Master Thread Stonks/Options/Investing - come build your tfsf yolo stock portfolio

[CBradSmith]

Man, thanks for taking the effort to write all this out. I had been meaning to come back and read it when I could try and process it.

I always looked at it: if you sell short and the stock goes up you lose. But the problem is if you sell short and the bottom falls out (if I am understanding it right).

So I have a chunk of XOM shares I bought last springtime. Should there be a way that I can leverage these shares as collateral and earn a consistent premium?

I remember reading somebody talking about that in a Rivals thread one time about selling puts against some stable stock they own to consistently earn some extra income. (I see the risk now being that I would lose those shares or have to pay some kind of difference if they fall below the strike price)

If you own 100 shares, then you can sell a covered call.

Can sell at different Strike prices.

Can sell with an expiration date this Friday, next, the next, e.t.c...way out in time.

Supposedly about 45 days to expiration is the sweet spot for premium.

If you sell on a date past an Earnings Date, you might receive more premium due to more implied volatility (due to the uncertainty surrounding an earnings announcement creatingnd an unexpected move in stock price).

Biggest downside can be: stock price blows past the strike price of the call you sold and you miss out on the gain above it.

Say you own 100 shares at an average cost of $40. Currently trading at $56.70. Right now you can sell a call 51 days to expiry with a Strike price of $57.50 for $285 in Premium. 51 days from now if stock is trading for $59, then your 100 shares will be called away and you'll be paid $57.50 per share. You keep the $285 premium, so it's as if you sold your shares for $57.5 + $2.85 per share. If stock is trading at $65 51 days from now, then you've theoretically "lost" money. If the stock has fallen to $45, you keep your shares and the premium, though now your average cost per share is $40 - $2.85 per share, you've diluted the cost.

Covered calls are generally what people new to options gravitate toward, because they are fairly easy to understand.

 

[CBradSmith]

Man, thanks for taking the effort to write all this out. I had been meaning to come back and read it when I could try and process it.

I always looked at it: if you sell short and the stock goes up you lose. But the problem is if you sell short and the bottom falls out (if I am understanding it right).

So I have a chunk of XOM shares I bought last springtime. Should there be a way that I can leverage these shares as collateral and earn a consistent premium?

I remember reading somebody talking about that in a Rivals thread one time about selling puts against some stable stock they own to consistently earn some extra income. (I see the risk now being that I would lose those shares or have to pay some kind of difference if they fall below the strike price)

If you have $5000 cash in addition to the 100 shares of XOM that you own at an average cost of $40/share, then instead of just selling the call at $57.50 for $285 (covered by your shares), in that same date of Expiry, you also sell a naked put at $50/share for $92 in premium. Total premium collected is $377.

If stock goes to $48 by expiration, you keep your 100 shares, keep the Call premium, keep the Put premium, and are forced to buy 100 additional shares at $50/share. However that is diluted by the premium you collected, so you bought them at $50/share - $3.77.

 

[shiv]

If you have $5000 cash in addition to the 100 shares of XOM that you own at an average cost of $40/share, then instead of just selling the call at $57.50 for $285 (covered by your shares), in that same date of Expiry, you also sell a naked put at $50/share for $92 in premium. Total premium collected is $377.

If stock goes to $48 by expiration, you keep your 100 shares, keep the Call premium, keep the Put premium, and are forced to buy 100 additional shares at $50/share. However that is diluted by the premium you collected, so you bought them at $50/share - $3.77.

Good stuff as always @CBradSmith

I could see how a well orchestrated options strategy with some of these blue chip divvy stocks could be very effective without much risk

 

[CBradSmith]

Arguably the advantage one should look for when selling options is to recognize the situations *when* premium is "expensive." Premium and the probabilities associated with "winning" or "losing" are calculated by sophisticated formulas and over a large number of trades, you statistically neither win nor lose if you arbitrarily buy or sell puts and calls.

IV Rank is something to explore if option trading is something that interests you. There's a brokerage called TastyTrade that has a ton of educational stuff on youtube.

In a nutshell, Volatility is an attempt to measure the average move of a stock. WMT being a very large, stable company has low volatility in its price. A microchip maker, on the other hand, might see 5% moves in its share price as the norm, so it has higher volatility.

IV Rank measures a companies current volatility (as intepreted by the Premium being paid) against it's own volatility over the past year then is normalized to create a percent. 0-100% 0% being that this is the least volatile the stock has been in the past year, and 100% being this is the most volatile a stock has been perceived in the past year. Higher volatility means the market is expecting (or paying for the possibility of) larger stock moves.

Statistics bear out that there's some Alpha to be captured in high IV Rank environments bc Premium is overpriced relative to the resulting movement.

 

[croot_lord]

Bump

 

[t_money86]

Anyone part of the AUPH thread from the mainboard? Curious to know why the fuck it continues to have good news yet still drops. They trying to shake off people before the boom?

 

[quickfeet]

Most of the stock, money, investing threads that pop up in this community and the Rivals community rapidly degenerate into speculation. The PDF in this link is one of the most useful documents I have read in identifying good companies to buy:

https://tweedy.com/resources/library_docs/papers/WhatHasWorkedFundOct14Web.pdf

 

[Sgfeer]

Research
patience

 

[CBradSmith]

In

 

[quickfeet]

In summary:

1. Low Price in Relation to Asset Value
2. Low Price in Relation to Earnings
3. A Significant Pattern of Purchases by One or More Insiders (Officers and Directors)
4. A Significant Decline in a Stock’s Price
5. Small Market Capitalization

Number 1 and 2 align directly with Benjamin Graham's suggestion for general investors

 

[shiv]

I keep thinking more and more that we need to make a stock/finance site that is an offshoot of Crootn. There is so much garbage ass advice out there these days, I think we could make something super helpful for the user base.

@Croot_Lord you want to fire up your data scraper and we can dump it to a new site? Called Stonkn or something.

We could have a real time sort of companies with the lowest P/E and P/B.

All kinds of stuff would be possible.

 

[shiv]

In summary:

1. Low Price in Relation to Asset Value
2. Low Price in Relation to Earnings
3. A Significant Pattern of Purchases by One or More Insiders (Officers and Directors)
4. A Significant Decline in a Stock’s Price
5. Small Market Capitalization

Number 1 and 2 align directly with Benjamin Graham's suggestion for general investors

We could have lists of companies that meet all these metrics that update in real time. And that meet each metric separately

 

[Coastal Siberia]

We could have lists of companies that meet all these metrics that update in real time. And that meet each metric separately

Or do it here...

 

[Old Glory]

I keep thinking more and more that we need to make a stock/finance site that is an offshoot of Crootn. There is so much garbage ass advice out there these days, I think we could make something super helpful for the user base.

@Croot_Lord you want to fire up your data scraper and we can dump it to a new site? Called Stonkn or something.

We could have a real time sort of companies with the lowest P/E and P/B.

All kinds of stuff would be possible.

I think you could apply that to almost anything nowadays, finance, fitness, etc. The internet is full of idiots trying to make a quick buck by giving bad information. There is plenty of good information, you just have to know how to sift through the BS.

 

[irishaaron]

Anyone part of the AUPH thread from the mainboard? Curious to know why the fuck it continues to have good news yet still drops. They trying to shake off people before the boom?

This. Have no idea. Was expecting a bigger increase from the FDA news. Has shat the bed since. All I can tell you is you can buy it at a discount now. I see good things ahead but nothing like our 12/2019 pop we saw from phase 3 results.

 

[t_money86]

This. Have no idea. Was expecting a bigger increase from the FDA news. Has shat the bed since. All I can tell you is you can buy it at a discount now. I see good things ahead but nothing like our 12/2019 pop we saw from phase 3 results.

I threw some more $$$ at it when it dropped to mid $14s cause I expect from all we hear for it to bump to $30 minimum. But now that bastard is in the $13s.

 

[NolaNole9]

So, huge MVIS news today with MSFT’s deal with the US Army. MVIS up 50% today, and now looking more likely for MSFT to buyout MVIS.

So, explain this to me like I’m 5. If this happens, will my MVIS shares then just turn into MSFT shares?

 

[4n6tox]

Depends on the offer from msft. Could be all cash buyout, all stock buyout, or combination of the two. You would get one if those three outcomes.

 

[quickfeet]

Yeah there are some stonk threads that are mixed around on here. Need to get them consolidated

 

[NopeDawg]

So, huge MVIS news today with MSFT’s deal with the US Army. MVIS up 50% today, and now looking more likely for MSFT to buyout MVIS.

So, explain this to me like I’m 5. If this happens, will my MVIS shares then just turn into MSFT shares?

It depends on how the M&A is structured, but most likely, your MVIS shares will not be converted into MSFT. My guess would be you'll be paid a premium for your MVIS shares based on MSFT's valuation of MVIS on a per share basis.

 

[shiv]

Merged all the investing and stonk threads

 

[America 1st]

Still looking for divided stonks comparable to T & Arbor Reality Trust.

Suggestions much appreciated!

 

[America 1st]

This is what I want to do, but I dont know A) how to find any or 2) what industry to target.

I'm in the same boat.

Still looking for divided stonks comparable to T & Arbor Reality Trust.

Suggestions much appreciated!

Bump.

 

[God Cam It]

Also trying very much to hedge against inflation.

If everyone could invest 300k with having no mortgage what would they do (at my age with no kids or intent to have them)?

All in on TNXP.

 

[America 1st]

All in on TNXP.

Go on...

 

[God Cam It]

Go on...

Don't listen to me. Please don't.

Tonix Pharmaceuticals News - TNXP - Evolving DD Article - Alimoogazon

Tonix Pharmaceuticals News, Updates, Insider Trading, DD, TNXP, TNXP SHORTS, TNXP CALLS, Breakout Penny Stock, Company

alimoogazon.com

 

[America 1st]

Don't listen to me. Please don't.

Tonix Pharmaceuticals News - TNXP - Evolving DD Article - Alimoogazon

Tonix Pharmaceuticals News, Updates, Insider Trading, DD, TNXP, TNXP SHORTS, TNXP CALLS, Breakout Penny Stock, Company

alimoogazon.com

 

[America 1st]

Bump cuz I'm a young investing faggôt who is smart enough to know that the best financial advise comes from anons on The Free Speech Forum.

 

[wgw99]

All in on TNXP.

Anything new here? Bought some shares today

 

[America 1st]

I want all the stonks.

 

[quickfeet]

Energy prices have been crazy volatile but are ping ponging around $60

 

[ChicagoFats]

Bump cuz I'm a young investing faggôt who is smart enough to know that the best financial advise comes from anons on The Free Speech Forum.

What kind of advice you want?

What to invest in depends on what your objective is

We can talk overall portfolio strategy or just a couple stocks ?

 

[America 1st]

What kind of advice you want?

What to invest in depends on what your objective is

We can talk overall portfolio strategy or just a couple stocks ?

I'm all buy and hold for dividends.

T & ABR are two examples of stonks I really like.

Also looking for other good investments outside of stonks but that's not as sexy for many in ITT.

 

[ChicagoFats]

I'm all buy and hold for dividends.

T & ABR are two examples of stonks I really like.

Also looking for other good investments outside of stonks but that's not as sexy for many in ITT.

Like everything there is give and take to ones portfolio strategy. Its usually best to pick one strategy and stick with it as opposed to jumping back and forth between strategies. Studies show that, statistically, most people change strategies at the wrong time.

Buy and hold for dividends is an ok strategy, but remember a lot of companies have high dividends for a reason. The dividend yield is a reflection of risk. The higher the dividend yield the higher the risk of the stock price, the dividend may not be sustainable etc. You get the drift.

Outside of stonks I really like crypto like Ethereum. I was a crypto skeptic for a long, long time, but now I can see its utility. Im not sure about its price level, so I just average in. Buy a few hundred bucks worth every now and again and let it fly. I think Ethereum and block-chain is the future of banking and its worth having small expoure to.

Other investments outside publicly traded stocks are privately traded stocks. You can check out www.equitzen.com its a sight where you can buy shares of private companys (that employees sell) before they go public,.

 

[America 1st]

Like everything there is give and take to ones portfolio strategy. Its usually best to pick one strategy and stick with it as opposed to jumping back and forth between strategies. Studies show that, statistically, most people change strategies at the wrong time.

Buy and hold for dividends is an ok strategy, but remember a lot of companies have high dividends for a reason. The dividend yield is a reflection of risk. The higher the dividend yield the higher the risk of the stock price, the dividend may not be sustainable etc. You get the drift.

Outside of stonks I really like crypto like Ethereum. I was a crypto skeptic for a long, long time, but now I can see its utility. Im not sure about its price level, so I just average in. Buy a few hundred bucks worth every now and again and let it fly. I think Ethereum and block-chain is the future of banking and its worth having small expoure to.

Other investments outside publicly traded stocks are privately traded stocks. You can check out www.equitzen.com its a sight where you can buy shares of private companys (that employees sell) before they go public,.

I'm just looking for companies comparable to the ones I listed.

I don't fuck with cryptos or blockchain any more than necessary to live my life.

 

[quickfeet]

@ChicagoFats I've seen you mention KO a couple times (I think it was you) - what metrics do you use to value a company

 

[NolaNole9]

@ChicagoFats I've seen you mention KO a couple times (I think it was you) - what metrics do you use to value a company

Coca-Cola? Sounds like @ChicagoFats is really going out on a limb there.

 

[America 1st]

Coca-Cola? Sounds like @ChicagoFats is really going out on a limb there.

Given there recent attempts to tank themselves with the BLM masks in commercials and then the training shit they aren't looking as sexy as they used to.

 

[NolaNole9]

Anyone in DDAIF? Seems like a no brainer, but nothing comes up on the search on here or tMB. Am I missing something?

 

[ChicagoFats]

@ChicagoFats I've seen you mention KO a couple times (I think it was you) - what metrics do you use to value a company