The Rokslide Stock Traders Thread

[eddielasvegas]

Fidelity has been good to me overall. A few hiccups in option trades, but overall great.

I'm going to call Fidelity and see how their system handles the issue I had with CS.

I think I'll call E-Trade too as I need to stop being a lollygagger.


Eddie

 

[JVS]

I encourage you guys to look into selling covered calls on anything you own 100 shares of. It’s impressive the revenue one can generate. I write them conservatively, out of the money. Well unless I am looking to exit a stock. Then you write them in the money and capture the call premium plus your upside on the stock. It’s quite magical once you get a system down.

 

[swehrman]

@JVS I'm interested in learning more about covered calls. Would you post an example of a covered call that you sold that we're out of the money?

 

[JVS]

@JVS I'm interested in learning more about covered calls. Would you post an example of a covered call that you sold that we're out of the money?

There are so many platforms. All a little different. You are best to go to YouTube and search “selling covered calls options” on Robinhood or E*Trade. Whatever you use etc…
This is well worth everyone’s time to learn. You can add some serious upside to your investments. Or generate income in retirement

 

[JVS]

Covered calls explained at the 23 min mark.
PS this podcast has taught me so much about investing… Go back to the early episodes if your newer to investing

https://podcasts.apple.com/us/podcast/rich-habits-podcast/id1673129494?i=1000775624770

 

[Pharmseller]

PLTR dropping again.

Fek.

 

[LFC911]

PLTR dropping again.

Fek.

I am down 21% on BE

 

[Beendare]

My riskiest trade this year. I just bought DRAM for a trade. Its an ETF that owns about 15% of SK Hynix that will be listed tomorrow on the Nasdaq as an ADR. I might buy the stock tomorrow when it lists depending on the price.

The short version; SK Hynix is a Korean memory chip maker that has over 50% of the high end memory chip market.

I think the listing will raise all boats in that segment- heck, it already has MU up over 7% today.

 

[Beendare]

I did covered calls for awhile. It's a good strategy for regular returns BUT it can kill you in a taxable account. It's a good idea to know what your after tax profit is on trades and options.

The downside is I was getting whipsawed out of stocks I preferred to hold LT. An example is you sell the call on a stock thats 5% out of the money...and then the stock appreciates 7%- I got sold out. If I held it under a year, that gain goes right on top of regular income. A bunch of those can put you in a higher tax bracket. Too far out of the money calls weren't worth the squeeze for me.

Do it in a IRA or non taxable account and trade away- no problem.

I would recommend discussing with an accountant and doing the "What If?" to know what is your effective Tax rate on these trades.

If you make $10,000 more, or $50,000, or whatever- what is your actual profit and how it affects your tax rate. If big gains bump you into AMT range to where you lose deductions or worse in some states like CA- your effective tax can really affect what you thought was a good profit. Sort of a one step forward, 1/2 step back deal.