Boiler Room: The Official Stock Market Discussion
Welp too late for this train. Wish we saw this yesterday
GnauzBookOfRhymes
Superstar
Trading in 2021 means there is a second bump once the news filters to the amateurs/twitterverse
Rickdogg44
RIP Charmander RIP Kobe
I pointed that out a while back. I'm 4k shares in due to SKLZ and Draftkings team. It just sucks it staying in $10s ... but pa"y"tience
Rickdogg44
RIP Charmander RIP Kobe
It's doomsday saying...
Basically have 100 shares, sell covered calls (green days).
On red day do cash secured puts. All in effort to reduce cost basis.
Works best on sideways stocks. But gush is steady increase lately... I don't mind just getting premium
Since I'm doing this strategy on "SNDL" currently, I will use that as an updated example from the discord.
Doomsday's Hamburger Straddle Explained:
-Purchase 100 shares of "SNDL" (0.50 a share for $50.00 total)
-Sell a 0.50 STRIKE PUT (0.15 PREM)
-Sell a 1.00 STRIKE CALL (0.10 PREM)
Say the stock goes to 0.75 a share, the 0.15 premium from the sold PUT lowers the
CB (cost basis) for the total amount of shares-- Which would make the CB for 100 shares of SNDL 0.35 a share. It would be as if I purchased 100 shares of SNDL for 35 cents instead of 50 cents. This is especially true if I get exercised on the sold PUT and am left with 200 shares, with a CB of around 35 cents. That would mean the stock would have to plummet under 35 cents before I start seeing any red, which is a great position to be in on a stock that trades sideways.
The sold CALL lowers the CB as well. If you take the 0.10 premium from the sold call and add it to the pot, you are left with 100 shares of SNDL for 0.25 a share as your CB-- half the current market value of the stock. That would leave you with a 2x stock flip out the gate if you sold immediately. Let's not also forget the increased value of the stock price per share if you decide to hold the stock. Of course, this is predicated on the stock trading sideways between 0.50-1.00 per share.
However, let's say the stock goes up to 1.25 per share. In that case, my 100 original shares is exercised for 1.00 a share with a cost basis of around 0.25, so essentially I receive 4 times what the stock was worth in my possession. Yes, there is a chance the stock can continue to moon beyond the exercised price. In that case, I still made a nice profit, plus I can also buy more shares at 1.25 and start the process over again. I can also buy back the option itself thereby keeping the shares, and rollover those gains into further lowering my CB as I sell the next calls and puts.
This is a great strategy to guarantee a solid CB for the stock you wish to own. It's also a great way to profit on a stock that's trading sideways and doesn't usually amount to much gains.
PLTR today 
Welp too late for this train. Wish we saw this yesterday
Not too late. Some ppl are predicting $3-4 a share
Not too late. It actually dipped to 40 cents and then is up to 63 now.
Rickdogg44
RIP Charmander RIP Kobe
I try to short on webull and it gives me an "interest " fee to short
Chrishaune
Veteran
I try to short on webull and it gives me an "interest " fee to short
It's probably not as bad as you think...What's the percentage?
You know whatever the percentage is, you just multiply that times how much you borrowed and divide that number by 360 days. That's how much it costs each day to borrow the money. It's not bad, if you picked your trade right.
I know sometimes they list an interest fee of 38%-45% and stuff like that if a stock is hard-to-borrow, but that's over the course of a year. If you're only borrowing a couple thousand dollars that's only a few dollars a day at most.
Normally it's around 8%-10% though, at least with me for e-trade.
GnauzBookOfRhymes
Superstar
Welp too late for this train. Wish we saw this yesterday
up almost 40% since these comments
Spree At Last
All Star
SPY all time high 