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Old 05-04-2018, 04:05 PM   #21
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Bought $10,000 USD worth of PEN today (shorting the Dollar) to hopefully offset the cost of our upcoming NYC vacation. Purchase price was 3.22 PEN to $1.00.
Still holding this one although I am down 8/10ths of a percent.
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Old 05-05-2018, 11:52 AM   #22
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I am curious how you options sellers handle the last few days of the contract.

Do you buy back the contract in last few days for like a dime just to go flat or do you ride it out?

I get real nervous when I have a multiple month option I PURCHASED bouncing around at the end and tend to go flat about a month before expiration unless it is way way out of the money. I suppose the average daily volume of your underlying stock is a factor as well.

It seems the options tutorials and lessons I've had suggest getting flat early but always like to hear how others do things.
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Old 05-05-2018, 11:10 PM   #23
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Shorting Bitcoin at $9800.00 tonight.
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Old 05-06-2018, 02:04 PM   #24
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Shorting Bitcoin at $9800.00 tonight.
Covered at $9490.00, for a gain of 3%. Thinking is the Japanese markets will push for $10,000.00 when they open later.
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Old 05-08-2018, 02:05 AM   #25
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Do you buy back the contract in last few days for like a dime just to go flat or do you ride it out?
I let it ride out.

Mostly because it is the cheapest way for me given how my broker handles it.
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Old 05-08-2018, 11:48 AM   #26
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Would have sold today at 9695.00 or about a 9% profit over two weeks.
Well done
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Old 05-16-2018, 12:40 PM   #27
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A thread for posting hypothetical trades we'd like to make for any reason, perhaps just a gut feeling, & hopefully a detailed explanation why ?

*Posted April 18th*
My hypothetical trade for today, will be selling covered calls on 200 shares of First Solar (FSLR)

Bank of America upgraded FSLR today, & at the time of my ‘trade’ (2.41 PM EDT), the shares were trading at $77.97 +5.29 (+7.28%) *See Screencaps*
With a cost basis of $34.63, I'm very pleased, but like most people, when the lure of easy money presents itself, I’m tempted to take advantage.

I hypothetically sold 2 May 18 covered calls, with a strike price of $90.00 At the time, the bid was $1.00 & the ask $1.19 I'll assume I put out an offer to sell 2 contracts at $1.07 & it executed. 200 shares x 1.07 = $214.00 less $10 commission = a net of $204.00



I would’ve been on this covered call sale like a rash today, if I didn't have to keep a very close eye on my income relating to healthcare.
I'm going to go ahead & 'call' this one
As I type, it's trading @ $73.00 $17 under the strike. The odds of it going up $17 by Friday are pretty slim. Here's a chart for the call starting on the the day I sold it.



Wish they were all this easy.
+204.00

FYI: In the original post, I stated......
"I would’ve been on this covered call sale like a rash today, if I didn't have to keep a very close eye on my income relating to healthcare"

The $204.00 I received in premiums wasn't my concern. My concern would have been the shares going over the $90 strike price & getting called away.

This would have resulted in a STCG of approximately $12,000
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Old 05-16-2018, 03:16 PM   #28
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I'm going to go ahead & 'call' this one
As I type, it's trading @ $73.00 $17 under the strike. The odds of it going up $17 by Friday are pretty slim. Here's a chart for the call starting on the the day I sold it.



Wish they were all this easy.
+204.00

FYI: In the original post, I stated......
"I would’ve been on this covered call sale like a rash today, if I didn't have to keep a very close eye on my income relating to healthcare"

The $204.00 I received in premiums wasn't my concern. My concern would have been the shares going over the $90 strike price & getting called away.

This would have resulted in a STCG of approximately $12,000
Why is this such a successful trade? You took in $204 in options premium and lost $1000 on the underlying 200 shares of FSLR.

Seems to me you would have been better off if the stock went above 90. You could buy back the short calls or buy and additional 200 shares of stock and deliver it if the calls were exercised, generating a short-term capital loss, all while enjoying an additional unrealized LTCG of at least $2400.
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Old 05-16-2018, 04:36 PM   #29
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Why is this such a successful trade? You took in $204 in options premium and lost $1000 on the underlying 200 shares of FSLR.
1: Because I absolutely nailed predicting that FSLR (at least in the short term) was overbought.
2: I’ve already been ‘successful’ with this stock.

3: Since I hope to hold it for a long time, I sell fairly far 'out of the money calls' just like I did here.
4: The $1000 I ‘lost’ on the underlying shares is a moot point. I’m still up 110.00% on my 200 shares in under 15 months. All stocks fluctuate over time.
5: And lastly, because *hypothetically at least* I have $204.00 more than I'd have had If I had done nothing.

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Seems to me you would have been better off if the stock went above 90. You could buy back the short calls or buy and additional 200 shares of stock and deliver it if the calls were exercised, generating a short-term capital loss, all while enjoying an additional unrealized LTCG of at least $2400.
What you suggested if the stock had gone over 90 makes perfect sense.
But it didn't.
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Old 05-17-2018, 02:31 AM   #30
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And lastly, because *hypothetically at least* I have $204.00 more than I'd have had If I had done nothing.
Doing nothing wasn't your only choice.

What was the delta of the 90-strike call at the time you sold it?

About 20? If so, selling the calls effectively reduced your stock position at that instant by 40 shares. An alternative would have been to sell 40 shares of FSLR. Wouldn't that be a better benchmark for your "hypothetical trade" than doing nothing?
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Old 05-18-2018, 09:13 AM   #31
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Going short Bitcoin today at $8,082.08 with a price target of $6500.00.
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Old 05-18-2018, 11:25 AM   #32
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*Posted April 20th*
My 'hypothetical' trade is to sell two May 18-2018 65$ covered calls on Pinnacle Foods (PF) @ 1.00$ (hold 240 shares)
Total = 200$ less 10$ commission = net $190.00

Reason: Shares are up almost 10.00% today because……………..
On Thursday, activist investor Jana Partners revealed that it has big plans for Pinnacle Foods Inc. ( PF) after disclosing a 9.1% stake in the packaged foods manufacturer. In a regulatory filing, the New York-based hedge fund said it is keen to explore a range of options with Pinnacle, including a potential sale. “We are aware that Jana Partners has made a 13D filing regarding its investment in Pinnacle Foods,” a Pinnacle spokesperson said in an email to Reuters.

Option(s) will expire worthless today.


+190.00

Summary & Total Gain/Loss

FSLR (2) May 2018 90.000 CC +204$--- +204.00
PF (2) May 2018 65.000 CC +190$--- +394.00
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Old 05-31-2018, 02:50 PM   #33
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This is actually a 'real' trade.
Bought 10 shares CCK in my IRA (Only had about 600$ cash available)
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Old 06-01-2018, 10:23 AM   #34
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My hypothetical trade is to buy June 2019 Merck calls, pretty much any strike below $65, depending on how large of a hypothetical yacht you want to buy. Name the yacht Keytruda
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Old 06-02-2018, 11:01 AM   #35
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Going short Bitcoin today at $8,082.08 with a price target of $6500.00.
Covering my short today at $7630.00 (+5%). I still like the trade, but am losing patience and really do not have time to check up on it, when I can be trading real time positions.
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Old 06-03-2018, 07:52 PM   #36
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My hypothetical trade is to buy June 2019 Merck calls, pretty much any strike below $65, depending on how large of a hypothetical yacht you want to buy. Name the yacht Keytruda
And just as expected, ASCO data rolling in showing great success in quite a few indications using Keytruda.

I would not be greatly surprised if the Merck calls I not so hypothetically purchased on Thursday are up 30% next week.

Might have to make a not so hypothetical additional estimated tax payment
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Old 06-04-2018, 12:11 AM   #37
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You made me look up Merk and Keytruda to see what it's all about.

Learned that Keytruda was considered successful when it extended the life of lung cancer patients to 16.7 months when used in conjunction with the usual chemo treatment, compared to 12.1 months with chemo alone. Patients with a certain biomarker would get life extended to 20 months.

I am sure it is very hard to come up with a drug like this, but it underlines how cancer is extremely difficult to treat and to extend the patient life for a few more months. And the drug costs $150K/year.
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Old 06-04-2018, 06:55 AM   #38
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I guess the ones with the biomarker are more exciting, since as a front line treatment, it would extend median overall survival by 8 months more than chemo. The other good part is the side effects are much much less than chemo so you get a better quality of life. I think also some of the people in the trial were VERY sick already so that may play into the overall survival some.

Is it perfect or a cure? No. It is a stepping stone though and making forward progress. Very expensive to investigate these drugs in the trials and when a major one fails...look out below. See Celgene as example...fell from $140 to current $79, mostly because of a couple of drug failures.
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Old 06-04-2018, 01:50 PM   #39
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I only own 60 shares, but since this is hypothetical, I'll sell covered calls on 200 shares (2 contracts) of Five Below (Five) today.
Reason: Shares are up about 7.00% today, for no apparent reason. Must be the retail sector.

The option: July 20th 2018 85$ Strike


The bid is $1.20 & the ask is $1.40
I'll assume I sold the calls for $1.25
Total Premiums Received: $250.00 less 10$ commission = $240 net
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Old 06-04-2018, 01:54 PM   #40
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Covering my short today at $7630.00 (+5%). I still like the trade, but am losing patience and really do not have time to check up on it, when I can be trading real time positions.
Nothing wrong with 5% in about 2 weeks!
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