Random Option plays on Market Update stock plays

[SOL]

The stock you want to enter should not be a speculative company. it should be a company that is making money but has taken a beating. And this stock also needs to be trading in the extremely oversold ranges on the monthly charts.

Any More Directions?

I will start a new thread and copy and post these instructions there also.

1) look for a company that is making money or at least growing earnings at a rapid clip
2) It should be trading in the extremely oversold ranges on the monthly charts; this should be confirmed by at least two TA indicators. The deeper in the oversold territory, the better
3) Two major indices should be trading in the extremely oversold ranges also; for example, Nasdaq and Dow
4) Bearish sentiment should be trading in the high 60's and should test this zone several times. Acceptable ranges 60-63. However, readings of 65 to 70 would be better

Other bonuses but not necessary would be the following
Kansas financial stress Index (KFSI) is trading at least 1.5 Standard deviations above its normal range
Bearish to bullish ETF readings at an extreme. For example, TQQQ/SQQQ is trading in the extreme zone. Look at the image below




Why do such setups work? 90% of traders will not have the patience to wait for such a setup, but if you do, this is one of the fastest ways to accumulate wealth. One always needs to remember the above rule when it comes to investing. If it were easy, everyone would be rich. When the going gets tough, understand that the weak hands are cut and bled to feed the strong hands (PTB). It's a ruthless game, but the rules are relatively simple to follow. However, Patience and discipline are of paramount importance.

[LoriPrecisely]

Is there is any downside to selling covered call with a long expiry?
I am thinking ASAN $30 covered call with expiry Jan 2024,
so as to get a decent premium.
If the market keeps dropping, I will buy to close.

If you sold a $3-$5 OTM call every month you're going to collect $23 or so in premium by Jan 2024 compared to the $7 you'd collect according to recent bid/ask spread.

Thank you, Eric.
I have been selling Calls this week, on AMZN and AFRM, not ASAN yet.
I did them with an earlier expiration as you suggested, weeklies actually.
This is surely a sign the market will rally because I sold calls just before the July/Aug rally.

I need to generate some cash because I keep getting early assignment, 3 weeks early, on my Puts, before I have a chance to roll them out.

If I can make enough in selling covered calls to pay my margin interest, I am good for now.

Hope the market stops crashing soon, but it seems everyone is saying we are in for much more pain.

[jlhooter]

Beyond considerations of strike price, Greeks, etc., I see this as a sentiment indicator pointing to the masses being nervous (WOW pattern) - the dudes on the other side of your SCP trades want to take profits earlier (by putting shares into your account).

My guess is that they called a bottom for HIMX yesterday. So far the chart proves them right. If HIMX does bounce strongly (which I believe it might), that was excellent timing on their part!

My crystal ball says HIMX will drop another 5-10% before it goes back up but I only trust my ball as far as I can throw it especially since Harry sold it to me on the cheap (sorry Harry as I kid, or am I)

Please feel free to school me on my following analysis and tread at your own risk.
Looks like HIMX is oversold on monthly (more room to go) and weekly (bottoming; shown). On the daily it looks overbought, so I believe it will follow the channel down with some resistance at $4, but definitely looks like it will breakout from the channel on the daily. I also show the $9 exit (low end) target.

[PuppBaby]

Bought some AMZN $200 call exp Jan 2025. Imo it's just so damn cheap for what I consider almost guaranteed profit.

[MarkD]

Here's a stock under considerable accumulation. What would you buy here? Stock? Option? Sell puts?

https://imgur.com/EDppLAg

same stock with volume indicators

https://imgur.com/imLHfhL

[SOL]

Here's a stock under considerable accumulation. What would you buy here? Stock? Option? Sell puts?

https://imgur.com/EDppLAg

same stock with volume indicators

https://imgur.com/imLHfhL

Whats the symbol

[MarkD]

Does it matter?

FIVN

[MarkD]

There are other TI stocks with a similar view. Just posted one for consideration.

[PuppBaby]

Does it matter?

FIVN

I bought stock yesterday, option prices for this stock are not favorable and no volume on them. However I sold the stock back today due to significant 15% gain today.

[chippermon]

Does it matter?

FIVN

If you want an honest opinion it matters to me. Your charts may speak to you but they don't say shite to me. I need more context.

I see more pain on the way in my charts. But to be fair, that's an awfully weak leg on October 10 that will need to be addressed. So you could get a pop up but that's a lot of liquidity between 54.66 and 60.70 that could prevent that from happening in the near future. Not sure I'm looking at accumulation.
Just thoughts

[MarkD]

Fair observation. A lot of volume at the price point. I would anticipate consolidation and then a break up or down. With senti.ent so poor it should rally imo. And t hen dump again. But a big rally is possible. I see 66 as potentially a sell point near-term.

[chippermon]

Fair observation. A lot of volume at the price point. I would anticipate consolidation and then a break up or down. With senti.ent so poor it should rally imo. And t hen dump again. But a big rally is possible. I see 66 as potentially a sell point near-term.

Yeah, agreed. Maybe even 74.

[SOL]

Does it matter?

FIVN

It does, and Only for one reason. I like to look at the chart from several angles, with and without any indicators. Otherwise, I am forced to look at a picture that's static, lol

[SOL]

Only the monthly charts it is trading in the insanely oversold ranges, so unless the business model cracks, it should be trading at or close to 150 to 190 15-20 months from today with the potential to surge to new highs. However for most investors that is a lifetime away and that is why most spend a life time trying to make it.




However back to the topic at hand. On the weekly charts it is trading in the extremely oversold ranges and a test of the gap is highly likely (75 to 81 ranges). It could trade higher but the markets are still indicating that another downturn is likely unless neutral sentiment surges past 50 or bearish sentiment hits the 60 plus mark. In a downturn the good, the bad and the ugly tend to go down, the good plays generally lose less.

[nicolas]

Nobody's talking about cannabis stocks here.

Seems like nobody's talking about cannabis stocks, period:



Picked up some juicy premiums selling puts today:
- filled at 0.26 for a $2.5 Put on CGC 42 days out
- filled at 0.25 for a $3 Put on TLRY, same expiration

I'll let MJ and SNDL come to me.