Stock market.... What are you doing?

The #1 community for Gun Owners in Indiana

Member Benefits:

  • Fewer Ads!
  • Discuss all aspects of firearm ownership
  • Discuss anti-gun legislation
  • Buy, sell, and trade in the classified section
  • Chat with Local gun shops, ranges, trainers & other businesses
  • Discover free outdoor shooting areas
  • View up to date on firearm-related events
  • Share photos & video with other members
  • ...and so much more!
  • ancjr

    John 8:42-47 KJV
    Site Supporter
    Rating - 100%
    1   0   0
    Aug 20, 2021
    8,202
    113
    Washington County
    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
    Rating - 100%
    5   0   0
    Feb 16, 2013
    3,567
    113
    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
    3,567
    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

    John 8:42-47 KJV
    Site Supporter
    Rating - 100%
    1   0   0
    Aug 20, 2021
    8,202
    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

    John 8:42-47 KJV
    Site Supporter
    Rating - 100%
    1   0   0
    Aug 20, 2021
    8,202
    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

    John 8:42-47 KJV
    Site Supporter
    Rating - 100%
    1   0   0
    Aug 20, 2021
    8,202
    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.
     

    Site Supporter

    INGO Supporter

    Staff online

    Forum statistics

    Threads
    505,791
    Messages
    9,288,477
    Members
    50,164
    Latest member
    brettholycross
    Top Bottom