OFFICIAL STOCK MARKET AND ECONOMY THREAD VOL. A NEW CHAPTER

[broncos19dm]

TSLA not stoppin! love to see it

 

[CrownRoyalDaddy]

Grabbed another option YESTERDAY

I sold the last one early to lock it in but this one will be good to let ride on Monday. Hoping to double those gains

these quick gains are too “easy” trying to keep perspective and not get greedy

 

[coolcool]

For real. This is too easy its scary. Stay hedged or get outbsafe

 

[wallyhopp]

There’s a reason RH (hood) made a ton on options trading. It’s also the reason 80% of the gains and losses page on wsb is with options.
last Friday at close, a $1200 10/29 TSLA call option was $0.15.By market open MONDAY, it was up to$1.15 and mostly rose to as high as $4.00. Holding each down had a huge decreased value. But I’m sure most know that.
I feel too many play with the cheaper options expiring within 7 days. Huge boom and bust potential.

 

[CrownRoyalDaddy]

There’s a reason RH (hood) made a ton on options trading. It’s also the reason 80% of the gains and losses page on wsb is with options.
last Friday at close, a $1200 10/29 TSLA call option was $0.15.By market open MONDAY, it was up to$1.15 and mostly rose to as high as $4.00. Holding each down had a huge decreased value. But I’m sure most know that.
I feel too many play with the cheaper options expiring within 7 days. Huge boom and bust potential.

Yea thats a bit too much risk for my taste, even if im feeling good i try to give myself at least a month or so. You never know whats going to happen day-to-day

id like to get a super long term option (2023) but so much can happen that you just cant predict

 

[filthyjiujitsu]

TSLA not stoppin! love to see it

Even in after hours!!!

 

[superantigen]

Question: if you sell a call option that is above the strike price (in the money is the correct term, right?), is your profit the market value of the option when you purchased it + your gain above the strike price?

For example, if CrownRoyalDaddy were to sell (if he hasn't already) his tsla 1100 call as pictured above, would his profit be $8745 + $2744.34 + whatever other gains the contract captures between now and expiration?

Also, I am thinking about getting into leaps. Would leaps be a good place or a bad place for someone who has never traded options to start?


...

 

[antidope]

Question: if you sell a call option that is above the strike price (in the money is the correct term, right?), is your profit the market value of the option when you purchased it + your gain above the strike price?

For example, if CrownRoyalDaddy were to sell (if he hasn't already) his tsla 1100 call as pictured above, would his profit be $8745 + $2744.34 + whatever other gains the contract captures between now and expiration?

Also, I am thinking about getting into leaps. Would leaps be a good place or a bad place for someone who has never traded options to start?


...

Thats actually an out-of-the-money call. There's a lot of other factors baked into it, but based on that screenshot you can consider the 2744 to be the gain. The 8475 is the total value of the contract (his basis + the 2744 gain)

My only suggestion would be to never write contracts, only buy when you start off that way your max loss can only be the premium that you paid. Leaps would likely be way cheaper so your loss potential will be less so not a bad place to start. Options are eh though, back when I used to trade them I really only went long calls.

Also, in that screenshot he's long that call, not short it. So he bought it, he didn't sell it. Creates a totally different return profile.

 

[johnnyredstorm]

Only sell options if you’re long them first. Naked selling is unlimited risk.

 

[wallyhopp]

The percentage actually executing these options has to be less than 10%. Most quick flip them
And never intend to own a single share.
. You’ll see it mostly with penny stocks or say a cheaper stock that is running up. Say a gme where you can have the 100 shares at $4.00 cost when it’s actually worth $280/share. You may execute them. But yeah. It’s a long play when you want to keep the shares. 90% or more want to be involved with the other spectrum. No one is actually executing these. The math shows at that current time, you make most of your money selling the entire contract then and there. Most option traders don’t actually want to own any shares of anything. It’s just the potential aspect they are after.

 

[superantigen]

Thats actually an out-of-the-money call. There's a lot of other factors baked into it, but based on that screenshot you can consider the 2744 to be the gain. The 8475 is the total value of the contract (his basis + the 2744 gain)

My only suggestion would be to never write contracts, only buy when you start off that way your max loss can only be the premium that you paid. Leaps would likely be way cheaper so your loss potential will be less so not a bad place to start. Options are eh though, back when I used to trade them I really only went long calls.

Also, in that screenshot he's long that call, not short it. So he bought it, he didn't sell it. Creates a totally different return profile.

Thanks for the response antidope

Need clarification on one though: how is CrownRoyalDaddy tsla option OTM when the share price of $1128.15 is higher than the strike price of 1100?

I thought a call option was automatically ITM if the share price of the underlying security is above

Nevermind...I see now... tsla needs to get to $1187.45 just to break even on that contract. So if I owned that contract and sold it before the breakeven price, I would lose money despite a gain of $2k+?

...

 

[CrownRoyalDaddy]

Thanks for the response antidope

Need clarification on one though: how is CrownRoyalDaddy tsla option OTM when the share price of $1128.15 is higher than the strike price of 1100?

I thought a call option was automatically ITM if the share price of the underlying security is above

Nevermind...I see now... tsla needs to get to $1187.45 just to break even on that contract. So if I owned that contract and sold it before the breakeven price, I would lose money despite a gain of $2k+?

...

I paid about $6k for the contract. I didnt write it, so I’m not risking my sharesor anything other than that $6k. Im all in on TSLA shares, but the options are just betting on the momentum for me. I have no interest (and dont have the liquid funds lol) to buy another 100 shares of TSLA

With the increase in share price and all of the time remaining on the contract, there are currently bids for this contract of $8700

So if I were to sell now, I’d profit receive $8700, a profit of $2700. No loss

But after it gaps up in the morning I’m banking on more than that $2700 profit. I had bought a call option like 2 weeks ago and profited about $5k in a day or two and sold. Could have made way more with the gains the stock has made since, but I was cool with locking that in

 

[broncos19dm]

Good morning TSLA, again

 

[OprahsBabyDaddy6]

Tsla new ATHs daily

 

[htg designs]

Tsla usually runs for 21 days when it runs

 

[OprahsBabyDaddy6]

Tsla usually runs for 21 days when it runs

it has been running for more than 21 days if u look at the daily chart

 

[truss]

resilience from small caps today:

$vuzi, $dmtk

 

[noskey]

Wrong thread. Anyways, TSLA huh? When we see a selloff?

 

[CrownRoyalDaddy]

Wrong thread. Anyways, TSLA huh? When we see a selloff?

For what its worth i bought a $1300 call today

 

[noskey]

For what its worth i bought a $1300 call today

Depending on the time you bought, you could already be caking off that delta change You just roll the existing calls you had an pocket some profit?

 

[CrownRoyalDaddy]

Depending on the time you bought, you could already be caking off that delta change You just roll the existing calls you had an pocket some profit?

Im still letting the $1100 ride for a bit more (up $8k right now) and im already up ~$1k on the $1300

My portfolio is up over 20% today, ****s crazy

 

[OprahsBabyDaddy6]

Bruh this is 2020 all over again lol

 

[CrownRoyalDaddy]

I think we are going to have a big correction around February just like last year too

hoping TSLA splits and runs up some more before then

 

[noskey]

Im still letting the $1100 ride for a bit more (up $8k right now) and im already up ~$1k on the $1300

My portfolio is up over 20% today, ****s crazy

My man! Using options to get another whole new Tesla Congrats in order but withheld until profits are taken.

 

[fargin]

Watching TSLA from the sidelined, still a good day