Stocks and Trading Thread - Channeling your inner Mono

Started by MadImmortalMan, December 21, 2009, 04:32:41 AM

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Admiral Yi

#2460
April 10, 2019, 06:08:00 PM
Yeah, I've noticed in my cursory investigation of options that the easy money is already priced like easy money.

Habbaku

#2461
April 10, 2019, 06:09:25 PM
I'd hope so, or the writers are suckers.  :D

Though there's some money to be had writing calls and puts at easy money levels...  :hmm:
The medievals were only too right in taking nolo episcopari as the best reason a man could give to others for making him a bishop. Give me a king whose chief interest in life is stamps, railways, or race-horses; and who has the power to sack his Vizier (or whatever you care to call him) if he does not like the cut of his trousers.

Government is an abstract noun meaning the art and process of governing and it should be an offence to write it with a capital G or so as to refer to people.
-J. R. R. Tolkien

Admiral Yi

#2462
April 12, 2019, 12:55:39 PM
You inspired me Seppuku.  Just sold 7 AT&T covered calls at 32.50.

Habbaku

#2463
April 12, 2019, 02:17:23 PM
The medievals were only too right in taking nolo episcopari as the best reason a man could give to others for making him a bishop. Give me a king whose chief interest in life is stamps, railways, or race-horses; and who has the power to sack his Vizier (or whatever you care to call him) if he does not like the cut of his trousers.

Government is an abstract noun meaning the art and process of governing and it should be an offence to write it with a capital G or so as to refer to people.
-J. R. R. Tolkien

Admiral Yi

#2464
April 12, 2019, 02:27:43 PM
Infinite liability!

Have you done a bit of writing?  I just doubled the number of covered calls I've written, from 2 to 4.

Mono, this might be for you.

Habbaku

#2465
April 12, 2019, 02:54:19 PM
I've dabbled, but tend to recommend traditional stocks for greater returns. As I get older, I'll likely shift to writing more options for a more stable rate of return.
The medievals were only too right in taking nolo episcopari as the best reason a man could give to others for making him a bishop. Give me a king whose chief interest in life is stamps, railways, or race-horses; and who has the power to sack his Vizier (or whatever you care to call him) if he does not like the cut of his trousers.

Government is an abstract noun meaning the art and process of governing and it should be an offence to write it with a capital G or so as to refer to people.
-J. R. R. Tolkien

Admiral Yi

#2466
April 27, 2019, 01:28:16 PM
Seppuku, maybe you can help me think through the first principles of this split-strike conversion options strategy.

It seems to me to be a variant of the straddle, in which you simultaneously sell the call and the put, to make the bookmakers' vig in the middle.

It seems perfect for a stock that has some volatility, but with a stagnant long term trend.  AT&T for example.  Back of the envelope calculations say I can make about 10% return selling calls on AT&T. 

The danger (I'm sure there are others) is that your stock spikes.  Now if you try to get it back by selling puts, you're able to buy fewer shares because of the price rise.  Or you can buy the same number of shares but eat up all your put premium profit and then some.

I'm thinking in that case you walk away from that stock and find a random stock to sell cash covered puts on.  No emotional attachments, just money.

Thoughts?

Admiral Yi

#2468
June 11, 2019, 03:32:00 PM
Just got an offer from Etrade to sign up for their Fully Paid Lending Program, and did so.

Basically, I have a chance to be the counter party to a short sale.

AFAICT, the only downside is while the stock is lent, you get a cash payment in lieu of dividend which has a different tax treatment.

Admiral Yi

#2469
June 13, 2019, 02:49:43 PM
And right off the bat 100 shares of Canopy Growth (Canadian pot stock) get borrowed, and I get paid the princely interest rate of 1.7204%.

Admiral Yi

#2470
October 14, 2019, 06:33:26 PM
Etrade, Schwab and TD Ameritrade have all dropped their commissions to zero. 

Habbaku

#2471
November 11, 2019, 11:54:52 AM
Travis Kalanick (former Uber CEO and all around shitbag) just dumped half a billion in stock.

Time to buy some long-term puts?  :hmm:
The medievals were only too right in taking nolo episcopari as the best reason a man could give to others for making him a bishop. Give me a king whose chief interest in life is stamps, railways, or race-horses; and who has the power to sack his Vizier (or whatever you care to call him) if he does not like the cut of his trousers.

Government is an abstract noun meaning the art and process of governing and it should be an offence to write it with a capital G or so as to refer to people.
-J. R. R. Tolkien

Tonitrus

#2472
November 11, 2019, 01:45:05 PM
Probably cashing out some chips before their failure to actually make a profit catches up with them.

https://www.businessinsider.com/where-uber-spends-its-money-lost-5-billion-second-quarter-2019-8?r=US&IR=T

QuoteUber lost a whopping $5.2 billion in the second quarter of 2019, the company revealed on Thursday, its deepest quarterly loss ever, thanks to an expensive initial public offering earlier this year.

Admiral Yi

#2473
November 11, 2019, 03:27:40 PM
But strangely Uber's price didn't move much.

Habbaku

#2474
November 11, 2019, 05:11:00 PM
He only sold ~21% of his holdings in Uber, so it's possible it's seen as just a profit-taking move on his part rather than an indicator of value.
The medievals were only too right in taking nolo episcopari as the best reason a man could give to others for making him a bishop. Give me a king whose chief interest in life is stamps, railways, or race-horses; and who has the power to sack his Vizier (or whatever you care to call him) if he does not like the cut of his trousers.

Government is an abstract noun meaning the art and process of governing and it should be an offence to write it with a capital G or so as to refer to people.
-J. R. R. Tolkien
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