stock market was up today...

#5,528
#5,528
#5,530
#5,530
Vol737 said:
You know, I actually read up on that for a few days after you mentioned it in a prior post. Ended up buying 500 shares and just forgot about it. Then I was scrolling through my list on my phone and saw it was up 40% today. Nice call. Thanks. :hi:
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I would expect some consolidation in the near term. They did get analyst upgrades to 14 PT after the earnings call, and the 18 guidance was strong. I may scalp some and lock some profits (up $95k today), but I still like the company long term.
 
#5,531
#5,531
1972 Grad said:
If you have a little extra money, and want to take a chance on a long term flyer, check out CRSP, EDIT, and NTLA. Key words here are little extra, long term, and chancy. I wouldn't invest much into any of the 3.
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I bought all 3 of these stocks on Oct. 20, 2017, and posted the above on Oct. 21. Here is what I paid, and value today, less than 5 months later.

CRSP: paid 19.24 - now 59.37
EDIT: paid 23.97 - now 44.72
NTLA: paid 28.10 - now 35.25
 
#5,532
#5,532
1972 Grad said:
I bought all 3 of these stocks on Oct. 20, 2017, and posted the above on Oct. 21. Here is what I paid, and value today, less than 5 months later.

CRSP: paid 19.24 - now 59.37
EDIT: paid 23.97 - now 44.72
NTLA: paid 28.10 - now 35.25
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Well done my learned friend. What sources are you using to find those kinds of things? I know that's a really open question, but I have never heard of those.

I have been burning it up selling AMZN naked puts. I know that train ain't gonna run forever, but it is a really nice ride right now.
 
#5,534
#5,534
SpaceCoastVol said:
Well done my learned friend. What sources are you using to find those kinds of things? I know that's a really open question, but I have never heard of those.

I have been burning it up selling AMZN naked puts. I know that train ain't gonna run forever, but it is a really nice ride right now.
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My investment adviser in Tulsa took a flyer on them. I don't think these 3 make money yet, but they are into stem cell therapies, and developing gene based medicines for cancer, etc. They are considered biopharmaceuticals.

They may blow up, or may make money. My guess is that all 3 don't hit, but one could. That is why he suggested only a small investment, no more than I wanted to lose.
 
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#5,542
#5,542
SpaceCoastVol said:
AMZN Is getting kilt. I got some puts out there that went underwater big time. Glad they are long term
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What do you mean by got some puts? You've shorted/sold Puts on AMZN? If you bought Puts it s/b a good day for you.

Selling Puts is the most confusing of the 4 put/call positions IMO.
 
#5,543
#5,543
Thunder Good-Oil said:
What do you mean by got some puts? You've shorted/sold Puts on AMZN? If you bought Puts it s/b a good day for you.

Selling Puts is the most confusing of the 4 put/call positions IMO.
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How about a quick refresher on what those 4 positions Are?

Trying to learn how you guys play the market, my 401k in a date targeted fund, like 2040.. if i get my hands on a chunk of loot I would like to play with some stock
 
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#5,544
#5,544
Thunder Good-Oil said:
What do you mean by got some puts? You've shorted/sold Puts on AMZN? If you bought Puts it s/b a good day for you.

Selling Puts is the most confusing of the 4 put/call positions IMO.
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Yeah I sold some. It means if it drops below my strike price I am on the hook to buy the stock at the strike. 100 shares (or so) at 1470. Or close out the position and take the loss. I feel like Wally Schirra sitting in the Gemini 6(A) mission when the engines shut down after lighting for launch. Do I punch out, and ruin the mission or wait and see what happens. Wally waited. I think I will too.

He was one cool sumbtch.
 
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#5,545
marcusluvsvols said:
How about a quick refresher on what those 4 positions Are?

Trying to learn how you guys play the market, my 401k in a date targeted fund, like 2040.. if i get my hands on a chunk of loot I would like to play with some stock
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My first advice would be to not play with options until you really really understand them. Buy ETFs or index funds until you have an investment account established. Something that tracks the market like IWM or QQQ. When you get 100 shares, you can sell what are called 'covered calls'. You cannot lose money doing this. You limit your profit, but you cannot lose money. What happens here is that you own 100 shares and someone pays you a little money for the right to buy your shares if the price is above a certain price on a certain day. IWM trades weekly, so the only price that matters is the closing price on Friday.

Let's use a real world example with IWM. It is right around $156/share which means that your chunk of change for that stock will set you back $15,600 for 100 shares. Yeah that is a lot I know, but let me explain it using this one.

So you bought 100 shares of IWM at $156/share. Looking at Friday's options, the $157 Call is bidding (selling) for $0.86/share. That means some will pay YOU $86 for the right to buy your 100 shares at $157/share IF it is higher than $157 Friday afternoon. If it is not, you keep the $86. IF it is, you sell your stock for $15,700, plus the $86 for a net profit of $186. The farther out the expiration date of the option is, the more it is worth because the more time it has to move up or down. The $157 Call for IWM on the 29th of March is $1.25. So your profit if you sold that one and on 3/29 it was at or above $157 would be $100+the premium of $125 or $225. Make sense?

I really recommend that you learn about what makes a good company worth investing. Warren Buffett calls the best companies ones that have a "durable competitive advantage" Jim Cramer calls them "best in breed". It is the same thing. Watch Cramer at 6pm. Listen to the companies that he recommends that YOU know. I know a lot of people don't like him and view him as entertainment and there is a lot of truth to that, but he does make solid points. Do NOT use him as a stock picker. Use him as a teacher. I would go so far as to recommend reading his first 2 or three books.

Make sense?

Oh, and if you want to learn some more about options, watch Options Action on Friday afternoon at 5:30 on CNBC. They go pretty fast, so if you can DVR it and study what they are saying it might make some sense. Look for the basic things there.

And I am sure I and others here will be happy to try and answer any questions you might have as well, but please, like I said above, do NOT mess with options until you fully understand them because you can lose a sh!tload of money with them.
 
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#5,546
#5,546
marcusluvsvols said:
How about a quick refresher on what those 4 positions Are?

Trying to learn how you guys play the market, my 401k in a date targeted fund, like 2040.. if i get my hands on a chunk of loot I would like to play with some stock
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Buy Puts (bearish position)
Sell Puts (bullish position)
Buy Calls (bullish position)
Sell Calls (bearish position)

Buy Puts on a stock if you think it will fall in price. Also a hedge if you own shares of stock and want to limit the downside risk. When stocks go down in value, the puts go up in value.

Buy Calls if you think the stock will rise in price. In rising markets you can make a lot more than you would by owning the shares because you would own the appreciation rights to a lot more shares. BUT... if you own Calls they can (and often will) go all the way to zero value.

Sell Calls if you think the stock will fall in price. If you own the stock then you can sell covered calls to generate additional income, but you lose out if the stock goes up. You either have to surrender the stock or settle the sold calls by buying them back at a higher price.

Sell puts if you expect a stock to rise in value. It's a contract requiring you (the seller of the option) to buy the stock at a set price. So if the stock goes up in value you pocket the proceeds. If the stock loses value the put that you sold requires you to buy the stock at a higher price.

Each option has a strike price and an expiration date. The market value decreases over time if the stock price does not change.

Commissions and spreads are pretty expensive on stock options. Most will expire with zero value.
 
#5,547
#5,547
Thunder Good-Oil said:
Commissions and spreads are pretty expensive on stock options. Most will expire with zero value.
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I use Interactive Brokers. The platform is OK, and the commissions/fees are very very cheap. 3 puts only cost about $2.50 total commission. 300 shares are about $1.20.

I am a high volume trader, (not a day trader though) and I have spent about $185 on options and $50 on stock so far this year with them.
 
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