forums

Off-Topic Stock Market & Crypto Discussion

Advertisement
Cryptical Envelopment said:
Ok, more CYCN stuff...

We bought here at $3.73...

It's currently at $6.04 so we are up 62% in a few weeks. 🔥

But it gets CRAZIER.

Someone out there just bought OCT 16 '20 CYCN $10 CALLS from me for $1.20. o_O

That means he has the right to force me to sell him CYCN for $10 if it goes above there by Oct. 16. Which means, because he had to pay me $1.20 per share for the privilege, he loses money if it doesn't go above $11.20 by then. If it isn't at $10 by then, I make 100% of the premium, which is a 200% gain.

So someone out there just made a pretty good sized bet that CYCN is going to go parabolic in the next two months. He's either an idiot, or a genius.

But either way, I either get to keep his $1.20 share if it doesn't get to $10, or I get forced to unload some of my shares at $11.20 - I am happy to take some off the table there regardless.

Things are happening. We may see two data cycles before then. Could be an Alzheimers game-change best case.

WILD.
Click to expand...

CYCN closed the week at $8.39. Actually almost hit $9 today. So this CIS trade is now up over 125%.

Someone paid me $2.50 this week for the February 2021 $12.50 calls. Think about that. That means CYCN, which again, we bought for $3.72, has to be above $15 by Feb for him to BREAK EVEN. Which means he surely thinks its going to $20 or more. That would be nice. Worst case for me is I am forced to sell some shares that I bought for $3.72 for $15 ($12.50 + the $2.50 premium I ALREADY banked). If I'm "forced" to sell some shares at a 300% profit in exchange for the sure thing premium, I can live with that. If its not up to $12.50 yet I've reduced my cost per share down to $1.22!
 
Last edited:
Let's revisit writing (selling) options since it's the 3rd Friday of the month.


On 6/26/20 I wrote VFF 9/18/20 $4 puts for $.59 a share. They closed out worthless today. I made 100% on my money in under three months.

On 8/18/20 I wrote VFF 9/18/20 $4 puts for $.44 a share. They closed out worthless today. I made 100% on my money in two months.

On 9/8/20 I wrote AAPL 9/18/20 $127.50 calls for $2.07 a share. They closed out worthless today. I made 100% on my money in 10 days.


Not trying to sound obnoxious like a dude who posts past returns and wants a crown, and I hope I've earned a little leeway by being a guy who actually puts his neck on the line with real-time calls here. And yes, I've been beating this strategy to death (with variations) on here and I am surprised it hasn't yielded more discussion. I am not saying this should be your whole enchilada, but its a great way to super-charge your portfolio performance. Imagine selling a stock short and having it go to zero? That's the holy grail, right? You can do that with options, and its safer than buying uncovered options!
 
Cryptical Envelopment said:
Let's revisit writing (selling) options since it's the 3rd Friday of the month.


On 6/26/20 I wrote VFF 9/18/20 $4 puts for $.59 a share. They closed out worthless today. I made 100% on my money in under three months.

On 8/18/20 I wrote VFF 9/18/20 $4 puts for $.44 a share. They closed out worthless today. I made 100% on my money in two months.

On 9/8/20 I wrote AAPL 9/18/20 $127.50 calls for $2.07 a share. They closed out worthless today. I made 100% on my money in 10 days.


Not trying to sound obnoxious like a dude who posts past returns and wants a crown, and I hope I've earned a little leeway by being a guy who actually puts his neck on the line with real-time calls here. And yes, I've been beating this strategy to death (with variations) on here and I am surprised it hasn't yielded more discussion. I am not saying this should be your whole enchilada, but its a great way to super-charge your portfolio performance. Imagine selling a stock short and having it go to zero? That's the holy grail, right? You can do that with options, and its safer than buying uncovered options!
Click to expand...
Options... Whole nother world
 
Cryptical Envelopment said:
Let's revisit writing (selling) options since it's the 3rd Friday of the month.


On 6/26/20 I wrote VFF 9/18/20 $4 puts for $.59 a share. They closed out worthless today. I made 100% on my money in under three months.

On 8/18/20 I wrote VFF 9/18/20 $4 puts for $.44 a share. They closed out worthless today. I made 100% on my money in two months.

On 9/8/20 I wrote AAPL 9/18/20 $127.50 calls for $2.07 a share. They closed out worthless today. I made 100% on my money in 10 days.


Not trying to sound obnoxious like a dude who posts past returns and wants a crown, and I hope I've earned a little leeway by being a guy who actually puts his neck on the line with real-time calls here. And yes, I've been beating this strategy to death (with variations) on here and I am surprised it hasn't yielded more discussion. I am not saying this should be your whole enchilada, but its a great way to super-charge your portfolio performance. Imagine selling a stock short and having it go to zero? That's the holy grail, right? You can do that with options, and its safer than buying uncovered options!
Click to expand...
My options knowledge is very limited. Could you walk us through a step by step example of the process? I know it's asking alot. Thanks
 
Cryptical Envelopment said:
Let's revisit writing (selling) options since it's the 3rd Friday of the month.


On 6/26/20 I wrote VFF 9/18/20 $4 puts for $.59 a share. They closed out worthless today. I made 100% on my money in under three months.

On 8/18/20 I wrote VFF 9/18/20 $4 puts for $.44 a share. They closed out worthless today. I made 100% on my money in two months.

On 9/8/20 I wrote AAPL 9/18/20 $127.50 calls for $2.07 a share. They closed out worthless today. I made 100% on my money in 10 days.


Not trying to sound obnoxious like a dude who posts past returns and wants a crown, and I hope I've earned a little leeway by being a guy who actually puts his neck on the line with real-time calls here. And yes, I've been beating this strategy to death (with variations) on here and I am surprised it hasn't yielded more discussion. I am not saying this should be your whole enchilada, but its a great way to super-charge your portfolio performance. Imagine selling a stock short and having it go to zero? That's the holy grail, right? You can do that with options, and its safer than buying uncovered options!
Click to expand...
Good **** man!
 
Advertisement
CFLCane said:
Bought a little apple amazon and nvidia today. Sold fastly shopify and walmart for small profits on swing trades.
Click to expand...
Be careful w/ Amzn and NVDA. They might have some green days but will probably keep falling over the next few months. Institutions might be making a lot of money off stocks that have run up in the past few months falling some more. PSQ is a way to hedge bets if you're not comfortable w/ shorts
 
Last edited:
miamicanephins said:
My options knowledge is very limited. Could you walk us through a step by step example of the process? I know it's asking alot. Thanks
Click to expand...

No worries, I enjoy it.

There are a TON of different option strategies. The most common, that people seem to understand, is also one of the riskiest. Buying uncovered calls. And they can be very lucrative, but you will lose most or all of your money sometimes. I'm sure you get that. If not, holla.

The simplest example of what I like to do, would be to sell puts and I can do it in a low-risk way. So let's you and I game it out. What's your favorite stock that you like right now, want to buy or buy more of, but you feel its a little over-priced, and are waiting for it to drop a bit. And tell me the (realistic) price you would be willing to buy it and hold it for at least, let's say four months. There is no wrong answer btw, we are just going to use it as an example.
 
Cryptical Envelopment said:
No worries, I enjoy it.

There are a TON of different option strategies. The most common, that people seem to understand, is also one of the riskiest. Buying uncovered calls. And they can be very lucrative, but you will lose most or all of your money sometimes. I'm sure you get that. If not, holla.

The simplest example of what I like to do, would be to sell puts and I can do it in a low-risk way. So let's you and I game it out. What's your favorite stock that you like right now, want to buy or buy more of, but you feel its a little over-priced, and are waiting for it to drop a bit. And tell me the (realistic) price you would be willing to buy it and hold it for at least, let's say four months. There is no wrong answer btw, we are just going to use it as an example.
Click to expand...
Cool. I have been watching Nano X, NNOX, it's not really over priced right now, but it is interesting. Closed today at 35.38, I was trying to buy at 25
 
miamicanephins said:
Cool. I have been watching Nano X, NNOX, it's not really over priced right now, but it is interesting. Closed today at 35.38, I was trying to buy at 25
Click to expand...

Give me another one, there are no option chains for NNOX! Something a little more established. Doesn't have to be FB or GE, but it has to have options.
 
Advertisement
dukemv said:
Be careful w/ Amzn and NVDA. They might have some green days but will probably keep falling over the next few months. Institutions might be making a lot of money off stocks that have run up in the past few months falling some more. PSQ is a way to hedge bets if you're not comfortable w/ shorts
Click to expand...

I'm just expecting small relief rallies next rallies next week to sell into, these aren't long term buys for me.
 
Back
Top