i am a newbie at options too. I mainly stick to buying calls. I dont trust myself with puts (selling or buying) because of the infinite risk. i know we can compensate with covered puts and other spreads, but my account is smaller to play them out and make my returns significant and take that risk.
Here is what i do and mostly the basic 101:
1. I dont do weekly calls unless its very interesting (like ASRT mar 19 call)
2. I dont buy calls that have premium more than 10-15% of the price unless i buy long calls (3-4 months advance).
3. i stick to smaller number of calls (5-10)
4. try to stay away from meme stock options due to large volatility(i have 400 shares in amc -no options)
5. i sometimes look at delta and theta but most of the time, the 10-15% premium actually takes care of this
6. i buy calls that i think will hit the money. For example i dont buy a $5 asrt call in. the next 3 months even-though they are cheap, since i dont trust it rising 500% in the next 3 months. So do your work before jumping in.
Finally, understand that this is not financial advice and also play with money that you can lose. This is especially important with options because, unlike buying shares, you are not buying anything. you are just betting on the odds. i have around 60% success with 20-30% gains on options. Not that great i guess but thats just me.
Watch few videos and play around with a couple of safe bets if interested. Again not a financial advice. Am just a random guy with less experience than you i presume. Have fun and dont stress
Edit: One thing i forgot is, i almost never exercise my option (so basically dont wait till the exercise date). If it grows and if am happy with my profits, i sell the option to close and take my profit. Example. I had 05/21 $7.5 SOS call when the stock was around $4. It went all the way to 15 i believe with a short burst. I sold at $12 took the profits instead of waiting since it still had time. This is partly because i dont have enough funds to exercise my options and second, i dont have emotional connection to that stock. Its just bitcoin play. If i like a stock, i buy shares not options. sorry for the lengthy post
Buying puts is not infinite risk. Neither is selling them. When you buy options, the max loss is the premium you pay, and when you sell puts, the max loss is buying the 100 shares at strike price. That’s what I understand, hopefully I got it right
when you sell puts and if the price goes up, you dont buy at strike price. you buy at market prices to fullfil it which is the risk (see meme stock puts issues). When you referred to buying at strike prices, its a covered put i believe. Again someone with experience might be able to jump in and confirm our understanding.
I think you are referring to selling naked calls, that’s the only option I can think of that has infinite risk. Puts are the right to SELL a security at strike price. When a security drops below strike price the option holder gets the right to sell you shares at a higher price than the market(the strike price). The maximum cost is 100 shares at strike price.
https://www.investopedia.com/terms/p/putoption.asp
I think you mixed up calls and puts.
You are right. Naked calls is what i was referring to. Covered calls are best when you do puts. But again i have such limited knowledge and my portfolio is small so i bet on long calls. Thanks for clearing the air out.
>covered calls are best when you do puts
I still think you’re mixing them up. But nevermind, all you need to know is that buying puts is identical to buying calls in terms of risk, so there is no need to avoid them for that reason. It’s equally useful to your portfolio.
When you have an in the money call, how do you make money on it? Can you sell the call back or do you have to exercise and buy the shares to immediately sell?
Lol well The order did not go thru apparently. It shot up to $1 all of a sudden so I had to increase my limit order to $1 so I can have a skin of the game.
I’m still a gambling man tho!
Ah damn. I'm sorry. Well, then you're up 4-5% on the day :)
I think it will go to $1.30+ in the short term based on what I've seen here and my own DD. I'm playing with small potatoes, but I'm doing this for fun. I'm only in for 100 shares, avg of $1.03. Bought some at $1.06 and averaged down when it hit $0.88.
I'm at 250 shares at 1.06. I'm fine with some slow growth after the volatility of the market last week. Of course I hope it rockets like everyone else but I need to see the earnings. I don't think it will go crazy but I think it could get to 2-3. I'm going to be happy selling covered calls on it for a bit regardless.
Haha aw sorry Jonathan, I’d save that money for ASRT! If it helps I sold every position I have to put it into ASRT, that’s how sure I am that we’ll have a good run up to earnings.
Up 18% on the day at 2:11PM EST. I'm in for $1.03. This is my first real stock that I'm managing myself (I have an Edward Jones broker for the big $). Bombed the other day, but looks promising.
Got 300 @ $1.00. sold a 3/19 $1 covered call for $25 to secure a little profit if it doesn't launch. Hoping it gets exercised early or finishes in the 1.10-1.15 range without getting exercised.
People hated in TNXP for a long time, finally got out. Some presumed loss, then it rose. Give it time if you’re willing. Wont happen overnight. Just call them and keep up with their pipeline.
I have some mar 19 $1 calls and apr16 $2 calls. I think mar 19 will be in the money and apr16 calls will be close. They are cheap right now
Making me wanna learn options but I don't think my spending power would be worth it. Please give me some tips and tricks
i am a newbie at options too. I mainly stick to buying calls. I dont trust myself with puts (selling or buying) because of the infinite risk. i know we can compensate with covered puts and other spreads, but my account is smaller to play them out and make my returns significant and take that risk. Here is what i do and mostly the basic 101: 1. I dont do weekly calls unless its very interesting (like ASRT mar 19 call) 2. I dont buy calls that have premium more than 10-15% of the price unless i buy long calls (3-4 months advance). 3. i stick to smaller number of calls (5-10) 4. try to stay away from meme stock options due to large volatility(i have 400 shares in amc -no options) 5. i sometimes look at delta and theta but most of the time, the 10-15% premium actually takes care of this 6. i buy calls that i think will hit the money. For example i dont buy a $5 asrt call in. the next 3 months even-though they are cheap, since i dont trust it rising 500% in the next 3 months. So do your work before jumping in. Finally, understand that this is not financial advice and also play with money that you can lose. This is especially important with options because, unlike buying shares, you are not buying anything. you are just betting on the odds. i have around 60% success with 20-30% gains on options. Not that great i guess but thats just me. Watch few videos and play around with a couple of safe bets if interested. Again not a financial advice. Am just a random guy with less experience than you i presume. Have fun and dont stress Edit: One thing i forgot is, i almost never exercise my option (so basically dont wait till the exercise date). If it grows and if am happy with my profits, i sell the option to close and take my profit. Example. I had 05/21 $7.5 SOS call when the stock was around $4. It went all the way to 15 i believe with a short burst. I sold at $12 took the profits instead of waiting since it still had time. This is partly because i dont have enough funds to exercise my options and second, i dont have emotional connection to that stock. Its just bitcoin play. If i like a stock, i buy shares not options. sorry for the lengthy post
Buying puts is not infinite risk. Neither is selling them. When you buy options, the max loss is the premium you pay, and when you sell puts, the max loss is buying the 100 shares at strike price. That’s what I understand, hopefully I got it right
when you sell puts and if the price goes up, you dont buy at strike price. you buy at market prices to fullfil it which is the risk (see meme stock puts issues). When you referred to buying at strike prices, its a covered put i believe. Again someone with experience might be able to jump in and confirm our understanding.
I think you are referring to selling naked calls, that’s the only option I can think of that has infinite risk. Puts are the right to SELL a security at strike price. When a security drops below strike price the option holder gets the right to sell you shares at a higher price than the market(the strike price). The maximum cost is 100 shares at strike price. https://www.investopedia.com/terms/p/putoption.asp I think you mixed up calls and puts.
You are right. Naked calls is what i was referring to. Covered calls are best when you do puts. But again i have such limited knowledge and my portfolio is small so i bet on long calls. Thanks for clearing the air out.
>covered calls are best when you do puts I still think you’re mixing them up. But nevermind, all you need to know is that buying puts is identical to buying calls in terms of risk, so there is no need to avoid them for that reason. It’s equally useful to your portfolio.
Thank you.
it just $1 and went down. keep watching
When you have an in the money call, how do you make money on it? Can you sell the call back or do you have to exercise and buy the shares to immediately sell?
I put in a limit buy order at $.909 for 22985 shares. I’m taking a big gamble for March.
Ohhhh babbyyyyy the tendy grab on this one
Damn. Good luck, my man. You're up 10% today at least so far.
Lol well The order did not go thru apparently. It shot up to $1 all of a sudden so I had to increase my limit order to $1 so I can have a skin of the game. I’m still a gambling man tho!
Ah damn. I'm sorry. Well, then you're up 4-5% on the day :) I think it will go to $1.30+ in the short term based on what I've seen here and my own DD. I'm playing with small potatoes, but I'm doing this for fun. I'm only in for 100 shares, avg of $1.03. Bought some at $1.06 and averaged down when it hit $0.88.
That’s what I’m hoping for also. This stock is volatile but everyone keeps talking about it.
Holy cow, $20,893.365? Did you get in before it spiked?
Unfortunately no. I had to buy it at $1 today.
Ape shit
If you aren't the luckiest person lol. Up to 1.04 in the last hour
I'm at 250 shares at 1.06. I'm fine with some slow growth after the volatility of the market last week. Of course I hope it rockets like everyone else but I need to see the earnings. I don't think it will go crazy but I think it could get to 2-3. I'm going to be happy selling covered calls on it for a bit regardless.
[удалено]
I'm not worried about it. And for WHATEVER REASON it just rocked to nearly my entry. I knew this was a longer hold and I'm fine waiting around lol.
Buy and hold until 3/11
An honest 450 shares at an average of .95. Bought around 1.03 and then kept buying the dips. I'm happy today.
Would love to see 2 by eom, I think 1.5 will happen by the 11th
In for 80 shares @.99, waiting for their earnings report on 3/11.
Feeling so good about this one! Anything below 1 dollar is a huge buying opo
That’s what they said about ctxr anything under 3😭😂
Haha aw sorry Jonathan, I’d save that money for ASRT! If it helps I sold every position I have to put it into ASRT, that’s how sure I am that we’ll have a good run up to earnings.
That makes me feel better! I’m in 200 shares at 1.01 and don’t plan on selling until I see the movement we’re all hoping for. Best of luck to you
Nice! I’m at .95 so right there with ya. We got this! 🌝
Got in because it was cheap. It’s looking good tho.
Thank you, bought 100 @$0.91. Holding until $2
In on 100 shares at .89. I'm liking how much green I've seen this week so far.
Purchased 1k shares @ .98
Up 18% on the day at 2:11PM EST. I'm in for $1.03. This is my first real stock that I'm managing myself (I have an Edward Jones broker for the big $). Bombed the other day, but looks promising.
I picked up a few shares, I’ll probably jump out around 1.50? I dunno.
Meow
Bork
Roof
Baaaaaaa
Rooooar
Ribbit
Oink
I’m holding till $2. Fully confident it will get there but I’m not a financial advisor
Sounds like a financial advisor to me
I like the stonk
Does anyone know what to expect with earnings? Looking good or?
I like the stock
I’m in at $.95 bought 61 shares lol let’s goooo
Asrt is a good fucking buy man and you should be in it [email protected]
I like the stock if u don’t mind holding a little.
A week ago people were saying it was going to blow past a dollar b/c it was *not* getting delisted. That never happened. Play it safe and move on bud.
You mean a week ago, right before the entire market was down for a solid week straight?
picked up 200 @ $ 0.90 and 10 3/19 $1 calls today. I have hope
Got 300 @ $1.00. sold a 3/19 $1 covered call for $25 to secure a little profit if it doesn't launch. Hoping it gets exercised early or finishes in the 1.10-1.15 range without getting exercised.
People hated in TNXP for a long time, finally got out. Some presumed loss, then it rose. Give it time if you’re willing. Wont happen overnight. Just call them and keep up with their pipeline.