Yesterday I sold July 31 $43 calls against some of my shares for $1.34. Today you can sell the Jul 31 $40 puts for around $1, meaning your cost basis if you get put the stock is only $39. Keep some stock for a probable long term move higher, but the premiums on options here are good. I'm expecting now that on July 31 my calls will expire worthless and I will be able to repeat the process.
Totally agree. And then the story will be that AAL sold off on the downgrade, when the truth is the downgrade will be used to provide a story to explain any pullback, rather than acknowledging shorting by a hedge fund. Hopefully at some point soon these same crooks decide to go the other way and put out a few bullish stories.
You can still make money on a stock like this, even if it goes sideways or slightly lower. I bought during the hype at around $51, and became concerned about a pullback very quickly, selling the July $50 calls (in the money) for $3.50 and buying back yesterday for .40. Today I sold the Aug $50 calls for $3.30, so my cost basis is now under $45. Unless the stock tanks, this is a decent way to play a volatile stock. Bad news is that my gains are capped if it takes off. Either way, good luck to longs.
It is weak, but at least looked a little better today on what was a huge day in the overall market. Sometimes these low expectation stocks perform very well going into earnings (still a ways off). I bought some additional shares too soon at $20.92 and sold the June $21 calls for .70, and now the August $20 calls for $1.00. If it is called away at $20, I'll make a small amount. If not, I'll repeat the process and keep lowering my cost basis (in a retirement account so no tax issues). My original shares were bought around $25, so I'm stuck like many here. Just trying not to lose more lately.
Right about now I am remembering the iconic Steve Martin quote from "The Jerk"--"It's the cans, they hate the cans." Substitute "stock" for "cans".
finishes up close to a $2 gain. I may be foolish for expecting anything great here, but I think we have turned a corner.
Do others see the same heading when first signing onto this message board? I also see it on PANW, FEYE, ALDR (not cyber security), and not on AAL.
Of course, just kidding, but sometimes it seems that way. Just when it seems there is little hope the sector will take off and people get discouraged (hedge funds have then accumulated their shares at lower prices) the stock will suddenly move sharply higher. This could be the time or maybe not, but I'm convinced it will happen. I will definitely lighten my position in the mid 40's, and hopefully regret doing so as my remaining shares move higher.
Interesting article. Could be part of the reason for the selloff, but I think it was more just money rotating out of high fliers. Even if the fraud problem improves significantly, and hopefully it will, there will still be plenty of hacking and the need to protect against it. And the Greece problem certainly makes those owning this type of stock (the ones that have had big moves higher) nervous. We all knew there would be volatility and here it is. This is one reason to sell covered calls. I sold the Jul $70 calls for $7 a couple months ago and it helps take the sting out of days like this. Of course, the downside is if the stock goes much higher your gain is capped at the strike price (plus $7 per share in this example). I doubt we see a lot more downside unless the entire market corrects. And CYBR has been one of the best stocks at bouncing back again and again.
Definitely worth considering IMO, as it is likely if called, you will be able to buy below $57 again.
The stock can be pushed down easily when buyers walk away. Couple that with a big shortsellers agenda and you get today's result. Rather than sell here, sell the end of week $95 calls for $4ish and repeat next week. My guess is $90 potential low, as that's a huge correction and about 50% over the shorts target. If it gaps down in the morning, I expect a bounce. We shall see.
I plan to leave room to add in case of further pullback, but I believe the major damage is done for now.
Would like to see it gap down more in the morning and then add more GPRO. AMBA has been a huge momo stock, as we all know, and if it does gap down in the morning it will likely bounce IMO.
In fact, I'll go out on a limb and predict AMBA will begin to stabilize in the mid $90's tomorrow, and as it stops falling GPRO will move up, reaching $59 by Wednesday.
It will be back there within days IMO. The AMBA downdraft may be having some impact, although AMBA being overvalued logically has no relationship to GPRO. AMBA may have another down day tomorrow, but will stabilize soon
Where is all this optimistic talk coming from? Stock has been doing nothing lately. I'm hoping it does take off and agree it should be higher, but just not seeing a lot to make me think the surge is imminent.
Congrats to those who have been patient. Shorts might consider covering before giving more of your gains.