sleepydragon Posted May 19, 2019 Share Posted May 19, 2019 I did something new for me: I wrote some WY puts that expire in 2 days: WY 05/17/2019 24.50 P - price when i wrote the puts was 24.85 and I sold the puts for $.10 My reasoning was that I was seriously thinking about adding to my WY position and when I checked the options I saw the OTM options with a bid for $.10 so I just went for it knowing that if I am put to in 2 days then I will get it $.45 less then todays price, which I can live with. My profit on expiration is a whopping $80. Tell me if my thinking is stupid and i am picking up pennies in front of a steam roller. The problem with the strategy is that if the stock goes straight up, you just get 10c/ share. I disagree. I think boilermaker’s method is totally sound. The only risk is sell too much put without the cash ready to buy, otherwise it certainly lower your cost of purchase of a stock if you will be buying it over time. Boilermaker has said he doesn’t do this for all stocks, which will be dumb. He only do it for a few stocks that are his long term holdings which he plans to buy more in the long term. Plus you have to pay short term capital gain tax, and tie up the cash in the account until put is expired. Like Warren said, if you like the stock, just buy it. Eating like a chicken yet shitting like an elephant... Not my cup of tea. Link to comment Share on other sites More sharing options...
james22 Posted May 20, 2019 Share Posted May 20, 2019 FNMA @ $2.75 FMCC @ $2.65 FNMAS @ $12.25 FNCKJ @ 12.00 Link to comment Share on other sites More sharing options...
Gregmal Posted May 20, 2019 Share Posted May 20, 2019 GOOG Link to comment Share on other sites More sharing options...
SmallCap Posted May 20, 2019 Share Posted May 20, 2019 FNMA @ $2.75 FMCC @ $2.65 FNMAS @ $12.25 FNCKJ @ 12.00 What did you do, grab value line book and start in the 'F' section? Link to comment Share on other sites More sharing options...
SmallCap Posted May 20, 2019 Share Posted May 20, 2019 I did something new for me: I wrote some WY puts that expire in 2 days: WY 05/17/2019 24.50 P - price when i wrote the puts was 24.85 and I sold the puts for $.10 My reasoning was that I was seriously thinking about adding to my WY position and when I checked the options I saw the OTM options with a bid for $.10 so I just went for it knowing that if I am put to in 2 days then I will get it $.45 less then todays price, which I can live with. My profit on expiration is a whopping $80. Tell me if my thinking is stupid and i am picking up pennies in front of a steam roller. The problem with the strategy is that if the stock goes straight up, you just get 10c/ share. Plus you have to pay short term capital gain tax, and tie up the cash in the account until put is expired. Like Warren said, if you like the stock, just buy it. Eating like a chicken yet shitting like an elephant... Not my cup of tea. Update: the day of expiration the stock dropped 2.5% and so I got the stock at a lower price then I would have expected when I sold the put. unfortunately today it has gone down another 2.2% Link to comment Share on other sites More sharing options...
james22 Posted May 20, 2019 Share Posted May 20, 2019 FNMA @ $2.75 FMCC @ $2.65 FNMAS @ $12.25 FNCKJ @ 12.00 What did you do, grab value line book and start in the 'F' section? It was the 1,245th page in the ten-bagger thread that finally convinced me. Link to comment Share on other sites More sharing options...
Jurgis Posted May 20, 2019 Share Posted May 20, 2019 FNMA @ $2.75 FMCC @ $2.65 FNMAS @ $12.25 FNCKJ @ 12.00 What did you do, grab value line book and start in the 'F' section? It was the 1,245th page in the ten-bagger thread that finally convinced me. You're way behind. It's on the 1249th page now and boy that has improved the arguments. Link to comment Share on other sites More sharing options...
SnarkyPuppy Posted May 20, 2019 Share Posted May 20, 2019 FNMA @ $2.75 FMCC @ $2.65 FNMAS @ $12.25 FNCKJ @ 12.00 What did you do, grab value line book and start in the 'F' section? It was the 1,245th page in the ten-bagger thread that finally convinced me. You're way behind. It's on the 1249th page now and boy that has improved the arguments. My favorite way of investing is to determine quality of investment by anchoring to COBF page count. Link to comment Share on other sites More sharing options...
tombgrt Posted May 20, 2019 Share Posted May 20, 2019 FNMA @ $2.75 FMCC @ $2.65 FNMAS @ $12.25 FNCKJ @ 12.00 What did you do, grab value line book and start in the 'F' section? It was the 1,245th page in the ten-bagger thread that finally convinced me. I set posts per page on 50 so the investment ideas get more attractive... Link to comment Share on other sites More sharing options...
frommi Posted May 20, 2019 Share Posted May 20, 2019 Sold all my TSLA bear call spreads, because risk reward on them is now very bad. Profits paid for all of my puts that i continue to hold until zero. Link to comment Share on other sites More sharing options...
Ahab Posted May 20, 2019 Share Posted May 20, 2019 I sold some more TSLA bear call spreads this morning and also bought some more far-OTM puts. I plan on scaling this short position from 10% to 20% of my portfolio this week. Link to comment Share on other sites More sharing options...
Spekulatius Posted May 22, 2019 Share Posted May 22, 2019 DXC and a bit of BCS Link to comment Share on other sites More sharing options...
CorpRaider Posted May 23, 2019 Share Posted May 23, 2019 BRK.B Link to comment Share on other sites More sharing options...
CharlesMunger Posted May 23, 2019 Share Posted May 23, 2019 BRK.B Link to comment Share on other sites More sharing options...
james22 Posted May 23, 2019 Share Posted May 23, 2019 BRK.B @ $199.98 Link to comment Share on other sites More sharing options...
DooDiligence Posted May 23, 2019 Share Posted May 23, 2019 Me 3 (BRK.B) Link to comment Share on other sites More sharing options...
rkbabang Posted May 23, 2019 Share Posted May 23, 2019 Me 4 @ $199.66 Link to comment Share on other sites More sharing options...
John Hjorth Posted May 23, 2019 Share Posted May 23, 2019 And perhaps now CorpRaider, CharlesMunger or James are sitting crying for being ignored - perhaps all of them. May the wonderful price paid provide some comfort! Link to comment Share on other sites More sharing options...
boilermaker75 Posted May 23, 2019 Share Posted May 23, 2019 I wrote some 200-strike, May 24 expiration puts earlier today. If put to tomorrow, essentially a limit order at 199.20. Link to comment Share on other sites More sharing options...
CorpRaider Posted May 23, 2019 Share Posted May 23, 2019 And perhaps now CorpRaider, CharlesMunger or James are sitting crying for being ignored - perhaps all of them. May the wonderful price paid provide some comfort! Haha. Yeah, they left me out of the count. I just assumed everyone one this site, wisely, had me on ignore. Link to comment Share on other sites More sharing options...
John Hjorth Posted May 23, 2019 Share Posted May 23, 2019 .... I just assumed everyone one this site, wisely, had me on ignore. Absolutely not, CorpRaider!, Modesty is a virtue. I see Mike has also opened the valve on his pipeline of free beer - now we just need to read this here on CoBF: Me 6 BRK.A & BRK.B , and everybody will be happy. Link to comment Share on other sites More sharing options...
rkbabang Posted May 23, 2019 Share Posted May 23, 2019 And perhaps now CorpRaider, CharlesMunger or James are sitting crying for being ignored - perhaps all of them. May the wonderful price paid provide some comfort! Haha. Yeah, they left me out of the count. I just assumed everyone one this site, wisely, had me on ignore. Sorry, I didn't count. I wrongly assumed DooDiligence could count. :) Link to comment Share on other sites More sharing options...
John Hjorth Posted May 23, 2019 Share Posted May 23, 2019 ... Sorry, I didn't count. I wrongly assumed DooDiligence could count. :) Let Jeff and you be excused. Jeff has posted that he does not consider himself a slacker, - so I assume he was buying at the broker, posting here, reading chords, singing & playing piano or guitar - all in one big bunch simultaneously - multitasking is hard. Link to comment Share on other sites More sharing options...
aws Posted May 23, 2019 Share Posted May 23, 2019 'Someone' has been an aggressive buyer of BRK.A today. As I write this BRK.A is outperforming the B by about .7% today. The premium has popped to almost 1% when it was basically nothing a month ago. Link to comment Share on other sites More sharing options...
bizaro86 Posted May 23, 2019 Share Posted May 23, 2019 I wrote 197.50 BRK.B puts for the first Friday in June. I used the premium to buy September 220 calls Link to comment Share on other sites More sharing options...
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