/biz/ - Business & Finance

>We just invented a new material

Start selling covered call bros.

Maybe convert it to orchid exploding right now

>>21425871
>>21426142
Oh, I also forgot to mention you can adjust the strike based on what you think might happen.
If you think its more likely to go down, then you can sell closer to the money for a larger premium. So if you were going to sell for 29 but think it will perform under the average, then you can sell at 28 or 27.
If you think it will rocket, or you still want to keep the stock, then you sell farther out of the money. So if you were going to sell at 29, then you can sell at 30 or 31.

Alternatively, you can completely lock your sell by selling in the money (below the current market price). So unless the stock goes down, you will almost certainly be exercised, as well as a higher chance of being exercised early. (Normally stocks are not exercised early because the time value of the option is higher than the current price, but in the case of in the money options, there is far less time value)

This is like baby versions of explanations, so do your own research.

>>21412708
>>21412903
>SWBI
I sold covered calls at 25 for aug 21 a few weeks ago. Was planning on selling soon since they no longer have weeklies, also got free AOUT shares.

You sold covered calls, right anon?

Congratulations to anyone holding SWBI or TSLA
TSLA stock split 5 for 1
SWBI holders will get 1 stock of American Outdoor Brands for each 4 stock of SWBI

Imagine falling for this fake "rug pull"
Imagine not buying the dip

Covered calls! No more frowns!

>Middlewoman

Covered calls!

I am here to remind you to practice covered calls.

>>20903927
Nah. Im sticking with high volatility.

Tech is too expensive and more risky since the entry point is higher.

I already cashed out before the dip a month or so ago and I'm up 80%. I threw it back in after stuff dipped twice more, but then it dipped 3 more times.

Tech is like a 20% return max at this point. I want more than that so I'm sticking to meme stocks desu

>>20889110
You buy sets of 100 of a stock, then you can sell 1 call for each 100 stock you own.

For example:
I bought 200 TSM at $70 for a total of $14,000
Then I sold 2 calls at $80 strike that expire at the end of the week
Each call gave me $30 (or $0.30 per stock), which means I now made $60
Because TSM ended below $80 at the expiry date, the calls are worthless and I keep all $60 and 200 shares.
If TSM was over $80, then my calls would be exercised, and I would get $80 * 200, $16000, plus keep the $60. Then if you like, you can buy back in the next dip.
Alternatively, you could buy back your calls if you want to keep the shares. Usually you would do this if its above your strike, but below the strike + the premium. In this case, if the stock was between $80.01 and $80.30.
In one week, you gained 0.4%. If you repeat this for 50 weeks, you'll have earned 20% on your investment, regardless of the current price of the stock.
To maximize premiums, I generally scout out promising companies that have earnings in the next week or two, buy shares, then sell calls on the next green day. Premiums are the highest just before earnings.
Additionally, you can just buy and hold a stock and sell weekly/monthly calls for additional income.

>>20793487
>>20793516
>>20793569
Firms don't make money from stocks, they make money scamming super wealthy people to "use their services" and charge a "modest fee" when you could just buy ETFs and never look at it again.