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  • #61
    Originally posted by fatlittlepig View Post

    What other option plays are you looking at, I’m looking for some good candidates for call debit spreads. I’m thinking amzn if it goes lower.
    Well if I'm being honest. I've never really understood options and just assumed id lose my shirt until I read this thread. I literally had no idea what a debt spread was until you brought it up in your post. Here is a timeline of my experience.

    1-8-21 Read this thread and learned the practicality of options and finally had enough confidence to try trading options.
    1-11-21 Activated my account for options so I could sell covered calls on stocks I own and make money like Nysoz
    1-13-21 Bought and Sold a few REIT options, made $140 on a $560 trade. Felt pretty invincible.
    1-19-21 Bragged about my wins to a friend(who is finance guru) and he sent me over to wall street bets and told me to buy GME.
    1-20-21 Took half of my emergency fund and bought GME calls.
    1-22-21 Got on WCI to brag about my winnings.

    1-29-21 I'll either be worth twice as much as I was at the beginning of the year or I'll have lost half my emergency fund and my wife will kill me.



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    • #62
      Check this website out my feathered friend. Really cool to model call debit spreads:
      https://www.optionsprofitcalculator.com/

      Comment


      • #63
        Originally posted by Jack_Sparrow View Post

        Well if I'm being honest. I've never really understood options and just assumed id lose my shirt until I read this thread. I literally had no idea what a debt spread was until you brought it up in your post. Here is a timeline of my experience.

        1-8-21 Read this thread and learned the practicality of options and finally had enough confidence to try trading options.
        1-11-21 Activated my account for options so I could sell covered calls on stocks I own and make money like Nysoz
        1-13-21 Bought and Sold a few REIT options, made $140 on a $560 trade. Felt pretty invincible.
        1-19-21 Bragged about my wins to a friend(who is finance guru) and he sent me over to wall street bets and told me to buy GME.
        1-20-21 Took half of my emergency fund and bought GME calls.
        1-22-21 Got on WCI to brag about my winnings.

        1-29-21 I'll either be worth twice as much as I was at the beginning of the year or I'll have lost half my emergency fund and my wife will kill me.


        I think you’d fit in great over there haha

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        • #64
          Originally posted by fatlittlepig View Post
          Check this website out my feathered friend. Really cool to model call debit spreads:
          https://www.optionsprofitcalculator.com/
          also if you’re trading spreads on Robin Hood a few things to know.

          as the greeks change/theta decays sometimes can make it look like you’re losing even though the trade is moving in your direction.

          Robin Hood closes some trades automatically I think 3-4 pm est day of expiration or something. Some horror stories come from that. So you may want to close profitable positions before that, before it does something dumb for you

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          • #65
            Originally posted by Nysoz View Post

            also if you’re trading spreads on Robin Hood a few things to know.

            as the greeks change/theta decays sometimes can make it look like you’re losing even though the trade is moving in your direction.

            Robin Hood closes some trades automatically I think 3-4 pm est day of expiration or something. Some horror stories come from that. So you may want to close profitable positions before that, before it does something dumb for you
            I'm not planning on holding any of the spreads until expiration

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            • #66
              Originally posted by BCBiker

              Mainly commenting on the ignorance to the current state of Tesla. You can say the stock price is overvalued or that it assumes a lot of future growth but saying that they are not profitable is simply not true and will continue to not be true forever.

              As I have said the only reason to not buy Tesla now is because one does not understand Tesla. They have reached scale on several of the largest addressable markets in the world with very weak competition that will not be able to match their scale in a foreseeable future. At a minimum they will be valued at $8T in 2030. If one perseverates on P/E they will miss it. Fine by me...
              Not to dispute, but I am sure you have heard of "adjusted" and "proforma" earnings. A well known and acceptable technique of management telling their story for "continuing operations". The bad news is addressed as not having an impact. Tons of disclosure in the 10k footnotes, sometimes restatements and proforma statements.
              The idea is a clear picture of the profitability when non-reoccurring items impact profitability.
              I did see one analyst that brought up the massive government credits. Did a restatement and concluded that Tesla has not been able to master the art of selling cars at a profit without the credits. Of course proforma statements pulling out all the government credits would tell a different story. They are expiring, not continuing. Makes it tough to determine just how profitable they are at building cars. Not saying it is misleading, simply saying pull the credits out and see how their profitability is. Or loss as the analyst claimed. Just another story in the tale of Tesla. No idea if they will be profitable or whether government subsidies will increase or decrease. It would be nice to have Tesla provide a proforma without credits. They know the numbers, a lot of smoke intentionally.

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              • #67
                Run the numbers quarter by quarter. Just curious how profitable that have been and how profitable they will be. You say they are profitable. I don't know.

                Just a hint, cost efficiencies are greatly diminishing returns. That is why mature companies squeeze to achieve pennies in cost reductions and productivity improvements.
                They can work really hard and save $5 bucks. That is manufacturing. They reported losses, including the losses, not anyone else. I don't think they choose Austin for the weather, they chose it because it costs less to produce a car. Pretty simple.

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                • #68
                  Originally posted by BCBiker

                  The battery pack costs are about 50% of current cost with in house battery lines that come online in next 12-18 months and capex per unit is 79% reduced from 4170 cells. The large casting machines reduce complexity and capex per unit. Not shipping all vehicles round the world is huge reduction in cost of goods sold. They sell $10K software packages to 30% of all deliveries for which historically has only had small percentage go to bottom line. As FSD reaches wide release they will recognize all of the deferred revenue and take rate on software upgrades will reach larger proportion of users. They also are releasing a monthly subscription service of fsd that will be 90% plus margin recurring revenue. They have been cash flow positive almost $3B from operations in trailing 4 quarters. I don’t know how to get through your thick head that Tesla is the best business you will ever see in your lifetime.
                  AGAIN! TESLA has become a cult. I pm’d Nysoz at the very beginning. The WCI article about shutting WCI FB down. Options education and strategies are great. Try using alternate examples. No no no. What the heck are you selling?

                  “ I don’t know how to get through your thick head that Tesla is the best business you will ever see in your lifetime.”
                  This has nothing to do with investing. Is Tesla a brand, a product, a division or a way of life? It’s addictive.

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                  • #69
                    not a tesla thread....move there.

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                    • #70
                      Originally posted by xraygoggles View Post

                      oh yeah! i did some DD over this weekend, which consisted of spending a few hours going thru a crapload of wsb posts, and trying to decipher wtf they are talking about.

                      what i gathered: buy as far OTM calls as u can on Mon AM, consider premarket GME shares, then collect tendies.

                      seems foolproof: what could possibly go wrong? /s
                      Please don't forget diamond hand and rockets. I believe the rockets are innuendo.

                      The biggest issue with some of those bets (which I believe is what's best to call them) is the time decay that might occur that may require a significant pop in the underlying to actually come out positive.

                      Somewhere in all the noise of WSB, there are a few decent posts. I suppose there are worse ways to spend a weekend.

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                      • #71
                        Originally posted by Brains428 View Post

                        Please don't forget diamond hand and rockets. I believe the rockets are innuendo.

                        The biggest issue with some of those bets (which I believe is what's best to call them) is the time decay that might occur that may require a significant pop in the underlying to actually come out positive.

                        Somewhere in all the noise of WSB, there are a few decent posts. I suppose there are worse ways to spend a weekend.
                        Of course its a gamble.

                        But to be fair, if you buy OTM calls, and the price goes up 25% in one day, u will make a few hundred percentage and then can sell the same day. That's exactly what happened on Friday, but it went up something like 60% I think.

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                        • #72
                          Again,...not a Tesla thread.

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                          • #73
                            Jack_Sparrow Have you thought about doing call verticals and legging out of the long position at the top while letting the short call regain on the drawdown?

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                            • #74
                              Originally posted by Brains428 View Post
                              Jack_Sparrow Have you thought about doing call verticals and legging out of the long position at the top while letting the short call regain on the drawdown?
                              If you could call it thered be no point to spreads, and thats a fun way to get margin called and end up broke of course.

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                              • #75
                                Originally posted by Brains428 View Post
                                Jack_Sparrow Have you thought about doing call verticals and legging out of the long position at the top while letting the short call regain on the drawdown?
                                I'm not sure what this means. I'm open to suggestions. This is my first time buying options. I've just been buying OTM calls. I've got all my limits for sells on my calls in TD ameritrade. I set a couple at 45 then just selected 100 never thinking they would actually get called. So I was pleasantly surprised when most got called away today at 100. so I got lucky and sold a few at the top.

                                I've been watching this like a hawk every minute. Everytime it hits the top, they halt trading. then the next thing you know stock has swung 30% easy. So I don't think anyone hits the top its gotta be luck like what I did with the limit orders.
                                Last edited by Jack_Sparrow; 01-25-2021, 11:26 AM.

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