Great week for covered calls again: BB +3% (Sold) RAD +18% (Probably exercise) SWBI +2% (Holding)
Next week earnings are below (percentage is at the money premium as percentage of market price): CPRI (Capri Holdings) [Luxury Retail] +6.6% retail is risky but good premium. MU (Micron) [Tech] +4.1% good company, but semis are volatile CAG (Conagra) [Food] +3.3% Pretty safe, everyone needs food M (Macys) [Retail] +7.2% Might declare bankruptcy lmao
The breakers into breakers crashing in March was the result of the global financial system locking up (GFC2). Something like Deutsche, Wells Fargo or BMO collapsing could set off GFC3.
The scale looks a little fucky because of the axis differences but I believe they should be the same data source (BLS top line unemployment)
>fiat Eurodollar crisis, value of USD rises like it did in March (which wasn't traders "seeking safety", it was literally a global dollar shortage >stocks possible mass selloff of USD stocks to get dollars >precious metals nothing, your rocks won't notice
Josiah Nguyen
LMT is always okay, I'm pretty sure that's an acceptable HODL. But it can go down, and I expect it to. I'm actually kind of hoping for it, I only have a few shares.
ooooo I've already got 80 shares of MU and some cheap calls... very tempting to be the seller of calls instead.
can you please post where you take your images from? Bears keep taking graphs from elsewhere and pointing them here without the commentary.
Lincoln Powell
left image is from the fed DFAST report, the bank stress test they just concluded
right image is from BLS
Jacob Mitchell
>nothing, your rocks won't notice I believe the rocks DID sell off in the crash because of that desperation for dollars you mentioned. It recovered much faster than the stocks, of course.
Oh wow, so you made the image? That's rare these days. Thanks.
Dominic Hernandez
I only mention BA, RTX, and LMT because I'm knee deep in DFEN and BA. Send help.
Its good stuff. You could sell these calls for July 2nd. 50.0C for 3.7% premium (2% implied movement) 51.5C for 2.5% premium (3% implied movement) 52.5C for 2.0% premium (5% implied movement) 55.0C for 1.0% premium (10% implied movement) These percentages are based on if you bought in right now, if your cost basis is lower, then your percentage is even batter. If you want to make sure you keep the shares, just sell higher strike calls. The nice this with MU is they have weekly options, so you can sell every week and probably easily collect 1% of your cost basis each time.
Joshua Fisher
What happens if I have a fixed mortgage and my bank collapses (chase, so not likely, but I’m just curious). Obviously my loan will not be forgotten, so it would be taken over by someone somehow, but would that party be allowed to change the terms or can I trust that as lobg as I can afford my monthly fixed payments I’m fine. Don’t tell me to read my contract because 1) I don’t even know where it is and 2) I’m interested in a general answer, in how it usually goes.
Adrian Hernandez
Don't you yanks have some sort of FDIC for mortgages?
Easton Cox
Someone give me a reason to keep my NAIL and DFEN. Markets flat, they're down, markets down, they're down huge, markets up big, lucky if they're barely green.
Aiden Perez
Which stock should I yolo
Brandon Clark
Amd
Christian Collins
interesting! something to think about. I wish the stupid government would let me put more cash in my IRA so I could sell covered calls without them taking up a huge part of my IRA, and sell covered calls without having to pay tax...
I wouldn't hold 3X etfs for a very long time, unless you're confident they're in a bull market (like the past 10 years for the index etfs, the tech etfs, and the semiconductor etf)
I don't know how those two are allocated, and how much exposure they have to slow moving or struggling stocks. BA would be a worry for DFEN. I also expect some more selling in DFEN before the election, especially if the market continues to see polls that indicate biden rising in popularity.
Hunter Diaz
Remember that BA, RTX, and LMT (especially BA) are market leaders. A lot of market movements are lead by them (you'll see it on articles like: BA leads DOW to a -600.. or +700..)
So the next time BA has a run up to 200 like last month you'll go big. The problem is DFEN is leveraged so it won't be going to 20, it'll probably top out at a new resistance level like 18.
I have a big chunk in DFEN (bought $11.45) and will sell at 14.45.
