What did you trade today and why?

[Mr. Tightwad]

I am an investor not a trader. For years, I've heard it best to avoid IPOs. So why would I change now? Somehow I would feel like a squirrel rummaging for some peanuts in a den of wolves. I know it likely would not end well for me. Like you said, fun to watch. I do have 1 position open in my taxable account but I am not spending my money on this.

I'm with this guy. I'm not smart enough to know how to navigate this successfully.

I'm satisfied with my regular returns.

 

[finnski1]

Everytime it hits a new high I think, ok that is it. Then it goes up another $300.

It's only up 7% more today. A measly $120!

 

[NW-Bound]

I think your transparency about your put selling results is valuable to the group. Although it sounds like you've had long term success with your strategy, your recent experiences contrast starkly against the crowd insisting put selling is "easy money."
Regards, Dick

I forgot to add something. If one sets the strike price really low, it's low risk but the premium of the put is not much. Still, it's easy to get 2x the measly CD or bond yield, but you will trail the stock market most of the time.

What's nice about option trading is that one sets the risk/reward trade-off that he likes. I do covered calls trying to get a bit more out of my stocks, and cash-secured puts to get a bit more out of my cash. I am not trying to get rich quick with options. If I can get 1% a week month with options, it can add up to nice, nice, extra cash. Did I say I love cash?

Recently, I have been getting more than 1%/month with option trading. Could be all luck. One cannot turn overconfident and complacent.

 

[Cassius King]

It's possible that both Fido and Schwab got the same amount of shares to divvy up amongst accounts, but more customers at Schwab and therefore less allocated across.

 

[NW-Bound]

OK, so I did not have to buy MU at 860 and 920 today because it is trading at 1000 now.

How about I buy it next Thu 6/18 at an even lower price of 830, and they pay me 8.40 for it? Deal! It means I have to buy the stock if it crashes more than 17% in next 4 trading days.

By the way, the market closes next Friday 6/19 because it's Juneteeth Day, hence the early expiry on 6/18.

 

[tutan]

..
What's nice about option trading is that one sets the risk/reward trade-off that he likes.

Yes I agree wholeheartedly. And it is different from buying a stock outright and hoping its price will rise. There are many variations of risk/reward to choose on a single stock or ETF.

 

[finnski1]

OK, so I did not have to buy MU at 860 and 920 today because it is trading at 1000 now.

How about I buy it next Thu 6/18 at an even lower price of 830, and they pay me 8.40 for it? Deal! It means I have to buy the stock if it crashes more than 17% in next 4 trading days.

By the way, the market closes next Friday 6/19 because it's Juneteeth Day, hence the early expiry on 6/18.

So, you sold the 830 put for expiry in 4 days and it has to drop significantly to get it put to you. I like it.

 

[NW-Bound]

So, you sold the 830 put for expiry in 4 days and it has to drop significantly to get it put to you. I like it.

If it crashes way beyond 17% in 4 days such as 25%, I lost big. Else, I get my 1%/week return.

Yes, there's always risk. There's risk in anything, cash, bond, gold... One has to choose his own poison and drink it.

PS. If it crashes that hard, my consolation comes when I think of the people owning the stock. And this is a big component of the S&P. Lots of pain to spread around, heh heh heh...

 

[finnski1]

If it crashes way beyond 17% in 4 days such as 25%, I lost big. Else, I get my 1%/week return.

Yes, there's always risk. There's risk in anything, cash, bond, gold... One has to choose his own poison and drink it.

Yes and it has had single days that move that much recently.

 

[NW-Bound]

good morning - i put in for 200 shares / there are now 15 showing in my schwab IRA a/c. at $135, i'm all in at 2025.00.
Google tells me that 15 original shares of Tesla is worth $88,000 today.

Well, when Tesla went IPO, the entire company was valued at $1.7 billion.

SpaceX starts out at $1.7 trillion valuation, 1000x times more. Can it grow 100x, to be even more than the entire stock market now at 75 trillion?

 

[Fishmasterdan]

While everyone was focused on SPCX I snuck in a pulled off (2) 0DTE SPX put credit spreads HAHA. One was on for 4 minutes and I walked away with 115$ enough for a nice dinner. Well almost. One was on from 8.02 to 8.23 and the second was 9.44 to 9.48. Love messing around with these. SPX 10d 50 wide 0DTE.

 

[Car-Guy]

Bought a little Space X (just because it was the first day of the IPO) and bought some more MSFT trying to DCA my way to a better average price.

 

[NW-Bound]

Yes and it has had single days that move that much recently.

Just last week, in 2 days it dropped from ATH of 1080 to 864. That's 20%.

It bounced back and I escaped the 920 and 860 puts expiring today. Lemme see if I can escape once more.

 

[Fishmasterdan]

I ended up with 100 SPCX shares 10 at 135 and 90 at 150.

 

[NW-Bound]

Yes and it has had single days that move that much recently.

I just looked at the chart again for the last 5 days. MU barely touched the 860 strike price, but spent quite a bit of time below 920.

Now, if I got assigned early like what happened with my MSFT put, I would make more money when MU bounced up like it did. Good can turn to bad, then turns to good... That's why I like weekly options, because prices usually do not change that much in a week, and the risk is somewhat more manageable. Or so I think.

 

[finnski1]

Now, if I got assigned early like what happened with my MSFT put, I would make more money when MU bounced up like it did. Good can turn to bad, then turns to good... That's why I like weekly options, because prices usually do not change that much in a week, and the risk is somewhat more manageable. Or so I think.

I stick to weeklies as well and sometimes even 0 DTE's.

 

[YellowSubmarine]

- FNCL sold half of position in Roth as sell limit met.

 

[NW-Bound]

I stick to weeklies as well and sometimes even 0 DTE's.

0 DTEs are not for me. My traditional brokerages do not even offer it. Not that I know of.

 

[neal1313]

SPACEX is just an AI company with some cool rockets...

 

[finnski1]

0 DTEs are not for me. My traditional brokerages do not even offer it. Not that I know of.

Fidelity is a no, but Schwaab allows it, I have a few accounts with each.

 

[RetiredHappy]

SPACEX is just an AI company with some cool rockets...

It is a tech company but I don't see the "AI" part of it, other than any physical hardware can be considered a robotic AI.

 

[NW-Bound]

I forgot I have a Google put at 370. Trading at 358 right now. It's gonna be assigned when market closes in 10 min.

Nah, I don't want to buy more stocks. I just rolled it to put @370 next Friday, picking up $160 for credit.

Google and MSFT have not been doing well. On the Web, they talk about these guys along with FB borrowing much money for their AI hyperscalers. Their cash hoards of tens of billion are not enough.

 

[Graust]

It is a tech company but I don't see the "AI" part of it, other than any physical hardware can be considered a robotic AI.

They merged with xAI (that produced Grok) before going public.

 

[NW-Bound]

It is a tech company but I don't see the "AI" part of it, other than any physical hardware can be considered a robotic AI.

Not yet, but Musk promised to build AI data centers in space, remember?

 

[tizod]

For those looking for fixed income, some AFFT prefs finally tripped a buy for me at 15.60, adding to my stake. Not sure of the yield there but at par is 7.50%. I feel these are fairly safe for long term. While I don't trust the top level company, I can't see how they can let this insurer default. Should call/retire them but at rising rates not at all likely...so a keeper SWAN. I hope.