Options guys, is there a particular strategy you use when deciding whether to buy shares outright or pick up leaps?
I think I'm an "options guy"...just not a very good one. I know The Milkman and I have talked about he chooses to exercise some of his options but I don't. I'm solely trading them at the moment.
I think he means when do you buy an option vs just buying shares. I usually don't fuck with options because I'm too optimistic for them and miss the mark.
Implied Volatility is probably the biggest determinant in this for me. I like to own shares of stocks with high IV (so I can sell calls for a nice premium).
Let's look at this JMIA $45 June 18th call as an example. IV is super high at 114.8%. Let's say I own 1000 shares of JMIA ($44,550), and I sell `10 covered calls for a value of $12,600. I have effectively booked a 29% profit in a duration of 5 months if this stock stays at or greater than it's current value. If it decreases, I get to keep my shares and the premium of $12,600. This is the way to make money in the market.
Probably the least important greek imo. It's a ratio that influences the option price related to any change in the Fed Funds rate. It's more important during inflation cycles
My dad went to all cash back in March. Dummy. He's a few years from retirement, so I can understand a little bit why he freaked out. He's been back in for a few months now, but whew he missed some big gains.
They would be taxed at their normal tax level, right? So about 45% give or take depending on what state they would file for?
This makes a lot of sense. Follow up question though: Selling covered calls prevents you from hitting those long term 10 bagger type home runs right, so how do you determine which holdings you sell calls against vs which you just hold or buy leaps in? So let’s take LOVE for instance. I like that business strategy for the long term. I can buy 100 shares and sell a covered call, or buy and hold shares for as long as I want, or buy a few leaps. Is it as simple as risk tolerance being the main deciding factor between those options? Covered calls being the “safe” option, holding position a little riskier and leaps more of the high risk high reward?
Correct, that money is locked up until expiration. If you do it twice a year, that’s almost a 70% return. Shit compounds fast. As for leaps vs shares. It’s IV. A good time to buy leaps is when a great stock has a low RSI and Vix isn’t too high.
Thinking the same thing. I am very bullish on GME but Citron tends to force a 5-10% pull back when they release their garbage.
The entire broadcast is supposed to be targeted at an argument for GME to be trading at $20 again. They absolutely crushed PLTR's movement with their last one. Even a temporary setback would be nice here.
All the ARK funds have been through the roof over the last few years. I've allocated a bit of capital to ARKW and already popped 10% in 3 weeks.
They're not really all that similar. VOO tracks the S&P 500 and ARKK (as with all the other iterations of ARK ETFs) are funds that tend to focus on one sector. VOO has .03% expense ratio and ARKK has .75%.
The main ARK ETFs are actively managed and, as you said, focus on a broad sector like technology or a specific sub-sector within technology.
Can't wait for some ARKX here soon. I own 4 out of the 5 ARK etf's. Jumped in around October time, and glad I did so far.
I'm tired of watching everyone try to suck Cathie Wood's dick while my dick sits here with no suckers. How hard can it be to put together a goddamn ETF, Global X plays fucking theme games with theirs.
I just bought 1000 shares of ZOM. There RUFORMA diagnostic platform should get approved in March, but who the hell knows. About 1 dollar now, hope it gets to 2 dollars, then will slap a 15% - 20% trailing stop loss and call it a day.
How many of you guys are doing this as your full time gig? I wish I could actively day trade but my wife works for an investment firm and we have to get approval from compliance for any purchase. On top of that, we have to hold said purchase for a minimum of 30 days before we can sell.