I think the recent 10% + correction in the Nasdaq is a very positive thing.

After all of the blowout growth and earnings reports it was bound to happen during this post period.

Leading up to earnings again in April where do you think $$ is going to rotate back into?

The reality is that economy has a LONG ways to go to get back to "healthy" again. I like what was healthy, what is healthy now and what will be healthy for the next 3-5 years.

It's a new world the best companies can change with the new conditions, I'm putting Disney in the category of new with their streaming content (Hulu, Disney+ and ESPN) they can rival Netflix on top of all their old core earnings (theme parks, cruise, movies, merchandise).

Did we buy or sell TTD when it hit $565 last week? Back to $725 now.

If you think this is all a head fake then maybe buy puts against these bounce back stocks today?

You only lose when you no longer have the shares and have less in your pocket then when you started.

If you buy for $10, sell the $10 for $1 and it goes to $100 you don’t lose really. You miss out on a ton of potential gain, but you still have more than when you started.

If you buy it for $10, sell the $10 for $1 and it goes to $5, that sucks. But you still have the shares and need to make $4 more per share before you break even. So do you keep selling the $10, maybe this time for $.10? It might go to $100 again and you only get $1.10 total gain per share, but you didn’t sell at $5 and lose $4 per share (after factoring in the $1 you made selling the first contract).

It all depends on what your goals are and what your plans are when things go the wrong way. They will do that a lot/often. I used to freak out but have gotten to the point that if things don’t go my way I see what my options are (sometimes literally looking at the options table) and go from there.

I think a lot of people see a stock go down for a bit and think that means the company is no good but this is short term trader outlook. I don't need something to go straight up after I buy it. I bought several thousand shares of GE in March 2020 for $8 a share and saw it go down to $5.5 in the next few months. I didn't go about cursing and crying but just held on and now it's $14.

I don't expect things to go up always I buy and hold and give the stock time to breathe. I am not as good of a trader as Ice but I have the willpower to let a stock ride, and usually will buy more if it goes higher or more if it goes lower.

Or you could be up 25% today with gamestop. And 90% for the week.

I write a lot of covered calls but I know that it is not always easy money. I bought AEM at $86 and sold the June $90 calls for $10.20 (Canadian shares). Today I am down around $13 on the shares but I have made $9 on the calls (they are worth around $1.20) now. So the calls help reduce some of my downside risk but now I have to hope to breakeven on the trade whereas I had initially planned to make $14/$86 on the trade in six months. Point is, not a guaranteed return or zero risk.

In this example, the 5 dollar loss is on the stock itself correct? If so, What’s the loss on the actual covered call?

You collected a nice premium by selling calls near the strike price. The fact that the stock went down has NOTHING to do with whether or not you get to keep that premium at the end of that June expiration date. You know that.

That is a given regardless of where the stock is.

The covered call is a ZERO downside risk trade. That's a fact. If your stock gets called away then you lost some upside opportunity. Is it a guaranteed return? Absolutely not, nobody ever said it was. . It's a guaranteed hedge.

Korn, he's made money on the covered call. Period. That premium goes into your pocket and stays there. When you collect rent on a rent house you don't have to give it back if the value of the house goes up or down!

Now if you want to get into trading around those covered calls then that's a different story.

Lol. Yeah, then i'd have to really care about what happens day to day. Today, tomorrow, next month, just part of the long term journey.

If you can make money trading Gamestop more power to you and congrats! Those Reddit guys have some big balls, gotta say that.

That is true. Can't set it and forget it or you might miss the one hour is goes through the roof.

Fully agree it’s not easy. I try to have a plan, and then a backup plan if that doesn’t pan out.

I have a pretty small fun account but am almost at my share QTY goal for MAC so I can move onto other things. I wanted to have 400 shares so I could use all of them to sell calls down the road. I only picked 400 because when I first bought in I had a touch over 300 shares and decided I wanted to get to the next multiple of 100’s before moving on.

It’s nice when the things you buy and planned to hold for a long while are up, in my case with MAC I like the potential future dividend if/when it goes back to pre-covid. You write a call on something you are already up on and there is no way you lose on the trade when it’s all done.

If you buy and it goes down then you have to figure out if you want to sell at a strike lower than what you bought at. If you do and it pops high enough for you to get called, you would be on the losing end, unless the call premium you collected combined to make you a profit. This situation is obviously less fun to watch play out.

I like options. I think they have big potential if things go your way when you own the contracts. If you write the contracts then you hope for mostly sideways until you can write them again. It can be pretty exciting, but in the last 12 months you haven’t needed them to find excitement in the market.

You're way too heavy on that. First rule is wealth protection. Diversify that portfolio, this a good chance

That is not even close to all the stuff in my portfolio - the comment was no one talks about their down stuff, so I was tossing out info on my picks that aren't doing so hot. Mistake I made was not putting in a stop loss at around 10% on GRWG - it will be a long road to recovery

an even better strategy is making use of 'covert' calls.

Ark bought more DraftKings and SKLZ today

Slow transaction day for them

If the strike price is at $25 and the underlying security is at 25.01 on exp date at 4pm then your shares will get taken but you keep the sale/rent premium (Your agreement was to sell them at $25). You are correct on the premium.

Lol....you got ice in your veins, you're either going to be hero or a zero....I hope it's the former Icebro

Maybe someone could confirm this but I think options continue to trade after the market closes. So if at 4pm the stock is at $24.99 but trades after hours above $25, the calls can still be exercised.

Cannabis stocks are extremely volatile.
I had some that I held to 40-50% losses in 2019 that rebounded to very good profits in 20/21
I am in most of them right now for the long haul, it's way to early in the legalization game right now - huge payouts are still to come

Or you could have been an idiot, got in at $333 and sold thinking the entire thing was a bust at around $60. Oh well, it will make for a nice tax deduction.

Nothing like feeling like a moron.

I did the same on round 1. But I got back in quickly for round 2 that I've made enough that I'm ahead on the gme saga

Anybody buying RBLX today?

With how much money I've spent on my 8 year old playing it, would be nice to get some of that back

No, options expire at 4PM price.

Good to know. I thought I have heard of people writing uncovered calls that expire on the same day and getting burned after hours when the price changed significantly.

Thats true based on what I've read. You'll read some horror stories about people losing their asses unexpectedly, even with a protecting position.

That should be rare, and a decent broker should work with you (ie, not liquidate all your assets to cover). That's why best practice is to close any positions you dont want exercised before expiration.

Check with your broker to be sure on their practices, or just play it safe.

I just placed my limit order

I'm not falling for that one again!

I think I'm just always late to the party.

Just increased my position in CCIV again. Rode from $23 to $65, bought in again at $40 on the way down and just bought more this morning at $25. I am averaged in at $28.35 now and I do believe in the short term and long term growth of this company. I think it has bottomed out and is on its way to $30-35 short term. Do your own DD.

* Majority of holdings still in sensible ETFs and mutual funds.

I’m def a hero for the $1 Billion of client money I manage. And always will be with the plan and approach we take.

It takes some “ice in the veins”, balls or just common sense long term conviction and perspective to BUY THE DIPS

Did most people continue to sell out of fear and panic over the inflation boogeyman?

Or did yo buy the 10%+ dip?

Let me remind you that MSFT tried to buy PINS

I’ve been recommending on this thread since it was trading in the teens

Along with Apple for the past 6 or 7 years when it was unloved

Once again, buy and hold great companies and then BUY MORE when they go on sale

When it dips again, if it does, think about buying that “shit” PINS company. Lol

Could have had it at $60 2 days ago. Bought it at $80. Should have doubled up at $60

Never too late. Up 19% already today.

I bought the dip with you, Ice! Not at your levels of course, but did buy a couple hundred K worth of stocks. Some of it is still under, but that is ok. Love opportunities like what the past week has presented.

I wish I could be in your and Ice’s buying level at some point

Just keep working at it, brother! Mine did not happen overnight. Best advice I can give you is learn about the markets (what your are doing) and make strategic, calculated investments. Some will boom, some will bust. But keep doing it and keep learning.

It's all relative Korn, power of compounding brother! Adopt a plan and stick to it.

Don't be afraid to make mistakes. Everybody does, including Warren Buffet.

You develop conviction and confidence by doing the due diligence for the long run.

"Be quick to sell your losers and let your winners run"

It was too late the last time I tried it.

You are NEVER late to the equity market party. It's been going on for 100 years! There are times when you drive off into the ditch but the "road goes on forever and the party never ends"!

Don't chase your tail by trading out of the emotions of "fear and panic" or "greed".

Thanks guys! I’ve learned so much thanks to your contributions! I’ve made some good money thanks to this thread, that’s for sure....not talking about GME btw

Korn, we'll have huge buying power soon. Gme will take us there!

I am waiting to see when it opens. I have a limit order in for a small position but I imagine by the time retail investors can get in there, it is going to be much higher than the $45/share projection.

Best two posters in this thread. Everything else is static.

I would also include BMore-Pinball and robertmee in that list

This is our shot!

Waiting anxiously, nothing yet

I would add pinnyheadhead and loneacer as people I respect their opinions as well.

I am just smart enough to listen to the people that know what they are talking about

Looks like it is going to open $65-$70 bucks. I am not personally investing in this and admittedly, do not follow it outside of DD, but think you can buy it cheaper later.

Yes! Very true!