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OLLI Bearish inclined naked calls - 18 Dec expiryDecember's Secondary Trade This trade is slightly more risky and is the opposite of the general market movement (bullish). I shortlisted Ollies out from the category of Discount Outlets from Finviz screener. Unlike the rest of the market that gapped up, this category fell after the 9 Nov US election news. This was one of the reasons why I feel the company's stock direction in the shorter term will be somewhat opposite of the market especially if there are vaccine related news. OLLI also had a good price for a strike above the current Support and Resistance line and is a good 19% from the entry price. I'm slightly worried about the Earning release on the 2 Dec, but i think with potential vaccine news traders will be optimistic and move their money to COVID19 recovering sectors like Travel etc. I will be hedging this trade with a bullish VXX trade, paid by the Dec premiums Sold 18 CALLs @ 1.85, Strike 105 BP block: 19k RSI: 51 Max gain est: $3330
NASDAQ:OLLIShort
by Ronin_trader
JETS ETF Bullish inclined naked Puts - 22 Jan expiryAs the Primary Trade is this aligned to the larger market direction and is deemed less risky. I'm bullish inclined for JETS as it is considered one of the COVID19 recovery sectors. More vaccine news and it's potential positive speculation could start increasing it's frequency, resulting in traders trying to capitalize on it by entering sectors previously hit hard by COVID19 Sold 120 Puts @ 0.30, Strike 19.5 BP block: 28k Max gain - est $3600
AMEX:JETSLong
by Ronin_trader
$TLGT PT 3-5.75 and higher by Jan 5th to Jan 21stTeligent, Inc., a specialty generic pharmaceutical company, develops, manufactures, markets, and sells generic topical, branded generic, and generic injectable pharmaceutical products in the United States and Canada. The company offers generic pharmaceutical products in topical, injectable, complex, and ophthalmic dosage forms. It is also involved in contract manufacturing and development business, including the development, manufacturing, filling, and package of topical semi-solid and liquid products for branded and generic pharmaceutical customers, as well as for over-the-counter and cosmetic markets. The company's topical semi-solid and liquid products are used in various applications that range from cosmetics and cosmeceuticals; and the prescription treatment of conditions, such as dermatitis, psoriasis, and eczema. It sells its products through national chain drug stores, drug wholesalers, distributors, and group purchasing organizations. The company was formerly known as IGI Laboratories, Inc. and changed its name to Teligent, Inc. in October 2015. Teligent, Inc. was founded in 1977 and is based in Buena, New Jersey.
TLong
by BADQOMOCAWGOWLD
2
NEE Options Plays With this chart, I have identified two possible options plays (both long OTM buys) based on the current trend and moving average positions, there a couple of indicators I found proving both an upside and downside theory so it's fair to say at this point the market must decide. The pink boxes are possible entry zones Id be comfortable with given the support and resistance shown, given the premiums and greeks add up feel free to expand upon this idea or leave me some feedback, thanks and good luck
NYSE:NEE
by Street_level_trader
Clear skies ahead for Palantir Ahoy fellow investors! Todays chart analysis is on Palantir Technologies NYSE:PLTR . As you can see, Palantir cleared its 3 resistance price points of 25.50, 27.00 and 29.00 respectively and its on a strong upward trend heading for ALL time highs. What i like about this rally is that: 1. There has been more and more positive news since the last run up to $33.50 2. Palantir just announced it will extend its partnership with the Greek government and its COVID-19 response effort (huge news as it allows exposure into PLTR business application) 3. It announced a new government contract that will pay $44,000,000 over 3 years (i believe those are the figures) All of the recent good news plus what i am seeing in the weekly chart on the RSI (over 80 = super strong) and MACD (between 1 & 2 = strong) makes me like this rally and i am confident that Palantir will reach ATHs (All time highs) and even surpass them. As of now, the stock is sitting just over $30, after posting a 21% intraday rally. Clear skies ahead for Palantir and i think it will touch $40 this week should the broad market conditions don't hinder its rally. I own both stock at IPO and hold several call positions for end of the year expirations on 25 to 40 strikes. Let's see how this unfolds! #GIDDYUP !!
PLong
by ThaMoneyHunter
1
$FCEL PT 17 and higher Calls 16 Dec 18th 2020 Return +500% FuelCell Energy, Inc., together with its subsidiaries, designs, manufactures, sells, installs, operates, and services stationary fuel cell power plants for distributed power generation. The company offers SureSource product line based on carbonate fuel cell technology in various configurations, including on-site power, utility grid support, distributed hydrogen, and micro-grid, as well as multi-megawatt applications; and SureSource Recovery power plants for natural gas pipeline applications. It also provides SureSource Capture system that separates carbon dioxide from the flue gases of natural gas, biomass, or coal-fired power plants, as well as industrial facilities; and SOFC/SOEC and Energy Storage, a solution for energy storage using solid oxide technology. The company's SureSource power plants generate electricity and usable heat. It serves various markets, such as utilities and independent power producers, industrial and process applications, education and health care, data centers and communication, wastewater treatment, government, and commercial and hospitality. The company primarily operates in the United States, South Korea, England, and Germany. FuelCell Energy, Inc. was founded in 1969 and is headquartered in Danbury, Connecticut.
NASDAQ:FCELLong
by BADQOMOCAWGOWLD
$ENG PT 15 and higher by June 2022ENGlobal Corporation provides engineered modular solutions and professional services primarily to the energy industry worldwide. It operates through Engineering, Procurement and Construction Management (EPCM); and Automation segments. The EPCM segment offers engineering services and fabrication relating to the development, management, and execution of projects requiring professional engineering and related project management services primarily to the energy industry, which include conceptual studies, project definition, cost estimating, engineering design, environmental compliance, material procurement, project management, and construction management. The Automation segment provides services related to the design, integration, and implementation of process distributed control and analyzer systems, advanced automated data gathering systems, information technology, and electrical projects; and designs, assembles, integrates, and services control and instrumentation systems for applications in the energy and processing related industries. It also offers automated fuel handling systems and maintenance services to branches of the U.S. military and public sector entities; and electrical and instrument installation, technical, maintenance and calibration, and repair services. This segment serves petroleum refining, petrochemical, pipeline, production, process, and pulp and paper industries, as well as the United States government. The company was founded in 1985 and is headquartered in Houston, Texas. finance.yahoo.com
ELong
by BADQOMOCAWGOWLD
Apple on the verge of a major breakout!Hey guys, i am back! Based on these charts, its looking like (Apple Inc.) will breakout!! The stock has been consolidating for a long time and its hovering right above the top of what looks like to be an ascending triangle. What the stock needs is good volume and i believe itll break out into the 130s.. the stock has been quiet for the most time since its IPO since 1981. If it doesn't happen today, it will certainly happen in the next week or so, if it fails, we may see another leg down into the lower 120s and high 110s. I bought calls for end of December between 125 and 135 level.
NASDAQ:AAPLLong
by ThaMoneyHunter
1
Dropping Below $400 FridayI see ZM dropping below $400 a share this Friday 12/4. Earlier I predicted it falling to a support level of $366 but with the market being pumped up for no apparent reason, I see ZM rising next week. At a personal level my trading strategy for ZM is to buy low Friday and sell high next week. With options that is. I can see ZM hitting and passing $430 next week which is why I will be buying 1 call for ZM to hit $425 by 12/11. Hoping to buy in around 8.00 a contract. Wish me luck! Comment your thoughts!
NASDAQ:ZM
by Myantman101
5
Assigned With A Wheel Trade & The Market TanksI’m Markus Heitkoetter and I’ve been an active trader for over 20 years. I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails. They start trading and realize it doesn’t work this way. The purpose of these articles is to show you the trading strategies and tools that I personally use to trade my own account so that you can grow your own account systematically. Real money…real trades. In this article, I want to talk about what to do when you get assigned with a Wheel trade. Previously, I have shown you the Wheel strategy. It’s a strategy that I’ve been trading for several months and I haven’t had a single losing trade yet, knock on wood. So I received a lot of comments on my videos asking, “Yeah. That’s all good. But what do you do when you get assigned with a Wheel trade and the market crashes?” And that’s exactly what we are going to talk about today. What To Do When You Get Assigned With A Wheel Trade I want to show you how to handle getting assigned when the market crashes by using a real trade as an example where this happened to me, and I couldn’t have timed it more perfectly because a little over a month ago, on October 28th, I was recently in such a trade. The market was down more than 3% and it was a bloodbath. Luckily, this scenario provides me with an opportunity to use it as a template to show you what to do when this happens. The TQQQ trade I was in at the time works as a perfect example, so let me just show you how things panned out. So with this TQQQ trade, had an open P&L of -$2,667. So what does this mean? Does it mean that we do have a big loss here? No. This is only an unrealized loss, and this is how I handled it. I simply followed the 5 steps of The Wheel strategy, and the 5 steps are as follows: Pick a stock that’s going sideways or slightly moving up. Sell a Put Option , i.e. you have to buy the stock at the strike price. Collect Premium and buy the Put back when we see 90% of the profits. If we get assigned, i.e. have to buy the stock, we will sell Covered Calls against these shares to try and sell the shares at the strike price. Collect premium and buy the Call back when we see 90% of the profits. Selling Puts The trade initially started on September 3rd, so let’s backtrack a little bit to really dissect it step by step. TQQQ met all my criteria, and on September 3rd is when I first trading this. September 3th, when I started trading this, I sold 150 put for $0.66, which is $66 because I traded one contract, and one contract represents 100 shares. The next day I got assigned. I got assigned because when you’re selling puts it means that if the stock goes below the strike price at expiration, 150 in this case, I would get assigned. This is exactly what happened a day later when the option expired. So I made $66 by collecting premium, even though I got assigned 100 shares at $150/share, but here’s the deal. Since I sold the put for $0.66 this means that my cost basis, since I keep that premium regardless of whether I am assigned or not, gets lower. So this means that the $150 a share I paid minus the $0.66 I collected per share, brings my cost basis down to $149.34. Now doesn’t sound a lot, but it basically means that the stock now does not have to go above $150 anymore. As soon as TQQQ goes up to $149.34 I’m breaking even. Now if it goes above this, I’m making money. Simple right? Selling Covered Calls Now that we have been assigned, this is where we start selling Covered Calls. When you sell Covered Calls against these shares, the goal is to try and sell them at that strike price of that Call, while collecting more premium. Here’s the trade that I did. I sold a 155 Call for $2.10 on the 10th after realizing 90% of the profits, I bought it back for $0.37 the next day. So $2.10 minus $0.37 means I made $173. And now my cost basis gets reduced by another $1.73. Well, now our cost basis is going lower. Our cost basis of $149.34 drops by $1.73, so our new cost basis is now $147.61. This means that if the stock goes back to $147.61 we break even, and if it goes above we are making money. Easy right? Next, I sold the September 80 Call, the September 18 150 Call, for $0.45, then bought it back for $0.05. So this means at this point we made another $40, bringing our cost basis down by another $0.40 to $147.21. The stock kept going against us. It was going down and this is what many of you are concerned about. “What do I do if the stock keeps going down?” Well, you keep selling premium, and by doing so, you’re lowering the cost basis. Well, what I did next was really cool. Selling More Puts? So next, I sold actually two puts for $110 and $118. So that averages out to $114. Then I bought them back at $0.06. This means $114 minus $0.06. So we made another $108 here. Now I’ll explain in a moment why I sold a put here even though right now since we own stocks, and we should be selling calls. There’s a very specific reason for it, and I’ll explain it to you. Looking back at our trade, we are lowering our cost basis to $146.13. Next, after we sold the puts and they expired worthless I actually sold another 100 put for $2.40 and bought it back for $24. So we made another $216 here. Bringing our cost basis down again from $146.13 minus $2.16 to now $143.97. When To Sell Puts INSTEAD Of Calls So if you are supposed to sell Covered Calls during this stage of The Wheel Strategy, why did I sell those Puts? I already owned 100 shares of TQQQ that were assigned to me, so why risk getting assigned more? Well, I sold these Puts, instead of Calls for a specific reason. At this stage of The Wheel Strategy is where you normally would sell Calls, however, if you are on this part of this strategy, and the market is tanking, you have to make an adjustment to this strategy if the price keeps dropping, to help keep your cost basis as low as possible. These were 100 Puts, meaning if the price would have dropped below $100 at expiration for either of them, and I would have been assigned the shares. If that were to happen, I would now own 100 shares at $100 each, on top of the 100 shares I already own at $150 each. So now I own 200 shares, I paid a total of $250 for, bringing the average price per share to $125. Getting assigned these shares would have lowered my cost basis tremendously. If you subtract the total Premium I received on all of these trades, which was $12.05 a share ($1,205 overall) from the average price per share, which in this case is now $125, this comes to a cost basis of $112.95. This is what the cost basis would have been IF I was assigned these additional 100 shares at $100 each. I wasn’t assigned these shares, however, and my final cost basis was $137.95. Do you see why getting assigned is a good thing? People are afraid of getting assigned, but as long as you have adequate buying power, and are following my methods for picking good stocks, assignment should be looked at as a good thing. Selling Premium You see, this is what the Wheel does. You can sell premium while you own the stocks. So I then sold a $150 call for $1.57, bought it back at 15. So this means that I made another $142 bringing down my cost basis again to $142.55. Now, I don’t want to bore you and make this article too long here, but long story short, as you can see, I sold a few more of the calls and I bought them back. So overall, by just selling premium, even though I still owned the stock, I was continuing to lower my cost basis. At this point, the stock was down $2,770. However, by doing this, by selling more calls and puts here, I was able to make $1,748 in premium. So this means I made $17.48 per share on these 100 shares. So if you take the $150 minus $17.48 right now, right now my cost basis to break even on this trade is $132.52. So as soon as TQQQ goes back to $132. Now, what happens if TQQQ keeps going down? I will keep doing what I’ve been doing, following The Wheel Strategy. I’ll keep collecting premium until at some point, I can sell these shares for a profit. Recap So now you know what to do when you get assigned with a Wheel trade, and hopefully, it becomes less scary for you. I look forward to getting assigned with a Wheel trade because that allows me to sell calls and make even more money. If the stock keeps going down, I’ll just keep selling, and I will continue to lower my break even more and more. So, right now, TQQQ does no longer have to go all the way up to 150. It only needs to go up to $132.52. I just wanted to address this process because I know that many people who are trading this strategy are concerned saying, "Oh my gosh, what if I get assigned with a Wheel trade?” It’s a good thing. It’s a good thing and now you know why.
NASDAQ:TQQQEducation
by rockwelltrading
1