Is the stock market going to tank?

[LeeLau]

Am i an idiot? (dont answer that). You can buy crypto through a normal brokerage like RH or Etrade? I thought buying crypto was a totally separate deal with crypto wallets, separate exchanges, etc? Or are you just talking about some random crypto tracking ETF or something?

I buy BTC through Shakepay and store it in BRD. There are many other options.

I buy RIOT a blockchain miner as aBTC proxy and generate income on it via CCs

[LeeLau]

Holding strong with 420 (actually 422, should sell 2) shares of GME! Will take principal out at $100/share, maybe...


Sent from my iPhone using Tapatalk

Congratulations fellow autist. My CCs being assigned will result in my selling at 41, 45 and 60 from my high 12s avg in 5% tranches. Short squeeze is on

[CovertM]

Congratulations fellow autist. My CCs being assigned will result in my selling at 41, 45 and 60 from my high 12s avg in 5% tranches. Short squeeze is on

So are you a believer in the squeeze now?

I was tempted to pull principal out right at close, but remembered this is the funny money account. Some of my other meme positions (PLTR) in this account had great days as well and I didn't even notice until after close. I am also doing all of this in old Roths so I wont really be able to touch it, unless I really want/need.

[Brock Landers]

Halted up 69%. Nice.

Nice

I actually jumped in an bought calls on AMC. Hopefully the momentum can keep up for a day or two. $6 strike, Feb 12 expiry. Figure if it can get to $4 by Weds I should make money before theta wears off

[CovertM]

I PM'd this to Lee early and he asked that I put it in the thread for educational purposes. (Little different wording because I am retyping)

Full disclosure I am a CFP, not a CFA. Haven't put much energy or thought into options strategies since licensing exams.

To generate income from selling covered calls, but not lose shares from being exercised can you do the following:

Sell to Open XYZ Call @ $50 collect premium of $100

As expiry gets closer and strike price is getting close:

Buy to Close XYZ Call @ $50 and pay $60 (Net Profit $40)

Then roll forward to:

Sell to Open XYZ Call @$60 and collect premium of $100

Only downside risk would be the purchase price of the Call option to close costing more than your original premium collected?

Correct thinking?

[LeeLau]

So are you a believer in the squeeze now?

I was tempted to pull principal out right at close, but remembered this is the funny money account. Some of my other meme positions (PLTR) in this account had great days as well and I didn't even notice until after close. I am also doing all of this in old Roths so I wont really be able to touch it, unless I really want/need.

After today yes.

https://www.wsj.com/articles/short-b...al-11611349217

The 15% I covered was ironically journalled to my long term holds with my YOLO account being largely denominated by GME Riot and the Dash short. Every year I draw down the YOLO account to keep things real. GME gains even before the spike to 30s that the position was too fat to be retained

[Brock Landers]

True. theres a few covered call strategies out there that really quantify this broadly. I think Redwood Investments (Redwood something) does it. Invesco has strategies that do this within their asset allocation funds too.

Buying out of getting your stock called can be expensive in those scenarios you mention. It can be a sizable piece of your upside actually.

Also...dont overlook the obvious. The value of the underlying stock could go down too. Duh.

[BobMc]

All of my midstream and oil producers were hit pretty hard today. Luckily the WSB clan came over to BBBY and drove that up for me so the day ended up a positive.

[LeeLau]

EV Go (EVGO) and Chargepoint SPACs are coming soon. How do you get in on that early?

For SPACs I buy at close to NAV and spread it around. I've bought 12 SPACs. 3 have won and 1 has won big (KCAC - > QS). The one's which haven't won are close to NAV anyway so I consider them cash equivalents.

[LeeLau]

I PM'd this to Lee early and he asked that I put it in the thread for educational purposes. (Little different wording because I am retyping)

Full disclosure I am a CFP, not a CFA. Haven't put much energy or thought into options strategies since licensing exams.

To generate income from selling covered calls, but not lose shares from being exercised can you do the following:

Sell to Open XYZ Call @ $50 collect premium of $100

As expiry gets closer and strike price is getting close:

Buy to Close XYZ Call @ $50 and pay $60 (Net Profit $40)

Then roll forward to:

Sell to Open XYZ Call @$60 and collect premium of $100

Only downside risk would be the purchase price of the Call option to close costing more than your original premium collected?

Correct thinking?

Correct. It erodes your cost base and erodes your premiums. If you're trying to generate income from selling calls and you frequently have to roll as the underlying goes up then consider that you've picked the wrong underlying (a volatile stock like GME can and will go up or down 50% in a day); or you are selling calls with too high a delta.

To speak to a specific use case like GME. I am long the underlying and believe it will go higher. But my position from the high 12s was getting big so I wanted to take profits. Hence I sold covered calls which I thought would get assigned at 45. I also sold some covered calls which I didn't think I would get assigned at 60.

I had previously sold some underlying at 41 to profit-take. Thinking that GME would correct due to Citron action I then laid out sell to open puts (aka cash secured puts aka CSPs) at 35 as I want to own more GME below 30 (the premium I got for the 35P I sold was 6.50 approx) and I didn't mind the idea of replacing the stock I sold at 41 for a price of 28.50.

Going forward since GME is so volatile and I believe its entering short squeeze I'll be selling CSPs on drawbacks but refrain from selling CCs. Reason I am not selling CCs is per our previous discussion. Short squeezes are irrational and cause insane spikes.

It's possible to have upward spikes for absolutely no reason that may take 3 - 4 days to clear out. That time period can easily clean out a covered call expiring at the wrong time (eg from past experiences if you want to check, ADSX, ICLD, ASPX, KOOP, KBIO, TLRY - among just the spikes which scar the memory of shortsellers). You are therefore not in control of triggering and timing your gain and may limit your gain. If this happens you may not have the opportunity to roll

Hope this helps

[CovertM]

Correct. It erodes your cost base and erodes your premiums. If you're trying to generate income from selling calls and you frequently have to roll as the underlying goes up then consider that you've picked the wrong underlying (a volatile stock like GME can and will go up or down 50% in a day); or you are selling calls with too high a delta.

To speak to a specific use case like GME. I am long the underlying and believe it will go higher. But my position from the high 12s was getting big so I wanted to take profits. Hence I sold covered calls which I thought would get assigned at 45. I also sold some covered calls which I didn't think I would get assigned at 60.

I had previously sold some underlying at 41 to profit-take. Thinking that GME would correct due to Citron action I then laid out sell to open puts (aka cash secured puts aka CSPs) at 35 as I want to own more GME below 30 (the premium I got for the 35P I sold was 6.50 approx) and I didn't mind the idea of replacing the stock I sold at 41 for a price of 28.50.

Going forward since GME is so volatile and I believe its entering short squeeze I'll be selling CSPs on drawbacks but refrain from selling CCs. Reason I am not selling CCs is per our previous discussion. Short squeezes are irrational and cause insane spikes.

It's possible to have upward spikes for absolutely no reason that may take 3 - 4 days to clear out. That time period can easily clean out a covered call expiring at the wrong time (eg from past experiences if you want to check, ADSX, ICLD, ASPX, KOOP, KBIO, TLRY - among just the spikes which scar the memory of shortsellers). You are therefore not in control of triggering and timing your gain and may limit your gain. If this happens you may not have the opportunity to roll

Hope this helps

Thanks, very helpful and informative. You too Brock.

So in regards to the squeeze, today wasn't even crazy? Next week is when things get bat shit? Are the big shorts really just bleeding out at this point and trying to roll it forward? Paying margin interest? I haven't caught up to the WSB theories yet and aftermarket banter.

Some of the gains are absolutely bananas and to see them (U/DFV) still holding and confident in the idea of the squeeze pumping even more is reassuring, but also crazy to imagine.

On another note, I have been a WSB lurker/member for a couple years now and this recent activity has caused a cosmic shift IMO in traffic and exposure. Not a conspiracy theorist, but I fear some retribution/legislation attacking retail investors in some way due to this "changing of the guard". Thoughts?

[mcf258]

What kind of platform is she investing on? What are the other options in terms of target date or other investment options you can piece together.

I'm sure that I don't understand your question about platform - my guess however is Vanguard Personal Investors. It's a Roth IRA.

There are target date funds in 5 year increments and there is a full range of mutual funds and ETF's available on Vanguard, both their own and other companies as well as individual stocks, bonds, and CD's.

I picked the Target Date Fund so she wouldn't fret over the details. I would probably be 95% in Vanguard Total Stock Market Index Fund and 5% Total Bond Market Index Fund since she has roughly 35-40 years to retirement. She is a school teacher in Matapan.

[Brock Landers]

Thanks, very helpful and informative. You too Brock.

So in regards to the squeeze, today wasn't even crazy? Next week is when things get bat shit? Are the big shorts really just bleeding out at this point and trying to roll it forward? Paying margin interest? I haven't caught up to the WSB theories yet and aftermarket banter.

Some of the gains are absolutely bananas and to see them (U/DFV) still holding and confident in the idea of the squeeze pumping even more is reassuring, but also crazy to imagine.

On another note, I have been a WSB lurker/member for a couple years now and this recent activity has caused a cosmic shift IMO in traffic and exposure. Not a conspiracy theorist, but I fear some retribution/legislation attacking retail investors in some way due to this "changing of the guard". Thoughts?

No today w GME was pretty fuckin crazy.

[LeeLau]

No today w GME was pretty fuckin crazy.

Brock's right. It was insanity. But looking at iborrowdesk and deal flow some hopped out. Some hopped in. But even the new shorts got absofuckinglutely destroyed today. I expect wholesale capitulation on any good news and a bleed upwards on no news.

Even a ATM offering at this point isn't going to do much to stall it. At this point even 10% down is a chance for short to exit.

I say this as someone who mainly shorted.

[BobMc]

Looks like GME is down to a 39% float as of today, AMC is at 54%, BBBY is at 78%.

Monte Burns- Excellent...

I’ll be perfectly fine with the short busters acquiring a new target.

[shroom]

it will hopefully shed light to the fallacy that the stock market is needed or adds net value to the world

we make up some stupid shit to make finance jobs exist

[Brock Landers]

it will hopefully shed light to the fallacy that the stock market is needed or adds net value to the world

we make up some stupid shit to make finance jobs exist

Know where stock markets didn’t exist? 1952 Soviet Union! Decades of starvation gulags poverty misery. Sounds fun!!!

Stock market allows capital and investment to be allocated somewhat efficiently. Without it, the “common man” is still working on a farm or a blacksmith or building their own house and riding their horse to the job at someone else’s farm. No televisions. No iPhone. No regular phone. No TGR. Very limited skiing. 95% of the board members never existed.

Sweet.

[LeeLau]

Looks like GME is down to a 39% float as of today, AMC is at 54%, BBBY is at 78%.

Monte Burns- Excellent...

I’ll be perfectly fine with the short busters acquiring a new target.

BBBY is also susceptible to a squeeze although not as much as GME. AMC I would not touch due to real bk risk

[CovertM]

Brock's right. It was insanity. But looking at iborrowdesk and deal flow some hopped out. Some hopped in. But even the new shorts got absofuckinglutely destroyed today. I expect wholesale capitulation on any good news and a bleed upwards on no news.

Even a ATM offering at this point isn't going to do much to stall it. At this point even 10% down is a chance for short to exit.

I say this as someone who mainly shorted.

All that being said, are you still long for actual turn around potential and GME taking a large role in the E-commerce space? I feel like valuations with this as the only factor were near where we closed today or close to $100ish as a bullish guess.

I know a ceiling on squeeze potential is impossible to guess, but I’m thinking my $100/ share exit price may be low given momentum and potential pivot (fucking hate that word) for the company as a whole.

Keep telling myself this is YOLO money and if it goes to zero I don’t care

[shroom]

Sweet.

i guess i disagree and think humans have needs and wants and we’d find a means

very few GME employees got rich today but we’re all here jerking off like that company is changing our world

[Brock Landers]

Why does anyone need GameStop for virtual gaming? Or e commerce? If they make any money at all in that area someone will break them. Sony. Microsoft. Apple. Obviously amzn.

[BobMc]

How do you think they’re going to pivot? Sell more games online? It ain’t happening, the game makers and console makers have been working for years to lock that profit up.

I know I’m just an idiot that reads a lot of shit, but I just don’t see this. This was driven by the float/social networking. The float disappeared quickly while the smart money got out, I doubt it’ll encounter much resistance on the way down.

Bring on the $60 BBBY. Heh.

[shroom]

why do you need to make money when some business developer signs a deal for gamestop? cause you saw it coming? or cause it allows for capital distribution in certain ways you’ve benefited from (half my income RSU based for ref)?

it’s a shade, not knocking your profession

i’m all for letting people gamble on whatever, but people are supposed to plan their financial lives around this shit at this point, which is already shedding a significant % who can’t afford to partake

[LeeLau]

All that being said, are you still long for actual turn around potential and GME taking a large role in the E-commerce space? I feel like valuations with this as the only factor were near where we closed today or close to $100ish as a bullish guess.

I know a ceiling on squeeze potential is impossible to guess, but I’m thinking my $100/ share exit price may be low given momentum and potential pivot (fucking hate that word) for the company as a whole.

Keep telling myself this is YOLO money and if it goes to zero I don’t care

GME at 0.5 PS going forward is approx 30. Add another 10 for e-commerce. Add another 10 for Cohen. I wouldn't have bought at 50 but below 15 was a no Brainer for me. Proven e-commerce plays are 1, 2 , 3x sales. Basically GME stock was a non expiring option to me with massive (30%+ CC monthly) returns even if it had a slow crawl up which i initially envisioned.

As for Bob or Brock's opinions, we can agree to disagree. That makes a market. Anything else I offer to counterpoint is repetition. Any of their counterpoint is also repetition

[JimmyCarter]

Any of you guys have thoughts on NOK? Lots of noise/hype around 5g (though they're at least 2nd fiddle to ERIC), but nothing moves the needle on that share price.