An Investment Thread

Another good day for NASDAQ - sometimes it pays to be an IT guy ;)

@SeaNile your AMD is up almost 17%, good time to sell IMO, or sell 1/2. My AMD is retirement funds for me though so I am holding.

Tim Fila said:
All of you that are up this month, can thank me!

I was tired of getting my nuts kicked, so I sold everything and sitting in cash. Sold TSLA at $108 and AAPL at $135.

YOU ALL ARE WELCOME!

Tim
Click to expand...
Thanks, my AAPL is up to $150, appreciate you selling it ;)

I can't figure out what to do with D. I've owned it for almost 20 years, in the red, pays a decent dividend.
 
Sold 1 TSLA call at 4.50 for 254% profit. Still holding 1. Too bad I was too chicken to go bigger. Yeah 254% is great but I only made about $300 on that contract...lol. Still not bad for 1 week. At this point my other TSLA contract is free so willing to hold that one till whenever. If it expires worthless I'm still up on the trade.
 
Apple reports after the bell tonight. If they comeback with decent numbers another run on the NASDAQ could occur tomorrow as well. I wonder if we can hang on to the gains...
 
AAPL is one of my dividend retirement stocks, so I will hold. Up over 200% since I bought it about 10 years ago I think.

I do not use their products, but, "I get it and know it (technology)" so it's a no brainer.
 
Let's just say for a quick lesson on options and another layer that makes them so hard to trade...if I was super aggressive I could have bought Feb 17, 2023 $200 calls at the same time for about $60 per contract. So let's say I bought 4 total as I paid $254 for 2. Today those hit $11.25 each (yeah, $1125 each). So I could have made 1700% on them (about $4200 profit). Problem is options have what's called theta and implied volatility that have to be factored in. Options contracts lose value over time. The sooner the expiration the higher the theta and the faster they lose value. So options traders will buy more time (like I did). Theta is much lower but so is implied volatility. IV is the 'magnification' an option has due to the volatility. So it's a trade off and you have to balance that when trading options. Day traders tend to buy contracts that expire sooner. I often buy contracts that expire same day. If it goes your direction you can make alot of money quick, if it goes against you you will lose it quick with no time to recover. At expiration they expire worthless if they are not in the money (ITM). So come Jan 2024 if TSLA is below $500 my contract expires worth $0 so I lose the whole $127. If it is at $600 then I have to option to buy 100 shares of TSLA at $500/share even though it is trading at $600/share. The person I bought that contract from is obligated to sell it to me at that discount if I choose to exercise that option.
Funny story...most options expire weekly (every Friday) but SPY, QQQ and a few others expire every Monday, Wednesday, and Friday. On a Monday awhile back I bought SPY calls thinking they were Wednesday expiration. Market closed. I woke up in the morning with $63,000 of SPY commons in my account. I didn't even have $63,000 in that account but I had margin so TD Ameritrade exercised my option and now I owed them money. I sold as fast as I could and actually lost a few hundred cause I panicked...lol
 
boatman37 said:
Let's just say for a quick lesson on options and another layer that makes them so hard to trade...if I was super aggressive I could have bought Feb 17, 2023 $200 calls at the same time for about $60 per contract. So let's say I bought 4 total as I paid $254 for 2. Today those hit $11.25 each (yeah, $1125 each). So I could have made 1700% on them (about $4200 profit). Problem is options have what's called theta and implied volatility that have to be factored in. Options contracts lose value over time. The sooner the expiration the higher the theta and the faster they lose value. So options traders will buy more time (like I did). Theta is much lower but so is implied volatility. IV is the 'magnification' an option has due to the volatility. So it's a trade off and you have to balance that when trading options. Day traders tend to buy contracts that expire sooner. I often buy contracts that expire same day. If it goes your direction you can make alot of money quick, if it goes against you you will lose it quick with no time to recover. At expiration they expire worthless if they are not in the money (ITM). So come Jan 2024 if TSLA is below $500 my contract expires worth $0 so I lose the whole $127. If it is at $600 then I have to option to buy 100 shares of TSLA at $500/share even though it is trading at $600/share. The person I bought that contract from is obligated to sell it to me at that discount if I choose to exercise that option.
Funny story...most options expire weekly (every Friday) but SPY, QQQ and a few others expire every Monday, Wednesday, and Friday. On a Monday awhile back I bought SPY calls thinking they were Wednesday expiration. Market closed. I woke up in the morning with $63,000 of SPY commons in my account. I didn't even have $63,000 in that account but I had margin so TD Ameritrade exercised my option and now I owed them money. I sold as fast as I could and actually lost a few hundred cause I panicked...lol
Click to expand...
You lost me right around "...options and another layer..." I obviously need to do some more learnin'!

On a positive note, my AXL has gone up for the last four days with a pretty obvious spike right around 0900 local time each day. Assuming it continues the trend, I'm set to sell tomorrow morning after already gaining 13.5% since purchasing it just last Friday. Too bad I didn't have a couple hundred boat bucks to dump into it.
 
mrsrobinson said:
Put your seat belts on boys and girls, the roller coaster is going down.
Click to expand...

Yep.
My guess is we get to spit back damn near everything we ate this week.
I think most of the tech that reported earnings after the bell last night could have been tolerated but the smokin' jobs report not so much
 
boatman37 said:
Let's just say for a quick lesson on options and another layer that makes them so hard to trade...if I was super aggressive I could have bought Feb 17, 2023 $200 calls at the same time for about $60 per contract. So let's say I bought 4 total as I paid $254 for 2. Today those hit $11.25 each (yeah, $1125 each). So I could have made 1700% on them (about $4200 profit). Problem is options have what's called theta and implied volatility that have to be factored in. Options contracts lose value over time. The sooner the expiration the higher the theta and the faster they lose value. So options traders will buy more time (like I did). Theta is much lower but so is implied volatility. IV is the 'magnification' an option has due to the volatility. So it's a trade off and you have to balance that when trading options. Day traders tend to buy contracts that expire sooner. I often buy contracts that expire same day. If it goes your direction you can make alot of money quick, if it goes against you you will lose it quick with no time to recover. At expiration they expire worthless if they are not in the money (ITM). So come Jan 2024 if TSLA is below $500 my contract expires worth $0 so I lose the whole $127. If it is at $600 then I have to option to buy 100 shares of TSLA at $500/share even though it is trading at $600/share. The person I bought that contract from is obligated to sell it to me at that discount if I choose to exercise that option.
Funny story...most options expire weekly (every Friday) but SPY, QQQ and a few others expire every Monday, Wednesday, and Friday. On a Monday awhile back I bought SPY calls thinking they were Wednesday expiration. Market closed. I woke up in the morning with $63,000 of SPY commons in my account. I didn't even have $63,000 in that account but I had margin so TD Ameritrade exercised my option and now I owed them money. I sold as fast as I could and actually lost a few hundred cause I panicked...lol
Click to expand...

So yes, that happened to me a while back and didn't understand it. Are you saying the brokerage houses have the right exercise the options without asking you?
 
Morgan Jane said:
So yes, that happened to me a while back and didn't understand it. Are you saying the brokerage houses have the right exercise the options without asking you?
Click to expand...
it depends on the brokerage. I was using TD Ameritrade so apparently they will exercise it without asking unless you specify you do not want it exercised. That is also determined by whether you have enough funds. In a margin account there are different levels. Some are 2x, some 4x and not sure what others. So let's say you have $25,000. If you have 2x then they will lend you $25,000 but you will also pay interest on that. I have never 'borrowed' funds from my broker other than that time so I'm not very experienced in that department
 
I had a bunch of TSLA and held onto it too long as it was sinking. I got out of it at 192. I watched it go down and got back into it at 172. Today it's up to 207 and climbing quickly, so I've made up a lot of the money I was down and still enjoying the ride up.

If there's a bright side to this, it's that it's in a Roth IRA account.
 
I bought TSLA commons a few times under $200 but I'm green on them. Also bought 2 TSLA Jan 2024 $500 calls for $127 each when it was at about $130. Sold on for about 250% for $450. Still holding the other one and am up 485% with it at $741 at close today. Sounds great but only had 2 contracts cause I was too chicken and I'm not a good long term holder...lol
 
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