Fills

[LoriPrecisely]

5/10/22 Bought 1/6 lot BWXT at $47

This was before SOL issued the suspension of buys this morning.
For the record I left buy orders only on RGLD, PUI, SGOl, SAND and cancelled everything else until SOL issues his update.

I Bought APPL on my own. Sure looks like a good buy but it's hard to know where the fall will stop

Sol issued a suspension of buying? Where? I didn't see that.

[LoriPrecisely]

5/10/22 Bought 1/6 lot BWXT at $47

This was before SOL issued the suspension of buys this morning.
For the record I left buy orders only on RGLD, PUI, SGOl, SAND and cancelled everything else until SOL issues his update.

I Bought APPL on my own. Sure looks like a good buy but it's hard to know where the fall will stop

Sol issued a suspension of buying? Where? I didn't see that.

I see it now in my email. Thanks for the heads up.

[Centeron631]

Interesting that the narrative has been to move away from petroleum for quite some time now, 'green new deal' and all, but the petroleum stocks have been steadily rising all year.

I do not comprehend why TI does not take sectors more into consideration regarding its Stock Buying Opps......Certainly have missed some good opps in Agi and Energy...(except some minor purchases).

[Yodean]

Would this strategy be best to use now, while volatility is high? I would think this strategy is best suited for stocks that are moving slowly in either direction?

I'm an OptionsWhiteBelt, and I've only been "Wheeling" using SCC and SCSP on a regular basis for the past few weeks, so keep this in mind when reading the following:

I've been making roughly anywhere from 30 - 50+ of these types of trades on a daily basis (SCC'ing, SCSP, rolling them over, etc., not all get filled), since I have a ton of stocks that I've accumulated in the last 18+ years.

I think there is a bit of a sweet spot in terms of volatility - ExcelNinja mentioned VIX 20 - 26, which is reasonable, but it really comes down to the individual stock's price action and characteristics. You want a certain amount of volatility because the premiums are better. But too much volatility may make it harder to estimate the optimum strike price. Etc.

Also, as mentioned before, you may use the SCSP to accumulate a stock position, or just for premium income. How you set up the trade will be different, depending on your goals. Likewise with SCC.

If I were starting out with limited funds and not a lot of already-held stock positions, I would probably start with just one good, blue chip, stock, and practice both SCC'ing it and SCSP'ing it to death. INTC's a good candidate, for a variety of reasons mentioned previously. Once you're comfortable, do it with two stocks. Etc.

The previously posted videos and the various posts from BossJedi and other subs were quite helpful, as well. BossJedi's stuff on SCC'ing and SCSP'ing (the March 8th post is really good) are a little more advanced, and took me a little while, and a few re-readings, to understand it fully. Worth the time.

Things may change quickly, but I'm easily making enough premium income to cover my margin interest costs, my living expenses, my friggin' Canadian Neo-marxist taxes, and my personal inflation rate (based on the DSI - Dim Sum Index), with a bit left over, without having to sell any of my stocks or using any of the stocks' dividends.

For others staring out, applying the SCC/SCSP/Wheel somewhat intelligently could easily become a part-time job that pays better than one's "real" job.

[sc2021]

5/10/22 Bought 1/6 lot BWXT at $47

This was before SOL issued the suspension of buys this morning.
For the record I left buy orders only on RGLD, PUI, SGOl, SAND and cancelled everything else until SOL issues his update.

I Bought APPL on my own. Sure looks like a good buy but it's hard to know where the fall will stop

From the MU update email this morning:
“All high risk pending plays are now on hold (Stock plays in Brick red and bright red text)”

So not all plays are on hold, only the high risk ones.

[PuppBaby]

@PuppBaby "Ahh this clears it up nicely thanks for the info everyone! AFRM probably not the best stock to run my first SCSP haha, glad I sold only 1 as it continues to be beaten down but it has proven to be a valuable learning lesson."

You chose a perfectly fine stock to run your first Option trade. You wanted to own it and you got it at a good price. The market is just crazy right now. We have to hold on until we hit bottom. Makes me think of THIS:
https://www.youtube.com/watch?v=l9m4cW2yxy0

AFRM actually killed it after hours today and shot up 40%, the part I don't understand now is that I wanted to own it at $16.5 however now barring all things stay stable into close tom and it continues to trade over $22 my options won't get assigned. Therefore I don't own any shares... so yeh I made 10% but I'm going to miss out on a 30%+ immediate rally up and I wouldn't be surprised it shoots up to $30+ tom

Not sure who mentioned this here, but someone pointed out using that premium to buy an option call which I did so thanks for that team! In the end it's all profits

Edit: Funny Video lol I can relate to the person with the barrel on his head.

[Yodean]

the part I don't understand now is that I wanted to own it at $16.5 however now barring all things stay stable into close tom and it continues to trade over $22 my options won't get assigned. Therefore I don't own any shares... so yeh I made 10% but I'm going to miss out on a 30%+ immediate rally up and I wouldn't be surprised it shoots up to $30+ tom

When the stock traded below your strike - I am assuming $16.5 in this case - the guy at the other side of your trade doesn't have to exercise his "option" to "put" the shares into your account.

If you really like the stock, besides buying a call option on it, you could simply sell another put with a slightly higher strike - in fact, you could keep your cost basis at $16.5 by incorporating the premium you received previously from selling the put into the new strike price for selling the second put. Theoretically you may keep doing this until you get assigned.

[PuppBaby]

the part I don't understand now is that I wanted to own it at $16.5 however now barring all things stay stable into close tom and it continues to trade over $22 my options won't get assigned. Therefore I don't own any shares... so yeh I made 10% but I'm going to miss out on a 30%+ immediate rally up and I wouldn't be surprised it shoots up to $30+ tom

When the stock traded below your strike - I am assuming $16.5 in this case - the guy at the other side of your trade doesn't have to exercise his "option" to "put" the shares into your account.

If you really like the stock, besides buying a call option on it, you could simply sell another put with a slightly higher strike - in fact, you could keep your cost basis at $16.5 by incorporating the premium you received previously from selling the put into the new strike price for selling the second put. Theoretically you may keep doing this until you get assigned.

Haha thanks my post never updated for some reason by the time you responded I bought a call pre emptively. So far I'm making profits both ways, I just hope it holds now lol

I think what I wanted to know and my real question, is it possible to get assigned at end of day tomorrow? Like could have someone decided to exercise his option yesterday or early this morning and I recieve the assign stock tomorrow?

[LoriPrecisely]

AFRM actually killed it after hours today and shot up 40%, the part I don't understand now is that I wanted to own it at $16.5 however now barring all things stay stable into close tom and it continues to trade over $22 my options won't get assigned. Therefore I don't own any shares... so yeh I made 10% but I'm going to miss out on a 30%+ immediate rally up and I wouldn't be surprised it shoots up to $30+ tom

Not sure who mentioned this here, but someone pointed out using that premium to buy an option call which I did so thanks for that team! In the end it's all profits

If your strike price was $18, that is what you would be assigned to buy the shares at, at expiry. The thing I have been thinking about today is, like you said, if a stock rallies up... do we sell? Or, hold?

[LoriPrecisely]

I have a couple of questions on this topic, also. Is it possible PuppBaby may not get those shares assigned even though the price did drop below her strike price?
If her Call gets assigned and she does not own the shares, then what?

[PuppBaby]

I have a couple of questions on this topic, also. Is it possible PuppBaby may not get those shares assigned even though the price did drop below her strike price?
If her Call gets assigned and she does not own the shares, then what?

Yes that's exactly what I'm wondering, in this case I hope I do get assigned. It would be a win/win for whoever exercised my stock while it was below strike price and I would benefit thereafter as it's above strike price now. It almost doesn't make sense but we both win in this scenario.. also I'm holding all my stocks for the rally unless Sol says otherwise

In your 2nd question, I bought the calls so no I cannot be assigned. You can only be assigned if you sell a call or put.

[LoriPrecisely]

I have a couple of questions on this topic, also. Is it possible PuppBaby may not get those shares assigned even though the price did drop below her strike price?
If her Call gets assigned and she does not own the shares, then what?

Yes that's exactly what I'm wondering, in this case I hope I do get assigned. It would be a win/win for whoever exercised my stock while it was below strike price and I would benefit thereafter as it's above strike price now. It almost doesn't make sense but we both win in this scenario.. also I'm holding all my stocks for the rally unless Sol says otherwise

In your 2nd question, I bought the calls so no I cannot be assigned. You can only be assigned if you sell a call or put.

Okay, so that gives you the option, but not the obligation, to buy a stock at your strike price if the stock rises above that price by expiry?

[PuppBaby]

I have a couple of questions on this topic, also. Is it possible PuppBaby may not get those shares assigned even though the price did drop below her strike price?
If her Call gets assigned and she does not own the shares, then what?

Yes that's exactly what I'm wondering, in this case I hope I do get assigned. It would be a win/win for whoever exercised my stock while it was below strike price and I would benefit thereafter as it's above strike price now. It almost doesn't make sense but we both win in this scenario.. also I'm holding all my stocks for the rally unless Sol says otherwise

In your 2nd question, I bought the calls so no I cannot be assigned. You can only be assigned if you sell a call or put.

Okay, so that gives you the option, but not the obligation, to buy a stock at your strike price if the stock rises above that price by expiry?

Yes, so I Sold a Put to open positions in the stock if it dropped below $18. I also bought a Call if it goes above $40 by next January. This sort of protects me in the case I don't get assigned from my put sell. I'm going to find out what happens tomorrow, I really dont know how selling options works at all.

[SOL]

Ok selling a put works like this. ABC is trading at 18.00. You want to get in at 15 or better. You sell the June 15 put for say 1.00. The stock drops to 14.50 but there is only 7 days of time premium left. Odds are above 90% the shares will be put to your account. However, if you don't want the shares to be put to your account. You can buy the put back. So let's walk through the whole transaction

First You sell to open June 15 put. Your account is credited with 100
Order looks like this Sell to open June 15 put

Now the stock is trading at 14.50 but because the time premium left is not much the put might be worth 1.80 to 2.00. So you enter the order Buy to close June 15 put 2.00

So now you lost 100 as you paid 100 more to buy it back.

Now you can sell a July or August 14.00 put for 1.50. When this is done you have a net credit of 50 bucks, and the option of getting into the stock at an even lower price.

It's best to test this strategy on low risk stocks until you get used it. Selling puts on a higher risk stocks is good when the market is trending upwards.

[harryg]

I see some confusion in this thread and elsewhere. Options are great when used wisely, but it is worth understanding them fully before over committing.

For example, it has been written that buying puts is potentially very dangerous. I personally I wouldn't assess buying options as 'dangerous', since the downside risk is absolutely limited.

Dangerous is selling uncovered calls (sometimes referred to as 'naked'). Upside limited, downside not exactly unlimited but could get nasty.

If I were a beginner, I would start by buying a call or a put. It's like making a bet - if it comes off you have a win and if it doesn't you lose some or all of your money. You can see how the price of the option varies from day to day with the underlying. You can see how the time premium erodes, and when. You can get interested in 'The Greeks', all without having to worry about any further downside risk even in the event of a bizarre market catastrophe.

Selling to open (writing) puts if you want to buy the shares and have the money set aside for that is also relatively safe. The outlier risk is some kind of major unexpected event like Enron.


Reminder
Buying a call: You have the right to buy a security at a predetermined price.
Selling a call: You have an obligation to deliver the security at a predetermined price to the option buyer if they exercise the option.
Buying a put: You have the right to sell a security at a predetermined price.
Selling a put: You have an obligation to buy the security at a predetermined price from the option buyer if they exercise the option.