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Post by ktim on Jul 29, 2021 18:18:27 GMT -5
90% short volume today. Highest I have ever seen. Doesn't necessarily mean much until there is new open short interest data. There are a lot of mostly irrelevant to investing market mechanics that can affect that number... e.g. pubcoceo.com/2018/11/28/what-is-daily-short-volume/
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Post by ktim on Jul 29, 2021 18:38:09 GMT -5
Got chips? Buying the dip tomorrow. In addition to my longer term holdings in MNKD, over past year or so I've been using options... selling puts when it gets near low end of trading range and selling covered calls on my core when it approaches high end of trading range. So far has been quite profitable. I already sold a bunch of Aug 20 puts so won't be looking to take advantage of this dip, but this is right about where I would do it under the assumption that $4 is a support level. Example: Today a Sept 17 $4 strike put traded for $0.30. Selling this short you are putting $3.70 a share at risk... i.e. buying 100 shares for each options contract at effective price of $3.70. As long as stock stays above $4.00 between now and Sept 17, you've bagged $0.30 per share. That's a 60% annualized profit. Granted if AMGN or APPL buys MNKD between now and Sept 17 you've only made the $0.30 per share
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Post by lazyb767 on Jul 29, 2021 19:05:16 GMT -5
Got chips? Buying the dip tomorrow. In addition to my longer term holdings in MNKD, over past year or so I've been using options... selling puts when it gets near low end of trading range and selling covered calls on my core when it approaches high end of trading range. So far has been quite profitable. I already sold a bunch of Aug 20 puts so won't be looking to take advantage of this dip, but this is right about where I would do it under the assumption that $4 is a support level. Example: Today a Sept 17 $4 strike put traded for $0.30. Selling this short you are putting $3.70 a share at risk... i.e. buying 100 shares for each options contract at effective price of $3.70. As long as stock stays above $4.00 between now and Sept 17, you've bagged $0.30 per share. That's a 60% annualized profit. Granted if AMGN or APPL buys MNKD between now and Sept 17 you've only made the $0.30 per share Thanks, I'll have to give some serious consideration to this. I watched a 3 part Webinar by Fidelity on Options Trading. I have yet to do any options trading. It all seemed understandable. I need to sit down and think through the process and scenarios, a more complete understanding and comprehension. Don't like to screw up or be surprised.
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Post by ktim on Jul 29, 2021 19:42:29 GMT -5
In addition to my longer term holdings in MNKD, over past year or so I've been using options... selling puts when it gets near low end of trading range and selling covered calls on my core when it approaches high end of trading range. So far has been quite profitable. I already sold a bunch of Aug 20 puts so won't be looking to take advantage of this dip, but this is right about where I would do it under the assumption that $4 is a support level. Example: Today a Sept 17 $4 strike put traded for $0.30. Selling this short you are putting $3.70 a share at risk... i.e. buying 100 shares for each options contract at effective price of $3.70. As long as stock stays above $4.00 between now and Sept 17, you've bagged $0.30 per share. That's a 60% annualized profit. Granted if AMGN or APPL buys MNKD between now and Sept 17 you've only made the $0.30 per share Thanks, I'll have to give some serious consideration to this. I watched a 3 part Webinar by Fidelity on Options Trading. I have yet to do any options trading. It all seemed understandable. I need to sit down and think through the process and scenarios, a more complete understanding and comprehension. Don't like to screw up or be surprised. I was burned big time in years past by selling MNKD puts... during the years of down, down, down. Here are mistakes I made back then that I don't now. - I used very long dated options which really pumps up the return you get from selling and makes the effective purchase price if assigned seem really safely low. However, with such a long time, there is also time for significant change in the known facts about the company. Back then I didn't have the discipline to ever cut my loses (I was a MNKD long after all) and just kept the short potion open until I wound up getting assigned a bunch of shares that were way, way underwater. - Another aspect of the effective purchase price being nicely below then current trading price, it was easy for me to not mentally account for that as exposure... like if you did the example trade and mentally thought "oh, it will never drop to $3.70, so this is basically risk free money." So... I tend to keep put options in 2 to 3 month range, probably avoiding times I think some binary announcement might happen, and I fully consider my exposure... i.e. if I had those Sept 17 shares I'd be counting $3.7 times the number of shares as part of my MNKD holdings and make sure that's within the disciplined limit I've set for MNKD. MNKD stock is very volatile which makes these call and put selling strategies appealing (options comparatively high priced). Flip side is I think buying calls or puts is unattractive for MNKD. Best wishes for your endeavors in options.
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Post by sportsrancho on Jul 29, 2021 19:51:09 GMT -5
In addition to my longer term holdings in MNKD, over past year or so I've been using options... selling puts when it gets near low end of trading range and selling covered calls on my core when it approaches high end of trading range. So far has been quite profitable. I already sold a bunch of Aug 20 puts so won't be looking to take advantage of this dip, but this is right about where I would do it under the assumption that $4 is a support level. Example: Today a Sept 17 $4 strike put traded for $0.30. Selling this short you are putting $3.70 a share at risk... i.e. buying 100 shares for each options contract at effective price of $3.70. As long as stock stays above $4.00 between now and Sept 17, you've bagged $0.30 per share. That's a 60% annualized profit. Granted if AMGN or APPL buys MNKD between now and Sept 17 you've only made the $0.30 per share Thanks, I'll have to give some serious consideration to this. I watched a 3 part Webinar by Fidelity on Options Trading. I have yet to do any options trading. It all seemed understandable. I need to sit down and think through the process and scenarios, a more complete understanding and comprehension. Don't like to screw up or be surprised. just buy one call and watch how it acts that’s really the best way to learn. IMO
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Post by Clement on Jul 29, 2021 20:29:45 GMT -5
Thanks, I'll have to give some serious consideration to this. I watched a 3 part Webinar by Fidelity on Options Trading. I have yet to do any options trading. It all seemed understandable. I need to sit down and think through the process and scenarios, a more complete understanding and comprehension. Don't like to screw up or be surprised. just buy one call and watch how it acts that’s really the best way to learn. IMO She said one and she meant one. Don't get clever and buy 100 or 1000 or 10000 lots. Buy one and watch how it acts, just like she said.
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Post by lazyb767 on Jul 29, 2021 22:09:42 GMT -5
Thanks, I'll have to give some serious consideration to this. I watched a 3 part Webinar by Fidelity on Options Trading. I have yet to do any options trading. It all seemed understandable. I need to sit down and think through the process and scenarios, a more complete understanding and comprehension. Don't like to screw up or be surprised. just buy one call and watch how it acts that’s really the best way to learn. IMO That sounds good. I feel more comfortable learning by doing than by merely trying to digest a concept, Neanderthal.
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Post by peppy on Jul 29, 2021 22:33:22 GMT -5
just buy one call and watch how it acts that’s really the best way to learn. IMO That sounds good. I feel more comfortable learning by doing than by merely trying to digest a concept, Neanderthal. Calls have a beginning, middle and an end; like a book. Say someone bought calls for NVAX and took it from 4 dollars to 7 dollars, feeling the win.
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Post by cretin11 on Jul 30, 2021 5:35:18 GMT -5
just buy one call and watch how it acts that’s really the best way to learn. IMO That sounds good. I feel more comfortable learning by doing than by merely trying to digest a concept, Neanderthal. That’s good advice. And to use ktim’s excellent advice, consider also selling one put to observe how that moves too. You’ll get the hang of it quickly, and remember to take things slow with options especially as you’re learning.
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Post by peppy on Jul 30, 2021 8:07:02 GMT -5
too darn funny, it is a tag team.
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Post by cretin11 on Jul 30, 2021 9:59:57 GMT -5
just buy one call and watch how it acts that’s really the best way to learn. IMO That sounds good. I feel more comfortable learning by doing than by merely trying to digest a concept, Neanderthal. Hey, someone just bought one (1) of my covered calls! I hope it wasn’t you, lazyb, as it was an Aug 20 call at strike price $5, not the one you should be buying! 😆
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Post by sportsrancho on Jul 30, 2021 11:44:53 GMT -5
That sounds good. I feel more comfortable learning by doing than by merely trying to digest a concept, Neanderthal. Hey, someone just bought one (1) of my covered calls! I hope it wasn’t you, lazyb, as it was an Aug 20 call at strike price $5, not the one you should be buying! 😆 Oh my gosh too funny, yeah buy a November call or a January call. I’m selling calls on SPCE and RIOT
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Post by peppy on Jul 30, 2021 11:47:12 GMT -5
MNKD Volume at the half day of trade. real time, 342,522 shares. summary, 641,061 Avg. Volume 3,419,558
$4.16 -0.05. (-1.1877%) As of 12:46PM EDT. Market open.
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Post by lazyb767 on Jul 30, 2021 12:28:45 GMT -5
That sounds good. I feel more comfortable learning by doing than by merely trying to digest a concept, Neanderthal. Hey, someone just bought one (1) of my covered calls! I hope it wasn’t you, lazyb, as it was an Aug 20 call at strike price $5, not the one you should be buying! 😆 Uh... I don't move that fast. Still cogitating...
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Post by lazyb767 on Jul 30, 2021 13:24:54 GMT -5
Got chips? Buying the dip tomorrow. Sold some ROK near 52 week high, added MNKD 2000 @ $4.125. Still positive, anxious, leery, but mostly oblivious. Just hoping I don’t have to “eat” all this dip. Man, I’m on a diet. Summertime, and the livin ain’t all that easy. Well, I'm a gonna raise a fuss, I'm gonna raise a holler About workin' all summer just to try an' earn a dollar… Sometimes I wonder what I'm gonna do 'Cause there ain't no cure for the summertime blues
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