Host or participate in Heists - Min. Level 1 / to participate; Min. Level 12 / or own a high-end apartment to host
I'm a millionaire already, just give me a grind:
CEO Import/Export Vehicle Work by Psychko - Currently most reliable and profitable money grind with high end only method - Min. Level 1 / if you already own a CEO office / if you do not own a CEO office
Do an I/E sourcing mission, then do VIP work (Headhunter or Sightseer are a breeze with a Buzzard) in the cool down, then do an I/E delivery mission. Rinse and repeat!
Earn 2000-3000RP per source delivery, 5000RP per sale delivery. Buy 1 crate and sell immediately for maximum RP since the same RP is given whether you source/sell 1 crate or multiple.
Earn 200-600RP bonuses when you stay near the CEO/VIP's location
Host or participate in Heists - Min. Level 1 / to participate; Min. Level 12 / or own a high-end apartment to host
I'm a millionaire already, just give me a grind:
CEO Import/Export Vehicle Work by Psychko - Currently most reliable and profitable money grind with high end only method - Min. Level 1 / if you already own a CEO office / if you do not own a CEO office
Do an I/E sourcing mission, then do VIP work (Headhunter or Sightseer are a breeze with a Buzzard) in the cool down, then do an I/E delivery mission. Rinse and repeat!
Earn 2000-3000RP per source delivery, 5000RP per sale delivery. Buy 1 crate and sell immediately for maximum RP since the same RP is given whether you source/sell 1 crate or multiple.
Earn 200-600RP bonuses when you stay near the CEO/VIP's location
Host or participate in Heists - Min. Level 1 / to participate; Min. Level 12 / or own a high-end apartment to host
I'm a millionaire already, just give me a grind:
CEO Import/Export Vehicle Work by Psychko - Currently most reliable and profitable money grind with high end only method - Min. Level 1 / if you already own a CEO office / if you do not own a CEO office
Do an I/E sourcing mission, then do VIP work (Headhunter or Sightseer are a breeze with a Buzzard) in the cool down, then do an I/E delivery mission. Rinse and repeat!
Earn 2000-3000RP per source delivery, 5000RP per sale delivery. Buy 1 crate and sell immediately for maximum RP since the same RP is given whether you source/sell 1 crate or multiple.
Earn 200-600RP bonuses when you stay near the CEO/VIP's location
Host or participate in Heists - Min. Level 1 / to participate; Min. Level 12 / or own a high-end apartment to host
I'm a millionaire already, just give me a grind:
CEO Import/Export Vehicle Work by Psychko - Currently most reliable and profitable money grind with high end only method - Min. Level 1 / if you already own a CEO office / if you do not own a CEO office
Do an I/E sourcing mission, then do VIP work (Headhunter or Sightseer are a breeze with a Buzzard) in the cool down, then do an I/E delivery mission. Rinse and repeat!
Earn 2000-3000RP per source delivery, 5000RP per sale delivery. Buy 1 crate and sell immediately for maximum RP since the same RP is given whether you source/sell 1 crate or multiple.
Earn 200-600RP bonuses when you stay near the CEO/VIP's location
Host or participate in Heists - Min. Level 1 / to participate; Min. Level 12 / or own a high-end apartment to host
I'm a millionaire already, just give me a grind:
CEO Import/Export Vehicle Work by Psychko - Currently most reliable and profitable money grind with high end only method - Min. Level 1 / if you already own a CEO office / if you do not own a CEO office
Do an I/E sourcing mission, then do VIP work (Headhunter or Sightseer are a breeze with a Buzzard) in the cool down, then do an I/E delivery mission. Rinse and repeat!
Earn 2000-3000RP per source delivery, 5000RP per sale delivery. Buy 1 crate and sell immediately for maximum RP since the same RP is given whether you source/sell 1 crate or multiple.
Earn 200-600RP bonuses when you stay near the CEO/VIP's location
Host or participate in Heists - Min. Level 1 / to participate; Min. Level 12 / or own a high-end apartment to host
I'm a millionaire already, just give me a grind:
CEO Import/Export Vehicle Work by Psychko - Currently most reliable and profitable money grind with high end only method - Min. Level 1 / if you already own a CEO office / if you do not own a CEO office
Do an I/E sourcing mission, then do VIP work (Headhunter or Sightseer are a breeze with a Buzzard) in the cool down, then do an I/E delivery mission. Rinse and repeat!
Earn 2000-3000RP per source delivery, 5000RP per sale delivery. Buy 1 crate and sell immediately for maximum RP since the same RP is given whether you source/sell 1 crate or multiple.
Earn 200-600RP bonuses when you stay near the CEO/VIP's location
Greeting Theta Gang boys and girls, I hope you're well and not bankrupt after last week. I'm just now recovering mentally myself. I saw a few WSB converts and some newbies asking for tips, so here you go. V2 of my Options guide. I hope it helps. I spent a huge amount of time learning about options and tried to distill my knowledge down into a helpful guide. This should especially be useful for newbies and growing options traders. While I feel I’m a successful trader, I'm not a guru and my advice is not meant to be gospel, but this will hopefully be a good starting point, teach you a lot, and make you a better trader. I plan to keep typing up more info from my notebook, expanding this guide, and posting it every couple months. Any feedback or additions are appreciated Per requests, I added details of good and bad trades I made. Some painful lessons learned are now included. I also tried to organize this better as it got longer. Here's what I tell options beginners: I would strongly recommend buying a beginner's options book and read it cover to cover. That helped me a lot. I like this beginner book: https://www.amazon.com/dp/B00GWSXX8U/ref=cm_sw_r_cp_apa_OxNDFb2GK9YW7 Helpful websites:
Tasty Trade (TT) and Ally Invest have helpful articles and videos.
ITM: In the money; strike is below stock value. Signif
ATM: At the money; strike is just at or above the stock value, often very highly traded. Can be very effective with moderate - long term expiry.
NTM: Near the money; strike is above the stock value, but fairly close. Slightly unofficial term.
OTM: Out of the money; price is at least a few strikes from the current stock price. I would say 10-30% over stock price.
Very OTM: Not a real definition, this is essentially a lottery ticket. Cheap, but almost certain to expire worthless unless there is explosive movement.
Understand delta in general and how delta changes with ITM and OTM options.
IV, IV crush, and how IV affects pricing. In general, you want to sell when IV is high and buy when the IV is low. Increasing IV is good for held calls/puts. IV drop or crush is generally good for sellers.
Selling options can be quite beneficial. Once you have a good general understanding, lookup thetagang . Kamikaze Cash has good youtube videos on most theta strategies (linked above). I personally believe selling options (especially cash secured) is much safer and can consistently make you profits. Θ Gang 4 life.
FOMO and how to avoid chasing a dangerous trend. DO NOT CHASE FROM FOMO!
What intrinsic and extrinsic value are. Know how they are affected by being exercised/assigned and how theta affects them.
Understand that some of WSB recommendations are straight up high-risk gambling and factor in the information accordingly. Be careful with Meme stocks and the survivorship bias on YOLO plays. However, I love the sub and think it’s hilarious. It has a lot of valuable information / DD if you are comfortable with the “colorful” language. It’s also great if you like rocket ship emojis.
Basics / Mechanics
Understand the 4 "main" option types. Buying or selling a call and buying or selling a put. Spreads and more complex multi-legged option strategies are based off these in some way (see below)
You can sell calls with 100 shares of stock or if you own an underlying longer term option; see LEAPS and PMCCs later. Selling calls naked is incredibly risky and often requires Level 4 (very advanced) permissions and usually a lot of capital. I will literally never sell calls naked since I don't want to ruin my life and end up living in a dumpster eating saltine crackers.
Puts can be sold/written cash covered (cash secured), which means you have the cash in your account to buy 100 shares. Your broker will put this money on hold until the trade is closed. Puts can be sold "naked" using Margin and Level 3 (with most brokers). Your broker will hold a percentage of cost of 100 shares (often 30-40%, 100% on meme stocks) allowing you to sell more puts. This increases your available capital/power as well as increasing risk.
General Tips and Ideas:
Don't EVER leave (short) spreads open on expiration day, close them. (more details below)
Start off trading very small. Slowly build up over weeks / months. You need to get accustomed to a fifty dollar swing a day, then a few hundred, then a few thousand. You need to ensure you don't get emotional (see below). I started trading options with 5k, then 25k, 50k, and later over 100k. I added my own funds over time and used my gains to build my account. Don’t go all in immediately, that’s dangerous and unwise.
Especially as you build up the amount of money you have invested, keep it diversified among several stocks.
Don't go all in on one thing, ever. Be able to take a hit from one stock and not mortally wound your portfolio.
A company may be doing great, then there's a major product issue out of nowhere. If you are overexposed in one stock this can really hurt you.
I had to roll options I sold that were about to expire completely worthless because FDX's CEO changed and the stock took a hard dip.
Don't trade emotionally. If you realize you are emotionally trading for vengeance, you should probably exit the trade and cool off for several days with that stock. Same if you get caught up in a wave of hysteria.
Have a plan for every trade, ideally with entries / exits that are specific values, ranges, or a set condition. This helps remove emotions. This is super important for strong movements and high volatility (see later).
Use an options profit calculator from your broker or an online one before entering a "new" trade, especially a complex multi legged trade: https://www.optionsprofitcalculator.com/
“Rolling” an option: Closing your existing option and opening a similar one at different strike and/or expiration.
Rolling a call “Up” would be selling a call you own and buying a cheaper call at a higher strike.
Rolling a put “Down and out” closes your original one and buying or selling one at a lower strike at a longer expiry.
Better broker interfaces have a literal “Roll” button. I know E-trade does. You can manually do it by selecting relevant contract legs.
If you have a losing trade, re-evaluate it. If your initial assumption is definitely incorrect, close it. Don't stay in losing trades forever and lose the entire value of the option over stubbornness. If you re-evaluate and you think your assumption was right, hold, potentially consider adding another cheaper option (or buy another call / put). Rolling out sold options can help here.
Don't try to day trade, especially with options. It's statistically unlikely to be profitable. Day-trading with options introduces extra liquidity risks and is dangerous, especially with spreads.
Try not to over-trade, you'll likely mis-time the market over time. When I get emotional I over trade, then lose additional money on wash sales. If you scale your entries into positions it should help alleviate your desire to exit positions when they turn badly against you. Whenever I buy calls I do it at larger increments after W almost made me loss my hair; luckily it eventually came back.
NEVER enter a position on a stock you have no idea about, especially when you read about it online or heard about it from some rando.
At market open options contracts are often volatile and inflated. Buying during this time can be more expensive. Options are usually cheaper mid-day, I read somewhere 2-3PM is cheapest. I’ve had success around 12-1PM EST after prices settle.
Try wheeling on cheaper stocks once you get all fundamentals down.
When selling puts if you are very bullish consider "doubling down"; note this is higher risk. Use the credit from your put sale to buy shares or a cheap call. This can be roughly inversed with puts, except I wouldn't ever recommend shorting shares.
Learn from your mistakes. You can’t go back in time and beating yourself up (to a point) is useless. Make a physical &/or mental note of it so you don’t do it again. If you don’t learn from it, then beat yourself up so you won’t do it again.
If you have friends that like to trade, I find it helpful to discuss strategies and planned plays. I talk openly with my close friends about my current holdings and planned trades, it helps keep me accountable. If I get a wide-eyed look, I might be doing something excessively risky or stupid. I’ve over-leveraged myself in calls twice and I knew I shouldn’t have done it both times. When I tell my friends what I did and I’m embarrassed, it exemplifies the face that I shouldn’t have done it in the first place. You will also get ideas for new strategies or plays from them. It’s good to stay versatile and use multiple strategies when appropriate. Beware of group think/echo chambers.
I recommend NEVER telling someone what to buy/sell and when. I’ll tell people MY plays or what I like and why, but I will not encourage them to emulate what I do. Depending on the audience, I’ll tell them my exact positions along with my exit and entrance strategy. With closer friends I’ll offer my thoughts on their trades (if asked). If my friend is doing something really risky (one of my friends does some scary stuff) I may ask them if they want my advice, and provide it, especially if they overlooked a risk/event. I will not encourage someone to execute/enter a trade since it has a high potential for hurt feelings or animosity all around.
Don’t fall in love with a stock. Just because something made you money before and you have high confidence in it doesn’t mean it will keep performing. I joke that FDX betrayed me when it started dipping and losing me money. I was over-confident of its bounce-back and sold too many puts too quickly. I’m in several losing trades because of it. However, I will keep good stocks in my rostetracking list or try different strategies or re-enter trades when they change their behavior.
As you start to both buy and sell options and get more experience in general, you'll start seeing the two sides to every trade. You will likely start adjusting your strategies or trying new trades out because of this. Things will likely click one day. Most/all the greeks and options concepts will become almost second nature. For me this was when I could build an Iron Condor from scratch, which was a watershed moment involving a good understanding of many strategies.
Understand Liquidity and volume.
Trading in low volume, low open interest contracts results in wide bid/ask spreads and difficulty having your contracts filled. Look at all the data for a contract, not just the strike and price.
Monthly Expiration dates typically have better liquidity.
Multi-legged trades (Common examples are 2-legged vertical spreads or 4-legged iron condors) have more difficulty being filled, especially on bad brokers like Robin Hood. Having very liquid options for all legs is extremely helpful in obtaining timely and well-priced fills, which maximize your potential profits.
Time in market vs timing the market:
It is extremely difficult to time the market perfectly. If you wait for the perfect opportunity forever, history has proven you will miss out on gains. Keeping all your money out of the market has proven to be ineffective. Now if there is something serious happening with a stock/the market (like say a new pandemic), don’t go all in. I recommend entering incrementally at dips. If the stock has huge upside potential it may never go down, so it might make sense to partially enter at the current price.
IMIO selling puts is a great strategy to get into a stock you like, or at least make money off it. I think buying stock in lots of 100 is usually for suckers. Selling an ATM or ITM put (assuming the math works out) on a stock you were going to buy and hold is ALMOST free money.
I recommend keeping some cash available regardless. If you have a very large account or expect a downturn, hedging with indexes like QQQ, SPY, or VIX or calls/puts may be wise.
Every trade can't be a winner. You will take some losses, you must get used to it. I don’t like having a realized loss of 1K or more on any trade. However, this will happen, especially with larger accounts.
As long as you win more often and beat the S&P that year I consider it okay. I’m kind of aggressive, so I consider 20%+ annually good. 30%+ annually is great. 40%+ and I’m dancing. After trading options I am almost baffled by my old belief that 5% annual returns (mostly from dividend ETFs) was “good”. That’s nothing to me now since I’m willing to take risks. Note: While lots of people danced in 2020, realize that’s an insane Bull Run year and is atypical.
Adhere to your own risk tolerance and never over-extend yourself, especially with margin use. Don’t make huge gambles leaving you uncomfortable. Only gamble with money you are willing to lose.
My personal strategy is to make safer gains for the year and then enter slightly riskier strategies using those gains. I can be slightly-moderately more aggressive and compound my gains. For me I often sell puts to make money, then when I see a big opportunity I’ll sell a put and buy an OTM or moderately ITM call.
Understand it’s not safe to try and get rich overnight. However, once you hit big “steps” things may start to snowball. You can enter more positions and take more risks if you choose to.
For me this when I hit 50k, then 100k. I was able to balance low and moderate risk positions to more significantly grow my account. I’ll even do a high risk thing now and again because my gains can absorb it (assuming I have them).
I can’t wait to get to 250K, then 500K. I know it’ll take quite a long time, but I am confident I’ll eventually be able to have 500K and (hopefully) 1M in my non-401k trading account with gains and additions from my job. I can only imagine how “dangerous” I will be with that kind of capital.
If you missed "the next big thing" like AAPL, TSLA, or the time machine I’m building in my basement. Don't get upset, learn from it. Adapt and become a better trader for next time.
Figure out why a company was so promising, before they mooned. Determine how you would have traded differently in hindsight. Apply those lessons to the next company you believe has long term growth prospects.
For me that's putting in 1-2.5k towards shares and/or buying LEAPS on it. Depending on my bullishness I may buy “cheap”, fairly far OTM calls. The far OTM options are sort of lottery tickets. If I'm right the (relatively) low cost will have explosive profits; if I'm wrong, they didn't cost that much so it's a calculated loss I’m willing to accept. For more serious bets I’ll buy ITM LEAPS to run PMCCs on. I also like to buy 1-2K in my 401k for very long-term plays.
The stock market hates uncertainty, it seems to crave the status quo. A shakeup can potential tank a stock, even if it's nothing. With shares you can wait it out, but this can be problematic for options. If you see volatile/uncertain times ahead (politics, disease, manufacturing, earnings, etc.), you might want to reduce your overall portfolio risks or hedge.
Profit Retention / Loss Mitigation
If selling options, it is a viable strategy to close early after a large gain with many DTE left until expiry. See TT videos / strategies on this.
Don't hold options through earnings unless you literally want to gamble. I like playing on earnings run ups, but that can be risky.
If you hold options through earnings, IV crush will happen immediately afterwards, devaluing the option. However, if the option is profitable enough, IV crush won’t matter, which will still make money for a call buyer. A sold put sufficiently far OTM will benefit from IV crush, even if the stock dips after slightly bad or lukewarm earnings.
Don't throw good money after bad. Don't gamble on a recovery if your assumption appears to be wrong or the market is flat out tanking. If you are wrong and still believe in the company, wait twice as long as your original plan (wait for your 2nd entry point vs 1st) before adding to your position.
Consider using stop losses to lock-in profits on rides up or sometimes use them to prevent losses. Note, stops can be easily triggered in volatile options. Now when I'm up a lot on calls (especially around earnings or large momentum run-ups) I always set stop losses. I have been burned too many times. In December 2020 I didn't set a SL on several thousand dollars of FDX calls I was already up on and I "lost" ~$5K of unrealized gains. If you're up big, don't get too greedy.
A possible strategy if a stock is on a tear and you have multiple options open: Close some positions (I prefer to do this incrementally if the stock has momentum), but leave 1+ open in case the stock goes into outer space/the floor. Next, set a stop loss with a little buffer below its current movement / range so it doesn't get hit unless the stock falls hard. Finally, watch the stock closely and if it keeps rising, keep moving the stop loss up in little bits incrementally. This will let you keep more profits on a hot streak, but give some protection and secure more gains. It will also help eliminate FOMO if a stock exceeds your expectations.
Have rules when to roll out, down & out, or up & out. I like TT’s roll at break even or at 1x loss and to always roll for a credit (or for me a very minor cost). Obviously these rules need some monitoring. Know your stocks, the news, and technicals so you don’t jump the gun.
If you roll early for a credit and you’re right, it’s not the end of the world. You’ll just need to hold longer, which will obviously tie up capital. Sometimes it’s better to tie up some money (especially if you aren’t paying interest) than eating a huge loss.
Rolling too late can be worse though. I currently have a very underwater FDX put I sold that is over 2x loss, rolling it does almost nothing unless you want to pay a debit or extend it extremely far out.
On huge options gains, I strongly you recommend taking profits by rolling up/down or incrementally sell your contracts at several different prices (this is why having multiple contracts is nice).
Rolling up involves selling your initial call, then using a fraction of your proceeds to buy a cheaper, further OTM call with the same expiry; puts are inverse this. When rolling up I like to ensure the new option’s cost is 15-40% of my realized gains. I’ll buy a more or less expensive new optoin based on my convication to the stock and predicted movements. You can also roll up and out to get a further expiry and strike.
This is monumentally important if you are playing with incredibly high rising stocks or during a short squeeze.
Sad story time: I completely screwed up when I forgot to roll up, twice, during the GME gamma/short squeeze. I didn’t take my own advice; I didn’t have a real exit or transition plan and I got emotional. It all happened so fast and I was at work; the insanity of the run up and subsequent gamma squeeze caught me off guard. I should’ve clocked out and thought through the situation for 15-30 minutes to form an impromptu plan, then executed trade(s). My moderate risk tolerance coupled with my desire to take profits took over. When the stock partially cratered after a run up, I sold to retain gains. In the heat of the moment I thought the squeeze was squoze and it was going to plummet into the ground and I wasn’t being rational.
On 1x 4K call I would’ve made an additional 15-25K if I rolled up to a cheaper contract with some of my profits.
I know I missed out on significantly more with a 2nd call I had. Depending when I rolled it, it would likely have been an additional 25-50k in profits.
I talked about learning from your mistakes above. This mistake is branded into my brain due to the massive gains I missed out onby not rolling up. I’m furious with myself as I write this 1 week after the GME gamma squeeze, I’m a planner and I didn’t plan. If anything I own is significantly up ever again, I’m rolling up (or at least setting a stop loss). If necessary, I’ll roll up a trade multiple times to keep extracting profits.
Learn from my mistake so you don’t miss out on gains too. I strongly recommend rolling up when you are up big on a call / roll down when you are up big on a put. This enables you to take profits, stay in the game, and keep extracting more gains.
If you trade a lot of options, talk to your broker about a discount. I was getting the standard $.50/contract with E-Trade, but I traded over 300 contracts a quarter and was able to get the fee reduced by over $.10 by just asking. I am now doing more spreads and condors, so once my volume gets very high, I’ll ask again.
If you have a broker that isn’t great and you want to switch, leverage your current trading fees to the new broker. Tell them you’ll move over $### thousand if they beat your current options trading fee per contract.
Trade Planning & Position Management Tips
As you gain experience, start monitoring what kind of Delta, OTM, DTE, etc. you are most profitable with. Use it in your future trades. You'll often see the tasty trade 30-45DTE .3 Delta strategy for selling.
Before entering a trade, look at rough technicals like resistances and supports to consider your relevant strikes as well as entry/exit points. Look at upcoming earnings & dividend dates as well as stock/market news.
Consider staggering strikes and expirations for safety and diversity; it’s nice to avoid assignment on 3 puts at once because you used the same strike for all 3.
Incrementally enter positions on large rises/falls. One of my favor strategies is to buy dips after over reactions. By doing this slowly in large price "steps" it helps combat FOMO and helps you avoid getting slaughtered.
This will also help you avoid "chasing a falling knife". It also ties into having a plan.
I set alerts at several predetermined prices and I REALLY try not to enter new trades unless I hit my preset points. It makes me less emotional and usually more effective.
Don't buy far expiration options with poor liquidity for shorter term plays. I bought 1x GME 1-year+ LEAPS call before the 2021 short squeeze. That was stupid, I should've bought 2-3x 60-120 day calls to have better liquidity. I also paper-handed it and missed out on my lambo.
If selling options, consider rolling (for a credit) to avoid assignment when it makes sense / meets your plan. Rolling closer to expiration can be a valid strategy to get theta on your side. On the flip side, if the stock moons or plummets it could've been better to roll before it got crazy deep ITM. See rolling “rules” above.
Covered Calls:
If a stock has a large movement range, I think it can be worthwhile to wait to open a CC after the last one is closed/expires. I have been more successful waiting for another opportunity vs. opening one immediately on the Monday after the second the last one expires.
Consider selling covered calls at all time highs/peaks. If you sell a CC and the stock dips significantly, and you think it’s temporary, you can buy to close your CC for a quick profit, then reopen it later.
If you own Meme stocks, selling covered calls runs the risk of missing out on large gains. On these stocks I typically only sell them further OTM than I normally would or not at all. If I do sell CC on a Meme stock I try to ensure I have 25-100 other shares that won’t be called away.
-Advanced Beginner- Spreads
Spreads (with 2 legs) are neat because they manipulate how delta and theta act. It caps your gains and losses, but you can profit with less stock movement. Try several spreads on a P/L calculator to see for yourself.
Spreads usually require margin trading.
Spreads allow you to define max losses (assuming you close before expiration day) and use less capital.
Experienced traders will open many spreads at identical/similar strikes to heavily profit off movement. Spreads can make you/lose you a lot of money if you are right.
For example. I could make a $200 premium off a $500 risk trade, max loss would be $300. This is much more effective capital utilization than a naked or cash secured put, however it does not have the same downside protection or “wheel” potential as a sold put. Higher risk, higher reward.
Vertical Debit spreads: I think of these like mini calls/puts. I personally don’t use them unless calls are outrageously expensive or the break even is absurdly high, but there’s nothing wrong with them. A call debit spread will lower your breakeven and overall cost vs just a call. You can do clever things like making a positive theta call spread if you’re creative. I like doing this since I hate losing money to theta.
Vertical Credit spreads:
Very good theta strategy to define downside/upside risks.
A put credit spread is bullish and allows you to bet on upward movement with less capital and defined losses.
A call credit spread is a bearish strategy that allows you to bet on downward movement. These are very cool since they allow you to sell calls without selling naked calls, which can ruin you financially. I see selling these as better than buying puts since it’s so much easier to be profitable; to be redundant, Θ rocks.
I repeat this on purpose: Don't EVER leave short spreads open on expiration day, close them. If you don't close, they better be VERY far from the strike on a non-volatile stock. In after hours a stock can jump/dip below your strike and be exercised without the other leg to protect you. This can lead to massive, life ruining losses. This is not an exaggeration, google this and be scared. It happened to a fair number of people with TSLA. Video explanation: https://www.youtube.com/watch?v=rtVFj9nRRDo&t=315s
Short Straddle:
Trading Mechanics, Taxes, Market Manipulation
Learn about wash sale rules. They suck and are very easy to activate with options. This will eliminate your ability to write off losses. Over trading can easily cause wash sales. https://www.investopedia.com/terms/w/washsalerule.asp
Short attacks:
Learn to recognize these sketchy attacks by hedges/firms. They manipulate the market, it’s been documented countless times. A common one is rapid short selling, which pushes the price down.
Some people say short ladder attacks don't exist. I've seen some very strange stock nosedives off low volume, so I tend to think they do.
If you plan well enough and the market doesn’t give up on the stock you may be able to use it as a great opportunity to buy the dip.
Cramer explains how he intentionally manipulated the market when he ran a hedge fund years ago. Multiple links to the video are below since this video gets pulled often, Cramer / The street never wanted this to go public.
Due to this video I don’t fully trust Cramer. His show can give you stock ideas to buy (or inverse), but you never know where his true loyalties lie.
Plan for taxes if you are up big. You may need to over withhold or contribute to taxes quarterly depending on your situation. https://www.irs.gov/taxtopics/tc306
-Intermediate / Advanced Strategies (work in progress)- You’ll notice many of these strategies inverse one another. Options Strategy Finder This website is great for learning about new strategies, you’ll see many links to it below. https://www.theoptionsguide.com/option-trading-strategies.aspx Short Strangle / Straddle
Both of these strategies profit from little price movement. I recommend using a P/L calculator to determine BE, profit, etc.
A straddle sells (or buys) two options at the same expiry and strike.
A strangle sells (or buys) two options at same expiry with different strikes.
Both these strategies involved selling a Call and a Put for a credit. Straddle uses ATM legs, strangle uses OTM legs.
Limited max profits and unlimited risk. Due to the unlimited risk, I am not a fan. However, many people like these a lot.
These strategies profit from neutral or mostly neutral stock movement. They receive a credit to open and benefit from theta decay. If your stock is range bound, these may be a good choice.
These are both 4 "legged" trades, so you will have 4 trading fees to enter or exit the trade. A lower cost or zero cost broker shines here. However, “bad” free brokers will give you poor fills, which may not be worth the discount.
Condors and butterflies have "wings" which are your purchased puts and calls. The wider the wing the higher the max profit/risk. The condor body can be riskier and skinny with a narrow high profit range or wider for a much greater chance of success with lower payout.
An iron condor is built by combining a put credit spread and a call credit spread with the same expiry.
An iron condor can be thought of as a modified short strangle with limited risk, and therefore a bit less profit. I prefer defined limited risk.
The butterfly is similar except instead of a plateau it has a sharp peak. My personal mental note is that a condor looks more like a strangle with wings, while a butterfly looks like a straddle with wings.
Pay attention to earnings dates when you open these, I have forgotten to check before and it led to bad trades.
The debit version of an Iron Condor. You expect the price to stay inside your defined range. This strategy profits from neutral or mostly neutral stock movement. I’ve never tried this, Iron Condors make more sense to me.
Inverse of an Iron Condor. You expect the price to go OUTSIDE your defined range. These are useful when you expect significant price movement. Credit to open.
Limited risk / limited reward.
Can be harder to set up. I want to try these, haven’t yet.
Inverse of an Iron Condor. You expect the price to go OUTSIDE your defined range. These are useful when you expect significant price movement. Debit to open.
LEAP Options are options that are long term with many DTE, often over a year until expiration. LEAP calls are great for long term growth plays (downtrends with LEAP puts) or simply when you really like a company and can't afford 100 shares. LEAPs (or any "longer term" option) enables you to sell a PMCC or PMCP (below)
PMCC / PMCP
PMCC or PMCP are poor man's covered call (or poor man's covered puts). They are diagonal options often used with purchased LEAPs. You sell a shorter DTE call/put with a further OTM strike than your purchased call/put. For PMCC/PMCPs it is often recommended to recoup your extrinsic value as soon as possible, some recommend with your first call CC or put sale, to ensure you are positive if the option is assigned early. These have a lot of moving parts and strategies. If you buy a barely ITM call/put and sell a nearby strike call/put you run the risk of the purchased option getting "blown by" on large stock movement and ending up with a very negative losing trade. Keeping your purchased LEAP deeper ITM should protect you. Check your initial PMCC using an options calculation to make sure you don't screw up.
I'm currently tinkering with these myself. So far I like .7-.9 delta call LEAPS with 30-45 DTE calls on my CC. The goal is to hold the LEAP long term, potentially until expiration, and constantly sell calls/puts on it that expire worthless. Typically the call/put is rolled up and out or down and out if it's going to be assigned, unless you don't want your LEAP anymore.
Some people look at these many sold CC or puts as profits, I look at them as lowering my cost basis until it's zero (or even negative). I have a page in my notebook I write each CC on my NIO LEAP (I Meme stock sometimes). I find it satisfying to slowly see the cost of the original option disappear. When I originally wrote this I had ~2 years left on it and it's 9-10% paid for; that doesn't even count the actual gains the LEAP has.
TT states this is considered an IV play, which I partially agree with. You want to buy these during low IV times since an IV drop will hurt your LEAP value. I look at them more as a way to sell calls/puts on a high IV company with a lot of price movement and potential upside/downside.
Good brokers will allow you to set these up, some will require a desktop to do it. This lets you link one action to another. In programming think of it like an if-then. You’ll tie a buy/sell to another buy/sell
Setting trailing stops on options is very chaotic since their price movement can be drastic due to volatility. I prefer to set my trailing stop to a stock.
What I like to do is set a trailing stop on a stock (or just link it to a stock price drop) and have it sell 1 share I own. Then it immediately executes a market order to sell my call. I’ve had good luck doing this with incredibly volatile plays were stop losses aren’t effective. I’ll often have an order saved and ready saved for when a strong run up starts. When my price alerts start blowing up my phone, I’ll immediately hit execute to turn it on.
Disclaimer: I’m not a financial adviser, I'm actually an engineer. I’m not telling you to invest in a specific stock/option or even use a specific strategy. I’ve outlined and more extensively elaborated on what I personally like. You should test several strategies and find what works best for you. I'm just a guy who trades (mainly options) part-time for financial gain and fun. I don't claim to be some investing savant.
Host or participate in Heists - Min. Level 1 / to participate; Min. Level 12 / or own a high-end apartment to host
I'm a millionaire already, just give me a grind:
CEO Import/Export Vehicle Work by Psychko - Currently most reliable and profitable money grind with high end only method - Min. Level 1 / if you already own a CEO office / if you do not own a CEO office
Do an I/E sourcing mission, then do VIP work (Headhunter or Sightseer are a breeze with a Buzzard) in the cool down, then do an I/E delivery mission. Rinse and repeat!
Earn 2000-3000RP per source delivery, 5000RP per sale delivery. Buy 1 crate and sell immediately for maximum RP since the same RP is given whether you source/sell 1 crate or multiple.
Earn 200-600RP bonuses when you stay near the CEO/VIP's location
Host or participate in Heists - Min. Level 1 / to participate; Min. Level 12 / or own a high-end apartment to host
I'm a millionaire already, just give me a grind:
CEO Import/Export Vehicle Work by Psychko - Currently most reliable and profitable money grind with high end only method - Min. Level 1 / if you already own a CEO office / if you do not own a CEO office
Do an I/E sourcing mission, then do VIP work (Headhunter or Sightseer are a breeze with a Buzzard) in the cool down, then do an I/E delivery mission. Rinse and repeat!
Earn 2000-3000RP per source delivery, 5000RP per sale delivery. Buy 1 crate and sell immediately for maximum RP since the same RP is given whether you source/sell 1 crate or multiple.
Earn 200-600RP bonuses when you stay near the CEO/VIP's location
Paysafe is about to merge w/ BFT, hopefully sometime this quarter and as most of you know, it is a digital payments company. Payoneer, is rumored to be possibly merging w/ FTOC and also is a digital payments company. So why are digital payments a big deal? Well, digital payments are expected to impact 80% of existing banking revenue and be a $7.6 TRILLION industry by 2024. Furthermore, it is expected that current digital payment companies including both Paysafe and Payoneer will experience double digit annual growth over the next 10 years. Or more specifically, a CAGR of 14.2% as a sector. But there are already big names like SQ & PYPL, why would I want to buy into Paysafe or Payoneer? The answer is simple. The rate at which digital payments are expanding, there is almost infinite growth for companies who can position themselves by having a niche or corner markets in other countries. And when investing you are looking for both growth and scale. Paysafe currently specializes in payment processing, API, Online payments, gambling payments, Dig Payment Interation w/ Business, Receipts and managing them, fraud detection, automated billing, multiple currency support, mobile payments and currency conversion. Payoneer currently specializes in Single & Mass Payments, Partner Networking, Receiving Payments, Multi-Currency Support & Integrated Payment systems, digital marketing, ecommerce. Paysafe acquires revenue based on a sliding scale or a high volume client rate. Where as Payoneer operates on a flat fee percentage. Paysafe is expected to have $1.5 billion in revenue this year while Payoneer is expected to have around $300 million. Paysafe is obviously the bigger company, so we should skip investing in Payoneer, right? Not soo fast, just because they are currently smaller now, doesn't mean they won't be a billion dollar revenue producing company in 5 years. And that means lots of growth in both valuation and market cap, meaning, your stock price erupts with the growth. Payoneer and Paysafe both have big name clients. Too many to list, but Payoneer supports Amazon, Google, Adobe and AirBNB. Paysafe has clients such as Playstation, Steam, Skype & Facebook. So both have big name clients and names paying the bills currently. So which one should you buy? While Payoneer is a strong and a growing international player who is rapidly expanding in India, Japan, Phillipines, South Korea and the UK and although a much smaller company, it has some big name customers. Also note that Payoneer has tripled its revenue over the last 5 years. And on the other hand, Paysafe too has solid customers, much greater revenue and it too is positioned to grow quickly in the digital payments world. Well, the answer seems simple. BFT is the safer bet and is about to close their reverse merger any day now. It's selling for a bit over $15 right now while FTOC is at a bit under $12. Both are based on a NAV of $10. On the other hand, for those of you comfortable with risk, buying FTOC on speculation before the DA/LOI are signed and announced could very likely result in you making $2-$4 share on the announcement alone. Another thing to consider as well, is that BFT offers one of the largest gambling wallets in the world. Why is that important? Well, lots of states and govt's are feeling the effects of C-19 on their coffers from the lack of tax dollars and are either rolling back regulation or writing in new regulations so they can benefit from gambling tax dollars. I expect that to greatly expand Paysafes revenues and profitability as gambling carries higher fees than traditional services. I do feel that both PayoneeFTOC & BFT/Paysafe will continue to expand rapidly, most likely dwarfing the anticipated 14.2% CAGR and that they have a strong chance of tripling in size AGAIN over the next 5 years as digital payments snowball. So bottom line, digital payments are in the golden age of expansion and both of these companies are poised to enjoy their share of that expansion and while neither company seems to be knocking the others bottom out w/ a Donkey Punch, Paysafe is the larger of the two. BFT/Paysafe seems like a sure thing, while FTOC/Payoneer is the riskier play until the DA/LOI are signed. But as usual, with greater risk, comes greater reward. Disclosure: I am long on both BFT/Paysafe & FTOC/Payoneer.
The below references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. $CCIV – again reached crazy peaks based on retail buying. $CCIV had run up on reports the Saudis would be on CNBC only to sell off when the Saudis made no statement about a merger to $CCIV only to run up again on news that Lucid’s CEO would be on CNBC only to sell off again when he stated he could not confirm or deny any negotiations only to then run up again based on the fact that he apparently smiled while saying that. At this point $CCIV has reached meme stock status along the likes of $AMC and $GME and its valuation is just based on however many people can be convinced via facebook, twitter and youtube to keep buy into it. If Lucid decides to go another route expect to see this stock at $10 within a day but if the rumor is confirmed no idea how high this may run. $KSMT – is in talks to take public Nexters, a game development studio. $THCB – finally signed their DA with Microvast. Perhaps long suffering holders of $THCA will see a deal there now at last? $ASPL – signed a DA to take public WheelsUp, a private jet charter service. Indian solar unicorn Renew Power was rumored to be looking to go public via SPAC possibly via $PDAC or $RMGB. $LACQ – signed a DA with Ensyse Biosciences, maker of a non-addictive opioid substitute pain killer currently in trials. This SPAC had a previous redemption and thus a small float reminding me greatly of $BRPA. Be interesting to see if it also runs up as hard. $ACAC – signed a DA with Playstudios, an MGM backed maker of gambling apps. $HOL – will take public space launch company Astra. $VCVC – will take public Israeli EV startup and Canoo lookalike company Ree Automotive. $VGAC – signed a DA to merge with genomic testing company 23andme. The CEO of 23andme is also on the board of the $AJAX SPAC so looks like she is putting her money where here mouth is as far as supporting the SPAC space. $FMAC – saw twitter rumors swirling that it was looking to take public Discord but so far these are unsubstantiated and may have been a pump and dump. $APSG – is in talks to take public Solera Holdings. $DCRB – will merge with hydrogen truck maker Hyzon Motors. Unlike Nikola, Hyzon appears to have working vehicles. $DGNR – will merge with CCC Information Services, a SaaS platform for P&C insurance. $GHVI – is rumored to be in talks to take public Matterport, Inc., maker of software for virtual walkthroughs and 3D modeling $RTP – is in talks with online insurance provider Hippo. Hippo is very analogous to Lemonade which recently IPO’d to great success. $RTP is led by LinkedIn founder Reid Hoffman. $FTOC – will take public Payoneer, the “paypal of Asia” and the company ebay replaced Paypal with for payment processing. Betsy Cohen’s next fintech SPAC will be FTAC Hera and list under symbol $HERAU when it launches. Short sellers Hindenburg Research launched a hit piece on $CLOV which went public via Chamath SPAC $IPOC. $Some current Chamath SPACs such as $IPOE saw a small dip after the release. $NOVS – completed its merger with AppHarvest. The new ticker will be $APPH. $NBAC – has requested to extend their time to merge from February to May. A vote will be held 2/10/21. Those who do not wish to grant an extension can redeem their shares for NAV. from my blog: www.thespacinvestor.com
I spent a huge amount of time learning about options and tried to distill my knowledge down into a helpful guide, especially for newbies. My advice is not meant to be gospel, but a good starting point. I plan to keep typing up more info from my notebook, expanding this guide, and posting it every couple months. Any feedback or additions are appreciated, I want to keep improving this. Here's what I tell options beginners: I would strongly recommend buying a beginner's options book and read it cover to cover. That helped me a lot. I like this book: https://www.amazon.com/dp/B00GWSXX8U/ref=cm_sw_r_cp_apa_OxNDFb2GK9YW7 Helpful websites:
Tasty Trade (TT) and Ally Invest have helpful articles and videos.
IV, IV crush, and how IV affects pricing. In general, you want to sell when IV is high and buy when the IV is low. Increasing IV is good for held calls/puts. IV drop or crush is generally good for sellers.
Selling options can be quite beneficial. Once you have a good general understanding, lookup thetagang . Kamikaze Cash has good youtube videos on most theta strategies. I personally believe selling options (especially cash secured) is much safer and can consistently make you profits. Theta Gang 4 life.
Understand that WSB is gambling and factor in the information accordingly. That sub is hilarious, but be careful with meme stocks.
FOMO and how to avoid chasing a dangerous trend. DO NOT CHASE FROM FOMO!
What intrinsic and extrinsic value are. Know how they are affected by being exercised/assigned and how theta affects them.
Basics / Mechanics
Understand the 4 "main" option types. Buying or selling a call and buying or selling a put. Spreads and more complex option strategies are based off these in some way.
You can sell calls with 100 shares of stock of if you own an underlying longer term option; see PMCC later. Selling calls naked is incredibly risky and requires Level 4 (very advanced) permissions and often a lot of capital. I will literally never sell calls naked since I don't want to ruin my life.
Puts can be sold/written cash covered (cash secured), which means you have the cash in your account to buy 100 shares. Your broker will put this money on hold until the trade is closed. Puts can be sold "naked" using Margin and Level 3 (with most brokers). Your broker will hold a percentage of cost of 100 shares (often 30-40%, 100% on meme stocks) allowing you to sell more puts. This increases your available capital/power as well as risk.
General Tips (Save these for later):
Don't EVER leave spreads open on expiration day, close them. (more details below)
Start off trading very small. Slowly build up over weeks / months. You need to get accustomed to a fifty dollar swing a day, then a few hundred, then a few thousand. You need to ensure you don't get emotional (see below).
As you build up the amount of money you have invested, keep it separated among several stocks. Don't go all in on one thing ever
Don't trade emotionally. If you realize you are emotionally trading for vengeance, you should probably exit the trade and cool off for several days with that stock.
Have a plan for every trade, ideally with entries / exits that are specific values, ranges, or a set condition. This helps remove emotions.
Use an options profit calculator from your broker or an online one before entering a "new" trade, especially a complex multi legged trade: https://www.optionsprofitcalculator.com/
Consider using stop losses to lock in profits on rides up or sometimes use them to prevent losses. Note, stops can be easily triggered in volatile options. Now when I'm up a lot on calls (especially around earnings or large momentum run-ups) I always set stop losses. I have been burned too many times. In December I didn't set a SL on several thousand dollars of FDX calls and I "lost" ~$5K of unrealized gains. If you're up big don't get too greedy.
Incrementally enter positions on large rises / falls. This helps combat FOMO and helps you avoid getting slaughtered. This will also help you avoid "chasing a falling knife". This also ties into having a plan. I set alerts at several predetermined prices and I REALLY try not to enter new trades unless I hit my preset points. It makes me less emotional and usually more effective.
Don't throw good money after bad. Don't gamble on a recovery if your assumption appears to be wrong or the market is flat out tanking.
On gains, consider taking profits and "rolling up" or incrementally sell your contracts at several different prices (this is why having multiple contracts is nice).
A possible strategy if a stock is on a tear and you have multiple options open: Close some positions (I prefer to do this incrementally if the stock has momentum), but leave 1+ open in case the stock goes on a tear. Next, set a stop loss with a little buffer below it's current movement / range so it doesn't get hit unless the stock falls hard. Finally, watch the stock closely and if it keeps rising, keep moving the stop loss up incrementally. This will let you keep more profits on a hot streak, but give some protection and secure more gains. It will also help eliminate FOMO if a stock exceeds your expectations.
If you have a losing trade, re-evaluate it. If your initial assumption was incorrect, close it. Don't stay in losing trades forever and lose the entire value of the option. If you re-evaluate and you think your assumption was right, hold, potentially consider adding another cheaper option (buy another call / put).
Don't try to daytrade, especially with options. It's incredibly statistically unlikely to be profitable.
Try not to over-trade, you'll likely mis-time the market over time. When I get emotional I over trade, then lose additional money on wash sales. If you scale your entries into positions it should help alleviate your desire to exit positions when they turn badly against you. Whenever I buy calls I do it at larger increments after W almost made me loss my hair; luckily it eventually came back.
Learn about wash sale rules. They suck and are very easy to activate with options. This will eliminate your ability to write off losses. Over trading can easily cause wash sales.
As you gain experience, start monitoring what kind of Delta, OTM, DTE, etc you are most profitable with. Use it in your future trades. You'll often see the tasty trade 30-45DTE .3 Delta strategy for selling.
NEVER enter a position on a stock you have no idea about, especially when you read about it online or heard about it from some rando.
When selling (or buying) look at rough technicals like resistances and supports to consider your strikes and exit points.
Once you have a good amount of experience, check out LEAPs and poor man's covered calls, they're cool (see below)
At market open options contracts are often volatile and inflated. Buying during this time can be more expensive. Options are usually cheaper mid day, I read somewhere 2-3PM is cheapest.
Try wheeling on cheaper stocks once you get all fundamentals down.
If selling options, it is okay to close early after a large gain with many DTE. See TT videos / strategy on this.
As you start to sell options and get more experience in general you'll start seeing the two sides to every trade. You will likely start adjusting your strategies or trying new trades out because of this. Things will click one day and most/all the greeks and overall market dynamics will become almost second nature.
If selling, consider rolling (for a credit) to avoid assignment when it makes sense / meets your plan. Rolling closer to expiration can be valid strategy to get theta on your side. On the flip side if the stock moons or plummets it could've been better to roll before it got crazy deep ITM.
Stagger strikes for safety / diversity (optional).
Don't hold options through earnings unless you literally want to gamble. I do like playing on earnings run up, but that can be risky.
When selling, if you hold through earnings, IV crush will happen immediately afterwards devaluing the option. However, if the news is good and the stock is way above the strike IV crush won't help you.
I repeat this on purpose: Don't EVER leave spreads open on expiration day, close them. If you don't close, they better be VERY far from the strike on a non-volatile stock. In after hours a stock can jump/dip below your strike and be exercised without the other leg to protect you. This can lead to massive, life ruining losses. This is not an exaggeration, google this and be scared. It happened to a fair number of people with TSLA.
Spreads are neat because they manipulate how delta and theta act. It caps your gains and losses, but you can profit with less stock movement. Try several spreads on a P/L calculator to see for yourself. I'm Theta Gang, so I like selling credit spreads sometimes since I profit from neutral movement and theta... sweet sweet theta.
When selling puts if you are very bullish consider "doubling down". Use the credit from your put sale to buy shares or a cheap call. This can be roughly inversed with puts, except I wouldn't recommend shorting shares.
-Intermediate / Advanced Strategies (work in progress)- Iron Condor and Iron Butterflies
Iron condor and Iron butterflies. These strategies profit from neutral or mostly neutral stock movement. They benefit from theta decay. If your stock is range bound, these may be a good choice. The condor can be riskier and skinny with a narrow high profit range or wide for a much greater chance of success with low payout. These are both 4 "legged" trades, so you will have 4 trading fees to enter or exit the trade. A lower cost or zero cost broker shines here. Condors and butterflies have "wings" which are your purchased puts and calls. The wider the wing the higher the max profit/risk.
The butterfly is similar except instead of a plateau it has a sharp peak. My personal mental note is a condor looks more like a strangle while a butterfly looks like a straddle.
LEAPs
LEAP Options are options that are long term with many DTE, often over a year until expiration. LEAP calls are great for long term growth plays (downtrends with LEAP puts) or simply when you really like a company and can't afford 100 shares. LEAPs (or any "longer term" option) enables you to sell a PMCC or PMCP (below)
PMCC / PMCP
PMCC or PMCP are poor man's covered call or poor man's covered puts. They are diagonal options often used with purchased LEAPs. You sell a shorter DTE call/put with a further OTM strike than your purchased call/put. For PMCC/PMCPs it is often recommended to recoup your extrinsic value as soon as possible, some recommend with your first call CC or put sale, to ensure you are positive if the option is assigned early. These have a lot of moving parts and strategies. If you buy a barely ITM call/put and sell a nearby strike call/put you run the risk of the purchased option getting "blown by" on large stock movement and ending up with a very negative losing trade. Keeping your purchased LEAP deeper ITM should protect you. Check your initial PMCC using an options calculation to make sure you don't screw up.
I'm currently tinkering with these myself. So far I like .7-.9 delta call LEAPS with 30-45 DTE calls on my CC. The goal is to hold the LEAP long term, potentially until expiration, and constantly sell calls/puts on it that expire worthless. Typically the call/put is rolled up and out or down and out if it's going to be assigned, unless you don't want your LEAP anymore.
Some people look at these many sold CC or puts as profits, I look at them as lowering my cost basic until it's zero (or even negative). I have a page in my notebook I write each CC on my NIO LEAP (I MEME stock sometimes). I find it satisfying to slowly see the cost of the original option disappear. When I originally wrote this I had ~2 years left on it and it's 9-10% paid for; that doesn't even count the actual gains the LEAP has.
TT states this is considered an IV play, which I partially agree with. You want to buy these during low IV times since an IV drop will hurt your LEAP value. I look at them more like a way to sell calls/puts on a high IV company with a lot of price movement and potential upside/downside.
Disclaimebio: I'm just a guy who trades (mainly options) part-time for financial gain and fun. I've been pretty successful trading options, especially with theta (selling) strategies. I got heavily involved with options again in September 2020 after a long hiatus. Edit: my first gold. Thanks options people!
My gift to you - a better list of things you can do to stop losing all of your fucking money.
I realize none of you actually care about making money, but on the off chance I can help one person then this post will be worth it. (1) u/BeardlessPete is a fucking moron. He’s hawking TradingView. His post is an advertisement masquerading as enlightenment on reading charts. He doesn’t know shit about making money. Learn the story on a stock — the company — and not some tick mark bullshit on a squiggly fucking line. His post: https://www.reddit.com/wallstreetbets/comments/kj7p0e/my_gift_to_you_a_list_of_things_you_can_do_to/?utm_source=share&utm_medium=ios_app&utm_name=iossmf (2) The best stock pickers are only correct about 40% to 50% of the time. That’s right, not as often as you think! What does it mean to be “right” or “wrong”? Here’s the answer: Just because you made or lost money doesn’t mean you are right or wrong. You always have a choice, invest in Stock A, invest in a broad market index, or do nothing. You might be up 10% YTD and feel great, but the S&P 500 is up 14% YTD. You could have made more money with substantially less risk compounding with an index. (3) Are you better than the index? Find out! Practice on tools like caps.fool.com. Make a pick and see how it performs against the market. If you don’t know if you are right or wrong you won’t learn how to make money. (4) You aren’t going to make “boy band” money if you lose a lot of money. When you gamble on a speculative stock and lose 80%, you need a 400% return to get back to even. If you can steadily make 7%, do it 10 times in a row and you’ve made 100%. Or at 10%, it’s 7 times. There will of course be volatility and varying time horizons. But, aim to (mostly) round the bases with singles, not (always) trying to swing for the fences with a cucumber as a bat. Fake internet points from loss porn are not badges of honor. You think the game different this time? It’s not. Degenerates have gambled since the beginning of markets. An irrationally exuberant market on a stock will end. Do yourself a favor and learn to be better. Having some speculative picks is fine — just understand and accept the inherent risks and volatility. (5) Have a bazooka gun of cash ready when quality goes on sale. You will have a chance to buy most companies at a fair price. There will be pull backs and market dislocations. Be ready. Google, Microsoft, Netflix, Facebook, Intuitive Surgical, and many of the best performing stocks of all time have gone on sale — many times. Be ready when the market corrects and buy quality. Be patient! Don’t have always FOMO. (6) Market corrections with declines of between 10% and 20% happen about 2.5 times each year on average (source: Guggenheim). The average bear market lasts 18 months. Know this and use it to your advantage. Don’t panic sell quality names. Stay calm. If you don’t need the money to survive today, leave it alone. If you do, what the fuck were you doing investing in stocks? Think about this. How will you act WHEN markets correct next? (7) Most of your investment returns are going to come from just a few of your stock picks. Let the winners run! At some point you’ll consider rebalancing — that’s smart and okay. But having an oversized winner at 15% of your stock portfolio can be okay (if it’s a quality stock, not speculative). Let compound returns take over. Nothing is better than crushing the market with 1% gain from a compounding stock. Better yet, when that 1% gain is MORE than your cost basis. (8) Trading isn’t therapy for boredom. Go play with yourself and then go for a walk. Trading isn’t going to make your day better. Have the discipline to trade less, not more. (9) Read more. Do you even know what you are investing in? Know everything about your stocks. For 30+ years now all information ever published is at your fingertips. Yet, most of you won’t bother doing your own research. Readings someone else’s pitch (or article) can help you get started. But go read the 10-K. Read industry data. Twitter and message boards are full of morons with pump and dump agendas. Do basic research yourself. Do people like working there? How can that company make more money? Betting on companies is a very different mindset than just betting on tickers. Bet on companies. (10) What can you learn about a company that (practically) no one else knows. Make a thesis. Will Facebook be successful on mobile? Can Microsoft move its massive enterprise software business to the cloud? Can RiteAid compete with online pharmacies? Can Google close it’s acquisition of FitBit? (11) Investor Relations doesn’t care about your cost basis or the number of shares that you own. They don’t. Management says they respect investors — but they mostly don’t give a shit. Jeff Bezos carves out 6 hours a year to talk to investors — just to be polite. Management teams are trying to run a complex enterprise, with major human capital issues. Most management teams are incentivized to build value over eternity. They don’t give a shit about your time horizon. Most care about themselves first, employees second, customers third, suppliers fourth, partners fifth, the community sixth, and investors last. There’s very little that a company can do to affect share price in the short term. (12) Add to your winners. Don’t double down on losers, double up on winners. (13) Find stocks that aren’t always in the headlines. Headlines lead to redlines. If the story is in the news, you are probably too late (for now). Buying a stock isn’t like lining up to buy one of a limited number of holiday cakes. There’s always more stock. Wait until the news cycle forgets about the stock and then consider buying. Do research first. (14) If you can’t sleep at night because you own a stock, you should NOT own that stock. Stocks don’t cuddle. They are like a brutally honest toddler with mood swings and basic needs. Overtime they might grow into a good adult but keep your expectations inline. It’s a long road to adulthood. (15) Lastly, what do you want the future to look like. Get off the of the news cycle and quarterly earnings game. Go find stocks that are FOCUSED on being massively better and more important in 5+ years. Price targets for these types of companies are bullshit. They always have been and they always will be. You’ll be amazed by what focused teams — motivated by making a better world — can achieve. The stock price simply weighs this impact — it doesn’t mean you a genius. You didn’t do the science. Be humble and donate some to charity and help the impoverished, because you were just a spectator holding shares. TLDR: u/BeardlessPete is a moron. Don’t lose money by being an idiot. Know if you are smart or lucky. Be patient. Be humble. Be kind.
The five top online gambling stocks NetEnt. This Swedish virtual casino game provider has more than 23 years of experience in the industry. During this time, they have partnered with many online casinos, including the biggest names in the business. This wide partnership network increases the value of the platform and makes it one of the best online gambling stocks available on the Internet ... Related ETFs - A few ETFs which own one or more of the above listed Online Gambling stocks. Symbol Grade Name Weight; BETZ: A: Roundhill Sports Betting & iGaming ETF: 19.41: BJK: B: Market Vectors Gaming ETF: 18.78: SPAK: A: Defiance Next Gen SPAC Derived ETF: 10.56: PEJ: A: PowerShares Dynamic Leisure & Entertainment Portfolio: 9.16 : CSD: A: Guggenheim Spin-Off ETF: 7.6: View all Online ... Gambling stocks have outperformed the market since the financial crisis. Now that the handcuffs have been loosened, these 20 gaming stocks give sports betting investors a way to play every aspect ... Best Stocks in the Gambling Sector to Buy in 2021 After the high-risk year of 2020, there are several gambling names worth putting money on the table for. Author: First on this list of gambling stocks to buy for the iGaming megatrend is DraftKings. DraftKings is the most widely known iGaming platform in America, with over 12 million registered accounts and ... Market week ending August 7th, 2020. Roller coaster week for our momentum portfolio as we round tripped many intra-week gains from larger cap tech and precious metals stocks. These Three Online Gambling Stocks Are Ones To Watch. Posted on August 25, 2020 - Last Updated on October 20, 2020. by Nicholaus Garcia. In an interview with MarketWatch in 2002, the late Hunter S. Thompson said the only stock he ever bought was in the Boston Celtics. But in 2020, perhaps Thompson might reconsider, since the hot trend appears to be US online gambling operators becoming ... 7 Stocks to Bet on Sports Gambling Sports gambling is sweeping the nation following federal legalization. By Wayne Duggan, Contributor Feb. 20, 2020. By Wayne Duggan, Contributor Feb. 20, 2020, at ... Below is a list of the best gambling stocks to invest in today based on market performance. 888 Holdings. 888 Holdings PLC, also known as 888.com, is a company based out of Gibraltar that owns several popular gambling brands and websites. It has brands in many gambling spheres, including online casinos, poker sites, sports betting brands, and bingo brands. In 2013, it became the first licensed ... One area benefiting from the growth and sophistication of technology is gambling, especially sports betting online. These four stocks look attractive for aggressive accounts seeking ideas that ...
Online Gambling Stocks Draft Kings ($DKNG) Golden ...
Share your videos with friends, family, and the world CNBC's Contessa Brewer reports on how gaming stocks are jumping as New York Governor Andrew Cuomo proposes online betting legalization. For access to live an... Top Online Gambling Stocks In 2021! MASSIVE Future Market Growth!The online sports gambling market has expanded over the past few years and as more states le... Chapters:0:00 Intro0:38 Legal Sports Betting Tracker1:22 Draft Kings2:45 Golden Nugget Online Gaming3:54 Scientific Games CorpLink to Tracker https://www.leg... nokia dips after earnings. black rock is buying more of amc stock? is online gambling our future? in this video we weill discuss if short squeeze is over and... Share your videos with friends, family, and the world Justin Oh gives his quick stock analysis on Rush Street Interactive, which just announced it would go public through a merger with SPAC dMY Technology Group ... THE SCORE HAS JUST SCORED BIG BY EXPLODING MASSIVELY IN THE PAST FEW WEEKS! Hey Awesome People, Today I will show you my position on scr.to, and how I have ... Share your videos with friends, family, and the world draftkings stock was my first online gambling stock and guess what, since then it more than x5 for me! online gambling is booming and will grow more than 15%...