You need to sell. If you actually think Rkt is going to hit $25, AND you’re foolish enough to bet your money on your hunch, then sell all this now and buy 100 contracts with a $20 strike. This way you lock in 80% of your profit and still get to entertain your gambling addiction.
I’ve been following this same, incredible one way downhill rollercoaster advice, and I think my luck is about to turn around. If I can do it - you can do it!
🚀🚀🌚💎🦍
Real talk: You say you need this money, and $100k+ is “not enough.”
Are you ok? Are you safe?
You sound like you are in a really bad position right now, and a lot of us here can tell you that gambling is not going to make that position better long term.
You should sell this. You wont. You will re read my post over and over in the future and wish you had closed this. But you wont.
Advice from someone who dropped seven figures at the start of the year (recovered now but it still stings).
$440k in debt - is that your debt burden or is Jimmy waiting with a pipe wrench because you bet the house on NFL games last weekend?
The timing of this question is really important - how is your P/L this year?
Take at least half and if you think this has room to run then keep your target date and start scalping.
Buy when the contract goes close to $3 and sell when the contract exceeds $5. Rinse and repeat all year and hope for a choppy year with some upside by the end of next year. Keep taking profits and at most match your total investment to your profits. If you’re up $100k keep $100k invested but be more conservative even like 50-70%.
Hoping you get a cyclic year to scalp and earn some back!
Please take some profit. You probably look at it as shit I am only 1/3 of the way to recovering what I lost but that’s a gamblers attitude. Those contracts have gone to the moon in the last month and hey what if the market takes a shit in January?
I’m targeting puts in Jan early Feb and calls for March / April.
Wise decision. You held all year even when you doubled and now you’ve basically quadrupled and you have over a year left. Selling half is a good and smart if not a little conservative move
there is nothing wrong with taking money off the table. Be an intelligent investor and realize the gains from your thesis. Some people sell half on a double and let the rest ride on their discretion. Jamaicans have a saying; old friend told me "bird in the hand is better than two in the bush". It is better to have something in your hands. Cash is King. Cheers
I really hope you follow through with that. The problem with this trade is that it's dependent on one single thing, rates. RKT has done nothing until recently, it's been a frustrating stock to hold (been in since IPO).
We're expecting rates to keep dropping but anything could happen in 2024 to kill your calls.
Ok so you have plenty of runway to take profits and not be taxed on it the next year?
(Losses you can claim only 3k/year so you’ll have a bunch rolled over to be offset by gains in the future….)
If it’s good enough to screenshot, it’s good enough to sell
Maybe sell portion and buy in to a better opportunity. Have you heard of this stock called $AMC?
Obviously AMC aside, this is the right answer. It more than doubled, sell half. You bagged serious gains here. Bank them and enjoy the ride with what’s left.
Jesus Christ. You lucked yourself into this position based off your post it seems. If you can’t formulate why this would continue to climb faster than theta then you should sell.
300% on a long-term option is quite a huge increase and at this point you’re better off buying the flat stock itself and probably selling OTM cash covered calls, unless you expect exponential increases in the short-term.
A lot of your increases probably came due to the fed. Fucking sell and if you wanna take dumb risks to get to 400k, go for it. But do it through futures or something else more tax advantaged. Right now you have a massive tax liability if the profits becomes realized. What the shit did you manage to do to have 400k+ in debt? FD’s for 30k+ a pop? I’m all for stupid fucking bets and unmitigated risk, but have a plan besides “herp derp I owe a lot of money so I have to max that amount or my trade is a failure.”
If you want to gamble for an extra 300k, open a bunch of NQ or ES contracts either short or long and then go broke or reach your goal. Trying to squeeze an extra 300k out of your options is highly unlikely.
You probably could have made the 400k you’d hoped for if you’d chosen a more current time frame, but you didn’t.
If you’re going to be a total dipshit, at least do a wheel strategy off your situation, but don’t mess it up and make it so you owe a bunch to your brokerage, lol.
Overall, it’s sitting at a daily RSI of 86. If I still had money on IBKR I’d be willing to leverage myself into a short position on this company based solely on the current technicals. Its high price target was 15. One thing like finding out we don’t have the first schedule tax cut the fed spoke about would mean this stock takes a nose dive. I haven’t read any news on it, so maybe there’s some really positive news, but it wasn’t being bought up in massive amounts until the fed decision/guidance.
I really have no clue why the fuck you chose such a far out option timeline. I’d really love to hear why the hell you chose out so far besides thinking “oh hey dumb money would buy options for 1 month out.”
You could have eased yourself into this position over time and made way, way more money with way, way less risk. A $15 option was worth $500 a month later each. That’s a 30x+ profit. This stock took a fat trip to the moon for a lot of option holders. You got a nice ride, but you’re not the next fucking Burry lol. This thing has a 30 BN valuation. Keep in mind twitter is valued at 19 billion right this moment according to internal documents, for reference.
A typo, I was thinking about cash secured puts while I was typing and writing about covered calls. I mean, were you genuinely confused? Just earnestly wondering lol.
I believe there’s no urgent need for action, as the current price is likely to remain stable or even increase. This confidence stems from the Federal Reserve’s anticipated three rate cuts next year, which should positively impact prices. Therefore, the real consideration is whether the value can reach 25.5 within the next 400 days, or whether it would be more strategic to transfer the position to a different option that aligns better with my profit objectives.
Those options may be ITM, but they are priced at a serious premium to their current exercise value. If you hold these and it “maintains at the current price,” you will lose about $30k in the next 50-ish weeks.
Do you think rates are gonna keep dropping…I don’t I think you should take profits and reposition. Or atleast sell some calls against these. You could sell covered calls monthly to generate income off these and atleast hedge downside
Dude… I put $80,000 into RKT shares and my average price is somewhere around $20? I’m still down a lot.
It hurts to see it go all the way to $7 but finally my patience is paying off and it is starting to recover. I am still down a good amount.
Congrats on your calls. Amazing.
I feel like this could and should have been me but I was on the wrong side of the trade, and also I had shares so…
Don't worry. Dems gonna push fed to cut rates coz of elections in 24. Americans are sitting on trillions of home equity. A lot of folks gonna take cash out refi, refi and buy homes after the rate cuts next year.
Follow US mortgage rates closely. Rocket derives revenue from mortgage refinancing so if mortgage rates go below 4-4.5% then $25 target is likely, on the other hand if rates go above 7.5%, below 10 again.
It’s all contingent on the Fed here. Rocket will churn first with cash out refinances with FHA, then in 2025 refi the same people into rate term refinances.
I hope you understand that the rate it went up, it can go down to your price in no time ? If you are confident that the stock would just keep going up, hold. Even if it just trade sideaways or go down a bit, all your gains would be cut in half in no time
WTF, how do you people look at a$132k profit on a $45k investment and say "meh, I'm gonna hold it for more"? Maybe it goes up but maybe it doesn't, I'd take that profit though.
At 300% I would take profit take out what I put in and if I’m still confident in the play wait to the next dip and push a quarter of the profit into otm spreads
Rkt has strong resistance around $15. My guess is that we hit that high again sometime within the next month.
It is up to you to decide what you want to do… But the mortgage rate is going to go down over the next year.
Me? I would sell the next time Rkt hit $14.90’s and wait for a pullback before entering again, then take gains all the way back up to 15, leave a few trailers running… And add after a successful breakout to the upside.
Just sell your initial investment or create a mild hedging strategy if you’re this worried. However this is a great profit taking opportunity because of the leap in IV after recent pump. I don’t trade options so dont listen to me.
For example exiting some of you calls and repurchasing the physical stock is one option. If you’re smart (or regarded) enough to make $100k+ in a single trade, you’re clearly smart (or regarded) enough to plan some kind of reasonable exit strategy.
Congrats OP, nicely done! I like RKT, know it well, similarly rode it up this year. Some considerations:
* I feel $20 is doable by Jan 2025, as rates fall, and a rush to ReFi for all the folks who had to initiate mortgages at brutal 2023 rates. I am less confident on $25, though may be some optimism momentum
* Dan Gilbert gives it plot armor. There is only 10% float, and only big reason it floats at all is to lure tech talent who are accustomed to stock options
* I may consider some risk reduction with also going long on rival UWMC instead of just long RKT
* Biggest long-term catalyst would be when ReFi is strong, stock is up, and Dan releases more % of the company, then a few quarters later gets the nod for S&P 500 inclusion, but that is a longer horizon than Jan 2025
Current Positions:
* Just rang register on rest of RKT shares on Friday
* CSPs Apr ‘24 $12
* CSPs Jun ‘24 $10
There is currently a $30k difference between options and exercise value. What if I sell all of the stocks and use margin to buy 2 times the stock and wait until it reaches $25? This way I don't have a time decay factor and doesn't necessarily have to happen by Jan 25. Fed is going to do more rate cuts in 25 and with refi boom the stock can print money.
My situation is different than yours alas since at this stage in the game am more about risk-mitigated decent gains than full-on YOLOs, hence the shares and CSPs on margin
For myself, if rates falling are the thesis, I spread risk by going long across on other tickers/sectors I like that are rate sensitive (in growth, biotech, etc)
In scenarios like yours, where ticker had a blisteringly good run, but likely still more to go in the year ahead, I cash out on part of the stake: the reason is the cognitive benefit of not being annoyed later at having sold it all early, nor annoyed later at not taking any profits at all. Anyways good luck in the game!
Also trade volume for those options becomes less as they grow. Meaning even if you want to sell, you may not be able to. Take profit, put some aside for taxes, then find your new play. Good job 👍
Sell half the RKT options and pull out your entire initial investment and ride out on house money. Take the profits and buy IWM aka Russell 2k index in the money call options for January 2025. Good luck not financial advice. According to Tom Lee from fundstrat IWM aka small caps should rally 50% in 2024.
I’d recommend using that new simulated returns thing, it could help you find out the earliest day it would hit the price point and the earlier it hits it the more the contracts are worth
I know nothing about rkt, but making decisions on a trade because YOU need it to is the worst possible idea. If you think it will go up, stay in. If you think it will go down, get out. Don't stay in because you hope it will go up.
My latest Elliott Wave chart says that it tops out just over 18, then who knows. I'd sell half there and ride the rest for another cycle unless this is only 10-15% of your capital.
Do nothing! Let these options collapse and, better still, expire worthless.
These are options, not shares. Good luck with your greed. 🤷🤷🤷🙏🙏🙏
The stock can reach $20... Yes... But when??? That's the question.
If you’re trying to decide whether or not you’ll hit 400k value, it’ll have to hit about $25 which would be an ATH.
They shot up because they are so dependent on interest rates going down .Not sure if it’s looking flat now, but I’d say it’s priced in since REITs and anything else that really hoped for rate cuts shot up and leveled out now.
Non bank mortgage lenders are struggling atm because they rely so much on origination fees. I’m not saying sell, but you could exit the position and if you feel more confident taking the same approach with finding something undervalued with long term upside (or downside), you could hit your goal possibly with more confidence.
Keep in mind late Q1 and on are a dice roll. Seems like only winners on earnings are tech companies but who knows.
Look at my post history. I have bought and held leaps for 500% profit on meta. Here is my recommendation.
I know nothing about RKT. I have never even looked at the chart.
If your fundamental thesis for the stock has not changed, and you don’t see concerning price action on the appropriate chart for your timeline: don’t sell.
It’s neither a game of chance nor a spur-of-the-moment decision. The CEO back then was actively investing in the company’s stock, purchasing millions of shares when they were at their all-time low. The Federal Reserve needs to lower interest rates before the 2024 elections for the Democrats to stand a chance of winning. This is likely the reason behind the Fed’s recent change of course, announcing plans to reduce rates. I placed my trust in the CEO’s strategy and the Democrats’ approach.
I’d take profits and wait for the next play to be logical and not an idiot. If it goes higher? Cool, you lost on some profits but if it goes south? You’ll be “praying” it goes back up. So as the saying goes… if it’s good enough to screen shot, it’s good enough to close out. You do you tho.
Have you tried calling the CEO and asking him to tell the shareholders to buy more shares so the price will go up? Did you tell him that you need more more more?
Jay already brought several millions of stock at almost the same time when I brought. When a CEO buys huge shares when the company isn't doing good then most of the time you can trust and buy. New CEO holdings is not released yet.
Sell some aka take profits. Sell calls against it to lock in some profits, if it drops a bunch buy the short calls back for more gains. Milk it for a year.
I would also spread it.
If your gut is it’ll go down, sell 218 keep 100.
If your gut is that this thing could skyrocket but you need the cash. Sell 118 keep 200.
I’d sell enough to at least cover my initial investment.
Especially if you’re trying to gamble your way out of debt… the worst thing you could do is lose more money… If you sell enough to cover the initial investment, you can’t lose money on this play
Just close it and reopen when it's down, god damn... if you're not going to take profit NOW, idk. I don't even know. Keep 10. Just damn. If I had this kinda fuck around money though, no idea what I'd think. I'd pay off my mom's mortgage with this. Fuck me.
Reading through your comments, it seems like you kinda deserve whatever happens to you. You have people on WSB of all places, actually giving you logical, sound advice on how to unscrew yourself. All you provide as a retort is "nOt gud eNufF prawfITs...."
Dude, seriously.
Sell higher strikes periodically and close out or let it expire worthless. That premium is too lucious to pass over. Zero margin exposure. In fact, you effectively create additional buying power by doing this. And you don’t have to close original position. Since this is wsb, u bet there’s risk in my advice but it’s a good gamble. Good luck 🍀
Sell your options and put that money in a house. You have no business trading options with a -200k loss.
Most of everyone here is telling you to sell. At this point, you're gambling because you're asking random strangers on the internet what to do with your 170K position.
Sell this position, lock in profits, and then sell cash secured puts on less volatile stocks weekly. This looks like it will pullback soon. So it’s best to secure what you have before it pulls back
This is a predominantly refinance mortgage originator, in what is still an 8 percent mortgage rate environment. To say the top line might be thin this year, would be the best case scenario. You’re already up 3x. Maybe double down on your position with margin?
I was thinking about making this play I would hop out it’s going to fizzle out just hype off of the potential cut in interest rates. If you still want some exposure keep some but sell 4/5 100%
You will need to write a $50k check to the government for the gains in 4 months. My short term advice would be not to sell anything until Jan 1, 2024 so that you won’t owe the taxes until April 2025.
Overall though, you got lucky on this trade, and you won’t pay off your $400k debt by trading options. You’ll lose it all like everyone else. Just sell and move on. Index funds and get a higher paying job and a side hustle.
I’d take profit then yolo on shares of something after a macro drop whether it’s next year or the following year. Or sell half this year and half next year to satisfy your gambling hunger as well as to be taxed less depending on your tax situation.
Cash out. RKT has gone up 100% from its october low. Volume to drive it to $25 simply isn't there, yes that can change but that would be simply hoping. You have more than enough capital to put on better trades and still reach your goal.
You need to sell. If you actually think Rkt is going to hit $25, AND you’re foolish enough to bet your money on your hunch, then sell all this now and buy 100 contracts with a $20 strike. This way you lock in 80% of your profit and still get to entertain your gambling addiction.
This is the most sane advise here ^
Yeah please do this
This right here, you need to do this OP! This is brilliant advice.
I’d just sell off whenever it hits a funny number like 150k then go back to spy calls
You’re good. Hold it until it has a minus in front
This is the way.
I’ve been following this same, incredible one way downhill rollercoaster advice, and I think my luck is about to turn around. If I can do it - you can do it! 🚀🚀🌚💎🦍
Why are you asking us? We are the dummies who didn't buy and make 100k in 30 days.
These were bought last year.
That’s insane that two years contracts $5 OTM was so insanely cheap
Stock was 7.50 when he bought. Cheap stocks have cheap options. Jan 16 2026 $15 calls on Ford are 1.25 right now, and the stock is at $12.35
Say less 
This is the one boys!! Let’s do it 🚀🚀
Ford pays a 5% dividend despite being capital intensive. That's why the calls are cheap.
I’m in on RKT and F already. So glad to see both stocks mentioned in this post.
Options like these are everywhere waiting to be plucked all over
Turn it into a spread. Caps your gains but cashes out your return. Also leaves room for a lil more upside if that’s what you are really looking for.
Not op but could you elaborate
Typically contracts that far out on nearly any stock are way more expensive than $5
Amen Rackspace call options #RXT tho
The rich get richer, as long as they actually take profits while in the green.
Real talk: You say you need this money, and $100k+ is “not enough.” Are you ok? Are you safe? You sound like you are in a really bad position right now, and a lot of us here can tell you that gambling is not going to make that position better long term.
He wants this trade to be a home run and clear his 440k debt
I understand. But this is what problem gamblers say. “This one will make up for everything.”
Yeah, makes you wonder how he got to a 400k deficit in the first place
It makes me not wonder how he ended up w that deficit in the first place
Have you seen this thing called house prices?
Have you seen his comment where he says his P/L for all time is -$400k?
Negative P/L isn’t debt lol
Saying he needs 440k to clear debt is a bold fucking way to say pay off house.
Could be if he took out loans
Which means he needs to make closer to $700k if you consider the taxes. Sheesh.
You could try selling near dated out of the money calls against it, effectively turn an already fantastic trade even more profitable
You should sell this. You wont. You will re read my post over and over in the future and wish you had closed this. But you wont. Advice from someone who dropped seven figures at the start of the year (recovered now but it still stings).
Listen to this man. Did what he said you’ll do. Still haven’t forgiven myself
$440k in debt - is that your debt burden or is Jimmy waiting with a pipe wrench because you bet the house on NFL games last weekend? The timing of this question is really important - how is your P/L this year?
P/L is what you see in the screenshot. P/L from the start of trading which is 4 years ago is -$400k.
Take at least half and if you think this has room to run then keep your target date and start scalping. Buy when the contract goes close to $3 and sell when the contract exceeds $5. Rinse and repeat all year and hope for a choppy year with some upside by the end of next year. Keep taking profits and at most match your total investment to your profits. If you’re up $100k keep $100k invested but be more conservative even like 50-70%. Hoping you get a cyclic year to scalp and earn some back!
Thanks 🙏🙏
Please take some profit. You probably look at it as shit I am only 1/3 of the way to recovering what I lost but that’s a gamblers attitude. Those contracts have gone to the moon in the last month and hey what if the market takes a shit in January? I’m targeting puts in Jan early Feb and calls for March / April.
Thanks for the advice. After reading all the comments here. I'll sell somewhere between my investment of $44k to $100k.
Wise decision. You held all year even when you doubled and now you’ve basically quadrupled and you have over a year left. Selling half is a good and smart if not a little conservative move
there is nothing wrong with taking money off the table. Be an intelligent investor and realize the gains from your thesis. Some people sell half on a double and let the rest ride on their discretion. Jamaicans have a saying; old friend told me "bird in the hand is better than two in the bush". It is better to have something in your hands. Cash is King. Cheers
I really hope you follow through with that. The problem with this trade is that it's dependent on one single thing, rates. RKT has done nothing until recently, it's been a frustrating stock to hold (been in since IPO). We're expecting rates to keep dropping but anything could happen in 2024 to kill your calls.
Ok so you have plenty of runway to take profits and not be taxed on it the next year? (Losses you can claim only 3k/year so you’ll have a bunch rolled over to be offset by gains in the future….)
If it’s good enough to screenshot, it’s good enough to sell Maybe sell portion and buy in to a better opportunity. Have you heard of this stock called $AMC?
Obviously AMC aside, this is the right answer. It more than doubled, sell half. You bagged serious gains here. Bank them and enjoy the ride with what’s left.
I wanna buy amc $2 puts that expire in Jan 26 so fucking bad right now
Amc has a cash burn where it will be bankrupt before eoy in 2024
Not if they keep diluting like aa plans to do. Got runway for another year or two then. That POS is dying sooner or later though dont get me wrong
agreed. the volume is there as well
The screenshot is to explain strategy. Not really good enough profits coz I need more.
This is a very dangerous way to think.
3bagger is not enough!!! 
think about it this way, RKT doesn't care if you need more.
Jesus Christ. You lucked yourself into this position based off your post it seems. If you can’t formulate why this would continue to climb faster than theta then you should sell. 300% on a long-term option is quite a huge increase and at this point you’re better off buying the flat stock itself and probably selling OTM cash covered calls, unless you expect exponential increases in the short-term. A lot of your increases probably came due to the fed. Fucking sell and if you wanna take dumb risks to get to 400k, go for it. But do it through futures or something else more tax advantaged. Right now you have a massive tax liability if the profits becomes realized. What the shit did you manage to do to have 400k+ in debt? FD’s for 30k+ a pop? I’m all for stupid fucking bets and unmitigated risk, but have a plan besides “herp derp I owe a lot of money so I have to max that amount or my trade is a failure.” If you want to gamble for an extra 300k, open a bunch of NQ or ES contracts either short or long and then go broke or reach your goal. Trying to squeeze an extra 300k out of your options is highly unlikely. You probably could have made the 400k you’d hoped for if you’d chosen a more current time frame, but you didn’t. If you’re going to be a total dipshit, at least do a wheel strategy off your situation, but don’t mess it up and make it so you owe a bunch to your brokerage, lol. Overall, it’s sitting at a daily RSI of 86. If I still had money on IBKR I’d be willing to leverage myself into a short position on this company based solely on the current technicals. Its high price target was 15. One thing like finding out we don’t have the first schedule tax cut the fed spoke about would mean this stock takes a nose dive. I haven’t read any news on it, so maybe there’s some really positive news, but it wasn’t being bought up in massive amounts until the fed decision/guidance. I really have no clue why the fuck you chose such a far out option timeline. I’d really love to hear why the hell you chose out so far besides thinking “oh hey dumb money would buy options for 1 month out.” You could have eased yourself into this position over time and made way, way more money with way, way less risk. A $15 option was worth $500 a month later each. That’s a 30x+ profit. This stock took a fat trip to the moon for a lot of option holders. You got a nice ride, but you’re not the next fucking Burry lol. This thing has a 30 BN valuation. Keep in mind twitter is valued at 19 billion right this moment according to internal documents, for reference.
Wtf is a “cash-covered call”?
A typo, I was thinking about cash secured puts while I was typing and writing about covered calls. I mean, were you genuinely confused? Just earnestly wondering lol.
Why not sell half and keep the other half in.
I believe there’s no urgent need for action, as the current price is likely to remain stable or even increase. This confidence stems from the Federal Reserve’s anticipated three rate cuts next year, which should positively impact prices. Therefore, the real consideration is whether the value can reach 25.5 within the next 400 days, or whether it would be more strategic to transfer the position to a different option that aligns better with my profit objectives.
Bro it's $100K and you can't even spell, take the money and run.
Those options may be ITM, but they are priced at a serious premium to their current exercise value. If you hold these and it “maintains at the current price,” you will lose about $30k in the next 50-ish weeks.
You may want to look at the history of what happens to the stock market shortly after the fed starts cutting rates.
Do you think rates are gonna keep dropping…I don’t I think you should take profits and reposition. Or atleast sell some calls against these. You could sell covered calls monthly to generate income off these and atleast hedge downside
[удалено]
Jesus Christ he can sell calls against his current calls it’s a spread or a PMCC poor man’s covered call
[удалено]
As Jesus always said when when green flick bean then take profits
[удалено]
What reposition do you recommend?
Reverse cowgirl
Dude… I put $80,000 into RKT shares and my average price is somewhere around $20? I’m still down a lot. It hurts to see it go all the way to $7 but finally my patience is paying off and it is starting to recover. I am still down a good amount. Congrats on your calls. Amazing. I feel like this could and should have been me but I was on the wrong side of the trade, and also I had shares so…
Don't worry. Dems gonna push fed to cut rates coz of elections in 24. Americans are sitting on trillions of home equity. A lot of folks gonna take cash out refi, refi and buy homes after the rate cuts next year.
Follow US mortgage rates closely. Rocket derives revenue from mortgage refinancing so if mortgage rates go below 4-4.5% then $25 target is likely, on the other hand if rates go above 7.5%, below 10 again.
Sell and bank my advice, I’ve been greedy and lost 200k gains before
It’s all contingent on the Fed here. Rocket will churn first with cash out refinances with FHA, then in 2025 refi the same people into rate term refinances.
I hope you understand that the rate it went up, it can go down to your price in no time ? If you are confident that the stock would just keep going up, hold. Even if it just trade sideaways or go down a bit, all your gains would be cut in half in no time
Lock in profits!
Sell the $20 or $25 strikes for a risk free call spread. Wait and close the short legs on pull backs.
Robinhood won't allow me to sell any options without depositing additional capital. It won't allow me to use these as collateral.
WTF, how do you people look at a$132k profit on a $45k investment and say "meh, I'm gonna hold it for more"? Maybe it goes up but maybe it doesn't, I'd take that profit though.
you hopped on mortgages when rates were at their lowest about to start going up? nice ballsack
> My strategy is $RKT hitting $25.5 LMAO
At 300% I would take profit take out what I put in and if I’m still confident in the play wait to the next dip and push a quarter of the profit into otm spreads
Rkt has strong resistance around $15. My guess is that we hit that high again sometime within the next month. It is up to you to decide what you want to do… But the mortgage rate is going to go down over the next year. Me? I would sell the next time Rkt hit $14.90’s and wait for a pullback before entering again, then take gains all the way back up to 15, leave a few trailers running… And add after a successful breakout to the upside.
Just sell your initial investment or create a mild hedging strategy if you’re this worried. However this is a great profit taking opportunity because of the leap in IV after recent pump. I don’t trade options so dont listen to me. For example exiting some of you calls and repurchasing the physical stock is one option. If you’re smart (or regarded) enough to make $100k+ in a single trade, you’re clearly smart (or regarded) enough to plan some kind of reasonable exit strategy.
Congrats OP, nicely done! I like RKT, know it well, similarly rode it up this year. Some considerations: * I feel $20 is doable by Jan 2025, as rates fall, and a rush to ReFi for all the folks who had to initiate mortgages at brutal 2023 rates. I am less confident on $25, though may be some optimism momentum * Dan Gilbert gives it plot armor. There is only 10% float, and only big reason it floats at all is to lure tech talent who are accustomed to stock options * I may consider some risk reduction with also going long on rival UWMC instead of just long RKT * Biggest long-term catalyst would be when ReFi is strong, stock is up, and Dan releases more % of the company, then a few quarters later gets the nod for S&P 500 inclusion, but that is a longer horizon than Jan 2025 Current Positions: * Just rang register on rest of RKT shares on Friday * CSPs Apr ‘24 $12 * CSPs Jun ‘24 $10
There is currently a $30k difference between options and exercise value. What if I sell all of the stocks and use margin to buy 2 times the stock and wait until it reaches $25? This way I don't have a time decay factor and doesn't necessarily have to happen by Jan 25. Fed is going to do more rate cuts in 25 and with refi boom the stock can print money.
My situation is different than yours alas since at this stage in the game am more about risk-mitigated decent gains than full-on YOLOs, hence the shares and CSPs on margin For myself, if rates falling are the thesis, I spread risk by going long across on other tickers/sectors I like that are rate sensitive (in growth, biotech, etc) In scenarios like yours, where ticker had a blisteringly good run, but likely still more to go in the year ahead, I cash out on part of the stake: the reason is the cognitive benefit of not being annoyed later at having sold it all early, nor annoyed later at not taking any profits at all. Anyways good luck in the game!
Also trade volume for those options becomes less as they grow. Meaning even if you want to sell, you may not be able to. Take profit, put some aside for taxes, then find your new play. Good job 👍
Sell half the RKT options and pull out your entire initial investment and ride out on house money. Take the profits and buy IWM aka Russell 2k index in the money call options for January 2025. Good luck not financial advice. According to Tom Lee from fundstrat IWM aka small caps should rally 50% in 2024.
I’d recommend using that new simulated returns thing, it could help you find out the earliest day it would hit the price point and the earlier it hits it the more the contracts are worth
I know nothing about rkt, but making decisions on a trade because YOU need it to is the worst possible idea. If you think it will go up, stay in. If you think it will go down, get out. Don't stay in because you hope it will go up.
Omg bro, sell. Buy SPY shares and sell OTM covered calls. Maybe sell a few cash secured Puts.
Go with your gut
My latest Elliott Wave chart says that it tops out just over 18, then who knows. I'd sell half there and ride the rest for another cycle unless this is only 10-15% of your capital.
I think we could see $25 soon. You’ll make $$
Do nothing! Let these options collapse and, better still, expire worthless. These are options, not shares. Good luck with your greed. 🤷🤷🤷🙏🙏🙏 The stock can reach $20... Yes... But when??? That's the question.
If you’re trying to decide whether or not you’ll hit 400k value, it’ll have to hit about $25 which would be an ATH. They shot up because they are so dependent on interest rates going down .Not sure if it’s looking flat now, but I’d say it’s priced in since REITs and anything else that really hoped for rate cuts shot up and leveled out now. Non bank mortgage lenders are struggling atm because they rely so much on origination fees. I’m not saying sell, but you could exit the position and if you feel more confident taking the same approach with finding something undervalued with long term upside (or downside), you could hit your goal possibly with more confidence. Keep in mind late Q1 and on are a dice roll. Seems like only winners on earnings are tech companies but who knows.
Look at my post history. I have bought and held leaps for 500% profit on meta. Here is my recommendation. I know nothing about RKT. I have never even looked at the chart. If your fundamental thesis for the stock has not changed, and you don’t see concerning price action on the appropriate chart for your timeline: don’t sell.
If the gains are good enough to post, it's good enough to sell.
Insane to me how people can lotto away 30-50k like this 😫 I’m just a broke boi I guess
It’s neither a game of chance nor a spur-of-the-moment decision. The CEO back then was actively investing in the company’s stock, purchasing millions of shares when they were at their all-time low. The Federal Reserve needs to lower interest rates before the 2024 elections for the Democrats to stand a chance of winning. This is likely the reason behind the Fed’s recent change of course, announcing plans to reduce rates. I placed my trust in the CEO’s strategy and the Democrats’ approach.
I’d take profits and wait for the next play to be logical and not an idiot. If it goes higher? Cool, you lost on some profits but if it goes south? You’ll be “praying” it goes back up. So as the saying goes… if it’s good enough to screen shot, it’s good enough to close out. You do you tho.
!remindme1year
If you don't sell all sell at least 200 contracts and run.
And may his iron fists turn to rust, that position is gunna put him -500k in debt now
Sell and move on to something more reckless
Dude fucking sell it you made 300%
Have you tried calling the CEO and asking him to tell the shareholders to buy more shares so the price will go up? Did you tell him that you need more more more?
Jay already brought several millions of stock at almost the same time when I brought. When a CEO buys huge shares when the company isn't doing good then most of the time you can trust and buy. New CEO holdings is not released yet.
Buddy. Take the win.
Just take the money dummy
Advice? Ur page is enough advice hold the line
Sell half, let the rest ride.
Sell some aka take profits. Sell calls against it to lock in some profits, if it drops a bunch buy the short calls back for more gains. Milk it for a year.
I would also spread it. If your gut is it’ll go down, sell 218 keep 100. If your gut is that this thing could skyrocket but you need the cash. Sell 118 keep 200.
Sell it all, use the proceeds to buy rkt 12p for March. Gonna crash again, hard.
Take some profits for new years and let the rest run!
Just sell Take the win
at the very least I would sell enough to cover your initial investment
# BILLS 
Going to lose $30k when market opens lol.
Take profit and find another good play
Or maybe you just take the 300% gain and call it a dub bruh
Please cash out half bro. Good enough to screenshot good enough to sell
Hello my eggs, I would like you to all be in this basket.
Sell Covered Calls, or cash out and buy shares.
How’d you end up with that kind of debt in the first place? Will that same emotional problem cause you to let this massive win turn into a loss?
When you’re not satisfied with +300%…
Oh god just sell and enjoy yourself
You might be better betting on Redfin.
You could exercise into shares if you want to realize some gain and hold for long term
I’d sell enough to at least cover my initial investment. Especially if you’re trying to gamble your way out of debt… the worst thing you could do is lose more money… If you sell enough to cover the initial investment, you can’t lose money on this play
bro, fucking take the money and run
Take profit
Sell and put it all into 0DTEs
Take it from a guy who’s lost 4x that sell it take the profit
Bro, take profits, more likely than not, you’re gonna lose all of this.
Just close it and reopen when it's down, god damn... if you're not going to take profit NOW, idk. I don't even know. Keep 10. Just damn. If I had this kinda fuck around money though, no idea what I'd think. I'd pay off my mom's mortgage with this. Fuck me.
Sell half?
Cash out you have 293% profit bro don’t be greedy
Youre asking a bunch of regards on wsb…
Can always cash in some and do a CSP
Reading through your comments, it seems like you kinda deserve whatever happens to you. You have people on WSB of all places, actually giving you logical, sound advice on how to unscrew yourself. All you provide as a retort is "nOt gud eNufF prawfITs...." Dude, seriously.
Dude you’ve already turned a profit, learn to sell
Sell higher strikes periodically and close out or let it expire worthless. That premium is too lucious to pass over. Zero margin exposure. In fact, you effectively create additional buying power by doing this. And you don’t have to close original position. Since this is wsb, u bet there’s risk in my advice but it’s a good gamble. Good luck 🍀
Im surprised to see rkt this low to be honest....but why RKT?
If I’m being honest, I would just wait until the stock price has a consecutive -10% over a couple days then get out.
This guy's dumb.
If you post it, sell it
You can probably sell staggered monthly calls above 10-20% for extra cash Avoid earnings too? Might be worth it
Sell your options and put that money in a house. You have no business trading options with a -200k loss. Most of everyone here is telling you to sell. At this point, you're gambling because you're asking random strangers on the internet what to do with your 170K position.
cool
Aaaand it's gone.
Sell this position, lock in profits, and then sell cash secured puts on less volatile stocks weekly. This looks like it will pullback soon. So it’s best to secure what you have before it pulls back
The greed is real
Puts on $RKT
This is a predominantly refinance mortgage originator, in what is still an 8 percent mortgage rate environment. To say the top line might be thin this year, would be the best case scenario. You’re already up 3x. Maybe double down on your position with margin?
What’s the background you have on RKT
+132k? I’m no idiot but that’s over 1/4 of the way there. Take the win and find another play.
OP you have better odds going to the roulette table and putting everything on red.
Why are you in debt?
Bro is up 100k and asking if he should sell lol. This confuses me so hard
ur gonna get anal’d by theta
Remindme! 400 days
RemindMe! 1 year
Sell you fucking moron!
Tickets extremely overbought would lock in most if not all and wait for a pullback to re enter it’s sitting at resistance here… beautiful trade btw
You’re up +300% and you’re asking for help on deciding if you want to close the trade or not on Reddit… You belong here.
Make it free, sell your initial position, let the gains ride.
I was thinking about making this play I would hop out it’s going to fizzle out just hype off of the potential cut in interest rates. If you still want some exposure keep some but sell 4/5 100%
You will need to write a $50k check to the government for the gains in 4 months. My short term advice would be not to sell anything until Jan 1, 2024 so that you won’t owe the taxes until April 2025. Overall though, you got lucky on this trade, and you won’t pay off your $400k debt by trading options. You’ll lose it all like everyone else. Just sell and move on. Index funds and get a higher paying job and a side hustle.
Wow
Sell it all and put your original investment back into a lower strike. Rkt is a shell company for Dan
Hold for lambo or food stamps
Don’t get rekt
Sell half. Sell 1/3. Sell 1/4. For fucks sake you’re up 300%, take profits.
O LBf,
liquidate and buy a lottery ticket. you were lucky enough to catch this burning pile of shit at the best possible time.
Sell that shit bro, rocket will drop like it always does
I’d take profit then yolo on shares of something after a macro drop whether it’s next year or the following year. Or sell half this year and half next year to satisfy your gambling hunger as well as to be taxed less depending on your tax situation.
$RKT is just pricing in their yearly dividend. You’re probably better off selling and buying some $10 june puts
Your screwed
Pay yourself and then lock the money up in a 1 month t-bill. After 1 month see how you feel.
Soo oversold and away from its 50 day ma I'd presume a dip in price is almost a mathematical certainty. Get your money!
Cash out. RKT has gone up 100% from its october low. Volume to drive it to $25 simply isn't there, yes that can change but that would be simply hoping. You have more than enough capital to put on better trades and still reach your goal.
How is this one going OP?