Boiler Room: The Official Stock Market Discussion

[Rickdogg44]

I'm trying to figure this shyt out too by using the Roku example.

So if I buy this put option I will own it in two days and hopefully I will be able to sell it at $163 or more?

Or worst case scenario the Roku stock will be trading at less than $140 a share and I will own a hundred shares at $144?

I'm probably but you're in the terminology and all of this explanation. Hopefully someone can correct me and show me what I'm missing.


But what it seems like is that if the Roku stock is trading at $160 a share and I bought a bunch of discount shares at $144 I could turn a quick profit pretty easily in two days.


I think....

You need to SELL Puts. But only for a stock you wouldn't mind owning.... at discount(strike price). Remember x100 shares. Which is why have capital/margin is must.. Maybe this video is better

thank gawd I have bs and ms in math related fields. I can see how this shyt could be confusing

Damn the jelly i need for not doing this shyt years ago

 

[Serious]

beng beng



I have to call schwab too. Hence trying webull route. I hate calling ppl and filling out forms. Lol But doomsday said webull may not be good

What wrong with TD?

 

[Rickdogg44]

Combining selling puts before ex dividend date on blue chip you want to own....

 

[Rickdogg44]

he also mentioned then doing covered calls... it is a "wheel " strategy ... if its true blue chip... it is straight money....

 

[Doomsday]

@gabbo NO! You SELL the put, not BUY it!

That's what the video is about.

 

[Rickdogg44]

What wrong with TD?

I dont have TD

 

[Doomsday]

beng beng



I have to call schwab too. Hence trying webull route. I hate calling ppl and filling out forms. Lol But doomsday said webull may not be good

I didn't have to call to get options privilege's for TD or Schwab. I've had full privileges since day 1.

 

[Kyle C. Barker]

You need to SELL Puts. But only for a stock you wouldn't mind owning.... at discount(strike price). Remember x100 shares. Which is why have capital/margin is must.. Maybe this video is better

thank gawd I have bs and ms in math related fields. I can see how this shyt could be confusing

Damn the jelly i need for not doing this shyt years ago

Good shyt. I'll be reading up on this

@gabbo NO! You SELL the put, not BUY it!

That's what the video is about.

I'll do whatever the hell I want with it

 

[Da_Eggman]

 

[Da_Eggman]

I wouldn’t mess with margins but that’s on y’all

 

[K-Deini]

shyt is just confusing compared to the video using td. I need my hand held on this shyt

 

[Serious]

shyt is just confusing compared to the video using td. I need my hand held on this shyt

Why don’t you read book breh
https://libgen.lc/item/index.php?md5=F987F48AD45FBC2B3ECAD437DE3D4B61

tml

 

[K-Deini]

Why don’t you read book breh
Library Genesis

tml

Honest answer? I'm lazy, but mostly busy working 6 days a week.

When winter comes and my workload goes to 2 days a week I can deep dive. I learned how to read charts, rsi, sympathy plays and all that. Options needs to be next up.

 

[Scholar]

i'll leave this here

 

[Macallik86]

This strategy makes sense to me.

1. Given the current market environment (Strongly trending bullish market), if you are interested in the stock, buying the stock outright will outperform selling puts. AFAIK, selling puts is an ideal strategy when price is moving sideways, not when it is moving up/down.
2. What is your return on investment/opportunity cost? He gives an example of selling $109 puts on ROKU for $183 in profit. That is $10,900 tied up for $183 in profits or 1.6% in returns. That same $10,900 could've been invested in the Nasdaq which was up 2% and outperformed this strategy in a day with more diversification and less risk.
3. He is talking about the stock being a steal if it goes lower and the short call is exercised, but he is presuming the stock won't continue heading lower. Being assigned a stock that is in a freefall is the definition of trying to catch a falling knife.

Somewhat related but any online personalities using RobinHood as their broker shouldn't be trusted for in-depth option strategy discussion. I would recommend you look for well reviewed Options Books on Amazon instead of YouTubers.