DadOfJax
Member
When its bought on the other side, do you make the premium immediately? Where does the premium go? Into your trading account?
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Misc Stock Market
- Thread starter ForsythSnow
- Start date
When its bought on the other side, do you make the premium immediately? Where does the premium go? Into your trading account?
I’m on Robinhood. I don’t have much in there, but I’ve more than doubled what I’ve invested since August.
Broken024
Member
Yep. You should probably read up on it a bit before jumping in. Selling covered calls is relatively safe (downside is same as owning stock). Buying options can easily become a 100% loss, or selling options naked (uncovered) can become > 100% loss (most brokerages don't allow you to do this).
Broken024
Member
You receive the premium straight away. It goes into your cash account, but you wont show the "gain" in trading account because you are short the call. So you might get $20 per option, but you will still be short the $20 option (until it expires). At any point in time you can "buy back" the option you sold (assuming liquidity). So overtime the $20 option may go down in value to $2 (decays as it gets closer to expiration). So you would have the $20 premium and could buy the option back for $2 for a net gain of $18.
Broken024
Member
Robinhood makes it easy to trade options, but you may need to request access. To sell an option you have to have at least 100 shares of the stock (1 contract = 100 shares). Buying an option you don't need any of the shares, but can lose 100% of the premium you pay.
Looks like TELL is filling the wrong gap ? took profits this morning. Short attack
DadOfJax
Member
I gotcha. Ive been wanting to get in it for a while now, just never had a good position to do it. Feels safe here assuming this thing doesn't tank back to where it was a couple of weeks ago. I never can seem to time it just right. Always buy back in too early and it continues to drop. Sold at $2.75...watched the big drop...started inching back up, bought back at $2.50....now sitting at $2.33....lost most everything I gained.....SMH! I really suck at this!
LOL
DadOfJax
Member
Whats your feeling? I sold early, bought back in, and have now lost about all i had made. Get out?
Guess I'll take this Bojangles gift card and go buy me a midmorning snack........
I was in under 2 bucks so it didn’t hurt so bad for me I guess. First sign of short attack I got out. This is also why I can’t get on those MVIS parabolic type runs. Because my hands are super soft.
Speaking of MVIS parabolic type runs, was hit with it's own daily short attack but will rebound and as one TA guy puts it, look at the big pic.... patience.
Wish I knew more. I wasn’t expecting a 10% pullback. Maybe fears of an offering to fund the project? Idk. Wish I could help more but I’m just a guy who’s money doesn’t move the market.
Knowing when to sell is the hard part. No doubt about it.
Don't worry, I didn't throw much at it.... didn't have enough info.
snowlover91
Member
AUPH is one to look at for those who like to play FDA approval plays. They can be really lucrative but also risky if the FDA approval is delayed or denied. FDA ruling slated for Friday and could run into that based on anticipation of approval.
Scaling into UVXY
I had a spread on Netflix and it hit. QQQ gapped up today and with Netflix earnings I think tech can run. Market has been on an amazing run since Nov, keep thinking a longer duration pullback is coming.
GeorgiaGirl
Member
I've got two best guesses now:
A. We're about to end a close to 3 month move similar to what happened from June to early September 2020 soon where the Nasdaq jumped 27% and once it breaks, it'll lose 10-12%. But it will ultimately not be the end, it will just be a dip then probably consolidation before moving higher again. (reason I put the focus on the Nasdaq is if it breaks, everything breaks, and from November 10th on, it's ultimately shown 0 interest in breaking)
B. The Nasdaq is about to just go completely crazy like it did in that 1999-2000 massive long term blow off top and once that ends, the names that will take the biggest hit will be speculative tech names. They will get absolutely smoked and you'll see the Nasdaq take a big haircut off this.
For now, both options are on the table, but it's teetering really close to B, and THIS would be a real eyebrow raiser for me.
It wouldn't surprise me if we continued to hold up/move higher through big tech and Tesla earnings on the 27th, but if we don't reverse after that, we really have to be considering that B is the option here.
A. We're about to end a close to 3 month move similar to what happened from June to early September 2020 soon where the Nasdaq jumped 27% and once it breaks, it'll lose 10-12%. But it will ultimately not be the end, it will just be a dip then probably consolidation before moving higher again. (reason I put the focus on the Nasdaq is if it breaks, everything breaks, and from November 10th on, it's ultimately shown 0 interest in breaking)
B. The Nasdaq is about to just go completely crazy like it did in that 1999-2000 massive long term blow off top and once that ends, the names that will take the biggest hit will be speculative tech names. They will get absolutely smoked and you'll see the Nasdaq take a big haircut off this.
For now, both options are on the table, but it's teetering really close to B, and THIS would be a real eyebrow raiser for me.
It wouldn't surprise me if we continued to hold up/move higher through big tech and Tesla earnings on the 27th, but if we don't reverse after that, we really have to be considering that B is the option here.
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DadOfJax
Member
OPTI if you're into huge potential penny stocks...but do it fast.
I agree 100%. Makes me nervous to see such manic buying right now. I opened a QQQ short at close. But, wouldn’t be surprised if this keep trucking.
