What Did You Buy Today?

[fenders53]

(10-05-2020, 10:38 AM)stockguru Wrote:

(10-05-2020, 09:39 AM)saimash Wrote:

(10-05-2020, 08:55 AM)fenders53 Wrote:

(10-05-2020, 06:38 AM)NilesMike Wrote:

(10-02-2020, 06:37 AM)fenders53 Wrote: Most likely.  I am getting better at playing this market chop. I think the market is going to have trouble running in the same direction much more than a few days, for the next few months anyway.  I am trying to grab a few TLT puts everytime equities run for a few days, then usually get a chance to close them within a week.  Gold and silver has worked too, but not as well as it pulls back with equities initially, at least lately it has.

I have been doing puts and calls on T and KO in a separate account just for this strategy. I ALWAYS have a put on and a call on each

One goes up, the put gets bought back. One goes down a put goes on and a call comes off.
Have done 10 of each on each since Sept 1.

I have done something similar with a portion of my port with about five stocks since we discussed it on the conservative options thread.  Works very well as long as I can find solid Div stocks they are in the lower end of their trading range.  Nice income in a market that is choppy and range bound.

fenders53, you need to teach people like us how to play options :-)
The only options I've ever done are Covered Calls on my MDT stock (and that too using a 3 month expiration date)

I agree teach us the basics here.

Do your sell puts to be able to buy the stock at that set price? For instance I want to Sell Puts on T at $28 on Nov 17th. So if T hits $28 before then, I get to purchase the stock at $28?? Or can I decline that and just take what ever money is on the option? Do you even make money on Puts or it's just a way to buy the stock at a price you want. I mean if that were the case why not just set a limit buy order on it lol. So what is selling a put and how can I make money on them??

And how about calls. How do they work if you are selling or buying a call?? I assume you make money if the stock goes up??

Examples please 

This isn't the thread for it but I'd be happy to share every trade for a few months if anyone would actually read it and converse.  It isn't complicated.  The short answer to your question is yes, but I generally try to NOT be exercised unless a stock gets truly dirt cheap.  On average I make more money if I just roll it forward and keep more capital freed up so I can continue to play he game again next week.  I should go count how may of these trades I have the past year.  It's a big number.  I'm dying to make some more but today is not the day and patience usually works out.