What did you trade today and why?

[dobig]

Did a little house cleaning in taxable. Sold UTG, DIVO, IDVO and a small holding of PDI. Bought CGGO, DLN and smaller amounts of QPIQ and SPYI. Dividends stayed the same but more importantly made portfolio more tax efficient for bridge years until 59 1/2 while also getting more of a growth tilt.

Replaced sold PDI in 401k.

 

[joejetski]

Did a little house cleaning in taxable. Sold UTG, DIVO, IDVO and a small holding of PDI. Bought CGGO, DLN and smaller amounts of QPIQ and SPYI. Dividends stayed the same but more importantly made portfolio more tax efficient for bridge years until 59 1/2 while also getting more of a growth tilt.

Replaced sold PDI in 401k.

You can own PDI in your 401k?

 

[dobig]

You can own PDI in your 401k?

Brokeragelink. Self directed.

 

[Montecfo]

Did a little house cleaning in taxable. Sold UTG, DIVO, IDVO and a small holding of PDI.

Replaced sold PDI in 401k.

Gain position I hope.

 

[copyright1997reloaded]

I collected $4420 from selling 7 covered calls and 2 cash-secured puts, all OTM as usual.

I collected $139 selling 1 SPCX covered call @180 expiring July 2. I'm now running with the big dawgs like you.

 

[junkanoo]

Sold last 100 shares of SPCX. Which leaves me with only half of my original BPTRX position.

Best of luck to those continuing on with their positions!

 

[C-man23]

I own quite a bit and it is cheap. It has some questions and potential headwinds from a possible secondary offering and of course the AI investment and strategy. Also some legal risk. But hard to find something with this much potential that is inexpensive.

Good luck to us both!

I think I am set for awhile. Put an order in yesterday, but the limit ($560) wasn't hit. Put another order in today for $556 and was filled. Time to sit back and watch (or just go to the beach like I did)

 

[SteveTX]

Sold some IVV for GRNY today. It has more of a near equal weight approach, and is a managed portfolio of around 46 U.S. equities.

 

[NW-Bound]

I collected $139 selling 1 SPCX covered call @180 expiring July 2. I'm now running with the big dawgs like you.

Warning: This can become addictive.

Once you get used to getting 1%/week of cash from your stock, and there are 52 weeks in a year, you will try to do it more often, and on more positions that you hold.

Then, when a hot stock gets called away from you, you will have to sell puts in an attempt to get it back. And even when you don't get it back, you become hooked with getting 1%/week of cash from your cash.

Oh boy! You don't know what you are getting into. What are you going to do with all that cash?

 

[Fermion]

Did Meta just fire the capex warning shot today? Saw that semis were dropping after the big run yesterday and Meta and Microsoft were green (which is rare these days).

Also, General Mills, thank you. Beat earnings, meaning my 7.6% dividend is safe.

 

[surprising]

Warning: This can become addictive.

Once you get used to getting 1%/week of cash from your stock, and there are 52 weeks in a year, you will try to do it more often, and on more positions that you hold.

Then, when a hot stock gets called away from you, you will have to sell puts in an attempt to get it back. And even when you don't get it back, you become hooked with getting 1%/week of cash from your cash.

Oh boy! You don't know what you are getting into. What are you going to do with all that cash?

Looks like my AMD CCs will get exercised this week. Bought 100sh 1 month ago at 537.50. Wrote calls 6 times and earned 7900. Current CC is at 537.50 so I will sell the shares at no loss. Made ~15% on initial investment.

 

[ER Samuel Axe]

Added 820 more shares of NBIS on the low today. The Meta news was an opportunity to add.

 

[shridog]

Added 1% of portfolio NAV to PTY in the first hour.

 

[NW-Bound]

Looks like my AMD CCs will get exercised this week. Bought 100sh 1 month ago at 537.50. Wrote calls 6 times and earned 7900. Current CC is at 537.50 so I will sell the shares at no loss. Made ~15% on initial investment.

I don't have AMD, but if I bought it and believed in its prospect, I would roll the 537.5 July 2 call to 557.5 July 10 call and pick up another $2. Or 550 call and pick up $5. Get paid cash to sell higher!

Or I could write a 537.5 July 10 put and get the stock back, plus $16 cash. Get paid to let somebody hold the stock for 1 week.

Oh, what people would do for cash!

 

[surprising]

I don't have AMD, but if I bought it and believed in its prospect, I would roll the 537.5 July 2 call to 557.5 July 10 call and pick up another $2. Or 550 call and pick up $5. Get paid cash to sell higher!

Or I could write a 537.5 July 10 put and get the stock back, plus $16 cash. Get paid to let somebody hold the stock for 1 week.

Oh, what people would do for cash!

Trying to understand the math: if I were to roll right now to 557.5, since I'm sitting on a $1K loss, total profit would be just $1K. But I would get to keep the stock appreciation, which is $2K (537.5 -> 557.5), so overall net win would be $3K?

 

[NW-Bound]

Right.

When you roll forward either at the same strike price or one higher, you get credit for the higher premium, plus a potential gain from the stock. How to chose the strike price depends on your perception of the market mood. For me, I also look at my total exposure to a specific sector. I have more than 100 positions, and if I have too much exposure in a sector such as semi, I may look to reduce my risk and not pick a high strike price, because I would not mind getting assigned to reduce my exposure.

For me, it's all about overcoming greed and fear. And I'd rather have a steady portfolio growth than hoping for a chance to hit it big with a blow-out stock. My trades are 99% in IRA and Roth, so no taxes to be concerned with.

 

[joesxm3]

I collected $4420 from selling 7 covered calls and 2 cash-secured puts, all OTM as usual.

NW - Some educational analysis please.

With SPCX trading around $160 I was thinking of putting a limit order in for 20 shares in the low $150's but decided to sell a PUT instead.

I sold 1 7/17 $150 strike PUT contract for $5.14. My thinking was that it would not be terrible if I had to buy 100 shares for an effective price of $144.86.

How did I do picking strike and duration? What would you have done differently?

 

[Fermion]

Funny that AMD was known as Advanced Money Destroyer just a few years ago, dropping from $200 in 2024 to under $90. We live in interesting times.

 

[NW-Bound]

NW - Some educational analysis please.

With SPCX trading around $160 I was thinking of putting a limit order in for 20 shares in the low $150's but decided to sell a PUT instead.

I sold 1 7/17 $150 strike PUT contract for $5.14. My thinking was that it would not be terrible if I had to buy 100 shares for an effective price of $144.86.

How did I do picking strike and duration? What would you have done differently?

First of all, I don't trade SPCX, stock or option. But I looked at your trade, and it's something I could have done.

Suppose I liked SPCX, and already had some but did not mind accumulate some more, I would set the strike price of the put higher to increase the chance of getting assigned. I would also do that if I liked the stock and just "lost" it via a call assignment, and now want to get it back.

Another thing I always do is to sell 1-week-out option. The premium is roughly 1/2 that of the 2-week contract, but I get to sell more often, plus the premium decays faster. Also the stock moves less in 1 week than in 2 weeks, giving me time to react if things don't work out as I thought.

I have an inventory of my favorite stocks that I like to keep long-term. I sell OTM calls with a high strike price because I intend to keep the premium and the stock too, but if I get assigned then I use puts to try to get the stock back and make more money doing that.

 

[joesxm3]

First of all, I don't trade SPCX, stock or option. But I looked at your trade, and it's something I could have done.

Suppose I liked SPCX, and already had some but did not mind accumulate some more, I would set the strike price of the put higher to increase the chance of getting assigned. I would also do that if I liked the stock and just "lost" it via a call assignment, and now want to get it back.

Another thing I always do is to sell 1-week-out option. The premium is roughly 1/2 that of the 2-week contract, but I get to sell more often, plus the premium decays faster. Also the stock moves less in 1 week than in 2 weeks, giving me time to react if things don't work out as I thought.

I have an inventory of my favorite stocks that I like to keep long-term. I sell OTM calls with a high strike price because I intend to keep the premium and the stock too, but if I get assigned then I use puts to try to get the stock back and make more money doing that.

Thanks. Your advice makes sense.

Next time I will consider the shorter duration and the higher strike price.

Digesting your comment gave me the idea of taking more risk of the PUT being assigned in order to get a higher premium and compensating for that risk by having a plan to sell a CALL to get rid of the shares if I accidentally get assigned a PUT that I don't want to keep. Did I understand correct?

I think an important concept might be that one has to think of the PUT/CALL selling as an ongoing ecosystem rather than a one-time event. The same applied when I used to go to the casino to play poker. When i was going every weekend, if I lost one week, I would gain it back the next week. Once I stopped going regularly it meant that if I lost it was really gone.

Thanks again for taking the time to reply to my post.

 

[NW-Bound]

Digesting your comment gave me the idea of taking more risk of the PUT being assigned in order to get a higher premium and compensating for that risk by having a plan to sell a CALL to get rid of the shares if I accidentally get assigned a PUT that I don't want to keep. Did I understand correct?

Yes. When the market goes up/down like a yo-yo as it has been doing this year, I make good money from both the option selling and buying/selling the same stock over and over.

To reduce risks and enhance my chances, I own stocks in different sectors, and when I see a sector rotation, I will sell calls on my stocks in the hot sectors, while selling puts on the shunned sectors. In other words, I like to make contrarian play to the other players.

It's not fool proof though. When the market keeps going up, I don't make as good money as the guy who buys/holds. When the market keeps going down, I still lose money, but lose less than the guy who buys/holds.

PS. By the way, we know that a majority of options expires worthless. Hence, I sell and never buy. In the long run, the option seller wins. But that must be averaged over a large number of trades. And one must be diversified to avoid a big loss. And never double down.

PPS. OK, I double down occasionally, meaning selling more puts or calls if the stock keeps moving in the same direction after the first contracts sold. I still make sure I do not get overexposure to the same sector, or to lose too much stock in that sector.

 

[Old Dog Seeks New Tricks]

bought a small amount of SpaceX to begin process of getting to a round lot after very small award at IPO

 

[Rocky mtn high]

Sold 1/2 fss, form and jbil, Just wanted to lock in some profits. Form up 370% in a yr

 

[Fermion]

Hell of a day. The only thing I did was a covered call play on GIS to attempt a 25% annualized return assuming the dividend holds.

 

[NW-Bound]

I sold 17 contracts for $9090. It's a bad day though, as the entire portfolio is down multiple that amount. Semis got hammered, and lost all the big gain yesterday.