Investment BS Thread - Stocks/Futures/Mutual Funds/Bonds/Commodities/Options/ETFs/401ks/Etc

So I read an investment tip article once about not having too many options positions...to just focus on 1-3 different stocks, get to know them and play them...That's what I WAS doing but now I started getting antsy about losses and looking for leverage to get more $$ and now I have so many open positions it's crazy...
Calls....INTC (LONG), SRNE, CRWD (Looking real good going into 9/2 earnings), F (FOR GODS SAKE 7.20 plz), STZ (Driving me nuts...looks good, dips $5....and then back. If you're looking to play get the $180 call at <$177 and then get the $180 PUT at >$180...), GOLD, VXX (Long, election insurance), AZN, DFEN, SLV,

PUTS DIS (KILLING ME...How the hell does it keep going up...going to lose about $400..I could use a $10 drop to get out at a 50% loss..I really thougt it was heading for $110...just the defiance of desire to own over metrics...) and VXX Puts that are now in the money for 16OCT...and climbing

12 different stocks...over 20 contracts...eesh...so much work.

 

2 stocks. NVDA and TOL. 42 contracts. Watching those swings can make you go crazy.

 

The weird thing is the stability of the 1 or 2 month PUTS on VXX after a pop...It's ALMOST free money...and that inherent decay doesn't impact PUT prices after a quick pop in volatility...So if you grab a -$2 or -$3 put 2 months out after a pop it's going to be in the money after 3 weeks of stability...I'm going to be watching this carefully starting around november 10th...If there's a VXX pop get a real out of the money put for 6 months out...

 

Sum Bitch. I was thinking that, pick 3-5 companies, maybe in different industries, and really know them, and play with those instead of betting left and right with all these different companies... and as @theesotericone pointed out I know he's very familiar with NVDA and does that.

If I play options soon, I might do VXX and 2 other companies. Don't know what companies I would play in. Maybe F or another automaker.

 

Get yourself 100 shares (at least) of T and write covered calls. I read on Seeking Alpha all the time that people have that down to a science, and it would be a good way to learn.

 

Tomorrow is going to be interesting. Jobless claims get released at 830 AM. Powell speaks at 910 AM. Pending home sales get released at 10 AM.

That's a lot of data for the market to react to. I should go all cash right now but I won't. lol

 

IF I COULD BUY 100 shares of TSLA I wouldn't need.....That's $212,000 mr...

I was doing this with ABT until I FINALLY lost my shares on a $100 call last month..made my $$ though

 

You could have picked up 100 shares of TSLA within the last year for $21.5k. So I guess that means you could have turned $21.5k into $212,000 in the last year also. Yikes.

 

If i would've had more money I would've done that with NIO. I did hit new all time highs today with my portfolio total.

 

Yeesh that's still 3k starting. For my monopoly stuff, that's a hell of a commitment. That said I might give that a whirl.

 

I think you can do it with any predictable, boring company. Maybe F to get the hang of it. It’s cool though because it generates income and the goal is to not sell the shares.

 

Is the only thing making it a "covered call" the fact that you own the shares? Or is there more to it? Like do you have to link the shares to your option somehow?

 

I think the "covered" part is because you own them, you'll lose them if the contract is executed. If it's not, you pocket the premium. That's what I meant when I said there's a science to it, I think people figure out the time/amount and just collect premium every month without ever selling the shares.

 

I always knew you were a smart man. Buy the dips! ;o)

 

Covered calls are "covered" because you own 100 shares of the underlying security. If you don't and write a call it's called a naked call. Naked calls are never to be used. Ever. You keep the option premium regardless of whether the calls get assigned or not.

I sell weekly covered calls on NVDA. I own 200 shares. This week I sold 2 Aug 28 $545 covered calls at 3.09 each. The premium I received was $618. If NVDA closes below $545 on Friday I keep my shares. If it closes above I sell my shares at $545 x 200. For me to loose money NVDA would have to close above $548.09. The combination of the strike price and my premium.

 

HOLY...

The Hurricane Laura is now a CAT 4...

 

Yep. It's a big one. Landfall in the AM.

 

and then NEVER dip again

I would like to be able to buy 2 long calls...One at $100 and one to protect that at $95...or something like that but they don't even let you do that...You should always be able to sell the $95 back to cover the $100...but Yea...naked calls are suicide.

 

That's it..it means you have 100 shares per contract you sell...It's the best way to lock in profits when you hit a sell point but still want to make $$$

Take for instance a stock I was doing it with, ABT....I had decided that $90 was a comfortable out for me.
So with 100 shares I would sell the 1 Month calls..April it hit $96, You sell the $90 May covered call for $7.50 x100 $750...So now you're effectively selling an in the money (a call that is already reached it's price). I was saying "Go ahead and take my shares at $90 in May...I'll take the $750 now...so In May my shares are going to be taken at $90 or above and I have the extra $7.50 per share today...Well, when you do this there's always a chance the price will dip...It went from $96 to $89 a share on May 4...So instead of leaving the option open I buy to Close for $2.50...So now I've made $500 and STILL have my shares...And then I was selling the $100 after this and it finally stayed over $100 and I lost my shares...But you've made maybe 10% of that in 2 months just from the covered calls...
I tell anyone that when they've decided to unload shares...Sell the in the money covered calls. You may get a chance to buy them back...

 

Just to clarify.... keep in mind that I'm still very much learning this... you guys are talking about SELLING calls not buying calls.
The only calls that would be "naked" or "covered" are calls you sell right?

I ask this because when I first read those statements I was confused, thinking that I had done something terribly wrong by buying calls without owning any shares.
My understanding about buying calls is that my profits are unlimited but my loss could only be the entire premium I paid.
I guess the opposite would be true for selling calls. Your losses could be unlimited (thus the need to have them covered) but your profit can only be the premium you sold for.

Do I have that right? Or am I hopelessly confused?