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  • #91
    Originally posted by dizzolve View Post
    Just my personal opinion but Tesla is more of a tech company than an automobile company. So it's hard to evaluate by comparison.

    Right now Tesla is worth more than Walmart but Walmart makes 20x Tesla does

    That tells me that Tesla's future potential is already baked into it's price.

    It's not a buy now .........but if it shrinks back to say 1200, I would consider long term hold. (of course I could be VERY wrong)

    The psychology of Tesla in the market still makes it a daily prospect if you trade though. It's great because it can move so much and so fast. If you ride the wave of some of the big money you can make some big cheese.
    It still is worth considering having some of this in your long term portfolio ..........just in case. It's already changed people's lives.
    Red 98

    Kareem rises to the top

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    • #92
      The markets giveth and they taketh away.....

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      • #93
        Red, red, red!

        (Buy, buy, buy)

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        • #94
          Wow, Im so focused on offseason stuff I never get the chance to look at the anything goes section, was pleasantly surprised to find this thread.


          My big moves came earlier this summer when I bought some long term call option in a few companies, hoping that the return to normal(slam on wood) next year will lead to a real bounce back. Became a big fan of options both short term(really just to fill the gambling void live sports left earlier this year) and long term. Fun way to control your downside and have potentially big payoffs if your timing is good. It did take me awhile to figure out what exactly an option does but once you get it down and are comfortable with it its a cool way to play around in the stock market.
          A book I wrote

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          • #95
            Originally posted by CTM View Post
            Wow, Im so focused on offseason stuff I never get the chance to look at the anything goes section, was pleasantly surprised to find this thread.


            My big moves came earlier this summer when I bought some long term call option in a few companies, hoping that the return to normal(slam on wood) next year will lead to a real bounce back. Became a big fan of options both short term(really just to fill the gambling void live sports left earlier this year) and long term. Fun way to control your downside and have potentially big payoffs if your timing is good. It did take me awhile to figure out what exactly an option does but once you get it down and are comfortable with it its a cool way to play around in the stock market.
            Glad ya found it!

            I've been a follower on the subreddit wallstreetbets for a while now - and it is quite a humorous place to be. I'd like to learn more about option trading, but am a huge noob. I don't want to end up like 75% of those members. But it would be fun to "play" a bit here and there.

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            • #96
              Back in the green after three days of profit taking?

              Anyways, I didn't do anything either way. Just let it ride, and keep contributing every two weeks.

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              • #97
                Originally posted by Peerless View Post
                Back in the green after three days of profit taking?

                Anyways, I didn't do anything either way. Just let it ride, and keep contributing every two weeks.
                Let 'er ride....getting topsy turvy.

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                • #98
                  Originally posted by CanDB View Post
                  Let 'er ride....getting topsy turvy.

                  My Boss is a Jewish Carpenter

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                  • #99
                    Originally posted by FL BRONCO View Post
                    Forget Tesla, go big on Edsel

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                    • Originally posted by Peerless View Post
                      Glad ya found it!

                      I've been a follower on the subreddit wallstreetbets for a while now - and it is quite a humorous place to be. I'd like to learn more about option trading, but am a huge noob. I don't want to end up like 75% of those members. But it would be fun to "play" a bit here and there.
                      Haha, yeah it's a cool thing I like really because it's better control of your downside.

                      Probably only accounts for about 30% of my portfolio trades. I also enjoy looking at dividend investing as well as the obvious growth stocks. Options are the most active investing because timing matters so much. If you're interested, and for anyone who wants to and has time to learn I can try to give the basics.


                      All an option is is the right to purchase 100 shares of a stock at a set price up to a certain date.

                      To make it simple lets look at a 10 dollar stock. I think the stock price is going to be higher, let's say much higher a month from now. I would order what's called a call option. (If I think the stock will go down I would buy a put option, basically same concept as shorting, instead of a right to buy, it's a right to sell short). These options have prices on them that will fluctuate.

                      So, example, let's say I buy a call option for 1 dollar on the 10 dollar stock that expires in one month (Every option has an expiration attached to it. Some have very short periods like one week, others can be as long as a year or more. The longer the time before the option expires the more expensive it will be all else being equal.) Remember the option is for 100 shares so this 1 dollar call option really costs me $100.

                      Let's say I'm very very very lucky and the stock jumps up to $20. The option can be executed at any time, slightly different than European Options which can only be executed on the day they expire. If it's executed I've spent $100 for the right to buy 100 shares at $10 for a stock that now sits at $20. Essentially once executed I can walk away with a profit of $900.

                      Now compare this to buying the stock with the same level of capital. With $100 I could buy 10 shares of the stock at 10 dollars. It goes to $20. I've made $100 profit. This is the value of options where you can really get more bang for your buck. On the flip side when an option loses you money, compare that to trying to make a trade with just buying the stock where if it doubles you make 900. Your initial investment would be 900, but what happens if you buy the stock and it drops by 50%? You lose 450. In the option described above that loss would just be 100.

                      The price of the option can change quite a bit as you hold it because it has to reflect the fact that it can be executed at any time, and the further away from the expiration, all else being equal, the more expensive the option will be. As it gets closer to expiration and isn't what is called "In the money" the value will decrease and usually fairly rapidly.

                      So let's take the same example. 10 dollar price, 1 dollar call option, Let's say the price doesn't change one bit. It stays at 10 dollars through to the expiration date. Unfortunately you would lose all 100 dollars of your investment because that option is valueless. No one would want to pay a premium on the option to buy a stock at $10 if the stock price already is just $10. Let's say the price of the stock goes up to 10.50. At that point an option to buy 100 shares at 10 dollars is actually worth something, but not as much as your initial investment. It would be worth .50 for each share or a total of $50. So you would have lost half your investment. Basically every penny shifting up or down effects the value of the option by a dollar. So for your investment you need the stock to hit 11 to break even on the trade, but every penny afterwards nets you another dollar.

                      The nice thing about options is you know exactly how much money you can lose. So for example when you short a stock it's a bit risky because the stock can theoretically go up infinitely. You could simply buy a put option and important because this happened to me the first time I tried it you are only on the hook for the initial price of the option. Your account might do some wonky things because of the change in prices that have to match up and it might look like your down a whole lot on a bad trade, but you are still just on the hook for the initial cost of the option. You can always choose to allow the option to expire and not execute it. An option that reaches expiration out of the money(in our example that would be the stock being $9.98 for example) will simply expire worthless. You would lose the investment of $100. But for instance if the stock price went to $5, you wouldn't be under any obligation to then purchase 100 shares at $5 and take a $500 loss. You would still just be down $100. Now what often happens is options will be traded before expiration. I've done both where I've just wanted to cash in a gain before expiration and also to limit my losses by a bit before expiration. The price of the option it self constantly changes to reflect if it's in the money, out of the money, how much time is left before expiration.


                      Really the trick with options right now for me, is bankroll management. Never putting yourself in a spot where losing nearly 100% of the trade's value really makes a dent in your portfolio, because it will happen. So I'll just say I rarely purchase a short term(less than 1 month) option contract that is greater than $30-$40, just because I know how quickly prices can change on the option and if I'm unlucky I don't want to be left taking a big percentage hit on my portfolio. When I do get successes it's usually a couple hundred percent gain and so far I think I'm a little bit ahead overall on option trades. And again, I'm fairly new at this, only started a couple months ago so keeping the trades small really allows you to understand how options work when the underlying price of the stock moves without being on the hook for a lot of money.
                      A book I wrote

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                      • Couple of the online gaming stocks have been blowing up. Guessing because football is back and seems to be managed well enough to continue for the season for now. Draft Kings and Penn have had big months.
                        A book I wrote

                        Comment


                        • Originally posted by CTM View Post
                          Wow, Im so focused on offseason stuff I never get the chance to look at the anything goes section, was pleasantly surprised to find this thread.


                          My big moves came earlier this summer when I bought some long term call option in a few companies, hoping that the return to normal(slam on wood) next year will lead to a real bounce back. Became a big fan of options both short term(really just to fill the gambling void live sports left earlier this year) and long term. Fun way to control your downside and have potentially big payoffs if your timing is good. It did take me awhile to figure out what exactly an option does but once you get it down and are comfortable with it its a cool way to play around in the stock market.
                          I'd like to get into selling puts. Maybe playing the wheel for certain companies at good pricing. But I need to get a job to get some real buying power. I got laid off last year.

                          I actually have an interview on Wednesday for a job
                          Red 98

                          Kareem rises to the top

                          Comment


                          • Originally posted by dizzolve View Post

                            I'd like to get into selling puts. Maybe playing the wheel for certain companies at good pricing. But I need to get a job to get some real buying power. I got laid off last year.

                            I actually have an interview on Wednesday for a job
                            Hopefully you had a good interview and received a job offer!


                            Hoping to finish the week strong. It's been a good and green week!

                            Comment


                            • Originally posted by dizzolve View Post

                              I'd like to get into selling puts. Maybe playing the wheel for certain companies at good pricing. But I need to get a job to get some real buying power. I got laid off last year.

                              I actually have an interview on Wednesday for a job
                              Good luck with your interview!

                              Comment


                              • The S&P 500 and Nasdaq each posted their best weekly gain since July as of Friday’s close, rising about 3.7% and 4.6%, respectively. The Dow gained 3.3% on the week for its best gain since August.

                                Solid!

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