Stocks and Trading Thread - Channeling your inner Mono

[crazy canuck]

Sounds like he's getting the better end of the deal even if he could have made more money by plowing the rig costs into the actual crypto. 

That is what I told him.  In the long run he will be better off.  It is essentially a mandatory dollar cost averaging savings account if he just keeps it running in our basement.

[Tonitrus]

tldnr: good chance I will be selling c. 2/3 of my Tesla shares this week.

Whelp, as they're just about on their overall analyst price target...maybe I should join you.

[Admiral Yi]

If you own 100 shares, you should consider selling the covered call instead of straight selling the stock.   

[Barrister]

Apparently with the increase in TSLA Elon Musk is now the world's richest man.

[Tonitrus]

If you own 100 shares, you should consider selling the covered call instead of straight selling the stock.   

I've done some basic reading, and am intrigued.

[Admiral Yi]

I've done some basic reading, and am intrigued.

The price is dancing around $800 today.  If you straight sold you would have 80 large.  If you sold a covered call at, say $820, you would have 82 large (if it's assigned) plus the premium, which is $25/share right now.  That's for a 1/15 expiry.  If it's not assigned you would still have your shares plus the $2,500 premium.  Not the end of the world.  Pocket the premium and sell the call again the next week.

Your downside is if the price drops right after you sell the call, and you missed the opportunity to sell at some kind of peak.  You also carry the risk of the price zooming up to the stratosphere, but if you want to sell anyway that risk is moot.  When you sell options you're assuming risk in exchange for cash, but if you really do want to sell, that risk is greatly reduced.

Seeing a lot of Youtube clips about Robinhood guys chest thumping about MASSIVE OPTIONS PAYOFFS or LOL I LOST EVERYTHING YOLO makes me think these millenial knuckleheads are going to nuts in the options markets, bidding up premiums.  On CNBC I saw a story that said yes, options are being driven by retail investors.  I think they're approaching it like they do Texas hold 'em.  Pocket 10/2 unsuited?  All in!!!!  Take advantage of their fanboism.  Make some money off it.

I've also compared premiums on the stocks in my portfolio and it seems limited to certain fanboi stocks.  Tesla is definitely a fanboi stock.  Square, surprisingly, does not have very fat premiums.

[Tonitrus]

Apparently with CS, I have to submit for approval to do option trading...so I have a few days cooling off period.   

[Admiral Yi]

Credit Suisse?

That's great.  Do a hypothetical trade and see how it pans out.  Choose a strike price and expiry date.

[Tonitrus]

Charles Schwab

[Tamas]

My Canopy stock has gone back to breakeven levels! 

[Habbaku]

  Congrats.

[Tamas]

Congrats.

Little victories.

[Habbaku]

Hey, no losses is a definite victory.

[Tamas]

Speaking of people piling into Democrat pet projects: I have about 10% profit on my Shell shares. Shall I sell them and buy a clean energy ETF for the money?

[Tonitrus]

Invest in a lithium mine. 

(half-joking, I've been looking at CYDVF...but it's on the OTC market, so probably really like buying a handful of lottery tickets.)