All things STOCKS

#11,451
#11,451
mrorange211 said:
Covered calls and puts are definitely the better option in this environment. Market slipping here a bit after open. It will be interesting to see what may happen if it goes red by close.
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Sold AMAT 8/12 97 PUTS Wednesday for $1.50. Bought to close yesterday for $0.20.

Trying to sell 8/26 112 AMAT covered calls for $2.40 but it’s moving away from my limit day order ATM. I’m happy to let AMAT shares go for $112 in the next 15 days. Under $107 right now. They were around $108 when I entered the options order.
 
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#11,452
#11,452
Thunder Good-Oil said:
Sold AMAT 8/12 97 PUTS Wednesday for $1.50. Bought to close yesterday for $0.20.

Trying to sell 8/26 112 AMAT covered calls for $2.40 but it’s moving away from my limit day order ATM. I’m happy to let AMAT shares go for $112 in the next 15 days. Under $107 right now. They were around $108 when I entered the options order.
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Too bad you can't make any money doing this cause you aren't a "big boy"! lolololol:rolleyes:
 
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#11,453
#11,453
I am very much depending on the regular Friday swoon to dictate what happens to covered calls each week. For several months, I've been afraid to sell them on Mondays. FWIW. It seems like many many weeks it's been likely that the market goes up 3% M-W (not this week ha ha) and then loses it. That 3% makes a big difference in option prices in a short time. Anyway, I have AMAT, 100 shares, and I am trying to play as close to the edge as I can with calls on it. We'll see how it goes.

Today in fact as you all saw it covered a range from about 105.30 to almost 109 in 45 minutes, then back to 106-ish in another hour. I was short a 109 call expiring tomorrow during that.

I also have some MU and some UCTT right now. I have no clue where this chip stuff is all going. I claim no insight.
 
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#11,454
#11,454
Firebirdparts said:
I am very much depending on the regular Friday swoon to dictate what happens to covered calls each week. For several months, I've been afraid to sell them on Mondays. FWIW. It seems like many many weeks it's been likely that the market goes up 3% M-W (not this week ha ha) and then loses it. That 3% makes a big difference in option prices in a short time. Anyway, I have AMAT, 100 shares, and I am trying to play as close to the edge as I can with calls on it. We'll see how it goes.

I also have some MU and some UCTT right now. I have no clue where this chip stuff is all going. I claim no insight.
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AMAT isn’t a loved stock, so I’m comfortable selling covered calls and expecting them to (hoping they’ll) expire. If the shares are called away I think I’ll be able to replace them at a lower price if I’m patient. I also don’t hate AMAT, so if I sell puts and am forced to buy I’m not going to sweat it.

I’m just going small while I’m getting more comfortable with options. Right now selling after STRONG moves in the AM is where I’m focusing.

I just compiled a watch list of stocks and ETFs that I own round lots of in my IRAs and will use as covered call opportunities. I have another list of securities that I have my eye on to buy and will sell puts on those. That way I’m not creating a tax liability (since the transactions are inside of the IRA wrap) on the options proceeds or shares being called away. Also by (only) selling to open the options positions in a non-taxable account, I’m not likely to have wasted tax losses.

I’m not comfortable picking a direction in the middle of a trading range or trying the multi-leg strategies. I don’t even know what to buy/sell if I anticipate a sideways market.

I’m just trying to earn some lunch money right now. I’m holding off on making any big bets.
 
#11,456
#11,456
mrorange211 said:
I've been playing around with about 10-20% of my fund since May or so. Just options stuff. Today I'm at the point about about to buy a substantial amount of puts on ARKK and SPY for December.
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I wouldn’t want to bet against ARKK. It seems to be rotating back into favor. She hasn’t really been liquidating many losers and they might could have a lot of run left.

I assume that the cash in the account to cover a forced purchase when selling puts has to be in the 0.01% savings or money market accounts instead of a short term option that earns 2-3%.
 
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#11,457
#11,457
Depends on your leverage approval level. It's obviously safer to sell cash-secured puts, but it's not required.

In an IRA, you can get into a little bit of a jam with risk management, because you can't just deposit more money when you do it wrong. You have to get it 100% right. I have options approval in my Roth, and I have to be real careful with that. I take a ton of risk in there but I have to be able to recover.
 
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#11,458
#11,458
Looks like AMAT will stick around $106.5 this afternoon so my sell limit on the puts won’t execute. I’ll try again tomorrow after the opening settles down. I’m real comfortable selling $112 puts. I might even look out another week for the expiration (from 8/26, 9/3 instead).
 
#11,459
#11,459
Firebirdparts said:
Depends on your leverage approval level. It's obviously safer to sell cash-secured puts, but it's not required.

In an IRA, you can get into a little bit of a jam with risk management, because you can't just deposit more money when you do it wrong. You have to get it 100% right. I have options approval in my Roth, and I have to be real careful with that. I take a ton of risk in there but I have to be able to recover.
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Yes. I’m sticking with the IRAs. My margin account would be a different story. But I don’t care to fool around with filing taxes with a lot of option trades in a taxable account.

It seems like even in an IRA, having funds available when long ST to 2-year debt would be reasonable. But some rules aren’t bad ones. No margin in IRAs ended up protecting me from myself.
 
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#11,462
#11,462
Not feeling the Friday swoon. I rolled some stuff during the "thursday afternoon" swoon yesterday. My AMAT 109 is now a [update] 113 next week.
 
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#11,463
#11,463
I’m looking at ORCL calls to short. Prices look better to go long imo. But I’m not interested in doing that. Might look for a put contract to buy.
 
#11,466
#11,466
AMAT 8/26 calls look good. Might raise 112 to 115

Late for the Sky - Jackson Browne. Sweet. Opening bar on guitar sounds a lot like BB’s Soul Man.
 
#11,469
#11,469
I don’t think that AMAT hits $112 by next Friday. But if it does I make $175 plus another $300 plus over selling shares at the market now.

Back to ORCL.

Carnival - N Merchant. Love the guitar lady on that tune.
 
#11,472
#11,472
Irrelevant. The market can remain irrational longer than you can remain solvent.

Feeling like a bit of a surge so far today.
 
#11,474
#11,474
Firebirdparts said:
Irrelevant. The market can remain irrational longer than you can remain solvent.

Feeling like a bit of a surge so far today.
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I've heard from multiple people dismissing the rally that one reason is because trading is lighter than normal because the big traders are on vacation or whatever this time of year.

I'm skeptical of this, but it gets repeated on Bloomberg, etc.
 
#11,475
#11,475
Just look at the numbers for the last three weeks. Ever since Earnings and FOMC week, volume has been turrrrrrrible. When that happens there is always a melt up that takes place. Volume on the SP is usually over 6 billion, but in the last three weeks it has barely reacher 3 billion per day and sometimes only hits 2-2.5. These are the dog days of summer.
 
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