/biz/ - Business & Finance

You will never beat this man

How much money would I make if I simply mirrored him. SOS is doing really well

>>22230577
https://www.youtube.com/watch?v=KfDB9e_cO4k&list=PLECECA66C0CE68B1E


>>22230556
Just sell out of the money calls. High enough they expire worthless but close enough to earn a premium. Takes some practice but good source of income.

Hello, here is my next week covered calls selection:
RAD (Rite Aid) $12.61, a 13C Jun26 nets 7% premium
BB (BlackBerry) $5.08, a 5C Jun26 nets 5% premium
NKE (Nike) $98.45, a 5C Jun26 nets 2.7% premium

Nike is probably the safest but also lowest profit potential.
BlackBerry seems most risky, but it is a tech company.
Rite Aid seems to have a lot of upside and was not majorly impacted by the previous downturn, but has high volatility.

I'm probably going to go with a combination of Rite Aide and BlackBerry. I will buy in tomorrow if its red, otherwise I will hold off until Monday.

>>19735328
I beg to differ

Next week for covered calls I am doing SWBI, CCL, and KR. SWBI and KR are quite solid. CCL is a bit of a gamble. You can also try Oracle, they are decently safe but also less rewarding. Last week I did CHWY, GME, and PLAY. CHWY and GME were good, but PLAY did not work out as well (just as I feared). Remember to do your own research!

In other news, you might want to learn about bonds. If you go to your brokers bond search, you can search for bonds with certain ratings and Yield to Maturity. The rating indicates the likelihood of bankruptcy, with A's being near zero, B's are safe-ish, and low B's and C's are probably going bankrupt. The yield to maturity is the percentage per year you make by holding the bond. This means if you bought a bond at 12% YTM, you're effectively earning 12% guaranteed per year. If a company does go bankrupt, it doesn't necessarily mean you lose everything either, you might still receive partial payment or shares/bonds in a new company if it survives a restructure.
I have bought Nordstrom, Royal Caribbean, and US Steel bonds for 10%+ YTM.

Next week for covered calls I am doing SWBI, CCL, and KR. SWBI and KR are quite solid. CCL is a bit of a gamble. You can also try Oracle, they are decently safe but also less rewarding. Last week I did CHWY, GME, and PLAY. CHWY and GME were good, but PLAY did not work out as well (just as I feared). Remember to do your own research!

In other news, you might want to learn about bonds. If you go to your brokers bond search, you can search for bonds with certain ratings and Yield to Maturity. The rating indicates the likelihood of bankruptcy, with A's being near zero, B's are safe-ish, and low B's and C's are probably going bankrupt. The yield to maturity is the percentage per year you make by holding the bond. This means if you bought a bond at 12% YTM, you're effectively earning 12% guaranteed per year. If a company does go bankrupt, it doesn't necessarily mean you lose everything either, you might still receive partial payment or shares/bonds in a new company if it survives a restructure.
I have bought Nordstrom, Royal Caribbean, and US Steel bonds for 10%+ YTM.

Covered call plays for this weeks earnings.
Ticker, Price, Rating, Strike, Premium as % of current price
PLAY 18.89, Bearish, 19.0C 12.4%
GME 4.14, Bearish, 4.5C 7.2%
CHWY 48.44, No rating, 48.5C 6.4%
PLCE 52.16, Bearish, 55.0C 5.7%

I think CHWY has the best upside, literally everyone is ordering for their pets from them.
PLAY has the biggest downside, they still aren't open and are basically still fucked.
GME who the fuck knows but keep this in mind: Short % of Float (May 15, 2020) = 251.30%

Heres information for covered calls next week June 9-12. This information is current as of close on June 4th.
This coming week there were very few promising earnings reports coming out, just 4. They are all rather bearish so I am thinking of selling deep ITM calls to protect from downside.

Ticker, Price, Rating, Strike, Premium as % of current price
PLAY 19.48, Bearish, 19.5C 12.3%
GME 4.47, Bearish, 4.5C 11.0%
CHWY 49.11, No rating, 49.5C 6.5%
PLCE 48.80, Bearish, 50.0C 6.3%

>>19527737
>>19527753
Want something that outperforms spy? BFOCX

Don't be fooled by this "recovery." Make money on the way up, but don't get greedy, don't get complacent. We are entering a period of major changes and the markets are not done moving. It took a year for the 2008 crash to really happen, financials are worse and more widespread and the government has already spent 3 times as much to stop this crash. Just be ready, pay off your debts, take cautiously bullish positions, and be ready to switch strategies when the rug is pulled.

Was doing some research into some mutual funds for auto deposit, these were the 3 best performing funds that didn't have significant overlap.
BFOCX - Berkshire Focus Fund
FSCSX - Software and IT
FBIOX - Biotechnology Healthcare

I did some screening for next week earnings calls.
I am going to do covered calls (but you can use a different strategy). Heres a list of the highest premium stocks:
Week May 25 2020
ntnx 21 bear 9.4%
jwn 16 neut 9.3%
hpq 17 bull 8.4%
goos 21 bear 7.4%
cgc 18 none 7.1%
cpri 14 neut 6.8%
tol 28 bear 6.2%
csiq 20 bull 6.2%
gme 5 bear 5.4%
ntap 45 bull 4.9%
MRVL 28 bear 3.7%

>>19191474
Sell covered calls. Find stocks with a value of X and you can sell a call at strike X + premium. Find stocks with a premium (the price of the option) thats a high percent of the stock. Then repeat every week/month. I am doing this right now.
Bought HPE at 9.74 and sold covered calls at 9.5 for 0.55, this means I make money if the stock goes up (capped at 10.05) which is 3%. But I also make money if it goes down up to 5%. So if it ends the week -5% or above, I make a profit up to 3%.
Also bought FL at 27.5 and sold calls at 25.5 for 2.66. That means I make a profit if it ends the week -9% or higher and make up to 2.4%.

I just finished preliminary screening of some great covered call opportunities for next weeks earnings.
WB - Weibo Corp
FL - Foot Locker, Inc.
KSS - Kohl's Corporation
GPS - Gap Inc
VIPS - Vipshop Holdings
HRL - Hormel Foods Corp
HPE - ewlett Packard Enterprise Co

These companies have earnings reports coming out next week. The premiums on near the money options are at 2% or greater. WB and FL have the highest premiums percentage at 5% and 8%. This is a good opportunity to make a low risk play with decent upside. The strategy I am executing is to purchase shares in lots of 100 and sell covered calls to collect the premiums at the start of the week (or the Friday before the weekend).
An example:
Buy 200 shares of FL at $23.50 for a total of $4700
Sell weekly calls at $24 for about $1.50 each, net credit of $300.
Possible results:
Week ends at $26 (+10.6%) = $5100 ($24*200 + $300 from calls) (+8.5%) : Delta: -2.1%
Week ends at $25 (+6.4%) = $5100 ($24*200 + $300 from calls) (+8.5%) : Delta: +2.1%
Week ends at $24 (+2.1%) = $5100 ($24*200 + $300 from calls) (+8.5%) : Delta: +6.4%
Week ends at $23 (-2.1%) = $4900 ($23*200 + $300 from calls) (+4.2%) : Delta: +6.4%
Week ends at $22 (-6.4%) = $4700 ($22*200 + $300 from calls) (+0%) : Delta: +6.4%
Week ends at $21 (-10.6%) = $4500 ($21*200 + $300 from calls) (-4.3%) : Delta: +6.3%

Note: When the Call is not executed, you may choose to continue to hold the stock and wait for it to rise again.

As you can see, with such a high premium, the upside for covered calls is quite high and the downside is partially mitigated. If you are expecting a drop you can sell deeper in the money calls, and if you think it will pop, you can sell higher out of the money calls.
>What about capped upside?
Do you expect the stock to move +10% in a week? Even if it does, you are still guaranteed profits.
>What about unlimited downside?
This is why you buy stable companies, its just as unreasonable to expect the company to move -10%