Its funny when i checked 3 months charts of spy and its nearning ATH, but my port is fucking red.
Weeklies option for the past couple of months is rough as fuck man.
Should've just full port with stocks and buy option with max 3/4 digits dollarz.
Correction - the market isn’t going down, the ‘tech market’ is going down. If we look at SPY, we’re still not at ATH but up 14% on the year and a relatively strong close given how badly tech stocks have tanked. This implies a rotation which you can see in consumer stocks closing green yesterday.
I do see some merit to your points on margin calls but I think investors are still concerned about the AI bubble and trying to derisk in other sectors. Given the strong earnings from most of your AI stocks, I wouldn’t be surprised to see a Santa rally once investors nerves have eased.
I think this is a great opportunity to buy the dip! But then again, I’m a regard
So far:
MSFT is down 13% from ATH
META 19%
Nvidia 12,5%
Amazon 19%
AAPL 4%
Google 4%
AVGO 21%
ORA 40%
PLNTR 13%
Netflix 30%
NBIS 42%
ASML 4%
TSLA is X with ATH.
If someone has more big stocks to share, please.
I just want to point out something.
Selling a call means you're giving someone the right to buy your shares at a certain price. If you already own the shares (a covered call), then you don't have to buy the shares to deliver them at that certain price.
Let's say you sell the rights to buy 100 shares, at a price of $100 per share. You sell these rights for $1 per share. You earn $100 for selling the rights to the shares.
For the person who owns the rights to make money, the share price must go past $101 per share. Scenario A: If the price stays at $100 per share, he just paid you for the right to buy your stocks at the market rate. Scenario B: if the shares go up to $101/share, he breaks even; he paid $100 for a $1 discount on 100 shares. Scenario C: If the shares go up to $102/share, he makes money, because he paid $100 for a $200 discount. Scenario D: the stock pirce drops below $100, he loses money because he paid $100 for the right to buy shares at ABOVE the market rate.
In all scenarios, you get $100, AND except C and MAYBE B, you keep all your shares. The only scenario you "lose" is C, where you only earn $100 instead of earning $200.
If you DON'T own the shares, you have to buy them to hand them over. In this scenario, you lose more money the higher the stock goes. If the price hits $200/share, you're fucked, because you promised to sell it for $100/share.
and what would happen to the stocks in that case? You would think that would make the stocks drop but maybe the regards see this and think "emergency cuts" and we go to ATH. We are in a random land now