Stock market.... What are you doing?

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  • ancjr

    1 Kings 18:17-18 KJV
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    1   0   0
    Aug 20, 2021
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    What do you consider high volatility? 50% 100%.....?? I'll be honest, I don't fully understand that stuff.........I just recently learned what Delta and Theta was, lol.

    I'm still learning myself, but here's an overview of what I know so far...

    You can most easily eyeball it ATM, when the stock is high dollar value (requires too much collateral to be worthwhile) and the option premium is low. This is what you want to avoid.

    If it's a lower dollar value (doesn't require as much collateral per contract) stock compared to the premium ATM, and it's a stock that you're familiar with, you've found a winner.

    The ticker I've been trading for the last couple months runs a premium of 3-5% the stock price, 1 month out. Example from last month: Stock price was just under $70, Option premium was $3.60, which is just over 5%.

    That's $360/month clear profit for every $7000 chunk of collateral...

    If you want more detailed explanation, tastytrade on youtube consistently had the best tutorials I've found. Especially the older videos.
     

    CHCRandy

    Master
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    5   0   0
    Feb 16, 2013
    3,699
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    Hendricks County
    I can't help but peek in this thread once in awhile, but I gotta admit, I might as well be trying to read Sanskrit.

    View attachment 220441
    A couple years ago, I was just like you. Heck, I am still learning every day. I didnt know what an option even was a few years ago. I will die still learning. It is hard on us normal Joe's to figure this stuff out, it is like I am in a boxing match with 1 arm, and the competition is an octopus with 8 arms.

    Trust me when I say......I am not the sharpest tool in the shed either. This last year, year and a half I have lost a lot, disappointing, almost even quit....but I am not much on giving up. Just been hard to stay focused and keep my head straight. I'll turn it around eventually, or go broke or die trying.
     

    CHCRandy

    Master
    Rating - 100%
    5   0   0
    Feb 16, 2013
    3,699
    113
    Hendricks County
    I'm still learning myself, but here's an overview of what I know so far...

    You can most easily eyeball it ATM, when the stock is high dollar value (requires too much collateral to be worthwhile) and the option premium is low. This is what you want to avoid.

    If it's a lower dollar value (doesn't require as much collateral per contract) stock compared to the premium ATM, and it's a stock that you're familiar with, you've found a winner.

    The ticker I've been trading for the last couple months runs a premium of 3-5% the stock price, 1 month out. Example from last month: Stock price was just under $70, Option premium was $3.60, which is just over 5%.

    That's $360/month clear profit for every $7000 chunk of collateral...

    If you want more detailed explanation, tastytrade on youtube consistently had the best tutorials I've found. Especially the older videos.
    Do you ever sell spreads? I like selling puts, but the one I do it with is a $10-11 stock. I will usually sell the $10 puts but then I buy like an $8 put.......just for protection and to keep me from having to tie up so much collateral. Then I take that 40 cents and buy $10 calls. The problem is I never get put shares and calls expire worthless, so I have net zero. If I would just sell and stop buying......I would do much better.

    I have only sold call spreads 1 time.....and I admit it didnt go too well.

    I love TastyTrades.....we use their scanners and option charts in our trading room.......lot of good information, them guys are sharp!
     

    ancjr

    1 Kings 18:17-18 KJV
    Rating - 100%
    1   0   0
    Aug 20, 2021
    14,066
    113
    Washington County
    Do you ever sell spreads? I like selling puts, but the one I do it with is a $10-11 stock. I will usually sell the $10 puts but then I buy like an $8 put.......just for protection and to keep me from having to tie up so much collateral. Then I take that 40 cents and buy $10 calls. The problem is I never get put shares and calls expire worthless, so I have net zero. If I would just sell and stop buying......I would do much better.

    I have only sold call spreads 1 time.....and I admit it didnt go too well.

    I love TastyTrades.....we use their scanners and option charts in our trading room.......lot of good information, them guys are sharp!

    I tried a multi leg strategy once, and it blew up spectacularly...

    I play around on https://www.optionsprofitcalculator.com/ in the meantime.
     

    ancjr

    1 Kings 18:17-18 KJV
    Rating - 100%
    1   0   0
    Aug 20, 2021
    14,066
    113
    Washington County
    UUUU not a bad choice...

    I've been in & out of URNM since Spring of 2021... there's both a seasonal effect and a larger narrative in play to potentially make this a very good run.
     
    Last edited:

    ancjr

    1 Kings 18:17-18 KJV
    Rating - 100%
    1   0   0
    Aug 20, 2021
    14,066
    113
    Washington County
    I've gone with URA for the sector and dividend.
    I've got a couple more positions in the uranium world, but URA is my largest.

    I like the management of URNM better than URA, but URA is the greater volume.

    I'm selling monthly calls @ 90 strike for much better than dividend return.
     

    foszoe

    Grandmaster
    Site Supporter
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    24   0   0
    Jun 2, 2011
    16,052
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    Just saw CEO of 5.11 holding corporation on CNBC talking about how the company caters to the more affluent customers and how great they are doing.


    Looked down at my 5.11 pants pulled out my


    wallet and cash clip and thanked God for my blessings!
     

    CHCRandy

    Master
    Rating - 100%
    5   0   0
    Feb 16, 2013
    3,699
    113
    Hendricks County
    Man, this thread is a blast to the past! Any of you guys still trading this market? A lot has happened since this thread started. I mean Bitcoin for one.....was nearly $70,000 when thread was started, since then it fell to $15K and now is back to nearing highs....sadly, I don't play crypto. Then you have NVDA, +800% in last 14-15 months. EV stocks not really the rage anymore. I am still riding the dividend plays, collecting my 10% a year and waiting for rates to drop. Most of my "trading" now days is in SPX options.....and I usually never own them for over 30 minutes. I keep expecting the market to roll over, but it just continues up like a raging bull! How about you guys? Any of you watching anything or got any new strategies?
     
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