Boiler Room: The Official Stock Market Discussion

[NkrumahWasRight Is Wrong]

one take from a different long time poster on stock twits:

The weird thing about this stock is that it is opposite to what is normally expected. Usually Tutes hold it long term and when it starts moving up, retail starts buying. Tutes than sell it for a profit to said retail. This time though retail has been holding it for a long time and they are selling it for a profit to Tutes. The beauty in this is that Tutes buy and hold. The floor that is being created right now will be here for a long time.

he and the other guy i posted earlier are the only two i pay attention to since they were in saying the same shyt in february.

i will now cease posting about nak because i dont want to spam unless directly mentioned

good luck

 

[FabTrey]

ill keep it till friday then.

 

[Thethirdpew]

wanna expound on that. sounds like something i need to be doing

If you have a lot of money you can sell out of the money puts. For example if i sell a weekly SPY puts at 250 thats free money because there is no way that SPY is dropping to 250 in one week.This only works on a stock that would are planning to buy anyways. Lets say that I find a stock with solid fundamentals? I can sell puts on that stock and collect premium. If i get exercised I end up buying 100 shares of that stoxk at the strike price. Covered calls is also free money.

Warning: do not sell naked puts, sell cash secured puts

 

[NkrumahWasRight Is Wrong]

ill keep it till friday then.

be quick on the trigger. theres a small chance the publication isnt as positive as people are suggesting. you gotta be like a hawk thursday evening into friday. you may want to even consider selling thursday AH

 

[Thethirdpew]

nah, im keepin my tsla no matter what. ill buy more if it dips

I never said to sell them lol. I meant hedge as in you keep your shares but buy puts to offset the price drop.

 

[FabTrey]

be quick on the trigger. theres a small chance the publication isnt as positive as people are suggesting. you gotta be like a hawk thursday evening into friday. you may want to even consider selling thursday AH

ill just get out at $2.55 then. i aint greedy

 

[FabTrey]

I never said to sell them lol. I meant hedge as in you keep your shares but buy puts to offset the price drop.

nah i dont do those. im a simple nikka. i hold what i like and dont gamble.

 

[who_better_than_me]

If you goin build up an account for your kids for when they turn adult make sure you talk to them about the importance of investing. A guy at my job built up an account for his only child and that guy’s child selling shyt for money. He had it on drip for over eighteen years to the point where the son was getting on average about 900 dollars a month in dividends. Kid is stupid as fukk. Ppl kill me with the yolo mentality,

 

[NkrumahWasRight Is Wrong]

ill just get out at $2.55 then. i aint greedy

can always buy back in if theres a big dip monday. just dont kill me if it never dips again

 

[FabTrey]

can always buy back in if theres a big dip monday. just dont kill me if it never dips again

a profit is a profit.

 

[Scholar]

If these TSLA calls don't come through

I'm just kidding though

 

[Serious]

If these TSLA calls don't come through

I'm just kidding though

You said you'd quit. Don't make me pull up that screenshot.

I'm facilitating a meeting at the same time as the ER FML.

 

[Scholar]

You said you'd quit. Don't make me pull up that screenshot.

I'm facilitating a meeting at the same time as the ER FML.

If this goes south I'm out of the game

 

[FabTrey]

market scan

bought some BLNK.

 

[Macallik86]

If you have a lot of money you can sell out of the money puts. For example if i sell a weekly SPY puts at 250 thats free money because there is no way that SPY is dropping to 250 in one week.This only works on a stock that would are planning to buy anyways. Lets say that I find a stock with solid fundamentals? I can sell puts on that stock and collect premium. If i get exercised I end up buying 100 shares of that stoxk at the strike price. Covered calls is also free money.

Warning: do not sell naked puts, sell cash secured puts

I get how you are reaching the conclusions that you are reaching but they are inherently misguided and not 'risk free' as you said before. In fact, relative to the profits, your method is one of the riskiest possible ways to make money in the stock markets. This is the exact definition of the popular financial phrase "picking up pennies in front of a steamroller" FYI.

1. If SPY @ $250 in a week were impossible, then the market makers would value them @ $0.00. Please do not confuse what is impossible with what is improbable. The fact that the options are traded means that there is a less than zero chance that price can be hit.
2. Everyone agrees that the markets are too high but it keeps going higher. When it does (eventually) head lower, it will likely be a violent move lower that feels surreal. Strong price swings seems unfathomable right now, but when that volatility hits.... Remember in February when the index was dipping and popping 4-5% per day
3. Solid fundamentals are out of the window if you are in a position that manages to drop 10-20% in a week. That is pure emotions and like the saying goes, markets can remain irrational longer than you can remain solvent. The idea that any stock is a steal after dropping a large amount assumes that you are getting in at the bottom or intend on holding for years.
4. I think you are undervaluing how in the hole you will if a deep out-of-the-money put on a $250 stock moves in your general direction w/ a spike in implied volatility, let alone what will happen if it expires ITM.