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 7% return in 6 weeks
#8578112
04/14/22 02:22 AM
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Joined: Mar 2020
Posts: 650
booskay
OP
Tracker
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OP
Tracker
Joined: Mar 2020
Posts: 650 |
If you have cash just sitting,,, try this------ I"ll briefly explain what this is -- covered call ----- buy the stock, and at the same time sell the option to buy my share in the future at a certain price. Devon oil is a major oil company. Buy one share of DVN at $63.76 ----- I sell to Joe Blow for $4.53 the right to buy my stock for $64--- he has until May 27 to do it. So I make the $4.53 per share. 4.53/63.76 == 7% return in 6 weeks. Devon will stay in the $60's as long as oil stays at $100+ a barrel. 1 contract of calls is 100 shares -------- hence I sold 5 calls, 500 X $4.53 == $2265 that I will make on a $30,000 investment. ![[Linked Image]](https://texashuntingforum.com/forum/pics/userpics/2022/04/full-67292-343782-4_13_devon.jpg)
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Re: 7% return in 6 weeks
[Re: booskay]
#8578121
04/14/22 02:40 AM
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Joined: Oct 2008
Posts: 15,184
Tbar
THF Celebrity
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THF Celebrity
Joined: Oct 2008
Posts: 15,184 |
Make America Great Again
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Re: 7% return in 6 weeks
[Re: booskay]
#8578123
04/14/22 02:42 AM
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Joined: Mar 2020
Posts: 650
booskay
OP
Tracker
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OP
Tracker
Joined: Mar 2020
Posts: 650 |
I dont know what USDC IS --------- but this is 7% in 6 weeks, not annual.
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Re: 7% return in 6 weeks
[Re: booskay]
#8578167
04/14/22 06:09 AM
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Joined: Mar 2010
Posts: 12,198
ntxtrapper
THF Celebrity
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THF Celebrity
Joined: Mar 2010
Posts: 12,198 |
The option seller cannot sell the underlying stock without first buying back the call option. A significant drop in the price of the stock (greater than the premium) will result in a loss on the entire transaction.
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Re: 7% return in 6 weeks
[Re: booskay]
#8578226
04/14/22 12:02 PM
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Joined: Nov 2009
Posts: 91,416
bill oxner
THF Celebrity
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THF Celebrity
Joined: Nov 2009
Posts: 91,416 |
Quail hunting is like walking into, and out of a beautiful painting all day long. Gene Hill ![[Linked Image]](https://texashuntingforum.com/forum/pics/usergals/2017/07/full-3669-105539-full_16668_105507_image.jpg)
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Re: 7% return in 6 weeks
[Re: booskay]
#8578228
04/14/22 12:04 PM
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Joined: Jan 2013
Posts: 2,773
Gringo Bling
Veteran Tracker
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Veteran Tracker
Joined: Jan 2013
Posts: 2,773 |
There are many flaws in what you’re essentially saying is a sure thing.
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Re: 7% return in 6 weeks
[Re: Gringo Bling]
#8578265
04/14/22 01:12 PM
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Joined: Sep 2008
Posts: 6,695
Cochise
THF Trophy Hunter
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THF Trophy Hunter
Joined: Sep 2008
Posts: 6,695 |
There are many flaws in what you’re essentially saying is a sure thing. Yes. This is how people get lured into thinking it is "easy" and "a fact" and lose very large sums of money very easily.
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Re: 7% return in 6 weeks
[Re: booskay]
#8578275
04/14/22 01:21 PM
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Joined: Apr 2008
Posts: 4,546
TPACK
Extreme Tracker
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Extreme Tracker
Joined: Apr 2008
Posts: 4,546 |
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Re: 7% return in 6 weeks
[Re: booskay]
#8578279
04/14/22 01:27 PM
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Joined: Oct 2008
Posts: 15,184
Tbar
THF Celebrity
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THF Celebrity
Joined: Oct 2008
Posts: 15,184 |
Years ago I had a man doing covered calls with part of my money....then 2008-2009 hit and I was stuck holding those shares. I couldn't risk doing more covered calls as the stocks could have sold for less than I paid for them.
Make America Great Again
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Re: 7% return in 6 weeks
[Re: booskay]
#8578316
04/14/22 02:15 PM
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Joined: Nov 2018
Posts: 1,948
Davis300
Pro Tracker
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Pro Tracker
Joined: Nov 2018
Posts: 1,948 |
Always a “1 upper” thread.
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Re: 7% return in 6 weeks
[Re: bill oxner]
#8578324
04/14/22 02:25 PM
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Joined: Nov 2018
Posts: 1,539
fishdfly
Pro Tracker
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Pro Tracker
Joined: Nov 2018
Posts: 1,539 |
Put me with Bill and the guarantee of: Devon will stay in the $60's as long as oil stays at $100+ a barrel.
Last edited by fishdfly; 04/14/22 02:26 PM.
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Re: 7% return in 6 weeks
[Re: booskay]
#8578336
04/14/22 02:39 PM
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Joined: Jul 2013
Posts: 6,041
tlk
THF Trophy Hunter
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THF Trophy Hunter
Joined: Jul 2013
Posts: 6,041 |
Kind of like when someone goes to Vegas and comes home and tells everyone about how much they won - somehow they always forget to tell about their losses
In my experience the same happens with investments - anytime someone says or insinuates "guaranteed" I turn and run
You can't fix stupid
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Re: 7% return in 6 weeks
[Re: booskay]
#8578360
04/14/22 03:31 PM
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Joined: Dec 2005
Posts: 35,494
Guy
THF Celebrity
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THF Celebrity
Joined: Dec 2005
Posts: 35,494 |
If you have cash just sitting,,, try this------ I"ll briefly explain what this is -- covered call ----- buy the stock, and at the same time sell the option to buy my share in the future at a certain price. Devon oil is a major oil company. Buy one share of DVN at $63.76 ----- I sell to Joe Blow for $4.53 the right to buy my stock for $64--- he has until May 27 to do it. So I make the $4.53 per share. 4.53/63.76 == 7% return in 6 weeks. Devon will stay in the $60's as long as oil stays at $100+ a barrel. 1 contract of calls is 100 shares -------- hence I sold 5 calls, 500 X $4.53 == $2265 that I will make on a $30,000 investment. Why mess with all that, just buy low and sell high, that's what I do.
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Re: 7% return in 6 weeks
[Re: ntxtrapper]
#8578368
04/14/22 04:00 PM
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Joined: Feb 2012
Posts: 9,731
Mickey Moose
THF Trophy Hunter
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THF Trophy Hunter
Joined: Feb 2012
Posts: 9,731 |
The option seller cannot sell the underlying stock without first buying back the call option. A significant drop in the price of the stock (greater than the premium) will result in a loss on the entire transaction. It also limits the upside. It's low(er) risk supposing the stock is flat (stays within a window). This post is misleading. What OP left out of the "teaching" lesson is that the lower the risk the lower the reward. Play small, stay small.
My botnet is bigger than yours.
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Re: 7% return in 6 weeks
[Re: booskay]
#8578373
04/14/22 04:04 PM
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Joined: Dec 2011
Posts: 1,746
fredeboy
Pro Tracker
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Pro Tracker
Joined: Dec 2011
Posts: 1,746 |
Much easier would have been to buy Peteroteq at .38 yesterday and get .59 today at 5:00 when the hostile take over goes thru 
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Re: 7% return in 6 weeks
[Re: Guy]
#8578374
04/14/22 04:06 PM
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Joined: Feb 2012
Posts: 9,731
Mickey Moose
THF Trophy Hunter
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THF Trophy Hunter
Joined: Feb 2012
Posts: 9,731 |
Why mess with all that, just buy low and sell high, that's what I do. Risk. In the proposed option strategy there is less perceived risk (and in some ways less actual risk). Though the reward is limited. Various strategies increase/decrease risk while simultaneously increasing/decreasing reward.
My botnet is bigger than yours.
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Re: 7% return in 6 weeks
[Re: fredeboy]
#8578377
04/14/22 04:09 PM
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Joined: Feb 2012
Posts: 9,731
Mickey Moose
THF Trophy Hunter
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THF Trophy Hunter
Joined: Feb 2012
Posts: 9,731 |
Much easier would have been to buy Peteroteq at .38 yesterday and get .59 today at 5:00 when the hostile take over goes thru. I'll only play pinks for fun. Strategy money does not go there.
My botnet is bigger than yours.
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Re: 7% return in 6 weeks
[Re: Mickey Moose]
#8578390
04/14/22 04:25 PM
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Joined: Dec 2005
Posts: 35,494
Guy
THF Celebrity
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THF Celebrity
Joined: Dec 2005
Posts: 35,494 |
Why mess with all that, just buy low and sell high, that's what I do. Risk. In the proposed option strategy there is less perceived risk (and in some ways less actual risk). Though the reward is limited. Various strategies increase/decrease risk while simultaneously increasing/decreasing reward. I was joking. The stock market is highly efficient, modern portfolio theory says everyone should be holding the exact same diversified mark portfolio "M". If you want more risk and higher returns, you borrow and buy more of M and move up the capital market line. If you want less risk, you sell some M and hold cash (t-bills) earning risk free rate, and move down the capital market line. ![[Linked Image]](https://texashuntingforum.com/forum/pics/userpics/2020/04/full-2250-226299-0a94c650_e606_409d_bc4e_765a441ecdc5.jpeg)
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Re: 7% return in 6 weeks
[Re: booskay]
#8578431
04/14/22 05:30 PM
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Joined: Aug 2004
Posts: 17,721
Txduckman
THF Celebrity
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THF Celebrity
Joined: Aug 2004
Posts: 17,721 |
Always bet black and double-down each time you lose. Guaranteed huge profits.
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Re: 7% return in 6 weeks
[Re: booskay]
#8578459
04/14/22 06:07 PM
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Joined: Apr 2005
Posts: 19,816
TurkeyHunter
THF Celebrity
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THF Celebrity
Joined: Apr 2005
Posts: 19,816 |
For a number of years my investment strategy was doing the opposite of what was suggested on the THF. It has proven to be very successful.
To be determined
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Re: 7% return in 6 weeks
[Re: booskay]
#8578469
04/14/22 06:19 PM
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Joined: Mar 2010
Posts: 12,198
ntxtrapper
THF Celebrity
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THF Celebrity
Joined: Mar 2010
Posts: 12,198 |
2008 is what made my future. Just wait a little bit. The senile retard is driving the bus there again as fast as he can.
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Re: 7% return in 6 weeks
[Re: ntxtrapper]
#8578514
04/14/22 06:53 PM
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Joined: Dec 2011
Posts: 1,746
fredeboy
Pro Tracker
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Pro Tracker
Joined: Dec 2011
Posts: 1,746 |
2008 is what made my future. Just wait a little bit. The senile retard is driving the bus there again as fast as he can.  I like that!!
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Re: 7% return in 6 weeks
[Re: booskay]
#8578541
04/14/22 07:28 PM
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Joined: Nov 2017
Posts: 19,275
Biscuit
THF Celebrity
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THF Celebrity
Joined: Nov 2017
Posts: 19,275 |
Man y’all crack me up some days. Most days
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Re: 7% return in 6 weeks
[Re: Mickey Moose]
#8578567
04/14/22 08:14 PM
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Joined: Jan 2011
Posts: 46,950
Gravytrain
THF Celebrity
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THF Celebrity
Joined: Jan 2011
Posts: 46,950 |
Why mess with all that, just buy low and sell high, that's what I do. Risk. In the proposed option strategy there is less perceived risk (and in some ways less actual risk). Though the reward is limited. Various strategies increase/decrease risk while simultaneously increasing/decreasing reward. I've trying the old buy high sell higher, it's kinda risky but...
Upon us all, upon us all, a little rain must fall
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Re: 7% return in 6 weeks
[Re: booskay]
#8578578
04/14/22 08:38 PM
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Joined: Dec 2005
Posts: 35,494
Guy
THF Celebrity
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THF Celebrity
Joined: Dec 2005
Posts: 35,494 |
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