Is the stock market going to tank?

[BobMc]

Couple dumb options questions… Can an option be assigned before the contract date? I sold a covered call on BBBY for $500 (less the $.64 commission fee), I assume a brokerage bought the contract and is waiting to fill a buy order with it. Does that only happen on the contract date or can they assign it at any time? It’s a $28 strike and BBBY is currently $29.31. Do they generally wait till the day to assign while seeing what happens pricewise?

If I am assigned (early or at contract stated date) can I rebuy again without running into wash sale?
Until now I haven’t kept a call running for more than four days, I keep buying them back for the known money. I have three out there now, all of them longer than I’ve kept any going.

My BBBY call has me out at $33/share. I already sold it once and bought back netting $64, which lowered my cost to $5.76/share (bought at $6.40). I kinda want out of it to move the cash into high yield stuff, but it seems to have the volatility to be able to keep selling calls. I wouldn’t mind getting my cost to zero at some point. I suppose it boils down to how much work on this I want to do and how much risk I want.

It is rather fun (attempting to) figuring all this stuff out.

[CovertM]

Couple dumb options questions… Can an option be assigned before the contract date? I sold a covered call on BBBY for $500 (less the $.64 commission fee), I assume a brokerage bought the contract and is waiting to fill a buy order with it. Does that only happen on the contract date or can they assign it at any time? It’s a $28 strike and BBBY is currently $29.31. Do they generally wait till the day to assign while seeing what happens pricewise?

If I am assigned (early or at contract stated date) can I rebuy again without running into wash sale?
Until now I haven’t kept a call running for more than four days, I keep buying them back for the known money. I have three out there now, all of them longer than I’ve kept any going.

My BBBY call has me out at $33/share. I already sold it once and bought back netting $64, which lowered my cost to $5.76/share (bought at $6.40). I kinda want out of it to move the cash into high yield stuff, but it seems to have the volatility to be able to keep selling calls. I wouldn’t mind getting my cost to zero at some point. I suppose it boils down to how much work on this I want to do and how much risk I want.

It is rather fun (attempting to) figuring all this stuff out.

I have had a call assigned on a Wednesday before the Friday expiry date, nothing earlier than that. It was very much ITM, otherwise most assignments have happened at expiry.

When you say re buy, do you mean resell the same covered call? Or rebuy the underlying?

I’m not totally sure on the wash sale rule if an underlying is called away through an options contract, now I want to look into it. Most times the wash sale has to do with selling to capture a capital loss and then immediately rebuying the underlying. So if your call is exercised and you realize a gain on the underlying, I don’t see why you can’t rebuy at MV.

What percent profit are you buying positions back at? Or is it different for each position?

I try and stick to a strict 70% profit before closing, unless a large amount is realized in a short period of time, or there are other factors that make me want to close out for a smaller gain.

Always fun to learn and put more tools in your box!


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[BobMc]

Yeah, I just wanted to make sure I wasn’t violating that rule if I’m assigned and then rebuy.

I buy them back flying by the seat of my pants so far. It all depends on how I feel about that stock that day. I’ve been noticing that it all seems a tick behind news, which is surprising me. I haven’t lost any money on a call so far, was close on GE at one point. I figure my time to lose is coming but I’ve been picking my spots rather judiciously.

[pureantigravity]

Food for thought.

[Lawless]

Bob, there's nothing wrong with having a wash sale. It's in place so you can't take a loss for tax purposes and maintain your number of shares.

If you sell shares through a call option, you can buy back right away, or sell a put option. If those shares you sold through a call option are replaced within 31 days, you just can't claim any possible loss on them for tax purposes.

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[LeeLau]

Covered TRCH. Was hoping it would pump again but looking increasingly unlikely.

Dumped BB bags at open. Thoroughly unimpressed by their security division. If they can't get traction in the past year then they're not going anywhere.

Looking at ALFI and MRIN short for inexplicable price pumps. Not easy borrows

[rod9301]

I have to say that I'm surprised at how here foreign stocks are mentioned in this thread.

You guys are missing on a lot of return.

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[m2711c]

Such as?

[rod9301]

Well, just look at various countries and see which ones are cheap.

Turkey, Italy, Malaysia, Russia, Poland, Brazil.

And there's so much volatility that you can wait s could of months and get a good entry point

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[BobMc]

Closed out my CLB call when it swooned mid-day today. Sold it 6/15 for $324.34, bought it back today for $93.66 for right about 71%.

Going to set a limit order to sell it again at the ask of $3.30 for the Aug 20 $45 strike. If that fills I’m going to take the cash to set a limit order buying back my BBBY call at $150, which would hit that 70% line. Not sure if it will fill, earnings report on Wednesday and by my reckoning they seem to fall every earnings report for a bit. I’ll be watching it closely next week.

I don’t have much cash in my account right now so I’ve got to kinda juggle things around a bit. Selling a call to close out a different one seems as good as any strategy for me right now.

Still just letting my Oct CCL call ride, two children under 16 tested positive debarking one of Royal Caribbeans first ships to cruise. If it sinks into double digits I’ll close it and wait for froth to sell again.

[Lawless]

I pulled out of my MARA cc's this morning. Going to let it do it's thing for a bit. Seems to want to break out so I'll sit back and see what it does.

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[LeeLau]

Sold some RIOT 37Cs today. Let a bunch run but the profits I had from RIOT more than offset by my shorting MRIN. Got excited by getting lots of IB borrows and got in on MRIN at 6s and just watched in run afterhours. Got my ass handed to me by getting stopped out at 9s and am watching it pop to 10s Couldn't help myself and got back in short at 10.50; thoughts & prayers to me on that one.

[BobMc]

Same thing here, travel stocks down on Coronavirus fears boosted my CCL call, but BBBY climbing on non-meme news foiled my plan of buying it back for the price I wanted. Energy down meant my CLB CC order never filled, didn’t even come close.

CMPS up sharply on news from stage IIb trials. I think I’m putting all my latest money into that for a bit, I’d like to work up to 100 shares. Looking at options it appears traders are expecting big moves this fall when more trials news is coming.

[CovertM]

Was tempted to sell RIOT calls today, but fear a breakout soon, hanging on for a streak of green. Most will likely get called away at $30 from a few weeks ago.

Sold CMPS $40 for July with a nice fill.

Fucking PLTR running away from my calls and I may just let this trash go, but hate to look back and see that much capital tied up for months for a paltry gain.

Closed all of my ATOS CC for small gain and then closed CSPs on the recovery. Felt like buying more when it broke $7, but thought it could run even lower. Will add to that position if it drops again at open tomorrow.

ATOS is a true YOLO at this point and I’m playing it different than GME. I took smaller profits early with GME and missed out on huge upside gains at the end. Also was afraid to add on dips. Playing this one like a true autist. CB sitting right around $3 after averaging up a bit last week. Selling the $4 and $5.5 CSP two weeks ago on the drop was very lucky and I got crazy premiums so that I don’t mind buying more in the $7 range. Will offload 25%if it can break $11s.

Bob, I tend to keep more cash on the side than usual for your exact situation today. I thought about you when CCL started dumping and thought you’d close your CC for a great profit.

Thoughts on Mama Kathy’s Crypto ETF application?!?


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[BobMc]

My call is an Oct 15 expiry, so Theta not really coming into play much (I’m reading more about that shit, ). It moved off my selling price quite a bit but I’m waiting for it to move into single digits before I close. It’s always tough for me to figure out when to take the profit and close or hope to get it all. Lately I’ve been tracking things after buying back and realizing patience is a virtue.

I am tempted to put some extra cash in and close out the BBBY call, but the more I do this the more stubborn I get and wait for stuff to come to me. BBBY is one where I think I can make more by turning it over more frequently, so I may relinquish, especially in the light of an earnings report where analysts are starting to predict a beat. It’s all going to be a game time decision, which will coincide with me leaving town to fuck fish in the face over the holiday weekend starting Weds morn.

[CovertM]

My call is an Oct 15 expiry, so Theta not really coming into play much (I’m reading more about that shit, ). It moved off my selling price quite a bit but I’m waiting for it to move into single digits before I close. It’s always tough for me to figure out when to take the profit and close or hope to get it all. Lately I’ve been tracking things after buying back and realizing patience is a virtue.

I am tempted to put some extra cash in and close out the BBBY call, but the more I do this the more stubborn I get and wait for stuff to come to me. BBBY is one where I think I can make more by turning it over more frequently, so I may relinquish, especially in the light of an earnings report where analysts are starting to predict a beat. It’s all going to be a game time decision, which will coincide with me leaving town to fuck fish in the face over the holiday weekend starting Weds morn.

Haha, the constant struggle.

I was traveling for fun last week and drove my wife nuts with the constant ticket checking and pulling over for adjustments.

I think setting a profit % to close rule is important, along with classifying positions as wanting to hold for short/mid/long term. Also, being diligent in selling calls above cost basis and truly being ok with shares being called away at that price. I’m unwinding some bad habits from the onset of my Theta experiment as we speak.


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[CovertM]

Lee!

I’d love to hear your criteria for entering into a short position. That’s the next realm I’ve started reading into and want to know what triggers you to borrow or sell calls naked on a position. Other than an obvious short term pump, what are you looking at when you feel confident to short something? What percent of your capital do you use or keep available for this kind of move? Is it equally profitable to other strategies?


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[pureantigravity]

Alright peeps. Who here is going to try this first?

"I just bought put options on MicroStrategy ($MSTR), Coinbase ($COIN), and Purpose Bitcoin ETF ($BTCC-B.TO), all at a strike price not far off the current (late June) price, expiring around Christmas. Here’s the thinking."

https://www.tbray.org/ongoing/When/2...ng-Bitcoin#p-3

edit: just realized that that blog post was from non other than the XML standard Tim Bray. https://en.wikipedia.org/wiki/Tim_Bray

[The Suit]

Sold some RIOT 37Cs today. Let a bunch run but the profits I had from RIOT more than offset by my shorting MRIN. Got excited by getting lots of IB borrows and got in on MRIN at 6s and just watched in run afterhours. Got my ass handed to me by getting stopped out at 9s and am watching it pop to 10s Couldn't help myself and got back in short at 10.50; thoughts & prayers to me on that one.

Not sure it matters for a meme stock, but I'm in an adjacent business to MRIN, and it's very, very clear that company has no long-term future. We considered trying to put together a deal to buy it for its customer base, back when it was a lot cheaper. It didn't take much digging to scare us off.

[CovertM]

Sold some RIOT 37Cs today. Let a bunch run but the profits I had from RIOT more than offset by my shorting MRIN. Got excited by getting lots of IB borrows and got in on MRIN at 6s and just watched in run afterhours. Got my ass handed to me by getting stopped out at 9s and am watching it pop to 10s Couldn't help myself and got back in short at 10.50; thoughts & prayers to me on that one.

Checking in...Thoughts and Prayers. You out?

[CovertM]

In non-speculative YOLO News...A good read and good reminder of how beneficial steady contribution and growth can be to your portfolio.

https://ofdollarsanddata.com/how-oft...veraging-fail/

[LeeLau]

Not sure it matters for a meme stock, but I'm in an adjacent business to MRIN, and it's very, very clear that company has no long-term future. We considered trying to put together a deal to buy it for its customer base, back when it was a lot cheaper. It didn't take much digging to scare us off.

I do some work with companies in related spaces (Marketo and TradeDesk). Agreed re MRIN but a short squeeze is a short squeeze. Plus I ran out of borrows so with no way to manage the position I cut bait on that and was pretty happy to do so. Too bad really. Their platform isn't terrible but their execution is something else.

[LeeLau]

Lee!

I’d love to hear your criteria for entering into a short position. That’s the next realm I’ve started reading into and want to know what triggers you to borrow or sell calls naked on a position. Other than an obvious short term pump, what are you looking at when you feel confident to short something? What percent of your capital do you use or keep available for this kind of move? Is it equally profitable to other strategies?


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Thx re MRIN. I set the stop at 11 and it triggered quickly.

For shorts I like

- dogshit business
- preferably ( but not always possible; outright fraud)
- lots of borrows
- options to hedge
- some modicum of technical indicators that its overbought
- decent size float

Obviously not every element is present.

I dedicate less than 1% of my YOLO port to shorting as an initial starter. The assumption is that a position will go 100% against me so the ultimate goal is to allocate accordingly. So the risk is 2% of Yolo port. I try not to have more than 5 shorts at any time as they're complicated and emotional positions.

Ie with MRIN... started at 5s, added 6 to 7 with the assumption that it would go to 10 and then I'd have a full position.

However I'll stop out if the ability to manage the position degrades. Eg if I lose borrows so I can't average up. Or if there's no options to hedge. Or if simply blow the initial entry so badly that I think I'll start revenge trading.

[rod9301]

On these speculative stocks, do you guys but or sell short or long dated options?

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[rod9301]

Sorry, i meant to say buy or sell

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