QS - QuantumScape

[Eric]

QS came up in anther thread and rather than completely derail that thread I thought I'd start a new one for QS.

A friend told me about QS when it was in the $40s, I thought I'd buy a few shares if it dropped back to the mid $30s... I didn't set a limit order or put and missed a couple opportunities because I wasn't watching close enough. When it had rocketed up I started selling way out of the money puts thinking I'll skim a little premium off QS since I missed the rise and I was so cash-heavy in my portfolio. My idea to "take free money" didn't quite work out like I planned (I got assigned).

I'm treating all of my QS trades/shares as one unified "QS campaign". Here's my QS campaign trade journal:

Columns are: Transaction Date, Buy or Sell contract To Open or Close my option/obligation, contract expiration date, strike price, quantity of contracts, transaction credit/debit, running total credit/debit.

2020-12-18 STO 2021-01-15 $45 Put (1) +$ 469.29 +$ 469.29
2020-12-22 BTC 2021-01-15 $45 Put (1) -$ 150.69 +$ 318.60
2020-12-22 STO 2021-01-15 $70 Put (2) +$1538.59 +$ 1857.19
2020-12-22 BTO 2021-01-15 $50 Put (2) -$ 501.37 +$ 1355.82 <--- Downside protection...($500 wasted.)
2021-01-19 Assigned 200 Shares @ $70 -$14000.00 -$12644.18
2021-01-20 STO 2021-02-19 $65 Call (2) +$ 598.60 -$12045.58
2021-02-23 STO 2021-02-26 $65 Call (1) +$ 149.30 -$11896.28
2021-02-26 STO 2021-03-05 $65 Call (1) +$ 209.30 -$11686.98
2021-02-26 BTC 2021-03-05 $65 Call (1) -$ 105.69 -$11792.68 <--- Locked in 51% of the previous trade
2021-03-01 STO 2021-03-19 $65 Call (1) +$ 399.35 -$11393.33
2021-03-04 BTC 2021-03-19 $65 Call (1) -$ 45.65 -$11438.98 <--- Locked in 89% of the previous trade
2021-03-08 STO 2021-03-19 $60 Call (1) +$ 89.30 -$11349.68
2021-03-09 STO 2021-03-19 $65 Call (1) +$ 59.30 -$11290.38
2021-03-22 STO 2021-03-26 $68 Call (1) +$ 154.30 -$11136.08
2021-03-23 BTC 2021-03-26 $68 Call (1) -$ 17.04 -$11153.12 <--- Locked in 89% of the previous trade
2021-04-01 STO 2021-04-16 $60 Call (1) +$ 134.31 -$11018.80
2021-06-09 STO 2021-06-18 $31 Call (2) +$ 418.62 -$10600.18
2021-06-17 BTC 2021-06-18 $31 Call (2) -$ 18.07 -$10618.25 <--- Locked in 95% of the previous trade
2021-06-17 STO 2021-06-18 $28.5 Call (2) +$ 72.62 -$10545.63
2021-06-23 STO 2021-07-02 $29.5 Call (2) +$ 206.62 -$10339.01
2021-07-07 Sell 200 Shares @ $24.61 +$ 4922.57 -$5416.44
2021-07-07 STO 2021-07-02 $24 Put (2) +$ 68.62 -$5347.82
2021-07-13 STO 2021-07-16 $22 Put (2) +$ 38.62 -$53409.2

[Triplethought]

QS came up in anther thread and rather than completely derail that thread I thought I'd start a new one for QS.

A friend told me about QS when it was in the $40s, I thought I'd buy a few shares if it dropped back to the mid $30s... I didn't set a limit order or put and missed a couple opportunities because I wasn't watching close enough. When it had rocketed up I started selling way out of the money puts thinking I'll skim a little premium off QS since I missed the rise and I was so cash-heavy in my portfolio. My idea to "take free money" didn't quite work out like I planned (I got assigned).

I'm treating all of my QS trades/shares as one unified "QS campaign". Here's my QS campaign trade journal:

Columns are: Transaction Date, Buy or Sell contract to Open or Close my option/obligation, contract expiration date, strike price, quantity of contracts, transaction credit/debit, running total credit/debit.

2020-12-18 STO 2021-01-15 $45 Put (1) +$ 469.29 +$ 469.29
2020-12-22 BTC 2021-01-15 $45 Put (1) -$ 150.69 +$ 318.60
2020-12-22 STO 2021-01-15 $70 Put (2) +$1538.59 +$ 1857.19
2020-12-22 BTO 2021-01-15 $50 Put (2) -$ 501.37 +$ 1355.82 <--- Downside protection...($500 wasted.)
2021-01-19 Assigned 200 Shares @ $70 -$14000.00 -$12644.18
2021-01-20 STO 2021-02-19 $65 Call (2) +$ 598.60 -$12045.58
2021-02-23 STO 2021-02-26 $65 Call (1) +$ 149.30 -$11896.28
2021-02-26 STO 2021-03-05 $65 Call (1) +$ 209.30 -$11686.98
2021-02-26 BTC 2021-03-05 $65 Call (1) -$ 105.69 -$11792.68 <--- Locked in 51% of the gain in a couple hours...
2021-03-01 STO 2021-03-19 $65 Call (1) +$ 399.35 -$11393.33

Doesn't this imply you are negative $11,393.33 at the end?

[Eric]

I'm currently -11,393 in cash but I do have the 200 shares that were assigned to me. My biggest risk now is that the stock drops too far too fast and nobody is willing to buy a call that would get me out of the stock even-money or ahead of where I started if the call was exercised.

Maybe this will help you wrap your head around covered calls:
Just look at the most recent covered call I sold...someone said "I'll bet you $400 that QS goes over $65 in the next 3 weeks." and I replied "I'll take your $400, and if QS goes to a $billion I'll still let you buy my shares from me for $65!"

My cost is only 11393/200=$56.965 so if I sell to you at $65 I'm still making 14.1% and I only owned the stock a couple months. If QS doesn't go above $65 I still get to keep my shares and the $400.

[Triplethought]

I'm currently -11,393 in cash but I do have the 200 shares that were assigned to me. My biggest risk now is that the stock drops too far too fast and nobody is willing to buy a call that would get me out of the stock even-money or ahead of where I started if the call was exercised.

Maybe this will help you wrap your head around covered calls:
Just look at the most recent covered call I sold...someone said "I'll bet you $400 that QS goes over $65 in the next 3 weeks." and I replied "I'll take your $400, and if QS goes to a $billion I'll still let you buy my shares from me for $65!"

My cost is only 11393/200=$56.965 so if I sell to you at $65 I'm still making 14.1% and I only owned the stock a couple months. If QS doesn't go above $65 I still get to keep my shares and the $400.

I see. My existing transaction: For QS I sold a single Put 3/19/2021 strike $60 and collected $717. Currently the market price on the put is negative $135 but if I were assigned the stock today I'd be $205 positive.

I was just going to hang on see what happens but if you have any insight I'd be willing to do a "learning transaction"

Do you think all this volatility is from the shareholder law suit? Because they seem to be on track with their battery technology.

[Eric]

I see. My existing transaction: For QS I sold a single Put 3/19/2021 strike $60 and collected $717. Currently the market price on the put is negative $135 but if I were assigned the stock today I'd be $205 positive.

I was just going to hang on see what happens but if you have any insight I'd be willing to do a "learning transaction"

Do you think all this volatility is from the shareholder law suit? Because they seem to be on track with their battery technology.

We'll see what happens. If you get shares put to you, I'll try to help you understand your options (so punny).

I don't pay any attention to lawsuit press-releases, too much noise... Scroll through Yahoo Finance and almost every stock has a lawsuit press release in the related info.

[Triplethought]

I see. My existing transaction: For QS I sold a single Put 3/19/2021 strike $60 and collected $717. Currently the market price on the put is negative $135 but if I were assigned the stock today I'd be $205 positive.

I was just going to hang on see what happens but if you have any insight I'd be willing to do a "learning transaction"

Do you think all this volatility is from the shareholder law suit? Because they seem to be on track with their battery technology.

We'll see what happens. If you get shares put to you, I'll try to help you understand your options (so punny).

I don't pay any attention to lawsuit press-releases, too much noise... Scroll through Yahoo Finance and almost every stock has a lawsuit press release in the related info.

Thanks!