Board 8 > Stock Topic 11

(+) Yeah! (+)

I've never actually come across a rich person who trades short-term options for themselves. As part of their job at a bank or fund, sure, but not for their own account unless there's some exceptional circumstances. Options trading is the single best way to destroy vast amounts of accumulated wealth. Like, if you have a few million, enough to live on for the rest of your life, while you can destroy it with extreme levels of spending, it's not that easy. With options trading you can bankrupt yourself in a few months.

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The majority of my portfolio remains in actual stocks I believe in but I think having a small amount in some options seems like a good way to get some extra income. Seems like if you apply the same principles to options as stocks of diversifying etc that you will probably come up on top if you abuse FOMO on volatile stocks you've been following but yeah. Guess we'll see. I'm definitely not doing the Chris thing of getting 8 million calls on something. But right now I put a couple of puts on NKLA and KODK and a call on AAL.

Granted both of my puts are losing but their expiry is the 25th not the 18th so we'll see I guess. Either way, I only have a few hundred dollars on these.

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Short term options is gambling with all the positives and negatives associated.

It should replace sports betting for you, not investing

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Calculated risk is a part of my plans. I never put forth money i can't live without

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masterplum posted...

Short term options is gambling with all the positives and negatives associated.

It should replace sports betting for you, not investing

I mean I don't sports gamble anymore either if it makes you feel better.

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Some people would say the same thing about penny stocks to be fair

Just because you don't try to understand something doesn't inherently make it gambling

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Calculated risk is fine, the thing that makes it such a great tool to destroy wealth is that the variance is much higher than it may appear, especially if you are used to stocks. If you do build up a lot of wealth and leave it to your kids, probably best to give them a taste of what that variance is really like before they suddenly get millions dropped into their lap.

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Yeah i have a lot more money than what I started with ao i just go with it. Have made some huge mistakes, part of any project.

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Yeah that's why I'm putting so little money into them. I'm getting a feel for how they work before really committing much of anything to them. I figure just having some money in them is going to let me understand that better than trying to do research. The big thing that seems hard to understand is how much the price will drop as you near expiry-- that's why I have some super short term ones and some short term ones. I'm going to grab one that's a few months out too but I need to find a stock that has enough interest that I feel like I can actually sell the option reliably (like Dillard's seems fairly safe for a $30 put that expires in say November but the price ranges are super wide which implies hardly anyone is dealing in them so I'm kinda like "uhhh")

For reference my portfolio is $8000 and only $500 is in options right now, and that $500 is in three separate options at that. I mean yeah I guess I could lose all that $500 and it would hurt but we'll see how it goes.

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I wish I was ever up on money but everything I'm holding is down

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Ugh so tempted, the premium is insane and amazon slipping any further under 3k would shock me

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kids are back in school so my ability to keep up is basically gone. we're also getting a puppy.

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Grats on the puppy.

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I know that feeling. I stated my new job last month and am now dealing with CST, so staying on top of stocks has been much more difficult.

Or amd.....

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The Dumb Money guys seem to do more short term options plays these days but

- Only on very high conviction trades
- They also seem to do crazy hedges in case they're wrong

I honestly don't get hedging at all at this point in time. I guess it's just something you have to do to be safe when your account is in the millions.

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Looks like TRVN surged back up during the phone call today

That's probably a good sign. I kinda want to buy more even though I'd be averaging up.

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WYNN reporting over 500 positive Covid results among employees over the past few months. Yeah, I think it's not safe to visit a casino yet.

Guys give me predictions on how long I hold these 14k AVCTW bags. They're 2k heavier than my 12k AVCT common bags that I turned into a 15k win (would have been 35k if I didn't listen to the cult of bulls, still a net difference of 27k). Because I personally believe I'm unloading these bags for a very very sweet profit and I need bearish arguments with research to calm my expectations.

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What I tend to do is sell when I am at a decent profit and then wait for the price to go back down and then repeat unless it is a stock that is really bullet proof long term.

When I say bulletproof I mean microsoft level.

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I will take that strategy with all other stocks but with AVCT we are in full collusion mode with the hedgefunds that own a huge amount of shares/warrants .


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So I abandoned my short put strategy on Kodak and Nikola for a couple hundred dollar loss oops.

Decided I wanted to use the money on 1/15/21 ATHX calls that went down 10% today worst case scenario I'll I'll probably just exercise them to get a bunch of $2.60 athx shares but I feel like the stock and be much I feel like the stock and be much higher than that come January. Think this is probably the better way to use options for me.

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Trvn calls up 21% since purchase. Hail

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we almost hit a point where even moonroof could have broken even today

can't wait till the presentation next week

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I cant remember what I bought it at. $2.43 I think? I ended up making money though using them money I took out of it though. That was just a bad investment for me.

I got in at 1.51. Thanks lopen

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I got in at 2.28. Over a month of bag holding

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CAll on amc for 6 on 10/2

Bought 300 contracts

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Need to get some skin in the game. I reckon Monday will be green. I also want to go hard into one stock. Recommendations for safe ones? Im fine with a 1% gain.

Do a call for aal to go up to 13.50 two months out. Sell when profitable

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I cant do calls or options or anything.

Amazon dropping below $3K

Seems like easy money to buy now and sell for the holidays.

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Trevena baby beat the Moonroof spread

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Is now a good time to get out or does next week still have a huge potential to take off?

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If you don't have attention span I would say the thing to look forward to is their presentation next week. Next Thursday I believe. It's on their website under investor relations. You can hold till the day before it, the spike before it starts if there is one, or the spike after it finishes if there is one. All depends on confidence. People seemed to react well to the last one based on stock price activity so I'd hold through even if short term on it but yeah

Really though I think it's a really good long stock. Revenue is gonna start coming in with their morphine alternative and they have a drug pipeline too.

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I would not have wanted to hold for nearly two months personally for a profit

It's been a month. You also would have offset your losses from selling early. Me I'm way up because I kept buying in the 1.7 range

But you know, you do you.

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Moonroof, if holding for 2 months is too long for you, you might as well trade options. The big advantage of stocks over options is that you can hold them for as long as you want as they never expire. If you want a profit immediately, might as well go with the options!

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Ive tried so hard to get into options trading. I think my platform (Vanguard) doesnt allow for it in the same way other platforms do.

Lopen posted...

It's been a month. You also would have offset your losses from selling early. Me I'm way up because I kept buying in the 1.7 range

But you know, you do you.

I lost $3,900 on TRVN. But made $5,700 from the stocks I bought as a result if leaving TRVN.

In all seriousness you probably should not trade options given your tendency of fearing loss. It will be much, much, much, more stressful than stocks. I am just saying that not buying a stock because it will take 2 months to rise is a really unreasonable mindset. Most people would think that was a short timeframe on an investment.

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Sold all my aal puts earlier for about 25% gain. Will take!

Trvn going great.

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Glad I didn't panic sell TVRN the moment it went green. I'll look forward to see what next week brings us.

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Moonroof posted...

I lost $3,900 on TRVN. But made $5,700 from the stocks I bought as a result if leaving TRVN.

If you lost 3900 on TRVN by selling at like 2.20 like you claimed you would be up by much more than 1800 more on TRVN if you sold today

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Lopen posted...

If you lost 3900 on TRVN by selling at like 2.20 like you claimed you would be up by much more than 1800 more on TRVN if you sold today

Just checked. Bought at $2.44. Sold at $2.06

By my math you'd have about 10k shares with that meaning you'd have made about 200 less had you sold at 2.60 today (reasonable sell point).

So yeah I guess you're doing a tiny bit better.(though if you'd held until today's high of 2.67 you could have made more)

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Eh. The stock went down for like three weeks straight before going up. Too much stress. I remember you saying if it got to $2.20 to sell it. I held it beyond that.

Well I said to sell it at 2.20 because I thought it didn't make any sense to drop below 2.30 when it held so strong after the offering announcement. If you're going to hold beyond 2.20 just keep holding. There is no speculation with this stock being worth a ton more than 2.44, just how much more you're willing to hold for.

I mean I kept buying buying buying so I never had any doubt but yeah the call wasn't wrong just gauging the floor. (Which imo was something bogus anyway no reason to sell there other than to scare people away)

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Like basically the 2.20 command was "if it falls below this something stupid is going on so I know you're going to get scared so just cut your losses here"

It's not "this stock stops being an easy source of money if it drops below 2.20" like why would that be true. The valuation has nothing to do with the stock price it has to do with the value of their product and pipeline and current (pretty low) market cap

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Wow. Worst day in months. Also, NKLA RIP.