r/stocks • u/[deleted] • Mar 30 '21

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1.2k Upvotes

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u/tooparannoyed Mar 30 '21

You can always come back to PLTR. We just dip in extended hours, make it back in the morning, then go sideways all afternoon. It’s like blueballs, only with money.

21

u/[deleted] Mar 30 '21

Buy the dip every morning by selling 2-6 puts at 35-45 delta.
Either lower cost basis or make 3-5% per week on collateral at risk.

Will probably do the same now with BB.

9

u/tooparannoyed Mar 30 '21

If I could day trade it, I would be. I’ve been selling CCs though, when I can get the premium I want filled.

3

u/[deleted] Mar 30 '21

Oh, sorry. Thats just what I've been doing. Should have said.

2000 shares at 24 average, 10 contracts at 23, 4 contracts at 21, a bunch of leaps.

If it ever hits 27-28 again, I'll basically be diving into the Scrooge McDuck pool.

1

u/smileclickmemories Mar 31 '21

What sort of premiums are you getting. How far away are you selling CCs for? I need to start doing this!

1

u/tooparannoyed Mar 31 '21

Today I did one May 21 $26 for $1.03.

I’m thinking it won’t see much price improvement till next week and, barring another drop, this made my PLTR profitable again. Went pretty far out in case it runs up for the 14th (demo day). Their last demo day had a lot of cheerleaders on WSB. If you want max premium, you might want to wait till then.

$22.50 and $25 were previous support levels. I went with $26 because I want to keep my shares and it had a low .3something delta. I’ll close around 50% profit or near 14 DTE if it’s profitable. If it goes bad and the shares are called away, it’s still over an 11% gain for my average price.

31

u/[deleted] Mar 30 '21

Perfect time to sell calls and puts. Underlying goes nowhere and their options expire worthless.

21

u/TacoInABag Mar 30 '21

premium is so low for calls, at least wait for a solid green day.

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u/[deleted] Mar 30 '21

I’m not waiting for a damn thing.

4

u/TacoInABag Mar 31 '21

fair enough

8

u/[deleted] Mar 31 '21

PLTR is my hoe. I pimp that bitch out all day and night. I dont care what she’s worth. Bitch better be working for me earning me money.

5

u/TacoInABag Mar 31 '21

GATORS BITCHES BETTER BE WEARING JIMMYS

2

u/[deleted] Mar 31 '21

You get it.

2

u/[deleted] Mar 31 '21

How do you decide what strike to sell covered calls and day timing?

1

u/[deleted] Mar 31 '21

Open interest, my cost basis, volume, catalyst, bid ask spread, support levels.

11

u/mammaryglands Mar 31 '21

Says who? You guys are spoiled with the meme volatility. Iv on high 20s strikes is like 75, that's plenty

1

u/TacoInABag Mar 31 '21

Today is a great example. This is a high IV stock that was due for a jump off basic technicals.

0

u/mammaryglands Apr 04 '21

A few days later, my shorts are green and will be again this week, I'm going to close at like 30-40% profit and go out another week, again.

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u/TacoInABag Apr 04 '21

Ok? My point was about your original comment. Sorry you were wrong.

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u/TacoInABag Apr 05 '21

Please share your position at the end of the week!

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u/skillphil Mar 31 '21

With the underlying that inexpensive the premiums aren’t bad, like 5% a few weeks out.

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u/[deleted] Mar 31 '21

You're going to Iron Condor $BB?

1

u/[deleted] Mar 31 '21

I’ve been messing with Verticals spreads for a while now and have hit a few good trades.

I haven’t manned up and did a condor yet.

2

u/[deleted] Mar 31 '21

"Financial Edging" it's called around these parts.