Ain't no break even on options. That's only if I wanna keep the stock.What's your BE?
Ain't no break even on options. That's only if I wanna keep the stock.What's your BE?
Ain't no break even on options. That's only if I wanna keep the stock.
I'm otm...I keep track by looking at my profit and I'm not getting out lolYour break even depends on how far in the money you bought the option. It is a good thing to keep your eye on in case you want to get out of the position early.
I prefer itm money calls even though they are more expensive but you start profiting earlier when the stock moves.I'm otm...I keep track by looking at my profit and I'm not getting out lol
Yea they are safer but you can make more of a profit on otm calls percentage wise. And for a company like SQ I'll probably be in the money before my exp dateI prefer itm money calls even though they are more expensive but you start profiting earlier when the stock moves.
I prefer itm money calls even though they are more expensive but you start profiting earlier when the stock moves.
Happy to get rid of $GNOG today. I don't care if it is going to $30 according to Chris Sain. I was bag holding that for months.
I purposely didnt do any covered calls this month to unload some of these stocks that should have never bought. lolYooooo was thinking of getting out too! Forgot did a covered call just to keep making couple dollars off it. I got it at 13.91 though... I have been tired of seeing it but now that its up Im like dang
Yea it will probably run now.Yooooo was thinking of getting out too! Forgot did a covered call just to keep making couple dollars off it. I got it at 13.91 though... I have been tired of seeing it but now that its up Im like dang
I purposely didnt do any covered calls this month to unload some of these stocks that should have never bought. lol
Yea it will probably run now.
Can you expound on this. I did a couple of OTM Leaps just experimenting a little.
OTM options often experience larger percent gains/losses than ITM options. Since the OTM options have a lower price, a small change in their price can translate into large percent returns and volatilityOTM is a strike price greater than the current stock price when you bought.
ITM is lesser than the current stock price when you bought the contract.
So if SQ current stock price is $240 and you buy a call option contract with a strike price $235, that is an ITM.
The reason ppl buy ITM because the your probability of gaining profit increase.
In other words, you will start see profits faster than someone who bought contracts OTM.
OTM options often experience larger percent gains/losses than ITM options. Since the OTM options have a lower price, a small change in their price can translate into large percent returns and volatility
OTM is a strike price greater than the current stock price when you bought.
ITM is lesser than the current stock price when you bought the contract.
So if SQ current stock price is $240 and you buy a call option contract with a strike price $235, that is an ITM.
The reason ppl buy ITM because your probability of gaining profit increase.
In other words, you will start see profits faster than someone who bought contracts OTM.
He talks about ITM options a little bit in the 2nd half of the video
Ok yea I understand the terms, I just never did it and didnt really understand the why. Is it because less risk for you? They are usually very expensive, do you still do them a year or so out?
Yea u pay more upfront but time is ya friendYes, with short term contracts, time is against you unlike LEAP.
OTM is suitable for LEAPS, I wouldn't spend more for less contracts if I have 12 months.
LEts say a stock is at 50 if you buy a otm leap the stock may have to reach $60 before you start profiting. With a itm 90 delta leap I would start making money whent he stock goes above $51 and I can also sell some poor man covered calls since I am in the money.Can you expound on this. I did a couple of OTM Leaps just experimenting a little.
Not true bro...sq isn't close to 300 and I'm already in crazy profitLEts say a stock is at 50 if you buy a otm leap the stock may have to reach $60 before you start profiting. With a itm 90 delta leap I would start making money whent he stock goes above $51 and I can also sell some poor man covered calls since I am in the money.
Not true bro...sq isn't close to 300 and I'm already in crazy profit
Because it's math...I bought the original 2 contracts at 2500 a contract. Because I have months until expiration theta doesn't affect me as much. So as the stock goes up the value of the contracts I purchased also goes up. So today the value of those contracts are 2900 a contract.Didnt you say you bought the $300 january call? How can you be making money when the stock is currently at $258?
Because it's math...I bought the original 2 contracts at 2500 a contract. Because I have months until expiration theta doesn't affect me as much. So as the stock goes up the value of the contracts I purchased also goes up. So today the value of those contracts are 2900 a contract.
It doesn't have to be over 300 till I get closer to the exp date..just has to move in my direction
LEts say a stock is at 50 if you buy a otm leap the stock may have to reach $60 before you start profiting. With a itm 90 delta leap I would start making money whent he stock goes above $51 and I can also sell some poor man covered calls since I am in the money.
Because it's math...I bought the original 2 contracts at 2500 a contract. Because I have months until expiration theta doesn't affect me as much. So as the stock goes up the value of the contracts I purchased also goes up. So today the value of those contracts are 2900 a contract.
It doesn't have to be over 300 till I get closer to the exp date..just has to move in my direction
ITM is safer because it's already passed that strike. It also costs more upfront but your paying for the safetyGot it in the money earlier, you do for more a month out?
Yes this what I do, I did a Leap for wayyyy out the money on Driv I’m up like $80 already. Im just curious on the benefit from ITM plays
Got it in the money earlier, you do for more a month out?
Yes this what I do, I did a Leap for wayyyy out the money on Driv I’m up like $80 already. Im just curious on the benefit from ITM plays
I'm hoping that you can clarify something for me about selling options. The one thing that I don't fully understand is selling naked calls. For those that do this, are you scared of getting assigned at a higher price? I hear so many people talk about it doesn't make sense to exercise but they are selling call options without owning the underlying stock. The loss potential is unlimited so I am trying to understand why folks are so comfortable doing this. I've done some SNDL option plays to learn because it was cheap and ended up letting them expire so my loss was only $20. I jumped into a VIAC play today 50c with a June 18th expiration. I am confident that I will make money by exercising but it seems that I will make money if I sell a naked call too but I run the risk of getting assigned. If I sell when the contract is ITM or ATM what are the chance that I will get assigned? I know that I should not be trading options without fully understanding but I treat the small plays as tuition to school.I bought a call option. I think square will be 300 dollars or over and I have untill jan 2022 to exercise it or sell. As sq moves up towards that number the value of the option also rises
Are you read on the Greeks? Know something about delta and theta?I'm hoping that you can clarify something for me about selling options. The one thing that I don't fully understand is selling naked calls. For those that do this, are you scared of getting assigned at a higher price? I hear so many people talk about it doesn't make sense to exercise but they are selling call options without owning the underlying stock. The loss potential is unlimited so I am trying to understand why folks are so comfortable doing this. I've done some SNDL option plays to learn because it was cheap and ended up letting them expire so my loss was only $20. I jumped into a VIAC play today 50c with a June 18th expiration. I am confident that I will make money by exercising but it seems that I will make money if I sell a naked call too but I run the risk of getting assigned. If I sell when the contract is ITM or ATM what are the chance that I will get assigned? I know that I should not be trading options without fully understanding but I treat the small plays as tuition to school.
Close the trade by buying the option.I'm hoping that you can clarify something for me about selling options. The one thing that I don't fully understand is selling naked calls. For those that do this, are you scared of getting assigned at a higher price? I hear so many people talk about it doesn't make sense to exercise but they are selling call options without owning the underlying stock. The loss potential is unlimited so I am trying to understand why folks are so comfortable doing this. I've done some SNDL option plays to learn because it was cheap and ended up letting them expire so my loss was only $20. I jumped into a VIAC play today 50c with a June 18th expiration. I am confident that I will make money by exercising but it seems that I will make money if I sell a naked call too but I run the risk of getting assigned. If I sell when the contract is ITM or ATM what are the chance that I will get assigned? I know that I should not be trading options without fully understanding but I treat the small plays as tuition to school.