Stock market.... What are you doing?

[NyleRN]

You still in SQQQ? My buddies love trading them SQQQ options. I have never messed with them, I am more of a SPY or SPX guy.

On another note......any of you ever tried using options to pay for a stock in 1 year? Here is an example of my new strategy I am trying. Example.....you buy say 1000 shares of Ford stock for $12.50, you immediately sell 10 contracts of $13.50 covered calls for .25 for a $250 credit, that expire next week. Then next week, if stock does not go over $13.50, I keep the $250 and sell same calls for 2 Fridays out......continue this every week until shares are either free in 12 months.......or stock gets called away.

Worse case.......the stock falls and you are down on shares but continue to lower cost of shares by continuing to sell calls. Best case...you collect the $1000 a month for 12 months, and own the shares for free. If the stock would bounce $2 in a week.....you would probably get stock called away, but you would still collect the premium and make $1 a share profit.

I have a few stocks I am looking at doing this with......AAPL is another I am thinking of doing this with.

You all have thoughts on this?

That's a good theory till the stock price drops below your cost average and the premiums go to crap. Like $5 a contract. Then in order to keep making that $25/contract you have to sell a call that's under your cost average which is risking losing money on them if it has a little bump that week

 

[ancjr]

There's an option strategy called the "Wheel Strategy" that I admittedly haven't tried that sounds along the lines of what Randy is attempting to do...

 

[CHCRandy]

There's an option strategy called the "Wheel Strategy" that I admittedly haven't tried that sounds along the lines of what Randy is attempting to do...

I have played and still play the wheel. That is where you back into stock shares.....by selling put options. In that scenario you never buy the shares until you are forced to.....you simply sell the put options on it and hope to collect the premium while the stock never exercises......but if it does exercise and you get put shares, you then go into selling covered calls on the shares and collecting the premium that way.

Nyle......the premium would not go to hell though......you just sell the covered calls closer to share price (nearer the money). It don't matter if the shares are $8 and you sell a $9 covered call(option), or if shares are $15 and you sell a $16 call.....as long as you make that $1 a month is all that matters. Keep in mind, this is long term investment I am talking about, so if they drop to $8, I just continue writing covered calls until I am even again. You can only do this with companies you trust. I think the trick will be not getting shares called away.....or it popping and me not being able to buy back calls quick enough and getting shares called away. It would suck to buy at $12, and it fall to $8, sell a $9 covered call and losing the shares at $9....then you would only get $9.25 for something you paid $12 for........so maybe you are onto something. Of course, then I would go into selling puts and try backing into the shares...with the wheel ancjr mentioned.

I want to buy like 2500 for me and 2500 for the wife. Sell the 50 contracts a week for .25.....just to continuously lower my cost average. My goal in this is to own companies free and clear in 6 years when I retire..........then I can continue to sell covered calls and puts for income, without touching my shares. I would much rather write options than buy......

 

[DoggyDaddy]

I have played and still play the wheel. That is where you back into stock shares.....by selling put options. In that scenario you never buy the shares until you are forced to.....you simply sell the put options on it and hope to collect the premium while the stock never exercises......but if it does exercise and you get put shares, you then go into selling covered calls on the shares and collecting the premium that way.

Nyle......the premium would not go to hell though......you just sell the covered calls closer to share price (nearer the money). It don't matter if the shares are $8 and you sell a $9 covered call(option), or if shares are $15 and you sell a $16 call.....as long as you make that $1 a month is all that matters. Keep in mind, this is long term investment I am talking about, so if they drop to $8, I just continue writing covered calls until I am even again. You can only do this with companies you trust. I think the trick will be not getting shares called away.....or it popping and me not being able to buy back calls quick enough and getting shares called away. It would suck to buy at $12, and it fall to $8, sell a $9 covered call and losing the shares at $9....then you would only get $9.25 for something you paid $12 for........so maybe you are onto something. Of course, then I would go into selling puts and try backing into the shares...with the wheel ancjr mentioned.

I want to buy like 2500 for me and 2500 for the wife. Sell the 50 contracts a week for .25.....just to continuously lower my cost average. My goal in this is to own companies free and clear in 6 years when I retire..........then I can continue to sell covered calls and puts for income, without touching my shares. I would much rather write options than buy......

 

[NyleRN]

I have played and still play the wheel. That is where you back into stock shares.....by selling put options. In that scenario you never buy the shares until you are forced to.....you simply sell the put options on it and hope to collect the premium while the stock never exercises......but if it does exercise and you get put shares, you then go into selling covered calls on the shares and collecting the premium that way.

Nyle......the premium would not go to hell though......you just sell the covered calls closer to share price (nearer the money). It don't matter if the shares are $8 and you sell a $9 covered call(option), or if shares are $15 and you sell a $16 call.....as long as you make that $1 a month is all that matters. Keep in mind, this is long term investment I am talking about, so if they drop to $8, I just continue writing covered calls until I am even again. You can only do this with companies you trust. I think the trick will be not getting shares called away.....or it popping and me not being able to buy back calls quick enough and getting shares called away. It would suck to buy at $12, and it fall to $8, sell a $9 covered call and losing the shares at $9....then you would only get $9.25 for something you paid $12 for........so maybe you are onto something. Of course, then I would go into selling puts and try backing into the shares...with the wheel ancjr mentioned.

I want to buy like 2500 for me and 2500 for the wife. Sell the 50 contracts a week for .25.....just to continuously lower my cost average. My goal in this is to own companies free and clear in 6 years when I retire..........then I can continue to sell covered calls and puts for income, without touching my shares. I would much rather write options than buy......

Let me give you an example. You're a sharp guy when it comes to the market so I'm sure you'll understand. I did just what you were talking about with MVIS. My ACB is 8.90. As long as the stock price was close to that I could do exactly what you're stating. But what happens in 3 or 4 months when the stock price drops to 6.90? Am I willing to risk losing my shares by selling a $7 call a month out for a premium of $10? And when a stock is trending down good luck trying to get anyone to bid on a call that's 10%-20% or more OTM

 

[CHCRandy]

Let me give you an example. You're a sharp guy when it comes to the market so I'm sure you'll understand. I did just what you were talking about with MVIS. My ACB is 8.90. As long as the stock price was close to that I could do exactly what you're stating. But what happens in 3 or 4 months when the stock price drops to 6.90? Am I willing to risk losing my shares by selling a $7 call a month out for a premium of $10? And when a stock is trending down good luck trying to get anyone to bid on a call that's 10%-20% or more OTM

Oh man....I see what you mean! That is a tough spot to be in......but if you have faith in MVIS, guess you just have to wait. That stock has been demolished this year.....but you know how it is, someday it will come flying back. MVIS looks like one I could get in right now and do what I was just talking, but not sure about long term investment on it.........you think it keeps going down if market drops or is bottom in?

I am going to try to be real selective on what stocks I buy to do this in. I am now trying to start a check list in order to make a list of stocks that qualify for what I want. A list of must haves to get on the list. 1. Must have weekly options. 2. Must not be at 3 year high or low. 3. Must have options at 5% OTM, 1 week from expiration, that will pay at least 2% premium on current stock price.

You have any other suggestions to what criteria one should use?

 

[NyleRN]

Oh man....I see what you mean! That is a tough spot to be in......but if you have faith in MVIS, guess you just have to wait. That stock has been demolished this year.....but you know how it is, someday it will come flying back. MVIS looks like one I could get in right now and do what I was just talking, but not sure about long term investment on it.........you think it keeps going down if market drops or is bottom in?

I am going to try to be real selective on what stocks I buy to do this in. I am now trying to start a check list in order to make a list of stocks that qualify for what I want. A list of must haves to get on the list. 1. Must have weekly options. 2. Must not be at 3 year high or low. 3. Must have options at 5% OTM, 1 week from expiration, that will pay at least 2% premium on current stock price.

You have any other suggestions to what criteria one should use?

I have faith that MVIS has the absolute best solid state Lidar tech. Whether it's seen it's bottom is really unknown. Tech has taken a serious hit this year. Does it have more downside? Who knows

 

[ancjr]

I have built a lot of confidence in SQQQ recently.

 

[CHCRandy]

I have built a lot of confidence in SQQQ recently.

Looks like SQQQ gonna have a good day tomorrow if these futures mean anything.....already down over 1%, probably a fake out. I still think we get a big bounce this week.......then look out below. I may have to join you guys in SQQQ. This will probably be a week where you can buy SQQQ June 17 $65-70 calls for 50 cents and June 17 $49 or $50 put for 50 cents...you only have $1 in the trade, and you know there will be huge volatility on Wednesday.

I bet tomorrow is a crazy day......I am planning on SPY calls at 9:35am for a bounce.

 

[ancjr]

Looks like SQQQ gonna have a good day tomorrow if these futures mean anything.....already down over 1%, probably a fake out. I still think we get a big bounce this week.......then look out below. I may have to join you guys in SQQQ. This will probably be a week where you can buy SQQQ June 17 $65-70 calls for 50 cents and June 17 $49 or $50 put for 50 cents...you only have $1 in the trade, and you know there will be huge volatility on Wednesday.

I bet tomorrow is a crazy day......I am planning on SPY calls at 9:35am for a bounce.

If only I had the confidence to have bought in premarket on Friday...

 

[CHCRandy]

I have a stock I want to buy back into big this week. If you look at the chart, you will think you have missed it and are chasing. I now have reason to believe this stock will go to $10+. It trades now at under $1. The ticker is IMPP......don't blame me if you play this and lose. THIS IS RISKY! It could drop to 40 cents as easy as going to $10........but I think this sees 100's of % pump soon. Risky play but nice return potential.

 

[ancjr]

I have a stock I want to buy back into big this week. If you look at the chart, you will think you have missed it and are chasing. I now have reason to believe this stock will go to $10+. It trades now at under $1. The ticker is IMPP......don't blame me if you play this and lose. THIS IS RISKY! It could drop to 40 cents as easy as going to $10........but I think this sees 100's of % pump soon. Risky play but nice return potential.

I looked at that Friday, actually.

Shorting BTC looks like a safer bet than SQQQ even...

 

[CHCRandy]

Well, that sucked!

 

[ancjr]

Like a rocket!

 

[DragonGunner]

No stocks, no 401k....never believed in it so no worries. Maybe its up maybe its down.....maybe one day its
all going to be gone....just like that.

 

[ancjr]

"Should have set a stop loss"

 

[BehindBlueI's]

Playing my normal buy-n-hold game looking for solid dividends. I just picked up a little bit more Ford today. Once the supply chains unjam and the EV game picks up speed I think the dividend will increase. I think, long term, Ford is a very solid performer.

I've been picking up Enbridge as well, midstream gas pipeline provider that's buying and building more infrastructure from extraction to refiners. Healthy dividend, reasonable growth potential, strong long term outlook.

Maxed out my IRA for the year last month, so just doing non-tax deferred brokerage buys now.

 

[smokingman]

I am making a few changes in the morning.

I am picking up....

TZA
SPXU
SQQQ
SDOW
EDZ
and TWM. Those are cheap insurance at the moment.

The way I see the markets at the moment is like an office building.
I was late getting back from vacation but did notice the burning smell when I got to my office, almost like toner was burning.
I had quite a bit of work to catch up on. This made me late for lunch and most have already gone out to eat.
As I leave for lunch I notice the office beside mine is on fire,I think it was the printer. I quickly gather my things and head out. It looks like the fire suppression system is not working as the sprinklers have not kicked on. They may, but I pull the alarm on my way to lunch anyway.

I wonder what the office will look like after lunch.



Someone on INGO made this a while back.

FEB 2,2021 was the above post. Somewhat early,but I did not get out of those positions until early 2022 and everyone of those made quite a bit. Anyway reason for this post is the below image...just trying to remember who made it lol? If you did or remember who it was PM me lol.
Oh,and the free lunch(above post)is over.

 

[DoggyDaddy]

Well, today's interest hike didn't really seem to affect markets at all. I was expecting "something", but stock markets and PM's have seen modest increases, but really have been relatively flat.

 

[smokingman]

Well, today's interest hike didn't really seem to affect markets at all. I was expecting "something", but stock markets and PM's have seen modest increases, but really have been relatively flat.

.......Blackrock,UBS,Fidelity,State Street,Morgan,Stanley,Allianz,Capitol Group...all yell "catch"....
and toss the flaming ball to Goldman Sachs.

or in other terms. They said hold my beer and watch this.