recommend buying MRNA April expiry 150C? Thanks!
It is expensive calls are $3750 per call. They are volatile.
I have even sold puts for $140 Dec 11th $783. If it hits $140, I will get 100 shares, if not I will keep money. I have even sold some puts for $125 Dec 11th with same formula. By around Dec 19th, FDA will decide what to approve and then MRNA can go either way depending on decisions.
Be safe.
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I don’t have any equity holdings in PFE. It’s a short term option play for me and so far happy with 300% gain. I’ll probably exit soon on next ramp as I have bit too much of it than I feel comfortable with.
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Told you can use other TA indicators to narrow the approx.
I short put 
to see whether I can get 100 shares cheap or keep premium. IV is stupifying high 100+% So safer to short puts (short calls if have shares) than to long puts or calls.
Apr $150 call? You need $150+36 = $186 to make $ at expiry? Easier to short put $150, only need to stay above $150-35 = $115 to make money. If assigned $115, laugh your head off for getting so cheap shares.
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cool thanks. I will take a look at that.
OMG ! I should have done it yesterday when it dipped 135 !
You should have told me yesterday!
Been telling this subject few days, since I bought from $94 onwards. Now, with this logic, if I sell Jan 2022, $150 put, I can get $50. It is locking my 15k, but giving me free 5k for an year return, almost 30% return. Is that right?
If it goes down, I may be assigned at $150, otherwise I am fine when I see potential growth after FDA approval.
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For your case,
Net price paid if assigned = $100
Return is 50/(150-50) = 50%
Regrettably, I saw even better gain from TSLA, 100% return for a year if no price change - thought was too good to be true.
That is locking vs your portfolio value. @wuqijun sets at 30%. I use 15%. Say, you have $1M portfolio value, at 30% means can use $300k i.e. short 30 puts
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Cool, I just sold one put like that. I do not plan to use that money but get nice return.
I guess that stock will go up in value when FDA approves the drug !
Thank you, master, educating me in selling puts!
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Thought you understood that when @marcus335 and me were discussing selling puts when IV is stupidifying high.
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Where can see stupidly high implied volatility stocks? Any place to see?
I use Ameritrade/ ToS.
IV of TQQQ is pretty low now. Use to triple digits, I short puts gladly then. Now have stopped and waiting for it to go back to triple digits before shorting puts. Meanwhile, I hold TQQQs instead
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Excellent ! I learnt a lot today…No end to learning…
Indexes usually have lower IV than individual stocks. IV is usually highest before major events (eg earnings release). This makes me wonder if there’s a way to profit off a marker cap weighted index QQQ vs Apple with IV delta. The idea would be to sell Apple I which is higher and buy QQQ with lower IV. I wonder how closely they do trade, and if there’s something there. I’d have to do some more digging.
Selling puts when VIX was 80 during the peak of covid panic was insane.
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Coming back to market, all I see is market is heading (preparing) for a possible downside, may be around next week. This is not a major I hope, but timely correction for usual December profit taking.
I am unable to predict the correct date of it as future is unpredictable !
I am hoping for a major one.
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As long as government funding is there, there will not be any major. In addition, Covid medication is on horizon, lay offs are started now, but will come to an end by end of next year.
IMO, down slide will not exceed 10% which is what last two times happened (after march 30%).
These were normally introduced from big financial institutions and they do not foresee any major GDP changes.
It will be like year end profit taking (I hope so). Market is still strong.
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New low:
People are going call crazy:
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