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Old 06-27-2016, 11:23 AM  
DaFace DaFace is offline
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Investing megathread extravaganza

A place to talk about investing stuff.

Last edited by DaFace; 02-19-2021 at 06:35 PM..
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Old 06-28-2020, 02:39 PM   #5536
lewdog lewdog is offline
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Wheel Strategy Article that I found helpful. I have sold puts and covered calls in similar but not exact fashion. I like the theory behind this technique and I may run with it for value stocks I may like owning anyway.

Quote:
The Wheel Strategy is a systematic and very powerful way to sell covered calls as part of a long-term trading strategy.

The process starts with a selling a cash secured put. The investor also needs to be willing, and have the funds available to purchase 200 shares.

After selling the initial put, the put either expires or is assigned. If it expires, they keep the premium and start again if they are still bullish on the stock, or they move on to another stock. If they are assigned, they take ownership of 100 shares.


At this point they sell a call to turn it into a covered call and they also sell a new put.

From here, if the stock goes up through your call, you are assigned and the stock is called away leaving you flat. As the stock went up, your sold put expires worthless.

If the stock goes down, you are assigned on the second put, and you now have your full allocation of 200 shares. As the stock went down, the call expires worthless.

Now that you own 200 shares, you sell two calls.

If the stock goes up through the calls, the stock is called away and your position is flat again.

Through the process you have collected 5 option premiums, plus any dividends while holding the shares, plus potentially some capital gains, depending at which strikes you sold the calls and puts.

If the stock continues down, you can continue to sell 2 covered calls each month.

This process is best explained in the following diagram:



https://optionstradingiq.com/the-wheel-strategy/
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Old 06-28-2020, 02:55 PM   #5537
jdubya jdubya is offline
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Originally Posted by ThaVirus View Post
I'm a millennial myself. My dad is one of those hardass parents. A couple months after I turned 18 he told me I needed to look for my own place. Due to some unexpected circumstances in his own life, he allowed me to stay for another year (while paying him rent).

I moved out at 19 and never looked back. I was making $7.25/hr, going to school full time without financial aid, living in a major metro area. Shit was rough.

I wonder now what kind of parent I'll be when the time comes. My dad was cold but I can't deny that being forced into taking the leap probably made me a stronger/more responsible person.
Rough? That was considered 100% normal back in the 70`s and 80`s when me and my brothers got out of school. Same with most of everybody we knew. We were glad and wanting to do it because we wanted independence so badly. We also were first in line at the DMV on our 16th birthdays. Different times but loved them.
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Old 06-28-2020, 03:54 PM   #5538
Hammock Parties Hammock Parties is offline
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LFGOOOOOOOOOOOOOOOO

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Old 06-28-2020, 03:58 PM   #5539
Discuss Thrower Discuss Thrower is online now
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Old 06-28-2020, 05:44 PM   #5540
ThaVirus ThaVirus is offline
You gotta kill a few people
 
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Quote:
Originally Posted by jdubya View Post
Rough? That was considered 100% normal back in the 70`s and 80`s when me and my brothers got out of school. Same with most of everybody we knew. We were glad and wanting to do it because we wanted independence so badly. We also were first in line at the DMV on our 16th birthdays. Different times but loved them.
In the 70s you could support your wife and two kids off of your salary at the factory fresh out of high school with no degree.

Different times indeed.
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Old 06-28-2020, 06:18 PM   #5541
displacedinMN displacedinMN is offline
It was not a fair catch
 
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Originally Posted by ThaVirus View Post
In the 70s you could support your wife and two kids off of your salary at the factory fresh out of high school with no degree.

Different times indeed.
It is expensive to live indeed. But too many cannot understand spend less than you make.
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Old 06-28-2020, 10:01 PM   #5542
HonestChieffan HonestChieffan is offline
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Originally Posted by ThaVirus View Post
In the 70s you could support your wife and two kids off of your salary at the factory fresh out of high school with no degree.

Different times indeed.
What did you do for work in the 70’s?
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Old 06-29-2020, 05:50 AM   #5543
Munson Munson is offline
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IBIO up around 23% in pre-market trading.
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Old 06-29-2020, 07:12 AM   #5544
Hammock Parties Hammock Parties is offline
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IBIO up around 23% in pre-market trading.
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Old 06-29-2020, 06:13 PM   #5545
scho63 scho63 is offline
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next year we will be empty nesters. Unless the oldest has to live with us until she gets a job. She will have to pay rent.
You know your ONLY job now right?

Keep her off the pole!
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Old 06-29-2020, 07:15 PM   #5546
Hog's Gone Fishin Hog's Gone Fishin is offline
Fish are scared of me
 
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Old 06-29-2020, 07:20 PM   #5547
Hog's Gone Fishin Hog's Gone Fishin is offline
Fish are scared of me
 
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Looking back, I'm so glad I sold NVDA at a profit at $65. If I had held on I'd probably think I was a genius or something and people around me would be annoyed.
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Old 06-29-2020, 08:17 PM   #5548
displacedinMN displacedinMN is offline
It was not a fair catch
 
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Originally Posted by scho63 View Post
You know your ONLY job now right?

Keep her off the pole!
Not an issue there.
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Old 06-30-2020, 09:58 AM   #5549
loochy loochy is online now
Hey Loochy, I'm hooome!
 
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ibio selloff this morning

will it pop back by the end of day?
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Old 06-30-2020, 10:01 AM   #5550
Hammock Parties Hammock Parties is offline
I'll be back.
 
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Quote:
Originally Posted by loochy View Post
ibio selloff this morning

will it pop back by the end of day?
this is a long play

always has been

check back in a month when it's over 3 and holding
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