Market in the toilet who’s buying?

djbradles

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Ok. A little weird but stocks are down and my miners are up. Gold and silver still at their sideways levels. Maybe more digestion of Fed comments is needed. Markets not happy about no new stimulus.
 

Varmint

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Ok. A little weird but stocks are down and my miners are up. Gold and silver still at their sideways levels. Maybe more digestion of Fed comments is needed. Markets not happy about no new stimulus.
The market usually reacts to Fed meetings on the day after. The Fed gave the market nothing to rally on, but it's been rallying on nothing for months, so who knows.
 

pewpewpew

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Anyone ever used a social trading platform?
Sometimes I quickly check StockTwits, but for the most part I am checking out and participating on FinTwit (Twitter), if that's what you mean by 'social trading platform'

There are also some decent discussions that happen in certain areas of Reddit as well.
 
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Buy 500 shares at $10.65 and sell the Sep 18, 2020 $12 calls at $0.20 (Adj. cost basis = $5225 or $5325 - $100 )
If OLN is above $12 at expiration and you do nothing, your shares will be "called away" at $12 a share.
Your gain is roughly $775 ($6000 - $5225) or 14.8% in 30 days.
If OLN is at $12 or less at expiration, your option position will expire and you are no longer under any obligation. You retain your 500 shares. Any dividends that may have been realized are yours, of course, as you are a shareholder. The option buyer is not a shareholder and is not entitled to any dividends paid.

Well, OLN is currently (1020 hours) above $12 a share. Assuming it remains above $12 through the close today, if you do nothing, your stock will be called away at $12 a share.
If you wanted to keep the stock, I'd simply roll this position forward, that is, buy back (close) the Sep 18, 2020 $12 call and sell the Oct 16, 2020 $13 call. You should be able to do this at a net credit of 5¢ or so. You will retain your shares and now have a higher strike price.
Do nothing and you'll realize your 14.8% gain for your 30 days worth.
 
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Buying lots of WKHS today. Seems to be headed the right direction.

Well, good luck with that.
Although you can easily (and quickly) lose 100% of your premium, you can control 1000 shares by buying ten Oct 16, 2020 $27 calls of WKHS for $6800.
If you are correct and WKHS moves appreciably higher in the next few weeks, this position will vastly increase your return.
If wrong, you don't have the luxury of time, as options are a wasting asset.
This is not a recommendation, but it is merely a demonstration of a means to increase your leverage, yet maintain a defined risk. Losing 100% is more than enough!
 
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earcaraxe

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Well, good luck with that.
Although you can easily (and quickly) lose 100% of your premium, you can control 1000 shares by buying ten Oct 16, 2020 $27 calls of WKHS for $6800.
If you are correct and WKHS moves appreciably higher in the next few weeks, this position will vastly increase your return.
If wrong, you don't have the luxury of time, as options are a wasting asset.
This is not a recommendation, but it is merely a demonstration of a means to increase your leverage, yet maintain a defined risk. Losing 100% is more than enough!
That's not a bad idea!
 
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Be careful! Most option buyers lose money.
Option purchases and sales of "covered calls" and "cash-secured puts" can be done in a cash account, but you will have to have your account approved for such activity.
Tread carefully.
 

djbradles

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Have they released any new drill results since the one a month ago? I wonder if people are declaring this the new Great Bear after one good drill result?
They had drill results like 5 days ago. Significant copper and gold intervals. Of course Chris Taylor from Great Bear is involved as founder and chairman.

Kodiak Drills 282 m of 0.70% Copper and 0.49 g/t Gold (1.16% CuEq), Including 45.7 m of 1.41% Copper and 1.46 g/t Gold (2.75% CuEq)

5897C0D8-301F-4E94-A60E-9D1B150F23BD.jpeg890EDD03-4547-4D56-A2E6-7B490C9686A0.jpeg
 

Varmint

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They had drill results like 5 days ago. Significant copper and gold intervals. Of course Chris Taylor from Great Bear is involved as founder and chairman.

Kodiak Drills 282 m of 0.70% Copper and 0.49 g/t Gold (1.16% CuEq), Including 45.7 m of 1.41% Copper and 1.46 g/t Gold (2.75% CuEq)

View attachment 391051View attachment 391052
Yeah, those results were from Sept 3, the stock doubled on that news, but it's doubled again since on no news, that's why I think investors are jumping the gun. They did just get $8 million in financing, but right now any junior miner can get financing so that shouldn't mean anything.

I think it'll pull back like Brixton, Discovery etc who went way up on no news, maybe jump on it then.
 

djbradles

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Yeah, those results were from Sept 3, the stock doubled on that news, but it's doubled again since on no news, that's why I think investors are jumping the gun. They did just get $8 million in financing, but right now any junior miner can get financing so that shouldn't mean anything.

I think it'll pull back like Brixton, Discovery etc who went way up on no news, maybe jump on it then.
You’re right. I looked that the wrong date on newsroom headline. Just a momentum trade now based on $22 million added private placement (with undiluted shares added of course). I’m avoiding it for now.
 

Varmint

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You’re right. I looked that the wrong date on newsroom headline. Just a momentum trade now based on $22 million added private placement (with undiluted shares added of course). I’m avoiding it for now.
yeah there's lots of good and more proven miners that are drifting down right now. Got my eye on those, but we really need the S&P500 to give up 3340 and go to 3000. That'll create some great buying opportunities.
 
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Seems as though some of the air has been let out of S&W (SWBI); currently down below $15 a share.

Although I don't care for anything cannabis related, Aurora Cannabis Inc (ACB: $6.44) offers some decent premiums on their options.
Here's another scenario: with cash balance of $6000 in your account, sell ten Oct 16, 2020 $6 puts at $0.70 (premium received = $700.00).
If held til expiration:
ACB > $6 a share... option expires.
ACB < $6 a share... option assigned. You are obligated to buy at $6 a share (adjusted cost $5300.00).
 
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