easy. I went through a long process of learning about options before I came here. I sold a lot of them, but I think that is one of those things that appeals to you based on personality and whether you can afford it. A lot of young guys cant' afford it. I have been trying to do like you guys do for about 3 weeks. I am not sure what to think about this swing trading, but I've made an awful lot of money. Just wondering what it's like to lose it just as fast.

I suppose that the hit rate on these swings could be evidence that Stock_Swing_Alert has enough followers to move the market. I don't know. In the options world, you certainly have to watch what r/wallstreetbets is doing, because they have millions of people coordinated who do nothing but trade options. In my arrogance I decided to sell options to these folks.
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If you stick to a plan, you should never lose very much percentage wise on a given swing trade. I currently make it a point not to lose more than 10% on any trade. I don't like using actual SLs unless I'm trading penny stocks, because physical SLs get gobbled up pretty quickly when a price is falling. But I absolutely have mental SLs. I would have been very close to stopping out of FUBO last week when it dipped below $26 had I set a phyiscal SL. Had the price action not rebounded and floated in the $25 range, I likely would have sold for a loss in the following days. I had a plan not to let it drop below $25 and stuck to it. Luckily, my plan worked out and the price rebounded and eventually had a short squeeze a couple days later.
 
#7,402
#7,402
I am with you on the stops; However, monitoring that is a lot like working, but I enjoy it.

I had, I guess, 3 phases of experimenting with this.
- Phase 1, I learned all about options but I avoided getting margin turned on in my taxable account; You can't hold a call spread in that case. I tended to sell puts as the market recovered from March. that was pretty fun. Puts on companies like NKLA cost a lot, and so it wasn't too unusual to sell a put for maybe 5% of the value of the underlying. so instead of picking up nickels in front of a steamroller, it was more like dollars. Puts always cash covered, because no margin.
- Phase 2, I started trying to identify good stocks to wheel. There are a lot of stocks I'd like to hold, but they're so boring that you can't sell an option hardly. Right now I hold Lowes: Option prices for lowes don't really reflect the true behavior of the stock. It was 180 in October, then down to 146 in December, now 172. That's a lot of movement for Lowes. You can't order lumber off amazon, you just can't. I also hold Rocket, and I guess I'm happy with it. I have 1000 shares and I sell 10 calls every week. The calls are reasonably pricey considering the stock itself just goes nowhere, ever.
- Phase 3, I tried a few tentative swing trades. SAVE a couple times, now I'm ankle deep in this SPAC trash. I gotta have some kind of exit strategy for this stuff; I literally have 7 positions that have gone up 20% in the last 3 or 4 days (not all spacs, GEVO and VERO in there). I bought PSTH, sold a $30 call that expires tomorrow, it's trading at $29.65. Bwah hah hah
 
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#7,403
#7,403
I hand weak hands on FUBO today. Sold out at 33.10 for a meager 20% gain, then watched as it flipped red to green on the day..... FML.

Dems da breaks though. Still my largest trade trade ever, so I'm happy with it. Now I hope it dips back down to the 20's again so I can buy back in.
 
#7,404
#7,404
Afternoon everybody, it has been such a long time since I posted within this thread. In stock trading it has been a lifetime as sometimes I find myself thinking about a SPAC at 11pm or drooling over a Penny stock and reading some Wall Street Bets (WSB) on Reddit. I have sold the day before the stock went meteoric like Novan and PLUG, I have made sizable gains including a few double digit baggers in BNGO and OCGN. I mean literally watching these be at .29 for weeks and then one day boom, what the heck happened. I have learned literally one thing in my 10 months of trading and looking over everything. This is just another thing that will cause a man to sweat and obsess over. This is why I come to a Volnation board because I am an Alumni, a fan and my closest is full of great looking orange patterns that will make me stand out at a party. I have learned a few things along the way. I have learned that most stocks go up. I mean some of the other people on this board can attest to this. Look at IDEX, we held and held and held and for some of us held, held, held, held....and one day Big Alf and his group of merry men put together something and we all made at least our money back if not even made a seafood tower. I also learned to never trust any of the people who are part of any "gang" on twitter as they are just pumping something and when they are wrong they don't care and when they are right, well they are right just ask them. Finally, I learned the most important thing of all. If you find a SAVE or something that literally goes back and forth every other month, just swipe of the top cream and when it goes back down, buy the dip and go back and forth; and you will one day have yourself alot of money. Remember to enjoy the profits and do something great with them; a nice gift for you, a nice gift for your family, when covid is over maybe a nice gift for your friends, but remember even thought you got great advice from @VolAllen , you got given this gift by someone bigger and greater than anyone else; so maybe give a little to something that makes your heart feel warm! Thank you for everyone in here and once again let's get after it in 2021
 
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#7,406
#7,406
I know yall do this so much. I am looking to get into options trading in 2021. Could some one give me an amateur explanation call/put options? It is such big words that are slightly confusing. Lets say VOL is at 10/share. I am very confused on the options and don't really understand the extra cost. I tried to follow it but couldn't come up with what happens.
 
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#7,407
#7,407
VolnJC said:
I had never heard of this company until I decided to switch to Visible cell service...apparently they do POS financing for retailers...the option for us was 0% interest for 24 months for a phone ..I didn't use it but might be one to watch for investing they just went public
Affirm Almost Doubles in Debut After $1.2 Billion IPO
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Every new public company seems to be doing that. Times are weird.
 
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#7,408
#7,408
LIvol said:
I know yall do this so much. I am looking to get into options trading in 2021. Could some one give me an amateur explanation call/put options? It is such big words that are slightly confusing. Lets say VOL is at 10/share. I am very confused on the options and don't really understand the extra cost. I tried to follow it but couldn't come up with what happens.
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4 positions. You buy or sell PUTS or CALLS.

They are RIGHTS to buy or sell shares of stock.

There is a buyer and a seller of every option.

Options are derivatives and deteriorate in value over time.

Options contracts are for blocks of 100 shares. So an option trading at $2 costs $200.

Most important variables are the strike price and the expiration date.

Most options expire worthless. Owning options and the possible loss is limited to the amount invested.

Selling options have more potential risk. Selling uncovered CALL options have unlimited theoretical risk.

Owning options creates an opportunity to participate in the price movements than by owning or shorting the actual shares. Less capital is required although it is at far greater risk of dissolving to nothing.

Stock Option
 
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#7,409
#7,409
LIvol said:
I know yall do this so much. I am looking to get into options trading in 2021. Could some one give me an amateur explanation call/put options? It is such big words that are slightly confusing. Lets say VOL is at 10/share. I am very confused on the options and don't really understand the extra cost. I tried to follow it but couldn't come up with what happens.
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Watch this

 
#7,411
#7,411
LIvol said:
Thank you to both people. I appreciate the help. How has it been for you @VolAllen ?
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It’s been good! My problem with it is over trading. I’ll make $3,000 on a trade and then try to force another one and lose $1,000 of it doing something stupid. And I haven’t quite figured out what works best. Cutting losses quickly or letting the option ride. I typically make the big gains within a few minutes it seems, but the losses drag out and never go back up.
 
#7,413
#7,413
Tri-CitiesVol said:
Are there any repercussions to selling a call while you have good profit but aren’t quite in the money?
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I think you mean owning a call that has gone up in value. But the way you’ve worded this it could also mean that you own a stock that has gone up in value and are considering selling a covered call against the stock that you own.

In the first scenario, it’s never a bad idea to take a profit. You will rarely sell at the absolute high or buy at the absolute low. If the expiration is near you may not want to risk keeping an out of the money call. Out of the money options can quickly go to zero market value.

If you are talking about selling a covered call then your only risk is being forced to give up your stock or covering your option. Taxes are something to consider.
 
#7,417
#7,417
Just got crushed by SNDL. Managed to get out with $800 in profit, but why announce an offering when your stock is starting to pick up steam and gain NASDAQ compliance.
 
#7,418
#7,418
Tri-CitiesVol said:
Just got crushed by SNDL. Managed to get out with $800 in profit, but why announce an offering when your stock is starting to pick up steam and gain NASDAQ compliance.
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Raise capital for several reasons. Shore up Balance sheet, Regulators, purchase another company, etc.
They needed the cash.
 
#7,419
#7,419
Go aeiou said:
Raise capital for several reasons. Shore up Balance sheet, Regulators, purchase another company, etc.
They needed the cash.
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Yes, but **** timing. They killed their shot at compliance and will need a R/S now I’d bet. They’ve diluted the heck out of it.
 
#7,420
#7,420
Tri-CitiesVol said:
Yes, but **** timing. They killed their shot at compliance and will need a R/S now I’d bet. They’ve diluted the heck out of it.
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I took a quick look. They have a serious debt problem. Cash should lessen that problem. I don't know, but I would expect the regulators to look at the offering as positive event.
How did it kill compliance? Low stock price?
I'm not familiar with r/s? Stock right? Real shet?
 
#7,421
#7,421
Go aeiou said:
I took a quick look. They have a serious debt problem. Cash should lessen that problem. I don't know, but I would expect the regulators to look at the offering as positive event.
How did it kill compliance? Low stock price?
I'm not familiar with r/s? Stock right? Real shet?
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Hell they put this out just a few weeks ago.
Sundial Announces Completion of Financial Restructuring and Debt-Free Status

R/S= reverse split to get it above $1. It was going to get a dollar without it with the hype leading into Biden admin and upcoming weed legalization.
 
#7,422
#7,422
SNDL has nearly a billion shares (800mm), price/sales ratio of 25x or so, and has been losing a few hundred million dollars/year. There’s no barrier to entry. I’d like to know why their expenses are several times as much as their sales. Voting liberals into the federal government won’t fix their issues. Actually more liberal marijuana laws will bring a flood of competition.
 
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