Boiler Room: The Official Stock Market Discussion

[ahomeplateslugger]

finally in the green with SOFI and HNST. made a rookie mistake blindly following Jeremy into HSNT but maybe he just got in too early because they are becoming a well run business and are free cash flow positive finally.

 

[El_Mero_Mero]

one stock i regret not buying. i think it was ~200 when i was looking at it but i decided to build up my position in Google and Amazon instead. AXON has outperformed those two easily since then.

Sadly I only have two and a half chairs, but my average share price is about $140

 

[Reign X]

I just finished saying I wouldn’t trim pltr but wtf. Another 10%+ and I may have to. Too bad my other favs are high as well now.

 

[Reign X]

finally in the green with SOFI and HNST. made a rookie mistake blindly following Jeremy into HSNT but maybe he just got in too early because they are becoming a well run business and are free cash flow positive finally.

Seems like he got saved by ceo change. I like his view on Nike.

 

[FabTrey]

I just finished saying I wouldn’t trim pltr but wtf. Another 10%+ and I may have to. Too bad my other favs are high as well now.

If you have at least 100 shares of PLTR and the capital to buy 100 more, then sell puts, but only if you have strong conviction.

For example, I have NVDA, and I’m selling puts. It’s straightforward. I’m selling NVDA puts with a $135 strike price expiring a week out. The premium is $4, so I’m making $400 a week, no matter what. If the price drops below $135, I’ll simply buy 100 shares at that price. It’s a great way to accumulate more shares.

Right now, I’m selling calls on TSLA and puts on NVDA, collecting those juicy premiums and preparing to accumulate more. should've done that with my META and MSFT too.


you can do that with PLTR. if you do not have 100 shares, then keep accumulating. let's say you sell puts at $55 and price falls to 53. you will buy 100 shares of PLTR at that price which is relatively cheap. and now you have 200 shares. what do you then? you sell calls. This is called a 'wheel strategy'. i'm strongly considering doing that

 

[Rickdogg44]

If you have at least 100 shares of PLTR and the capital to buy 100 more, then sell puts, but only if you have strong conviction.

For example, I have NVDA, and I’m selling puts. It’s straightforward. I’m selling NVDA puts with a $135 strike price expiring a week out. The premium is $4, so I’m making $400 a week, no matter what. If the price drops below $135, I’ll simply buy 100 shares at that price. It’s a great way to accumulate more shares.

Right now, I’m selling calls on TSLA and puts on NVDA, collecting those juicy premiums and preparing to accumulate more. should've done that with my META and MSFT too.


you can do that with PLTR. if you do not have 100 shares, then keep accumulating. let's say you sell puts at $55 and price falls to 53. you will buy 100 shares of PLTR at that price which is relatively cheap. and now you have 200 shares. what do you then? you sell calls. This is called a 'wheel strategy'. i'm strongly considering doing that

Welcome to thetagang

 

[greenvale]

Thinking about taking profits on PLTR, it's a shame I thought of this as super long term but I don't trust the speculation right now

 

[Mirin4rmfar]

If you have at least 100 shares of PLTR and the capital to buy 100 more, then sell puts, but only if you have strong conviction.

For example, I have NVDA, and I’m selling puts. It’s straightforward. I’m selling NVDA puts with a $135 strike price expiring a week out. The premium is $4, so I’m making $400 a week, no matter what. If the price drops below $135, I’ll simply buy 100 shares at that price. It’s a great way to accumulate more shares.

Right now, I’m selling calls on TSLA and puts on NVDA, collecting those juicy premiums and preparing to accumulate more. should've done that with my META and MSFT too.


you can do that with PLTR. if you do not have 100 shares, then keep accumulating. let's say you sell puts at $55 and price falls to 53. you will buy 100 shares of PLTR at that price which is relatively cheap. and now you have 200 shares. what do you then? you sell calls. This is called a 'wheel strategy'. i'm strongly considering doing that

I am watching videos on this so it is basically a less risky way of making income. Looks like you need to do this with a Margin account or need lots of cash on the sidelines to this for collateral.

 

[KING WILL]

 

[Mirin4rmfar]

If $HIMS bottom out, think I am going to jump back in.

 

[FabTrey]

Bought 1/17 400 calls. Avg $21. Hopefully it pops more so I can scale.

 

[Shamayw_33]

I am watching videos on this so it is basically a less risky way of making income. Looks like you need to do this with a Margin account or need lots of cash on the sidelines to this for collateral.

That's my interpretation of options too. From what I gather, you enter a put or call for a stock to fall or rise respectively. If the stock falls and you have a put for it to fall, you have to buy 100 shares at the strike price of your put. If the stock rises and you have a call, you have to buy 100 shares at the strike price of your call.

If my interpretation is incorrect, someone please explain it to me. Maybe I'm not understanding it.

I just don't like the idea of having to buy 100 shares of a stock and it costs me thousands. But if I'm wrong and you don't have to buy stocks at your put or call strike price, please let me know. I have heard people commit financial and literal suicide playing with options. I know scared money don't make money, but a fool and their money soon part.

 

[Mirin4rmfar]

That's my interpretation of options too. From what I gather, you enter a put or call for a stock to fall or rise respectively. If the stock falls and you have a put for it to fall, you have to buy 100 shares at the strike price of your put. If the stock rises and you have a call, you have to buy 100 shares at the strike price of your call.

If my interpretation is incorrect, someone please explain it to me. Maybe I'm not understanding it.

I just don't like the idea of having to buy 100 shares of a stock and it costs me thousands. But if I'm wrong and you don't have to buy stocks at your put or call strike price, please let me know. I have heard people commit financial and literal suicide playing with options. I know scared money don't make money, but a fool and their money soon part.

Lol I have lost money on options which is why I stay away. The wheeling strategy seems to be different than the other options as long as you have the collateral to buy the stocks if it goes up or not. Robinhood actually gives a pretty good explanation on it. Buying calls or puts is different then selling calls or put. Buying can expire worthless while selling you get to buy or sell the shares if it hits the price. Do note I'm not an option expert

 

[Rickdogg44]

That's my interpretation of options too. From what I gather, you enter a put or call for a stock to fall or rise respectively. If the stock falls and you have a put for it to fall, you have to buy 100 shares at the strike price of your put. If the stock rises and you have a call, you have to buy 100 shares at the strike price of your call.

If my interpretation is incorrect, someone please explain it to me. Maybe I'm not understanding it.

I just don't like the idea of having to buy 100 shares of a stock and it costs me thousands. But if I'm wrong and you don't have to buy stocks at your put or call strike price, please let me know. I have heard people commit financial and literal suicide playing with options. I know scared money don't make money, but a fool and their money soon part.

I'll do it using real time example as of this morning - since everyone loves PLTR ... here we go

Step 1: Sell a put at the strike (aka the price you wouldn't mind owning) PLTR and a expiration date (wheeling typically say 30-45 days out). I prefer one to two weeks out. Say I wouldn't mind PLTR at $60 by this Friday Nov 22. I would sell at $60p 11/22/2024 and receive a $1.46 credit/premium (aka extra $146 is now in my account - each contract is one hundred shares)

If it is below $60 by Friday. I am forced to buy 100 shares of PLTR at $60 (aka $6,000 of cash is required to buy). Regardless if it is $59.99 or $25 by the end of day Friday.

If it is above $60 by Friday. Nothing happens and you keep the $146. You keep the $146 regardless if you get assigned or not.

You can of course manage the position throughout the week.

Step 2. Once you finally get assigned at the strike. You then sell a call (above your cost basis preferably or else you are managing to avoid a loss). This means you a forced to sell your shares at the price.

Say i get assigned this Friday and forced to buy PLTR at $60. I then sell a call of $65 for next friday (the price i'm winning to let my shares go). And recieve a premium for that. Pick the strike and expiration date of your choice. You'll see bunch about 0.3 delta and 30-45 days out.

If next friday it is below $65 - i keep my shares and keep selling the calls. If it is $65 or higher - i'm force to sell at $65. If it moons to $100 - I'm still forced to sell at $65 and keep the premium of the call regardless.

Little confusing but plenty of youtube vidoes that explain it pretty well.

 

[Shamayw_33]

I'll do it using real time example as of this morning - since everyone loves PLTR ... here we go

Step 1: Sell a put at the strike (aka the price you wouldn't mind owning) PLTR and a expiration date (wheeling typically say 30-45 days out). I prefer one to two weeks out. Say I wouldn't mind PLTR at $60 by this Friday Nov 22. I would sell at $60p 11/22/2024 and receive a $1.46 credit/premium (aka extra $146 is now in my account - each contract is one hundred shares)

If it is below $60 by Friday. I am forced to buy 100 shares of PLTR at $60 (aka $6,000 of cash is required to buy). Regardless if it is $59.99 or $25 by the end of day Friday.

If it is above $60 by Friday. Nothing happens and you keep the $146. You keep the $146 regardless if you get assigned or not.

You can of course manage the position throughout the week.

Step 2. Once you finally get assigned at the strike. You then sell a call (above your cost basis preferably or else you are managing to avoid a loss). This means you a forced to sell your shares at the price.

Say i get assigned this Friday and forced to buy PLTR at $60. I then sell a call of $65 for next friday (the price i'm winning to let my shares go). And recieve a premium for that. Pick the strike and expiration date of your choice. You'll see bunch about 0.3 delta and 30-45 days out.

If next friday it is below $65 - i keep my shares and keep selling the calls. If it is $65 or higher - i'm force to sell at $65. If it moons to $100 - I'm still forced to sell at $65 and keep the premium of the call regardless.

Little confusing but plenty of youtube vidoes that explain it pretty well.

Yeah it is confusing. Appreciate you taking the time to explain it. I think I understand how it works. Seems like it's beneficial to have the cash to cover the price of the 100 shares just in case.