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The psychological problem I have with selling covered calls is you have to sit there and watch them move against you. I bought SYY at almost the exact bottom ($26 something) and sold 4/17 calls on it at $40 for $1.50. It was a good trade! SYY is $50 now. Every time I look at my brokerage I think about buying the call back, which would almost definitely turn it into a much less good trade. This may be a personal idiosyncrasy but seeing red on a covered call hurts me more than anything else. And they’re always trades that ended up profitable.
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Apr 10, 2020 19:00
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FreelanceSocialist posted:BREAD MACHINES? loving christ people. Bread is one of the easiest drat things to make. I don't know why but I can't stop laughing at your username and complaining about people buying bread machines.
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Apr 10, 2020 19:06
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Lote posted:Aside from the whole fact that America is now a socialist nation with the government owning the corporations. What happens when the government becomes the majority shareholder? Slow down, slow down. The Fed's not buying equity.
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Apr 10, 2020 19:47
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Tokyo Sex Whale posted:The psychological problem I have with selling covered calls is you have to sit there and watch them move against you. I bought SYY at almost the exact bottom ($26 something) and sold 4/17 calls on it at $40 for $1.50. It was a good trade! SYY is $50 now. Every time I look at my brokerage I think about buying the call back, which would almost definitely turn it into a much less good trade. I'm learning, my brain is hurting a little less and things are starting to click more. I think what you're referring to here by buying back your option is the "unwind" section, correct? https://www.schwab.com/active-trader/insights/content/managing-covered-calls How do you do the calculation on what's more advantageous -- waiting for assignment at expiration or buying back the option early? Schwab has a section on it at that link but I need to absorb it better, it's still very unintuitive in my head. quote:When your covered call is approaching expiration and is in the money, at the money, or out of the money, you need to know what your "options" are. Haaaa However I don't like the way they represented 'maximum loss' on this example below. My feeling is that 'maximum loss' isn't applicable -- in my mind it isn't possible to end up with less value after writing a covered call than if you never would have written a covered call. Just less gain, if that makes sense. The max loss is applicable the moment you take a long position, but is not actually applicable to the sale of the option. Sell 10 BZZZ Oct 75 Calls @ $1.50 Net proceeds = $1,500 (1.50 x 10 x 100) Time until expiration = eight weeks Breakeven = $71.35 (stock price - option premium) Maximum loss = $71,350 (if the stock drops to zero) Maximum gain = $3,650 (2.15 points on the stock + 1.50 points on the option x 10 x 100) Average expected profit per week = $456.25 ($3,650 / 8) Inner Light fucked around with this message at 20:08 on Apr 10, 2020 |
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Apr 10, 2020 19:54
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Tokyo Sex Whale posted:Are you familiar with the last 20 years of Japan? We’re doing that this month. We’re ending immigration?
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Apr 10, 2020 20:35
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paternity suitor posted:We’re ending immigration? What, you don't like Japan's point system? 
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Apr 10, 2020 20:47
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https://twitter.com/sentimentrader/status/1248653456308666374
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Apr 10, 2020 20:51
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Tokyo Sex Whale posted:The psychological problem I have with selling covered calls is you have to sit there and watch them move against you. I bought SYY at almost the exact bottom ($26 something) and sold 4/17 calls on it at $40 for $1.50. It was a good trade! SYY is $50 now. Every time I look at my brokerage I think about buying the call back, which would almost definitely turn it into a much less good trade. No I totally get that and I understand completely, which is why I'm thinking about doing this with half of my position. Having had a gain of nearly 60% now from my initial investment and being able to add another $750 in realized gain to that (plus, potentially, another ~$120 in appreciation assuming it continues to go up) would help offset the sadness if it continued to move up, because I'd still experience that gain with the other 1k shares that I own and would not sell CC's on. I just wanted to make sure I have all my bases covered before I consider this because it seems like a decently good idea considering the insane volatility and I'd like to try and realize some of it as actual cash.
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Apr 10, 2020 21:17
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Dwight Eisenhower posted:I've gotten early assigned writing covered calls on SPY when it surged over the strike. How can you expect if this will happen? You can't. I'd assume then that this is probably much more likely with an underlying stock that has a binary outcome than it would be with, say, something like Microsoft just chugging along.
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Apr 10, 2020 21:19
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Lote posted:It will really gently caress with the market dynamics because all companies are essentially becoming too big to fail. If the stock market is guaranteed not to go down, why the gently caress would you ever hold a treasury or bond? Great question. Let's find out!
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Apr 10, 2020 21:45
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Agronox posted:Slow down, slow down. The Fed's not buying equity. I was talking about the possible situation where the Fed is allowed to buy index funds, which has been an idea floated this week by among others Janet Yellen, who is generally on the pretty conservative side when it comes to intervention. Edit: lol just saw this on twitter https://twitter.com/ndrew_lawrence/status/1248398068464025606?s=21 Lote fucked around with this message at 22:28 on Apr 10, 2020 |
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Apr 10, 2020 22:09
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Lote posted:Edit: lol just saw this on twitter  hot drat lol
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Apr 10, 2020 22:39
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TheKevman posted:
hahaha, his mind is so loving blown
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Apr 10, 2020 22:45
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A lot of people criticize Chamath because he's a VC and they say he wants companies to fail so he can buy them up for pennies on the dollar, but that doesn't seem consistent with his actual investment history and I generally like how he thinks and decomposes things. He grew up poor and humble, and that seems to be something that's stuck with him through all this. This is good: https://www.youtube.com/watch?v=_hA3TV1bGsg Josh Lyman fucked around with this message at 22:52 on Apr 10, 2020 |
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Apr 10, 2020 22:49
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Baddog posted:hahaha, his mind is so loving blown You can just see it's like someone put a paper in front of him with like 561742 divided by 10249853 ready go
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Apr 10, 2020 23:25
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Josh Lyman posted:A lot of people criticize Chamath because he's a VC and they say he wants companies to fail so he can buy them up for pennies on the dollar, but that doesn't seem consistent with his actual investment history and I generally like how he thinks and decomposes things. He grew up poor and humble, and that seems to be something that's stuck with him through all this. There's an interesting honesty in this interview that, while you hear people speaking 'honestly'- comes across as much less bullshitty than previous interviews I've heard. Either that or he's an incredibly effective sociopath or I'm insanely gullible. Or possibly both. Interesting stuff, thanks for the link. TheKevman fucked around with this message at 23:37 on Apr 10, 2020 |
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Apr 10, 2020 23:28
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Loving this so far, thanks for sharing. Definitely a pro click, cut above the unlimited chaff of podcasts and talking heads in the modern era.
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Apr 11, 2020 00:12
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Lote posted:Aside from the whole fact that America is now a socialist nation with the government owning the corporations. What happens when the government becomes the majority shareholder? A shitshow, just look at fannie and Freddie.
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Apr 11, 2020 00:30
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1st_Panzer_Div. posted:A shitshow, just look at fannie and Freddie. Which have, since the conservator was appointed, returned tens of billions of dollars to the US Treasury?
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Apr 11, 2020 00:44
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Shouldn't the thread title be updated to "80% of my portfolio is nationalized"?
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Apr 11, 2020 01:06
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https://investorplace.com/2020/03/10-spac-ipo-stocks-to-buy-as-the-market-enters-bear-territory/ SPACs are pretty fascinating, not sure if anyone here has taken a bet on one. I think it's purely a play for fun money. It's like a mystery IPO. Apparently they fail and make a loss most of the time. Learned about this from Chamath, I wasn't that active in this thread at the time but I remember SPCE was a crazy SPAC pre-COVID. Inner Light fucked around with this message at 01:19 on Apr 11, 2020 |
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Apr 11, 2020 01:11
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https://twitter.com/zachdcarter/status/1248667234878271489 A lotta dumb ideas being thrown around right now
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Apr 11, 2020 01:47
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saintonan posted:My problem with charts like that is that we didn't have such a forceful response from the Fed in 2008. Things were actually allowed to fail. That's not happening this time, and that blizzard of money will help equity prices by making credit defaults impossible. Easy access to credit, got it. 
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Apr 11, 2020 02:56
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Lote posted:https://twitter.com/zachdcarter/status/1248667234878271489 This has to be one of the most self destructive ideas. Being the reserve currency makes our lives soooo much better and easier. To even talk about things that would jeopardize that is beyond insanity. I'd rather we talked about nuking them.
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Apr 11, 2020 04:40
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The post-reagan republicans are pretty clearly going to be the ones to eventually sink this ship, its just not clear (to me at least) what their motive is... Just aggressive arrogant ignorance? I have no idea
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Apr 11, 2020 04:58
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Modern monetary theory, but for evil.
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Apr 11, 2020 05:02
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Omerta posted:Modern monetary theory, but for evil. Modern monetary toilet
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Apr 11, 2020 05:13
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greasyhands posted:The post-reagan republicans are pretty clearly going to be the ones to eventually sink this ship, its just not clear (to me at least) what their motive is... Just aggressive arrogant ignorance? I have no idea Greed and a lust for power?
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Apr 11, 2020 05:57
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They’re old fucks and old fucks aren’t afraid to gently caress everything up because they’re gonna die soon either way.
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Apr 11, 2020 06:12
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greasyhands posted:The post-reagan republicans are pretty clearly going to be the ones to eventually sink this ship, its just not clear (to me at least) what their motive is... Just aggressive arrogant ignorance? I have no idea What is important is its inevitability. Assembling an 'Oligarchy Basket' could be fun. Bet on an Hourglass Economy (few rich, many poor, no middle) Are there go-to sources for marketing research, specifically brand demographics?
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Apr 11, 2020 07:41
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greasyhands posted:The post-reagan republicans are pretty clearly going to be the ones to eventually sink this ship, its just not clear (to me at least) what their motive is... Just aggressive arrogant ignorance? I have no idea Their motive is to burn everything down to collect insurance money.
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Apr 11, 2020 08:38
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jokes posted:Their motive is to burn everything down to collect insurance money. An Irish stocktake on an entire country, impressive
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Apr 11, 2020 09:09
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greasyhands posted:The post-reagan republicans are pretty clearly going to be the ones to eventually sink this ship, its just not clear (to me at least) what their motive is... Just aggressive arrogant ignorance? I have no idea It's the natural outcome of 30 years of ingesting propaganda and conspiracy theory to the point that they've completely lost touch with reality. They've come of age politically in an era that lost the plot - which was racism, but covert racism. The original motive was to make sure that whites had and non-whites didn't have. That stopped being politically palatable so it got spun as coded lies. This generation isn't in on the joke so they believe the lies that barely make sense. That hurts your brain. Gaslighting has been talked about more in the last couple of years in the context of the victims, but there's no way it doesn't cause mental illness in the people doing the gaslighting. Lindsay Graham is mentally unwell at this point.
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Apr 11, 2020 17:34
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I see the weekend chat is in full swing here. Did they close C-SPAM or something?
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Apr 11, 2020 17:50
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Yes let us confine the thread to a very narrow specific set of topics, that will surely make it better instead of stifle conversation
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Apr 11, 2020 17:52
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Inner Light posted:Yes let us confine the thread to a very narrow specific set of topics, that will surely make it better instead of stifle conversation this but unironically
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Apr 11, 2020 17:54
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All threads ultimately blur together. Let’s talk Star Wars next. How much is Star Wars underperforming gonna hurt Dis?!
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Apr 11, 2020 17:56
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poisonpill posted:All threads ultimately blur together. Let’s talk Star Wars next. As best I can tell, not at all. They took a big hit there books-wise just because it was a pricey 4 billion for the rights to the franchise plus the costs of making the movies and the costs of their failed toy-line launch but for the average investor I expect owning the rights to keep trying new star wars ideas indefinitely into the future is enough to keep them from losing confidence in Disney as a whole. Plus, between the theme parks and the occasional billion dollar lion king they have more than enough money to eventually put another four billion down on what Disney could only hope is a better received idea.
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Apr 11, 2020 18:05
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Cheesemaster200 posted:I see the weekend chat is in full swing here. Did they close C-SPAM or something? There's a pandemic going on, a literal once-in-a-lifetime event that affects everyone and everything in horrible ways and in unprecedented scope, and you want to limit discussion to stock prices. Just think about how utterly ghoulish that makes you sound for a second. I mean we all joke about the stock market being disconnected from reality. There's no reason we as individuals should also remain disconnected from said reality.
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Apr 11, 2020 18:23
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enraged_camel posted:There's a pandemic going on, a literal once-in-a-lifetime event that affects everyone and everything in horrible ways and in unprecedented scope, and you want to limit discussion to stock prices. Just think about how utterly ghoulish that makes you sound for a second. idgi It's a message board, there are different threads for different topics.
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Apr 11, 2020 18:28
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