Stock Trading -or- ReconSWS's Bane

[gabe]

Matrix_guy....stick around bro, I like the cut of your jib. Bikes, gaming, paintball, stock trading, you're on top of it. That's a strong pick too, never looked into EMAN but might throw a few bucks at it. Solid fundamental analysis.

I've been slowly divesting myself of TSLA shares as the price has been going up, trimming 2 shares at a time to get it from 15% of my portfolio to about 10%. It was just dragging my whole average around to where my portfolio performance was just tied to that stock alone which did not feel good the last couple months since the split.

Re-invested some of that cash into some STOR (Store capital), a REIT for some dividend income. I'm definitely drilling down and repositioning back into dividend growth strategy along with about 20% of the portfolio in high quality growth companies to keep it tracking along with the S&P500 for growth track.

[the_matrix_guy]

My biggest winners since 2018 were AMD, TNDM, & DHR. But I liquidated all of the blue chips when the market wide CV dip hit in April and went all in on EMAN @ .55 I’ve more than tripled my money on the various catalysts since then. It’s currently trading at around $1.30 — but it’s a $5+ stock, IMO.

In terms of small caps, it’s hard to beat EMAN: Quick summary: Emagin is capitalizing heavily in the defense, health, & consumer VR/AR industries, with tier-one tech contracts (pending disclosure,) DoD contracts, & government backing (with recent grants totaling $39.1M) It just had a highly bullish Q2 ER showing 46% YoY growth, improving fundamentals, & confirming solid core-competencies. eMagin is the industry leader in microdisplay technology; with a best-in-class IP with significant differentiators (best picture quality and most energy efficient) & with brand new patents. The company is at an inflection point with a smallish float making it the best value proposition as per its current market cap, its manufacturing is 100% US based, it also has backlogged revenues for the next 12 mos. Technically, it's been uptrending since th emarket wide dip in April. it's been following the markets to a large extent, except that its had various catalysts (hence the spikes on the chart.) But I am expecting it to buck the trend next year even if there's a recession.

It has at least two signed agreements with tier one tech companies (pending announcement.) Definitely do your due diligence on this one. The CEO has already said that due to the significant backing by the Department of Defense, and the fact that they have significant liquidity, that they don't intent to dilute shareholders. The float is currently smallish at 67mn, and as I alluded, the fundamentals are quickly improving.

[splat15k]

Yeah, SPCE is intriguing for sure, as is NIO.

[gabe]

Okay yeah I'm seeing the same about $14 premium on $30c 10/30. I'd probably rather go shorter contract like 10/16 and a closer strike price like $29 for T as an underlying. There's definitely more risk that way.

In terms of volatility you're right, I think the IV of At&T is just so low that they don't pay. I'm really looking harder into Apple and maybe even pick up a few shares of Gap (GPS) stock to trade options on. SPCE might be another good underlying to sell calls on.

*edit* Holy crap I just checked the SPCE option chain and it's a cash cow. For $2k buy in on 100 shares you're looking and 125ish on 10/30 $23 calls. SPCE trades back and forth pretty hard so if you're willing to wait you can get shares down around $15-17 and hold them and do covered calls making back 10% per month. That's pretty sweet.

[splat15k]

That's my idea is that this is just supplimental to the dividend. I was looking at $30.50C 2 weeks out and they were in the $25-30 range. I think the shorter contracts will have a better monthly return than 1 month contracts. Plus you can re-set your strike price weekly or bi-monthly to keep your underlying safe.

I'm going to pick up 6 more shares of Apple to be able to sell calls on them. The contracts are pretty nice, like $300ish per.

Well shoot, I must be looking at the wrong values or something. Using TD Ameritrade, I am seeing that pay only $3 per contract (if we're still talking AT&T).

From what I can tell, high volatility will generate higher payouts; take a look at NKLA for example.

[gabe]

One thing that might help in getting better premiums is to sell the calls at open at a higher limit price to try and catch a contract sale on volatility. IDK honestly, I need to reed up on the greeks and see how IV is affecting contract prices.

[gabe]

That's my idea is that this is just supplimental to the dividend. I was looking at $30.50C 2 weeks out and they were in the $25-30 range. I think the shorter contracts will have a better monthly return than 1 month contracts. Plus you can re-set your strike price weekly or bi-monthly to keep your underlying safe.

I'm going to pick up 6 more shares of Apple to be able to sell calls on them. The contracts are pretty nice, like $300ish per.

[splat15k]

So far I'm just looking at the two in my portfolio that I have 100 shares of and aren't really moving anywhere: AT&T and Exxon. From my understanding it's best to choose a stock that has little chance of surprise movement through your strike price to sell a covered call on.

That is my understanding as well and probably not entirely coincidentally, I was eyeing up AT&T for this but a $30 Oct30 call is paying only $15 per contract, which seems way too low to me. We should be looking for 2 to 3% monthly returns and that one checks in at roughly 0.5% ($15/$2847). It does have a nice dividend to help make up for that though!

[gabe]

I've been strongly considering doing this as well. Any thoughts for stock candidates?

So far I'm just looking at the two in my portfolio that I have 100 shares of and aren't really moving anywhere: AT&T and Exxon. From my understanding it's best to choose a stock that has little chance of surprise movement through your strike price to sell a covered call on.

[splat15k]

In other news I'm looking at doing some cash covered puts and covered calls to generate some more income. The "wagon wheel" strat looks pretty compelling for an extra hundred dollars a month or so selling OTM calls/puts and collecting premiums.

.

I've been strongly considering doing this as well. Any thoughts for stock candidates?

[Axel]

Palantir looks interesting although I really make it policy not to invest in IPO's.

me too hence YOLO

I'm a native Pennsylvanian what once had the opportunity to ride the Sooper Dooper Looper at Hershey Park over and over again on a slow day so here we go WWWHHHEEEEEEEE lol

[gabe]

Palantir looks interesting although I really make it policy not to invest in IPO's. Based on the difference in opinion on IPO pricing being so great it probably has some good upside potential. I saw the NYSE was rating it in the mid teens although analysts had it's IPO in the $30 range.

[Axel]

Palantir (PLTR) went public today. Thoughts?

Without venturing too far into politics, I will at least mention I don't like a lot of what they do, but I think the surveillance genie is out of the proverbial bottle. I also think it's a safe bet that this segment is only going to grow

I bought a few shares. YOLO

[gabe]

Dang, sorry to hear it

In other news I'm looking at doing some cash covered puts and covered calls to generate some more income. The "wagon wheel" strat looks pretty compelling for an extra hundred dollars a month or so selling OTM calls/puts and collecting premiums.

I'm also looking hard at Intel and their earnings. Their P/E is hideously low right now and earnings estimates are extremely low. With the new Tiger lake release and them moving away from in-house manufacturing I think analysts are shooting too low. My bet is on a solid earnings beat and the share price skyrocketing.

[ReconSWS]

My poor puts got IV crushed, I played for a 50% drop market crash and it wasn't even close. And no shorter took the shot at Elon. At least it was the cheapest 0.01 contracts and I didn't get very many. I checked the options chain and literally all puts got crushed except well in the money ones so sucks for all bears. Som bullshit. I forget IV plummets after 'events'. Now TSLA chillin at 420 and going to keep going up more likely. Imma just sit back and watch I guess lol.