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Post by kingfisher on Jan 10, 2024 19:56:40 GMT -5
MONDAY, JAN. 15
Martin Luther King Jr. holiday, none scheduled
TUESDAY, JAN. 16
11:00 am Fed Gov. Christopher Waller speaks
WEDNESDAY, JAN. 17
8:30 am Import price index Dec. -0.4%
8:30 am Import price index minus fuel Dec. 0.2%
8:30 am U.S. retail sales Dec. 0.3%
8:30 am Retail sales minus autos Dec. 0.2%
9:15 am Industrial production Dec. 0.2%
9:15 am Capacity utilization Dec. 78.8%
2:00 pm Fed Beige Book
THURSDAY, JAN. 18
8:30 am Initial jobless claims Jan. 13
8:30 am Philadelphia Fed manufacturing survey Dec. -10.5
8:30 am Housing starts Dec. 1.56 million
8:30 am Building permits Dec. 1.46 million
12:05 pm Atlanta Fed President Raphael Bostic speaks
FRIDAY, JAN. 19
10:00 am Consumer sentiment (prelim) Jan. 69.7
10:00 am Existing home sales Dec. 3.82 million
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Post by frank3w on Jan 14, 2024 20:33:32 GMT -5
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Post by clinton on Jan 14, 2024 23:05:42 GMT -5
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Post by clinton on Jan 15, 2024 0:51:47 GMT -5
good job Elmo
good job tRump
Transportation Secretary Elaine Chao released a 22-page document Thursday called Pathways to the Future of Transportation that’s designed to encourage innovation and place new transportation concepts under a specific regulatory agency. The document was developed by the Non-Traditional and Emerging Transportation Technology Council that Ms. Chao appointed about 18 months ago.
For hyperloop advocates, the important step was placing hyperloop proposals under the Federal Railroad Administration and making hyperloop projects eligible for federal grants to help fund projects.
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Post by max on Jan 15, 2024 9:41:45 GMT -5
Here is something for all the math nerds out there:
MARA is currently trading at $18.60. January 17, 2025 calls with exercise price of $20 are going for $7.90. So if you buy 1,000 shares ($18,600) then sell 10 covered calls you will receive $7,900-- then use that $7.9K to buy 424.73 shares and sell 4 calls for $3,160 then use the $3.1k to buy 169.89 shares and sell 1 call for $790 buy 42.47 shares then sell one call for 790 again buy 42.47 shares and sell one call. You end up with 1.679.57 shares and total premium received of $12,640. That premium of $12,640 (or 68% of $18,600 invested) is our downside hedge so if MARA ends the year 68% lower you still did not loose anything. On the other hand if MARA ends the year above $20 and your shares are called you will receive $33,591.37 for your shares and $12,640 for premium for a total compensation of $46,231.37 and gain of $27,631.37 (or 149% of the amount invested).
So, by selling covered calls you end up with a hedge of 68% and probable gain of 149%. Might be better way to play MARA instead of holding the shares.
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Post by chitown97 on Jan 15, 2024 10:10:03 GMT -5
Here is something for all the math nerds out there: MARA is currently trading at $18.60. January 17, 2025 calls with exercise price of $20 are going for $7.90. So if you buy 1,000 shares ($18,600) then sell 10 covered calls you will receive $7,900-- then use that $7.9K to buy 424.73 shares and sell 4 calls for $3,160 then use the $3.1k to buy 169.89 shares and sell 1 call for $790 buy 42.47 shares then sell one call for 790 again buy 42.47 shares and sell one call. You end up with 1.679.57 shares and total premium received of $12,640. That premium of $12,640 (or 68% of $18,600 invested) is our downside hedge so if MARA ends the year 68% lower you still did not loose anything. On the other hand if MARA ends the year above $20 and your shares are called you will receive $33,591.37 for your shares and $12,640 for premium for a total compensation of $46,231.37 and gain of $27,631.37 (or 149% of the amount invested). So, by selling covered calls you end up with a hedge of 68% and probable gain of 149%. Might be better way to play MARA instead of holding the shares. ok, what if I have 34k shares at 21.90 at the moment? Jan '25 22.5cc are 7.25 so, sell them and capture $246k in premium and have a cost of 14.65? |
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Post by walnut on Jan 15, 2024 10:12:00 GMT -5
I haven't looked at this case, but the options have to be fairly priced or a little better relative to underlying variance to actually compensate for the downside risk. And remember, your upside opportunity is capped. If you do a deep dive into the math, you will probably find that it's not as attractive as you probably think. Once again, I haven't studied this case, but I look at options schemes alot lol.
That said, in this case it might work and you could make a killing. This might be a special situation like you say.
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Post by max on Jan 15, 2024 10:34:34 GMT -5
Hi chitown -- below are the numbers for 34K of shares with cost basis of $21.90, selling calls with strike price of 22.5 for $7.25 -- this is a very large position and as Walnut said above you would be capping your potential gain:
34000 @21.90
22.5 @ 7.25
340 calls @ 7.25 $246,500.00
13252.69
132 calls @ 7.25 $95,700.00
5145.16
51 calls @ 7.25 $36,975.00
1987.90
20 calls @7.25 $14,500.00
779.57
8 calls @7.25 $5,800.00
311.83
3 calls @7.25 $2,175.00
116.94
1 call @7.25 $725.00
38.98
1 call @7.25 $725.00
Total Premium $403,100.00
Total Shares 55,633.06
Proceeds is shares called at 22.5 $1,251,743.95
Total Premium and Proceeds $1,654,843.95
Amount Invested $744,600.00
Gain $910,243.95
Gain as a % 122%
Downside Hedge as a % 54%
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Post by chitown97 on Jan 15, 2024 10:41:06 GMT -5
Hi chitown -- below are the numbers for 34K of shares with cost basis of $21.90, selling calls with strike price of 22.5 for $7.25 -- this is a very large position and as Walnut said above you would be capping your potential gain: 34000 @21.90 22.5 @ 7.25 340 calls @ 7.25 $246,500.00 13252.69 132 calls @ 7.25 $95,700.00 5145.16 51 calls @ 7.25 $36,975.00 1987.90 20 calls @7.25 $14,500.00 779.57 8 calls @7.25 $5,800.00 311.83 3 calls @7.25 $2,175.00 116.94 1 call @7.25 $725.00 38.98 1 call @7.25 $725.00 Total Premium $403,100.00 Total Shares 55,633.06 Proceeds is shares called at 22.5 $1,251,743.95 Total Premium and Proceeds $1,654,843.95 Amount Invested $744,600.00 Gain $910,243.95 Gain as a % 122% Downside Hedge as a % 54% wow, Max, I need a large coffee now! |
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Post by max on Jan 15, 2024 10:43:00 GMT -5
I haven't looked at this case, but the options have to be fairly priced or a little better relative to underlying variance to actually compensate for the downside risk. And remember, your upside opportunity is capped. If you do a deep dive into the math, you will probably find that it's not as attractive as you probably think. Once again, I haven't studied this case, but I look at options schemes alot lol. That said, in this case it might work and you could make a killing. This might be a special situation like you say. Very very true about capping your upside opportunity and having to price the options correctly -- I left a lot of money on the table because I sold covered calls for PLTR and STNE. Downside of this strategy is that you are tying your money for the duration of the calls (one year if selling January 2025 calls) but I like it because of the hedging protection, predictability of gain and small frequency of trading. For me personally, the more often I trade the more likely I am to loose money-- but this might not fit everyone. I made a ton of money using this strategy on RBLX, BA and SOFI so it can work -- you just have find the right stocks and the calls have to be priced right. |
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Post by walnut on Jan 15, 2024 11:19:58 GMT -5
Good luck, I hope it makes a big win if you do it. I made a lot of money for my stock account clients back in the 90's with options, so I know that nothing makes money like options when they are working for you.
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Post by clinton on Jan 15, 2024 15:15:54 GMT -5
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Post by skib on Jan 15, 2024 18:57:14 GMT -5
Here is something for all the math nerds out there: MARA is currently trading at $18.60. January 17, 2025 calls with exercise price of $20 are going for $7.90. So if you buy 1,000 shares ($18,600) then sell 10 covered calls you will receive $7,900-- then use that $7.9K to buy 424.73 shares and sell 4 calls for $3,160 then use the $3.1k to buy 169.89 shares and sell 1 call for $790 buy 42.47 shares then sell one call for 790 again buy 42.47 shares and sell one call. You end up with 1.679.57 shares and total premium received of $12,640. That premium of $12,640 (or 68% of $18,600 invested) is our downside hedge so if MARA ends the year 68% lower you still did not loose anything. On the other hand if MARA ends the year above $20 and your shares are called you will receive $33,591.37 for your shares and $12,640 for premium for a total compensation of $46,231.37 and gain of $27,631.37 (or 149% of the amount invested). So, by selling covered calls you end up with a hedge of 68% and probable gain of 149%. Might be better way to play MARA instead of holding the shares. geez , i hope i don't have to use calculus or trigonometry |
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Post by skib on Jan 15, 2024 19:03:43 GMT -5
those are made in China? lol . when were American cars made with quality control? lol |
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