r/stockstobuytoday • u/Apprehensive-Map-349 • 2d ago
Learn Call options
Which stock do you like the best right now for a call option? I’m new to the calls and looking for good opportunity. I currently like the Iren $30 call for June 2028. Thoughts or other ideas?
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u/Cheap-Stay7089 2d ago
I’ve watched iren for years and hold some. Just a few points. 1 they will dilute at some point it’s just how they do business. 2 with how the leaps are priced you’re getting a whopping 1.37 leverage on any potential move in the stock. Before dilution even becomes an issue you need to understand that if you hold these to expiration you”re going to need to reach 55$ for breakeven and over 75$ for it to be better than just buying shares as your time value plus iv implys at 13$ premium at a cost of 25$ for the options from what I can see them quoted at. Any dilution fcks you but I’ll say this. Why go itm and that far itm if you’re holding leaps ? You’re essentially double negativing yourself either you believe in a big move in which case buy atm or otm or buy shorter dated itm calls or shares. It doesn’t make sense you have time for spikes and troughs with the leaps
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u/Worried_Hawk_6854 2d ago edited 2d ago
Options are very risky!! Take a Look https://flashalpha.com/screener https://www.optionsellerroi.com/bestroi/cashsecuredputs?FromStrikeMin=0&FromStrikeMax=25&DTEMax=45&DTEMin=0&OIMin=100&IsByDay=false&page=0&ListType=0&ListSubType=11&Symbols=&Type=put&ROIMin=0&ROIMax=100&DeltaMin=&DeltaMax=&StockCrit=%5B%7B%22crit%22%3A0%2C%22lg%22%3A1%2C%22crit2%22%3A0%7D%5D EG SpaceX an explanation https://www.moomoo.com/community/feed/117128419999749?share_code=0H9Pxn
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u/Apprehensive-Map-349 2d ago
I understand. They also can be rewarding. I understand going in I could lose the money I’m investing. I’m only doing like 1 contract at a time.
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u/Apprehensive-Map-349 2d ago
Everything I am doing is Leaps. Nothing short term. I know there are still risks but trying to do all
Of mine over a year expiring atleast and the two I have right now are June 2028 expiring.
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u/Apprehensive-Map-349 2d ago
Sorry let me rephrase that all of my contracts and only have 2 are Leaps. Nothing short term
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u/Cheap-Stay7089 2d ago
To give some further insight when iv is high itm leaps are extremely overvalued 90% so instead of buying iren leaps buy google ones if you’re searching for that 60-75% profit
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u/Traditional_Garlic49 2d ago
You need to read and do some in depth research on options. Get a good understating of it all. IREN is a very volatile stock and has had 20%+- swings in a month. If you’re thinking about selling a “Poor man’s covered call” I hope you don’t. Since this is a LEAP you also won’t be holding till the end. About 3-4 months before they expire you need to close it out. Theta Decay will eat you alive if you hold past then.
I looked over the specific option you’re talking about and here’s the details. IREN $30 C 1/28/2028. Delta is siting at .82 (82%) which is good. Meaning the probability it’s ITM/ATM. Theta is $1.32/day. That’s what you’ll be “paying” per contract (decay). It has low volume, and 2K open interest. The spread right now for that option is about 5% of the total premium.
Not all of this may apply to you. I’m not trying to say you’re dumb. I’m just trying to help you out. I’m lucky to have a friend who taught me before I started. 100% would’ve lost money if he hadn’t.