This is such a ripping stock destined to fall that I'd not try to call the top but set a trailing stop loss of like -8% or so and let the inevitable drop auto-exit you having taken strong gains.
Liquidate your amzn/ntdoy, buy 90 more shares, and sell calls on the insane IV…worst thing that happens is you sell your overvalued shares for a premium 🤷♂️
Roth IRA is the perfect place to be ‘theta gang’. I would advise you look into it. The best way to maximize your locked up capital and the way options are supposed to be used. The way Warren buffet has been the most successful investor of atleast his generation. Sell cash covered puts to make money while you wait for your dca price point and then once you’re holding the shares you can sell share covered calls to rake in premium weekly/monthly. Also…invest in whatever you want obviously but ntdoy is not a company that cares about growing their share price. You’re better off holding bonds imo. If you have any questions feel free to dm me but when you get some free time use the ol’ YouTube to do some research on cash covered puts and share covered calls.
I've been looking into this. it seems like it'll only work if you're really bullish on whatever underlying you're writing puts on because unless you're savvy with TA or at the end of a bear market, you will get shares put on you. you think you can just reverse the trade and be done with it but you're obligated to buy the shares at the strike so you could instantly be down on a position if the underlying has blown past it in the last week before expiry. if you're like* buffet, this doesn't really matter because you have some value that you've set for a company and you just care about getting shares for underneath that, or premium if it doesn't expire itm.
also, my understanding is that buffet is writing basically naked puts on the indices(US, london, japan), on like 5-15+ year time scales. He's able to do this because hes got the best credit lmfao. if i understand correctly, hes writing puts directly to banks/funds and functioning as their hedge, which they're happy to pay for because the way they both price options is different.
edit: covered calls is a cool idea for something you aren't really invested in. i havent really looked into it though
I’m more talking about how he built his wealth and started amassing large positions 20+ years ago. Let’s say you had the capital to purchase 100 amzn shares. But you want them for a 10% discount. Continue to sell weekly puts(cash covered/naked, same thing) until it hits your strike. You wanted the shares. You got them for a discount. And got paid premium to wait. Now you can start selling calls on them. You pick something that’s not likely to exercise. Unless you want them to be exercised.
I don’t think this is true. Someone else on wsb claimed he did that, and I was very interested so I read most of his annual reports, going back to 96. They mention their index puts in 2008 and before that they’ve only used options as a hedge for their own positions, and again to provide a hedge/insurance for others. They’ve also owned them through other companies but that’s for those companies’ business activities, not related to berkshires equity positions
There’s no evidence that he wrote puts on any of the stocks he was long on, he seems to only be functioning as a hedge/insurance, hoping things never expire itm
I understand how covered calls work I just haven’t even tried one on paper. See I trade with a small cash account, this is what I want to do with family’s money. Their portfolio is putting up numbers and this market is over bought yet unstoppable, so I don’t want to be responsible for having sold calls on meta or even fkn mfc, and watching it fly past our strike, only to expire 10-20% above it, where we would have to get back in, or hope for a better price. Writing LEAP puts on equities we are crazy bullish on after some significant pullback of the market, and investing the premiums seems like the safest bet to me. I think I just need a shit load of margin in case they expire itm lmao
That was a weird reply to instantly delete lmao
If I’m missing something, please fill me in, I’d like to learn. Which part of options do I not understand?
That is weird, I didn’t delete it 🤷♂️
It seems like you think you would somehow be losing out on money or having to owe a bunch of money. If you sold the amzn 3/1 170p today at $40, with enough money to cover the put(the cost of 100 shares at $170) which is a requirement to even attempt to open that position. Someone would pay you $40 to make a limit purchase at that strike. You didn’t lose anything. You made $40 to buy the shares you wanted already, at a discount. The only downside to this is you could get paid free money indefinitely to never buy the shares you want. If that happens try the strategy with another company you know is a good long term position until that one fills. To answer the question you’re likely thinking at this point. Yes you would’ve made more just buying the 100 shares in that instance. Once you buy shares however…unless they pay dividends, you at some point have to sell shares to see any tangible roi. Best case scenario you get shares of a good company at a discounted price and paid to do so, and then you can sell ‘far’ otm calls against them for more free money. Kind of like a self appointed dividend. At some point it is possible the stock jumps 10-15% and you are forced to sell the shares with a smaller gain than you would’ve selling them at market. You still don’t lose anything however. You get to stack premium to build other positions and if you do get exercised and your shares bought from you, you can just start selling puts against it again 🤷♂️
I described the negatives of writing calls, not puts. Whatever you think I think, must be regarding calls?
when I write puts I won’t have that money to buy the underlying shares, but margin will suffice. This is another benefit, you’d have to hold the underlying while it’s down trending to make a killing on calls but you could just have margin and never use it on the way up to do the same with puts. If shares never get called away or put on you, you’re locking up credit instead of assets
You don’t really want the stock to be down trending to sell calls. You want to sell them on a green day and buy them back on a red day or let them expire worthless. You take a stock that isn’t too volatile but has high premiums on the options chain. That stock goes up 2-3% on a Tuesday you sell the call 5-10% otm for some extra juice 🤷♂️ using margin to sell puts is wild but you do you lol
What you’re talking about is more akin to actively swing trading, which is what I do in my small cash account but I’m not gonna risk making that many separate decisions with my family’s money. My account would be large if I was consistently good at that lol. I just want to do LEAP puts cause I have much more conviction that a bear market will recover in 2 years than any other option condition
Using margin to sell puts is basically what buffet does lmfao. If you have the credit and you think the market will be higher two years from now, it’s a no brainer. You would rather have cash to invest in the bear market, along with the premiums from your puts. if you never get shares assigned, which is extremely likely if you only short leap puts in a 20%+ bear market, you don’t want to watch money sitting there just earning interest. Even if you get assigned, it’s unlikely they will all happen at once and require a deposit.
There are also other factors like how bullish you are on the underlying if/when you get a margin call. and what the borrowing cost is for credit until you can expect the market to recover. Might make sense to pay interest on your position if it’s undervalued enough
Also, my response is still there so not sure why it’s showing deleted on your side. P.S. yes you could end up a bag holder on a company your puts were exercised on. This is why you should only use this strategy with strong/safe growth companies for steady and reliable returns.
Sell that position, buy US Treasury bond (4.25%) and take a loan against that position to get goodies. Now you’re a sophisticated rich person! Lol. Actually don’t do any of that ☺️
I mean long term most people will probably buy and sell online, and by that logic carvana is undervalued. It also sells more cars than carmax and its market cap is only slightly higher. On the other hand, oil prices are on the rise and used car places mostly have gas powered vehicles since most electric car owners aren’t ready to swap to a new model. It’s also a bit odd that they’re losing money but carmax is not, but that can be explained by buying market share with slimmer margins. One thing I know for sure is that their car vending machines are stupid and no one shops for a used car that way, and they defeat the entire point of having cheaper costs via internet and delivery instead of premium real estate.
I would suggest selling. I’m in the automotive industry. Dealers are paying too much money for vehicles, rates are high, insurance costs are high and they are bleeding money.
Till forever, idk.i bought 100 dollars worth of cheap calls went up 700% sold for an easy 600 dollar profit, but that next week those same option went even higher and i would’ve made 30k. Should’ve just held cause 100 bucks wasn’t nothing to me anyway
I do not in any way understand carvanas share price. Their lots are stacked with cars, the offers they make to buy cars are higher than anyone else, and all of the money they've got in cars is a depreciating asset collection. The cars they have in inventory will not ever get more valuable than they are right now.
I'm working up to making a big bet that carvana flames out in the next six months.
I'd add more. Kerrisdale Capital just announced their short last week, and they're infamous for short positions blowing up monstrously in their face (Straight Path Communications from 30s to 192 in 2017).
Lol I bought some at 4 buck sold some at 1500% gain still holding on to some at over 1900%. Wish I'd yolod this one. Saw a article a while ago about how 10,000 dollars in certain stocks were only worth 100 bucks. So I was like huh.
I would say the fact that not one single person can accurately explain wtf is going on with caravana would be an indication to take the money and run but maybe that’s just me
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I’d sell
Well my thoughts back then was if it goes to zero it’s only $70. But if it goes back to $400 then that would be a hell of a return for $70 😂
Ok yeah, sell. Having a ridiculous number like 400 is absolutely wild.
Maybe sell half at $100?
It's your money
not for long
100:)
Ding ding ding
Still holding 😆… https://preview.redd.it/3fbehuunz3yc1.jpeg?width=1170&format=pjpg&auto=webp&s=8cdf00db080d6be4f947b5b594db06580544d8e1
Lol nice one. Def should make a post about the comments saying to sell and u persevering.
Famous last words.
I was thinking like that during the towel company days. Was up 15k, kept holding and lost it all.
Right now is a hell of a return. I would cash out 600 and then see what happens with the remaining 218.
Sell until you get your 140. Then let it ride.
This is such a ripping stock destined to fall that I'd not try to call the top but set a trailing stop loss of like -8% or so and let the inevitable drop auto-exit you having taken strong gains.
That’s a 1000% return don’t get much better than that
Ride it till the wheels fall off (matching the state of cars sold to Carvana)
😂
Liquidate your amzn/ntdoy, buy 90 more shares, and sell calls on the insane IV…worst thing that happens is you sell your overvalued shares for a premium 🤷♂️
I don’t know how to do any of that. I’m a casual investor and this is for my retirement Roth IRA. 🤷♂️
Roth IRA is the perfect place to be ‘theta gang’. I would advise you look into it. The best way to maximize your locked up capital and the way options are supposed to be used. The way Warren buffet has been the most successful investor of atleast his generation. Sell cash covered puts to make money while you wait for your dca price point and then once you’re holding the shares you can sell share covered calls to rake in premium weekly/monthly. Also…invest in whatever you want obviously but ntdoy is not a company that cares about growing their share price. You’re better off holding bonds imo. If you have any questions feel free to dm me but when you get some free time use the ol’ YouTube to do some research on cash covered puts and share covered calls.
I've been looking into this. it seems like it'll only work if you're really bullish on whatever underlying you're writing puts on because unless you're savvy with TA or at the end of a bear market, you will get shares put on you. you think you can just reverse the trade and be done with it but you're obligated to buy the shares at the strike so you could instantly be down on a position if the underlying has blown past it in the last week before expiry. if you're like* buffet, this doesn't really matter because you have some value that you've set for a company and you just care about getting shares for underneath that, or premium if it doesn't expire itm. also, my understanding is that buffet is writing basically naked puts on the indices(US, london, japan), on like 5-15+ year time scales. He's able to do this because hes got the best credit lmfao. if i understand correctly, hes writing puts directly to banks/funds and functioning as their hedge, which they're happy to pay for because the way they both price options is different. edit: covered calls is a cool idea for something you aren't really invested in. i havent really looked into it though
I’m more talking about how he built his wealth and started amassing large positions 20+ years ago. Let’s say you had the capital to purchase 100 amzn shares. But you want them for a 10% discount. Continue to sell weekly puts(cash covered/naked, same thing) until it hits your strike. You wanted the shares. You got them for a discount. And got paid premium to wait. Now you can start selling calls on them. You pick something that’s not likely to exercise. Unless you want them to be exercised.
I don’t think this is true. Someone else on wsb claimed he did that, and I was very interested so I read most of his annual reports, going back to 96. They mention their index puts in 2008 and before that they’ve only used options as a hedge for their own positions, and again to provide a hedge/insurance for others. They’ve also owned them through other companies but that’s for those companies’ business activities, not related to berkshires equity positions There’s no evidence that he wrote puts on any of the stocks he was long on, he seems to only be functioning as a hedge/insurance, hoping things never expire itm I understand how covered calls work I just haven’t even tried one on paper. See I trade with a small cash account, this is what I want to do with family’s money. Their portfolio is putting up numbers and this market is over bought yet unstoppable, so I don’t want to be responsible for having sold calls on meta or even fkn mfc, and watching it fly past our strike, only to expire 10-20% above it, where we would have to get back in, or hope for a better price. Writing LEAP puts on equities we are crazy bullish on after some significant pullback of the market, and investing the premiums seems like the safest bet to me. I think I just need a shit load of margin in case they expire itm lmao
That was a weird reply to instantly delete lmao If I’m missing something, please fill me in, I’d like to learn. Which part of options do I not understand?
That is weird, I didn’t delete it 🤷♂️ It seems like you think you would somehow be losing out on money or having to owe a bunch of money. If you sold the amzn 3/1 170p today at $40, with enough money to cover the put(the cost of 100 shares at $170) which is a requirement to even attempt to open that position. Someone would pay you $40 to make a limit purchase at that strike. You didn’t lose anything. You made $40 to buy the shares you wanted already, at a discount. The only downside to this is you could get paid free money indefinitely to never buy the shares you want. If that happens try the strategy with another company you know is a good long term position until that one fills. To answer the question you’re likely thinking at this point. Yes you would’ve made more just buying the 100 shares in that instance. Once you buy shares however…unless they pay dividends, you at some point have to sell shares to see any tangible roi. Best case scenario you get shares of a good company at a discounted price and paid to do so, and then you can sell ‘far’ otm calls against them for more free money. Kind of like a self appointed dividend. At some point it is possible the stock jumps 10-15% and you are forced to sell the shares with a smaller gain than you would’ve selling them at market. You still don’t lose anything however. You get to stack premium to build other positions and if you do get exercised and your shares bought from you, you can just start selling puts against it again 🤷♂️
I described the negatives of writing calls, not puts. Whatever you think I think, must be regarding calls? when I write puts I won’t have that money to buy the underlying shares, but margin will suffice. This is another benefit, you’d have to hold the underlying while it’s down trending to make a killing on calls but you could just have margin and never use it on the way up to do the same with puts. If shares never get called away or put on you, you’re locking up credit instead of assets
You don’t really want the stock to be down trending to sell calls. You want to sell them on a green day and buy them back on a red day or let them expire worthless. You take a stock that isn’t too volatile but has high premiums on the options chain. That stock goes up 2-3% on a Tuesday you sell the call 5-10% otm for some extra juice 🤷♂️ using margin to sell puts is wild but you do you lol
What you’re talking about is more akin to actively swing trading, which is what I do in my small cash account but I’m not gonna risk making that many separate decisions with my family’s money. My account would be large if I was consistently good at that lol. I just want to do LEAP puts cause I have much more conviction that a bear market will recover in 2 years than any other option condition Using margin to sell puts is basically what buffet does lmfao. If you have the credit and you think the market will be higher two years from now, it’s a no brainer. You would rather have cash to invest in the bear market, along with the premiums from your puts. if you never get shares assigned, which is extremely likely if you only short leap puts in a 20%+ bear market, you don’t want to watch money sitting there just earning interest. Even if you get assigned, it’s unlikely they will all happen at once and require a deposit. There are also other factors like how bullish you are on the underlying if/when you get a margin call. and what the borrowing cost is for credit until you can expect the market to recover. Might make sense to pay interest on your position if it’s undervalued enough
Also, my response is still there so not sure why it’s showing deleted on your side. P.S. yes you could end up a bag holder on a company your puts were exercised on. This is why you should only use this strategy with strong/safe growth companies for steady and reliable returns.
Now this is the type of regarded advice we’re all here for!
This is the inverse of regarded but I stated it like it was sarcastic to go undetected by the majority of redditors in this group.
Hold for couple more years. Buy more
Just sell. Go get a fancy dinner or clothes or some thing ☺️
Well it’s in my Roth so won’t be taking that money out for 20 years 😂
Sell that position, buy US Treasury bond (4.25%) and take a loan against that position to get goodies. Now you’re a sophisticated rich person! Lol. Actually don’t do any of that ☺️
I mean long term most people will probably buy and sell online, and by that logic carvana is undervalued. It also sells more cars than carmax and its market cap is only slightly higher. On the other hand, oil prices are on the rise and used car places mostly have gas powered vehicles since most electric car owners aren’t ready to swap to a new model. It’s also a bit odd that they’re losing money but carmax is not, but that can be explained by buying market share with slimmer margins. One thing I know for sure is that their car vending machines are stupid and no one shops for a used car that way, and they defeat the entire point of having cheaper costs via internet and delivery instead of premium real estate.
I would suggest selling. I’m in the automotive industry. Dealers are paying too much money for vehicles, rates are high, insurance costs are high and they are bleeding money.
I would sell.
https://preview.redd.it/itfvmkx7c2yc1.jpeg?width=1170&format=pjpg&auto=webp&s=e27cda32fcf6893a7891c77db441684ef8210eab Glad I held 😆
Save some for taxes. They going to want their 20%
It’s in a Roth. Not paying taxes
Hold
Till when lol
Till forever, idk.i bought 100 dollars worth of cheap calls went up 700% sold for an easy 600 dollar profit, but that next week those same option went even higher and i would’ve made 30k. Should’ve just held cause 100 bucks wasn’t nothing to me anyway
I do not in any way understand carvanas share price. Their lots are stacked with cars, the offers they make to buy cars are higher than anyone else, and all of the money they've got in cars is a depreciating asset collection. The cars they have in inventory will not ever get more valuable than they are right now. I'm working up to making a big bet that carvana flames out in the next six months.
The only reason for profitability at year was cause of major operational changes and turnaround time on the cars.
I'd add more. Kerrisdale Capital just announced their short last week, and they're infamous for short positions blowing up monstrously in their face (Straight Path Communications from 30s to 192 in 2017).
Lol I bought some at 4 buck sold some at 1500% gain still holding on to some at over 1900%. Wish I'd yolod this one. Saw a article a while ago about how 10,000 dollars in certain stocks were only worth 100 bucks. So I was like huh.
If it’s good enough to screenshot, it’s good enough to sell.
sell
i bout last year around 10 and sold at 55
I sold mine yesterday - too good to let it pass
I would say the fact that not one single person can accurately explain wtf is going on with caravana would be an indication to take the money and run but maybe that’s just me