Random Option plays on Market Update stock plays

[LoriPrecisely]

If you are intending to be fully cash-secured, make sure you have enough $$$ to cover (4 lots if I read correctly).

You are doing it the best way, practising on smaller amounts to get a feel for it.

The other stuff will come if you want, there's no rush

AMZN will become a bit more affordable on Monday...

Yes, Schwab holds the money in a 'Cash Secured Put Assignment' account.

Thank you. I sometimes look back and think, why do I keep doing only one lot at a time. But, I guess it is just my way of playing with the 'options' to see how it all plays out.

I definitely want to learn more!! I am enjoying doing this.

[SOL]

Slow but sure is the way to go, then you move to sure and steady.
Other stocks that are interesting but not as cheap for put selling are TTD, and WOLF, KLIC is not too shabby also.

[Yodean]

United we lose, divided we rule the roost.

To go FAST, go alone. To go FAR, go together. Of course, the latter depends on the quality of the company.

[LoriPrecisely]

Slow but sure is the way to go, then you move to sure and steady.
Other stocks that are interesting but not as cheap for put selling are TTD, and WOLF, KLIC is not too shabby also.

Thank you for that. I like the look of WOLF. I am going to add funds to my account just so I can play in that sandbox!!!

Something else I am also pondering...I have 60 shares of TQQQ. I have been thinking about buying 40 shares so I can play with options. There is a LOT of option activity for both puts and calls for this stock. My only concern is the TI recommendation is to sell, and the exit price has been reduced 2 times.
This is how I am looking at it. First off, this is fun! Second, I can lower my cost basis.
My original price was 52.29 per share. If I buy 40 more at 32.00 (current market price), my overall cost will now be 44.17 per share.
Now, if I sell to open a Put for 31.00 with a 1.13 premium, those shares, if assigned to me, will be 30.00 each, reducing my overall cost per share to 37.09, for 200 shares.
Now, I can start selling covered calls.
This seems like a good move to me.
If I am missing something important, someone please correct me.

[SOL]

Slow but sure is the way to go, then you move to sure and steady.
Other stocks that are interesting but not as cheap for put selling are TTD, and WOLF, KLIC is not too shabby also.

Thank you for that. I like the look of WOLF. I am going to add funds to my account just so I can play in that sandbox!!!

Something else I am also pondering...I have 60 shares of TQQQ. I have been thinking about buying 40 shares so I can play with options. There is a LOT of option activity for both puts and calls for this stock. My only concern is the TI recommendation is to sell, and the exit price has been reduced 2 times.
This is how I am looking at it. First off, this is fun! Second, I can lower my cost basis.
My original price was 52.29 per share. If I buy 40 more at 32.00 (current market price), my overall cost will now be 44.17 per share.
Now, if I sell to open a Put for 31.00 with a 1.13 premium, those shares, if assigned to me, will be 30.00 each, reducing my overall cost per share to 37.09, for 200 shares.
Now, I can start selling covered calls.
This seems like a good move to me.
If I am missing something important, someone please correct me.

If you sell a put, on TQQQ you will have to contend with buying 100 shares and not 40 more

In regards to the lowered Targets on TQQQ. this new update will explain why. In short, we are erring on the side of caution

viewtopic.php?t=510

Other interesting stocks for puts MGNI, and UPLD, though they both can be quite volatile

[LoriPrecisely]

I was planning to buy 40 shares and sell a Put for 100 more, to lower my cost basis.
It does feel weird to invest more money into a stock I want to get out of, but if I buy more at the current lower price, I can potentially lower my price per share down to 37.09 for 200 shares, rather than 44.17 for 100 shares, rather than my current 52.00 for 60 shares. It is like dilution.
And, the Call option premiums are much more attractive for the lower strike prices.

[LoriPrecisely]

I found a pretty neat website that records historical stock splits. https://www.splithistory.com
TQQQ has had 7 splits in its history.
The first split for TQQQ took place on February 25, 2011.
TQQQ's 7th split took place on January 13, 2022.
If you had invested $10,000 in TQQQ on 06/05/2012 and held it until 06/03/2022, it would now be worth $354,084.13 for an average annual total return of 42.86%.

[Yodean]

I was planning to buy 40 shares ...

Yeh, I've been using pullbacks to add to my stock positions to "even them up" to at least the next 100, so I can SCC them on up days more effectively. Also trying to slowly sell off my legacy stocks that don't allow options trading on them.

[LoriPrecisely]

AMZN will become a bit more affordable on Monday...

I am going to jump into the market first thing in the morning to buy 20 more shares so I will have 100 shares to option trade with. I wonder how quickly the price will go up. It is currently at 121.19. I wonder what my chances of getting it for that price will be. Maybe I can do a pre-market order.

[LoriPrecisely]

I was planning to buy 40 shares ...

Yeh, I've been using pullbacks to add to my stock positions to "even them up" to at least the next 100, so I can SCC them on up days more effectively. Also trying to slowly sell off my legacy stocks that don't allow options trading on them.

I agree. That seems like the way to go now. I have noticed that some stocks are not optionable.

[LoriPrecisely]

I am considering an options play that is new to me: I think it is rolling out the position. I sold a Put for AFRM for $22 strike, $105 premium, expiry 6/17.

Today, AFRM is at 21.39.

I was thinking to buy back my Put for $200, which shorts me $95, but I can Sell a new Put for $21 strike, for $150 premium, which puts me ahead $55.

Or, I could wait until next week to see how things play out.
Am I looking at this properly?
This play was not updated in the latest Market Update.

[SOL]

I am considering an options play that is new to me: I think it is rolling out the position. I sold a Put for AFRM for $22 strike, $105 premium, expiry 6/17.

Today, AFRM is at 21.39.

I was thinking to buy back my Put for $200, which shorts me $95, but I can Sell a new Put for $21 strike, for $150 premium, which puts me ahead $55.

Or, I could wait until next week to see how things play out.
Am I looking at this properly?
This play was not updated in the latest Market Update.

Generally speaking, the buyer of the put won't ask for the shares to be put into your account if they are slightly in the money. they generally prefer trading the option as in selling it to the next chap. So if you are willing to take on a small risk, it would make sense to wait until next week as the premium will drop fast on your puts next week.

I see you are having fun with this technique. When playing with higher risk plays, don't allocate risk too much (as in money). CHPT is another interesting play, it has made a serious comeback, and I think the premiums should be good. However, I would wait for a pullback before getting in due to the runup

All stock plays are not mentioned in every update. Only pending plays, new plays or plays we are posting new instructions on. However, all the plays are covered in the portfolio update, which is generally done once a month

[LoriPrecisely]

Generally speaking, the buyer of the put won't ask for the shares to be put into your account if they are slightly in the money. they generally prefer trading the option as in selling it to the next chap. So if you are willing to take on a small risk, it would make sense to wait until next week as the premium will drop fast on your puts next week.

I see you are having fun with this technique. When playing with higher risk plays, don't allocate risk too much (as in money). CHPT is another interesting play, it has made a serious comeback, and I think the premiums should be good. However, I would wait for a pullback before getting in due to the runup

All stock plays are not mentioned in every update. Only pending plays, new plays or plays we are posting new instructions on. However, all the plays are covered in the portfolio update, which is generally done once a month

Okay, I will wait on AFRM.
I am having great fun trading options!
I will be forever grateful for you introducing me to this method of trading in the stock market. I like that I can be more proactive for my success, rather than be at the mercy of the manipulators. I also like calculating the numbers in trying to find the next, potentially, good play. It is like having a treasure map, and I am on a tropical island searching for the treasure.
I still remember the post where you casually stated, "Why not sell Puts?"
April 21, 2022, that fateful day was meant to be.
And then Eric chimed in with specifics about Asana, and I was off to the races.
I also took the time to read and re-read many posts in the forum about options.

I am still making excellent premiums on ASAN. Today, I sold to open a put for August expiration for 22.50 strike, and received $500.
I have 10 options plays in total right now. 7 Puts and 3 Calls.
I now understand how to buy to close, also.
I am just now starting to understand the Poor Man's Covered Call, and have been doing some calculating to find the best way to execute.

I hope everyone in our group will invest the time to learn about option trading.
It is time well spent. There is so much great information within this group, and you can get a lot of information on the internet, too. Don't hesitate to ask questions.

Forever Grateful!!!

[SOL]

Okay, I will wait on AFRM.
I am having great fun trading options!
I will be forever grateful for you introducing me to this method of trading in the stock market. I like that I can be more proactive for my success, rather than be at the mercy of the manipulators. I also like calculating the numbers in trying to find the next, potentially, good play. It is like having a treasure map, and I am on a tropical island searching for the treasure.
I still remember the post where you casually stated, "Why not sell Puts?"
April 21, 2022, that fateful day was meant to be.
And then Eric chimed in with specifics about Asana, and I was off to the races.
I also took the time to read and re-read many posts in the forum about options.

I am still making excellent premiums on ASAN. Today, I sold to open a put for August expiration for 22.50 strike, and received $500.
I have 10 options plays in total right now. 7 Puts and 3 Calls.
I now understand how to buy to close, also.
I am just now starting to understand the Poor Man's Covered Call, and have been doing some calculating to find the best way to execute.

I hope everyone in our group will invest the time to learn about option trading.
It is time well spent. There is so much great information within this group, and you can get a lot of information on the internet, too. Don't hesitate to ask questions.

Forever Grateful!!!

You are more than welcome. However, I think there is always something for both individuals to gain, the one providing the data and the one utilizing the data. How so? The person using the data might ask a question that you never thought of, and mulling this over could (and it often does) lead to a new discovery (new pattern, new technique) etc.
One more exciting thing I have noticed over the years is that there are no good teachers at all. Anyone claiming to be one is a dreamer. Let me expand

It takes a good student to teach another student. Only a student, albeit advanced, can spot the problems that a newbie is running into. By default, the former good student who has now conned himself into thinking he is an expert and therefore automatically qualifies to be a good teacher has already lost the game. In fact, he is a lazy student that gave up on learning and decided it was time to con others. That is why experts try to convince you to do this and that. CON VINCE, separate the words, and you get CON which is the expert, and the pawn has to Vince in order to lose

Real masters never call themselves masters or experts. If pressed, they will use the label "advanced student" for the simple reason that you will never learn everything there is to learn in any given field unless it involves studying the intricacies of an idiot's mind.

Btw you are off to an excellent start. Options, while dangerous if misused, can be extremely powerful tools in the hands of those that understand the power they wield.

[Centeron631]

LoriPrecisely wrote " I now understand how to buy to close, also."

LoriPrecisely i must admit i have not mastered that yet and not sure i understand completely ... maybe U can explain and i take it that this is in reference to the cash sell puts, and the covered calls. First i am not sure how to read the existing positions in the portfolio - ie what do i look for in gains/loss or other to determine if the buy to close is appropriate or beckoning? and also if it has something re cash put sells as to whether or not one wants to own or not own at the strike price???/ Also did u end up being assigned on the Assan 22.50 as it is the 18's this AM?

You mention u own 7 put and 3 calls - r those the writes or just those u bought on the market? thks