Still think TITNC3: Return of the Iceberg was peak

Here’s what you wanna do for fun the next time the SPY falls about three bucks in a half an hour what you do when you think it’s bottomed out buy one of the daily calls +2 dollars from the bottom. It will probably cost you about 40 or 50 bucks if it recovers back to a dollar above that it will be worth about $150. You buy to open one call and sell to close one call. This will also give you an idea of time value and time decay.
Let’s say the SPY is trading at $392 at 10:30. The $394 call will be $70. If it stays $392 for the rest of the day that $70 price will lose $5 every 30 minutes and be worth about $15 at closing just in case it goes in the money by 5:30. SPY calls have a special valid after close situation.

 

Lightning will strike you at the same time you're getting eaten by a shark for that call to pay out lol.

This is my personal opinion, but if you're starting with options, I'd probably pick something other than SPY to experiment with. Some day traders make their living just trading SPY swings. a $400c with a week and a half to go is introducing a lot of potential variables

 

What's a stock or a couple stocks you really like, and let's go hunt for something to buy. Something you personally like and believe is going to go up in the future. Give a couple tickers and I'll make my recommendations, and I'm sure some of the other guys will too. Might be fun.

 

AMC -- no way jose
GNUS -- ok, there's plays there
HTZ -- bankrupt dumpster fire
MARA -- That would be theesotericone's field or maybe treeclimbrichard
VISL -- 50/50.

What do you like. What brands and industries are you familiar with? What companies do you believe in? What do you know a lot about?

 

My Legit calls right now are TAK, MU, PLTR, CLNE, APHA...
I would say buy
Pharma gambles
GERN, ACRX
Energy Gamble GTE

My biggest call mistake in a year was closing my Jan 2022 DIS $135 call for a TWO HUNDRED DOLLAR PROFIT in July...

07/15/2020 12:39:30
Sold 1 DIS Jan 21 2022 135.0 Call $1,219.30
That call is worth $6300 right now...
That and the $AMD calls I closed for $500 that were worth $5000 2 weeks later...

Just remember green is green...


Pay attention to the cost vs pay off and what $$ the stock has to get to for your call to be in the money at expiration. Most calls are Sold To Close and not exercised...
Read
http://bibotu.com/books/2018/Stock ...-Trading Options For Dummies-Wiley (2017).pdf

 

https://www.wsj.com/articles/federal-reserve-to-end-emergency-capital-relief-for-big-banks-11616158811


so what does this mean? Lol

 

I see PLTR and APHA, I upvote.

 

Not too much. Economy is on the mend, and the banks will have to start taking care of their own business again instead of being able to cry poor to daddy .gov. Banks own a lot of senators and congress people. They always cry poor when they have to operate on their own without the safety net around the trampoline.

 

The FED (overlords of banks)
Made this decree due to covid in 4/2020

Banks lend money based on assets...There's a ratio they must keep for liquidity rules...
They were allowed to lend more money with less assets that qualify for leverage...This will no longer be allowed...They need to now have "cash or equivalents" to balance their ratio..SO they would have to sell their loans to someone else to reduce the ratio, sell stock for cash, sell assets for cash, or sell treasuries/bonds to increase cash and decrease non-qualifying leverage assets...
Basically less money to loan means less money for banks...

 

The one thing in this country that's not allowed to fail either through incompetence, predatory lending, or negligence. The US banking system.

We saw this over a decade ago. Banks can do no wrong, until they do wrong, and then we have to save them for the good of the 'murica. Here, have a few hundred billion dollars. Just don't do it again *wink wink*

Narrator: They'll do it again.

And that's why GME is going to moon and nothing is going to realistically stop it. If the banks end up holding the buck, they'll just pass it along to the congress, and everything will be A-OK until the next time...

Kinda wish my great grandpappy had started Wells Fargo. I'd be doin' alright.

 

ah the ol’ I play you pay

 

But then you'd be an asshole on reddit telling all the $GME people they can't win...

 

What about being an asshole here and telling the GME peeps it ain't going to the moon? I don't do Reddit. lol

 

I have a theory on how GME will play out if this big squeeze happens, and the price climbs higher than hedge funds can afford.

Here is the scenario. Hedge fund asks gov for help. gov says, ok, we will cover 40%, you cover 60%. We all get our money, but then the gov taxes us at 37% getting most of their part back. Then the remaining 63% that we have left will be spent on homes, cars, and other things that the gov can then tax again (property tax is the gift that keeps on giving) Final result, hedge funds lose 60%, gov gains profit via taxes.
Hedge funds become less powerful, gov has money to pay off the 1.9 trillion they just printed, and everyone who has GME makes money.... then spend that money at local businesses, charity, and the wealth actually gets spread around.


Now also keep in mind that I have no idea what I am talking about, but it were me, this is how I would handle it knowing that I can get my money back via taxing the people who made it. But this could also help to prevent tanking the whole market, the gov gets to absorb the 40% of the hit only to get it right back again at tax time.

 

Oh please he wouldn’t have a tacoma. He’d be over on the Hummer forum

 

Ha ha jokes on the government. Five of my 53 shares are in my IRA.