@B Russ & @fireopal - the only good thing about selling calls at strike 65 is that you take in cash immediately ( $4 per option x 100 shares = $400 for 10/27s) which lowers your cost basis in the stock to $69; and if the stock closes below $65 when the option expires - you keep your stock and keep the $4 premium. This only works if you really think the stock is going lower in the near term (before the options expire) and think it will rebound at a later date - above $69. As brian said, the way this startegy works against you is if the stock closes above 65 at options expiration - then you lose the stock and have to buy back the calls at a higher price. However, you can buy back the calls any time you want; so, if you see the stock moving toward $68; you can limit your risk and buy the calls back - trying to break even - and still keep the stock. However --- you'll lose- big time - if the stock jumps $15 and closes at $80 - then you're screwed. i used to sell calls with AAPL (many year ago) when it looked weak; i'd sell the calls - take in the max. premium - let them expire worthless - then buy the stock at a lower price and buy calls once the bad news had blown over. In that situation, the strategy worked pretty well. However, with a biotech - not a good idea - too risky; if the stock soars - you miss out and lose your stock; but, if the stock tanks - you keep the premium, but how long will it take to recover back to $70? So, buying puts as insurance is a much better idea in this scenario; but, keep in mind that with some range-bound, slower moving stocks - selling covered calls can be quite lucrative - jmho - but, i'm not the guy to ask - crackle is the pro
@fireopal - thought you might be interested in this insider buy: MNKD Mannkind Corp Kresa Kent (Director) B 166,600 6.00 999,600 17:03:33 2017-10-13
I like the way you worded it. Cool thing about buying puts on a wild moving bio, is even if the stock moves strongly against you, you could still come out a huge winner from the puts. But ironically, the harder the move against you, the more you win in that scenario and you have to be priced in at the right strike. And yes. Agreed. Covered calls are very solid stratagy with blue chip stocks.
@fireopal - thought yo might be intersed thx for the refresher course - we should chat more about option strategies here!
are there any "good" Youtube videos about options that either of you can recommend b/c have not been able to locate a dummy book & think i really do need to see this along with having an actual conversation. Have someone local that has moved away from stocks & become a complete options person & he has tried to explain them BUT he is not someone i can learn from b/c his style of speaking is like a lecture that causes my mind to close down & drift in & out of any conversation on any subject
@fireopal - #1 seller in category - https://www.amazon.com/Understanding-Options-2E-Michael-Sincere/dp/0071817840
@Neil Allen thanks for link & will check it out but back to post a video i found over on Youtube. After posting news blurb from one artist in music thread decided to go to revisit this artist & got bored pretty quick so did another search for "options made easy" & first link i clicked on had a little story with pictures along with a free dummy book that i downloaded
PICTURES! I used to travel a lot and would just have options podcasts playing for hrs in the car. That was yrs ago. Not even sure if they are still there. I think it was the options guys or something. I learn better through viewing and listening than reading though. Edit. I just skimmed through some podcasts. One called options bootcamp sounds pretty good. I skimmed through the first episode and they break it down pretty nicely.
Oh and to answer your earlier question, i do not get to trade all day. I do not have the 25k for daytrader account and i have a daytime job as well. :/ but i do have a smartphone with charts and chats! I usually try to study up in the evening and premarket. Make a trade or two throughout the day that feels safe enough i can leave it unattended for more than 3 minutes at a time. Haha. Ride it for a day to a couple weeks or so at a time. I would LOVE to stay home from 8:30 to 3 and trade ticks all day.
Same with many things & definitely need visuals when it comes to stocks/options!! Like your idea of podcasts & will look into getting some things to listen to so thanks for sharing this
Not much you can do about day job BUT cash account was something i did in the past to get around that $25K...
few from huge watch list which will probably change in morning- GLYC - ABEO - BIOP - HMNY - LBIX short watch (great momo play Friday & wish i had bought much more & hope pre scan brings another easy one like this!) @Neil Allen - have been watching this since you posted & think i will be picking some tomorrow >> JD.com shares are a better deal than Alibaba's: Barron's - https://finance.yahoo.com/news/jd-com-shares-better-deal-223359698.html
Getting some love on remaining FB call. Gonna. Be a good week for ol facey, i think. And good morning snap and pop
Lot's of mine are green & playing RCON news. Staying above VWAP pretty good so far & hoping for around $3 but will be out if it drops to $2.15 Recon and BOW Signed Sewage Treatment Strategic Cooperation Agreement - https://finance.yahoo.com/news/recon-bow-signed-sewage-treatment-120000156.html
happy monday to all - China: good news! Central bank says economy to grow 7% in 2nd half of '17. Acceleration from first 6 months; defies widespread expectations for slowdown. Big China movers: JP:$22.75 +11% - XNET: $4.76 +8% - SOHU: $69.30 +7% - SORL: $5 +4%, MOMO: $34.28 +4% - VIPS: $8.22 +4% also up: JD, BZUN, NOAH, JMEI, CYD.
growth story on Oculous (great xmas gift) & new food delivery should give it a kick-start past $174.50
after hub-bub - JD under $37 - good entry; both - good bets: AABA under $66 - cheap way to play BABA.
lol woulda been but missed it - watching RCON dropping down & was hoping it might do what LBIX did on Friday but no go so out for now. PETZ doing well again today & PETX (old play) got news on Friday BUT still cannot hold its gains AND VERI >> $32's now
TRXC - another one with news on Friday that might be worth keeping on radar- bit over extended but in the gap >> TransEnterix shares soar on FDA clearance of robotic surgery device http://www.marketwatch.com/story/tr...ry-device-2017-10-13?siteid=yhoof2&yptr=yahoo
