I am fired up today after a good day so I will share my next strategy. Short the hell out of ***.
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Boiler Room: The Official Stock Market Discussion
CosbyMadeMeSellDrugs
Rookie
out of sdlpanother couple thou made
now to transfer this shyt to coinbase > kraken > eth
this pullback
So you put all your money into bitcoin?
got out of neon back into sdlp n pwe
no im puttin it into ethereum
i dont kno how to do calls breh, how much did u profit?My $5 2018 calls skyrocketed
can u explain exactly what u bought, when u bought it , and why?
The price was in the low 3s a couple weeks ago.
I bought calls that expire in January 2018 and have a $5 strike price. I paid $0.75 per contract. Each contract is equal to 100 shares. I bought 20 contracts.
20 contracts equals the right, but not the obligation to buy 2,000 shares of EP Energy at $5 per share by January 2018. Since I paid $0.75 per contract, I breakeven if EPE expires at exactly $5.75. Anything less, I lose my money, anything more, I profit.
Buying those contracts cost me (excluding fees) $1,500.
I don't know what they're worth because EPE is a pretty illiquid options market, although volume today was through the roof. There isn't a narrow bid/ask and when there are few buyers and sellers, sometimes you can't buy or sell for a good price.
Options have inherent value and time value. If EPE expired at $6.79 today, there's inherent value of $1.79. But because the options don't expire for almost 2 years, there's significant time value.
The bid/ask on that spread today was about $1.75/$5.20. I'd bet with inherent value of $1.79 and 2 years time value, they're probably worth around $4 per contract. Volatility also affects premiums and EPE is volatile.
If I closed 20 contracts at $4 per contract, that's $8,000 excluding fees. So in a couple weeks, that's $6,500 profit.
Domingo Halliburton
Handmade in USA
Oil overbought at $38. Everyone too bullish. See a pullback coming.
you got like a chart or a link my breh?
Futuristic Eskimo
All Star
Equities are overbought as well. A good tactical short opportunity at these levels IMO.
Futuristic Eskimo
All Star
Domingo Halliburton
Handmade in USA
RSI on the April contract is 67. Maybe $40, $42 is the more overbought range when the RSI hits 70. Still close. And I was referring to most net long positions in Brent since 2011 when I said "everyone is bullish."
Yeah... horrible. EPE probably averages 50 options a day. Illiquid + LEAPS = wide bid/ask. From my experience, you'll usually see people bid around the inherent value, then it's a game of meeting in the middle if they see someone bringing down the ask. Depends on buyer/seller motivation to get in/out of course.
If I didn't own the stock, I'd never buy the options.
KEG 