Money Investing megathread extravaganza - Page 38

**DaFace** · 06:35 PM

A place to talk about investing stuff.

**lewdog** · 01-09-2017, 05:38 PM

Quote:

Originally Posted by Nightfyre

Yes, you can. You cannot sell naked puts or calls, because the unlimited potential for loss constitutes indirect borrowing from the IRA, which is a prohibited transaction.

When you purchase puts and calls, you have a limited potential loss of your initial investment.

IRA OR ROTH?

I have no such options for individual trades in my ROTH that I can tell. Just mutual funds and indexes.

**lewdog** · 01-09-2017, 05:40 PM

Some mentioned healthcare and it's actually an area that was fairly stable in 2016 and lagged a bit IMO. Still 20-30% down from its peak in 2015 in many areas.

scho63 · 01-09-2017, 05:46 PM

Quote:

Originally Posted by RubberSponge

Don't worry about the money you didn't make. I scoped out NVDA 6 months ago and didn't put in a dime. Dumb. Have to move on.

I try to stay away from long options as much as I can. I am not a big fan of having a significant amount of money tied up for a long period of time without a dividend. Having said that, they definitely have there place to make money. Been looking long call options on MU at 25 but have not pulled the trigger.

What I like about some longer term options is when I'm certain a stock is ready for a move up but timing is suspect. So if I can buy an option on a high priced stock and get some decent leverage, I'll buy 5-10 of them.

**lewdog** · 01-09-2017, 06:00 PM

Quote:

Originally Posted by RubberSponge

Don't worry about the money you didn't make. I scoped out NVDA 6 months ago and didn't put in a dime. Dumb. Have to move on.

I try to stay away from long options as much as I can. I am not a big fan of having a significant amount of money tied up for a long period of time without a dividend. Having said that, they definitely have there place to make money. Been looking long call options on MU at 25 but have not pulled the trigger.

So you rather take minimal capital into a low cost stock that has a chance to increase greatly percentage wise in the short term? More speculating than investing as some would say?

Can also be a risky play as many of those companies have high volatility. If this is your strategy, where do you research most of these companies.

Abba-Dabba · 01-09-2017, 11:47 PM

Quote:

Originally Posted by scho63

What I like about some longer term options is when I'm certain a stock is ready for a move up but timing is suspect. So if I can buy an option on a high priced stock and get some decent leverage, I'll buy 5-10 of them.

That can get real expensive, real quick.

1yr call options on AMZN at 810 runs 93k for 10 contracts. That seems a lot of capital to me to to tie up for potentially one year with no dividend. Why not just buy cheaper stocks and sell covered calls if you are going to spend that kind of money?

Of course you could go maybe further out of the money. Let's say 10 contracts of 900 calls will still cost you over 57k.

Abba-Dabba · 01-09-2017, 11:56 PM

Quote:

Originally Posted by lewdog

So you rather take minimal capital into a low cost stock that has a chance to increase greatly percentage wise in the short term? More speculating than investing as some would say?

Can also be a risky play as many of those companies have high volatility. If this is your strategy, where do you research most of these companies.

I guess I consider it more like playing poker. Knowing when to get out.

I watch everything like everyone else. I watch the charts daily. I use Worden TC2000. Pay attention to the news. That is pretty much it. Sometimes I will watch afterhours and premarket trading.

Nightfyre · 01-10-2017, 12:02 AM

Quote:

Originally Posted by lewdog

IRA OR ROTH?

I have no such options for individual trades in my ROTH that I can tell. Just mutual funds and indexes.

Mine is in a self directed Roth Ira account at scottrade. You have to apply to get access to option trading.

scho63 · 01-10-2017, 11:26 AM

Quote:

Originally Posted by RubberSponge

That can get real expensive, real quick.

1yr call options on AMZN at 810 runs 93k for 10 contracts. That seems a lot of capital to me to to tie up for potentially one year with no dividend. Why not just buy cheaper stocks and sell covered calls if you are going to spend that kind of money?

Of course you could go maybe further out of the money. Let's say 10 contracts of 900 calls will still cost you over 57k.

I try to buy something way out of the money 2-3 years away. Any stock over $250 per share and the ones over $500 are going to be crazy expensive.

I'll look for something maybe $50-75 a share that has potential for a $10+ or more move.

Oil companies look good right now for some of this IMHO

Abba-Dabba · 01-10-2017, 12:12 PM

Quote:

Originally Posted by scho63

I try to buy something way out of the money 2-3 years away. Any stock over $250 per share and the ones over $500 are going to be crazy expensive.

I'll look for something maybe $50-75 a share that has potential for a $10+ or more move.

Oil companies look good right now for some of this IMHO

My uncle and father love playing that way. I have seen them lose money and make money. But damn does it not tie up a lot of money that could be making money elsewhere. They are looking for big paydays. I look at it as daily bread.

Him and my father do not like the way I trade very much. They think I take a lot of time sensitive risks. I will buy options with 3 days expiration if they are cheap. My call this week of course was a no brainer with BAC. Monday morning I bought in at .36. Just sold out at .58. 100 contracts, 1 day. You can do that addition I m sure. Didn't even make it to the earnings like I thought. I at least thought it wouldn't be till Friday to hit 23. I was wrong, it was today. Don't care too much if I potentially left anything on the table either. I made money. That is the whole point. Trying to make daily money. Not watch an option go up and down for 2 yrs. That shit would drive me insane.

Abba-Dabba · 01-10-2017, 12:24 PM

I am not bullish on oil at all right now. I think we struggle to get over 55 and on towards 60. Too much blustering BS going on with pumping nations. All of them are pumping more they they say. And I don't see it ending anytime soon. I do not think we will see the gains on oil like we saw last year. Of course I could be very wrong and oil make another 45% gain this year.

**lewdog** · 01-10-2017, 06:30 PM

Quote:

Originally Posted by RubberSponge

My uncle and father love playing that way. I have seen them lose money and make money. But damn does it not tie up a lot of money that could be making money elsewhere. They are looking for big paydays. I look at it as daily bread.

Him and my father do not like the way I trade very much. They think I take a lot of time sensitive risks. I will buy options with 3 days expiration if they are cheap. My call this week of course was a no brainer with BAC. Monday morning I bought in at .36. Just sold out at .58. 100 contracts, 1 day. You can do that addition I m sure. Didn't even make it to the earnings like I thought. I at least thought it wouldn't be till Friday to hit 23. I was wrong, it was today. Don't care too much if I potentially left anything on the table either. I made money. That is the whole point. Trying to make daily money. Not watch an option go up and down for 2 yrs. That shit would drive me insane.

I'm not embarrassed to admit but this is way over my head.

**Rain Man** · 01-10-2017, 06:32 PM

Quote:

Originally Posted by lewdog

I'm not embarrassed to admit but this is way over my head.

Yeah, I'm a man of simple strategies. I just buy stocks, nothing else.

Abba-Dabba · 01-10-2017, 07:56 PM

Quote:

Originally Posted by lewdog

I'm not embarrassed to admit but this is way over my head.

I made a $3600 investment in Monday that expired on Jan. 27th. I cashed out with $5800 on Tuesday with that one position. I'm sure that is not over your head.

And boy do I wish everyday is like that. But unfortunately it is not. Options are just a fun game I like to play.

Abba-Dabba · 01-11-2017, 12:35 PM

Just bought back into BAC. 23 calls, expire on Jan 20th. Paid .39.

Pretty much same position as last, just a week less time. Same strategy. Be out of them by this Friday morning.

**lewdog** · 01-11-2017, 03:02 PM

Quote:

Originally Posted by RubberSponge

Just bought back into BAC. 23 calls, expire on Jan 20th. Paid .39.

Pretty much same position as last, just a week less time. Same strategy. Be out of them by this Friday morning.

Is this trading your main source of income?

06-27-2016, 11:23 AM
DaFace Kind of a mod Join Date: Aug 2005 Location: Donkey Land Casino cash: $116899	Investing megathread extravaganza A place to talk about investing stuff. Last edited by DaFace; 02-19-2021 at 06:35 PM..
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01-09-2017, 05:40 PM	#557
lewdog Mod Team Join Date: Sep 2011 Location: Valley of the hot as **** Casino cash: $21900	Some mentioned healthcare and it's actually an area that was fairly stable in 2016 and lagged a bit IMO. Still 20-30% down from its peak in 2015 in many areas. __________________ 2024 Royals game thread record 3-0
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01-10-2017, 12:24 PM	#565
Abba-Dabba MVP Join Date: May 2001 Casino cash: $4062970	I am not bullish on oil at all right now. I think we struggle to get over 55 and on towards 60. Too much blustering BS going on with pumping nations. All of them are pumping more they they say. And I don't see it ending anytime soon. I do not think we will see the gains on oil like we saw last year. Of course I could be very wrong and oil make another 45% gain this year.
Posts: 18,233

01-11-2017, 12:35 PM	#569
Abba-Dabba MVP Join Date: May 2001 Casino cash: $4062970	Just bought back into BAC. 23 calls, expire on Jan 20th. Paid .39. Pretty much same position as last, just a week less time. Same strategy. Be out of them by this Friday morning.
Posts: 18,233