Hi all,

This is a general options and DD thread. I don't see a proper options thread so let us start one.
Let see what ideas we can manifest. Constructive criticism are welcome.

I contribute what I have.



1. I filtered some options table for comparison today, which I plan to do covered calls on.





The 3 tickers I am generally bullish in the long term. I work in one them, the other 2 is through field research and general consensus.

MESO 22.5C 16-OCT have a 21% return to capital for now, you can find the info below.

here.

currently 9 to 1 favor on approving therapy. PDUFA by latest 30th September.


Rolling update is done by some other forumer, but free to access here:

https://docs.google.com/spreadsheets/d/1qPK...8YO5nY1OQ#gid=0

brokers giving a bullish target at 23 USD.

@lamode

This post has been edited by ©©©: Aug 23 2020, 06:30 PM

What Are Options?


Call Option Example


Options Trading Explained - COMPLETE BEGINNERS GUIDE (Part 1)
https://www.youtube.com/watch?v=4HMm6mBvGKE
Options Trading Explained - COMPLETE BEGINNERS GUIDE (Part 2)
https://www.youtube.com/watch?v=1fMAjyC5lZ8

This post has been edited by lamode: Aug 23 2020, 06:46 PM

reserved for more basic info.

Hi! I been playing with options for a couple of months now ! Been running CSP's on a couple of tickers, but the only one i am running at the moment is SPCE. Diverted some of the funds to buy and hold certain stocks which has high momentum such as TSLA. Might start running them again when the bull market momentum reduces (whenever that may be)

I sell covered call too but am more conservative And only looking to make some extra money on the stock im holding.

Never come across MESO, 21% premium is unbelievable high but the stock is too volatile to open a position now!

Shorted PEIX SEP18 4 CALL @ 0.70

Options thread but no one posted about options strategies or the Greeks yet

Hi KRV!

-I'm sorry but what is CSP?
-What strategy have you implement on SPCE? personally I cannot "see" the business modal for now, I am a bit reluctant to go deeper there (but for fun with 3DTE maybe yes ), I assume SpaceX is there competitor?
-I'm waiting for TSLA to pullback aswell, specifically covered calls as I don't think I want to bet against Elon.

Cheers,


Hi Investor12,

-Yes premium comes with volatility, I think you're having the right approach of not jumping into the wagon without prior understanding. What stock are you holding?


Hi Lamode,

-Never heard of that ticker, certainly it's not widely discussed on the average investing forum, do you work in that industry?

Hi yggdrasil,

-thanks buddy.


How do I tag people's username on a reply?

Anyway,

Some article I wrote earlier for another forum right after I executed my trade plan, I copy paste here. You'll get the idea of cost-reduction of share in return your shares will be locked up for a certain period to cover the option contract, and also potential to have a capped gain if your options sold got exercised buy the buyer.

Google theta - option, to see the idea of selling "time" as a premium.

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My long term view on MESO is bullish, but I don’t expect logically that the share price will hit sky high in a few months, it might fluctuate up and down, and go higher with de-risking, but I don’t think it will hit 30, 40, 50 USD by fortnight.

To make the most of time invested, I will write call options, for now. The call options for 25 USD @ 16-Oct is 3.3 dollars per share. So let say your purchase price for one share is 18 USD, and you sell a call option for 25 USD expiring at 16-Oct for 3.3 dollars per share, your breakeven price will be 14.7 USD. You pocket the 3.3 dollars on the spot. But for me, I am super bullish but also believe that prices won’t go above 25 USD before 16-Oct, so the 3.3 dollars are piled up with the rest of my capital to purchase more MESO shares.

This is how I compound the invested time on this stock, to buying more shares.

At worst scenario, if prices shoot up to 40 before 16-oct, and it is close to the option expiry date. I have to trade off my share as I am obliged to fulfill the option contract, so, it will be profit, but capped, that is the downside, so howmuch will I make then? 25-18+3.3 = 10.3 per share.
Below is my current portfolio, I took a bit more risk by selling at 22.5 Oct 16 (53 days to expiry), due to the fat premiums. I also incurred good gains which I took to buy more shares. But as other long term investors, they have their choice to sell at different strikes according to the options tables.







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Okay cheers guys, I hope to see other DDs aswell. I won't be active for now, until my contract is close to expiry.

©©© like this:

no. i somehow stumbled across that and notice its trading in range from technical analysis, so went in a bit

This post has been edited by lamode: Aug 25 2020, 03:24 PM

©©©
u know what will happen to a short option position when it expired (and i never cover it) out of the money, but with some value like $0.03 or so?

nothing will happen. on the expiration date, in my experience, your daily statement will say "Your following options position has expired. RM0.00"

This post has been edited by Medufsaid: Sep 9 2020, 11:18 AM

Keeping some cash, so sold a CSP on RKT yesterday

are u sure the same for short?
if that was the case, imagine i shorted at $5, and expired at $0.03, my profit of $497 is gone?

if you short option position expires OTM , you just keep the premium.. thats it

if your option is OTM before expiration, that $0.03 is the "time value" for the position (intrinsic value @ $0.00). On expiry, the value will drop to $0 (for both time & intrinsic value) and you keep the premium you received.

This post has been edited by Medufsaid: Sep 9 2020, 03:04 PM