IronFist's beginner option trading journal

Discussion in 'Journals' started by IronFist, Mar 29, 2021.

  1. Options expired. Taking delivery on a bunch of shares @ $1.50 tomorrow. Average cost is probably $1.31 or so after premiums.
     
    #21     Apr 25, 2021
    BKR88 likes this.
  2. BKR88

    BKR88

    :thumbsup:

    Choices now:
    1-Set sell limits at various levels.
    2-Sell Oct. $1 calls for .27 (close to your break-even)
    3-Sell stock & replace with Oct. .50/2.00 Call spreads for .30 in case the ship is sinking. Saves the last .50 in case going to zero. Stock as .83 so a bit below intrinsic value. (decent volume in the Oct. options)

    ***Or do several different strategies such as the list above. 100 shares for each strategy.
    ***Not much you can do with options in the near-term months.
    ***I know nothing about the company so "going to zero" isn't a prediction. :)
    GL
    sndl.png
     
    Last edited: Apr 26, 2021
    #22     Apr 26, 2021
  3. They are a Cannuck Cannabis company with zero debt. Can you elaborate on option 3?
     
    #23     Apr 26, 2021
  4. BKR88

    BKR88

    Buy .50 Call for .44
    Sell 2.00 Call for .14
    Total cost = .30 ($30)
    Sell 100 shares of stock for .83 ($83).

    Call Spread now replaces the stock sold.
    Losses limited to $30 compared to $83 (stock).
    Profit limited to $120 compared to unlimited (stock).

    ***Prices based upon friday close.
    ***No need to do this if you're not concerned about the stock going below .50.
     
    #24     Apr 26, 2021
  5. Buy orders at:

    $0.85 x 100
    $0.80 x 100
    $0.75 x 100
    $0.70 x 100
     
    #25     Apr 30, 2021
  6. Buy orders at .85 and .80 activated.

    Trade cost now 1.31.

    Price is too low to sell covered calls yet.
     
    #26     May 5, 2021
  7. Earnings coming up on the 11th. Might buy some 1.00 calls since they're mad cheap ($0.03).
     
    #27     May 5, 2021
  8. easymon1

    easymon1

    SNDL
     
    #28     May 5, 2021
  9. I'm not sure what the lines on the chart mean.
     
    #29     May 6, 2021
  10. easymon1

    easymon1

    Sorry bout the lines, ...still and all I see on a chart of
    sndl, no sign of strength yet imho sndl.png

    A lot can happen before the 11th tho and make this work just fine.
     
    Last edited: May 6, 2021
    #30     May 6, 2021