Stock Market is the bottom in?

[SD51555]

Are you selling puts that are covered by cash? Do you just end up buying the shares if the price goes below the strike, and the contract holder executes? And then you have the shares?

Yes, yes, and yes. I only buy directly if I think it’s a smoking deal. Otherwise I’m perfectly content making the option income and not actually holding the stock.

In this case, I think getting VLO under $120 is not a bad deal at all.


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[Telemark]

Yes, yes, and yes. I only buy directly if I think it’s a smoking deal. Otherwise I’m perfectly content making the option income and not actually holding the stock.

In this case, I think getting VLO under $120 is not a bad deal at all.


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I think I'm finally getting it.

So if I want to buy PLTR at $80, I can sell a put for next Friday as such:



I sell to open the $80 put on PLTR, I get $126 cash to my account. And if the price drops below $80 between now and the end of market hours next Friday, I end up buying 100 shares of PLTR for $8000. But I have to keep $8k cash in my account to cover the possibility. Is that correct?

 

[Telemark]

Anyone know why DENRF is down?

 

[SD51555]

I think I'm finally getting it.

So if I want to buy PLTR at $80, I can sell a put for next Friday as such:

View attachment 74767

I sell to open the $80 put on PLTR, I get $126 cash to my account. And if the price drops below $80 between now and the end of market hours next Friday, I end up buying 100 shares of PLTR for $8000. But I have to keep $8k cash in my account to cover the possibility. Is that correct?

That is exactly right.


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[Telemark]

That is exactly right.


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Wow, the market does not like PLTR. I just sold a $79 put for next friday for $249. Currently, they are offering me $143 for a $95 call on the same date.

 

[Telemark]

Just sold all my Coinbase at 224. Looking to jump back in after a retracement.

 

[Telemark]

Back in at 223

 

[bwoods11]

JP Morgan is a very solid normally safe bank that has been a great investment for me . I’m gonna buy some more at this price ($247)

PE of 12, 2% dividend… it earns almost $20 a share .

 

[jsasker007]

On the other end of the price spectrum there's NAK at about .75 cents and a price target of $1.30. It's all about percentages in my opinion.

 

[Telemark]

On the other end of the price spectrum there's NAK at about .75 cents and a price target of $1.30. It's all about percentages in my opinion.

Why should it be worth more?

 

[jsasker007]

Mining minerals. The more you mine the more you make. Growing company in the mining industry. Just one of hundreds of options. Doesn't have to go up much in price to make solid profitable gains if bought at a good entry price.

 

[jsasker007]

Maybe it's not going to be worth more. No guarantees just sharing the "experts" forecast.

 

[PatinPA]

Ugh Fidelity won't approve me for options selling. I don't want to do anything crazy. Just start learning the basics do some small covered calls and such.

 

[Telemark]

Ugh Fidelity won't approve me for options selling. I don't want to do anything crazy. Just start learning the basics do some small covered calls and such.

Why not? Did you answer them a bit weird? Or is your account under 25k?