That is 62% in a year. Loan me some money.

I do better than that selling Ibex.

I had a cousin that was going to get rich with Emu`s back in the 90`s too. I`m just going to stick with my S&P 500 index funds. I sleep much better.

I hit one of those in my car back in the late 90’s down south of A&M. People let them loose to claim insurance and try and recoup some of their money. Sucker slid rite over the hood and up the windshield

I can remember them being reported all over the county I live in. One was loose on the place across the road from our deer lease in 1999.

I'll repost on May 27, and see if I was right or not. ------------ For clarity, I am not promoting covered calls,,,, just this one.

We had one show up in the pasture. They are more fragile than I thought at the time. A plan was hatched to capture it. All went according to plan until I dallied my rope after roping it. Broke the poor things neck and killed it dead as hell. You need a heeler to rope an emu.

I don't have to look up DVN to know your sweating this trade right now even though you got a little time left on it. I feel for you. Been a brutal week in the market for just about everything.

If I understand this correctly, he is made 2 separate investments. Investment #1, he bought 500 shares of DVN (long), yeah he is losing on that investment, DVN is below $57/share. The other investment is the call he sold, the buyer has the right to buy it $64, the buyer will do that it if goes above $64, but the buyer only makes money if it goes above $68.53 ($64+$4.53).

I'm pretty sure boo could have sold the call without going long on DVN, but he lowers his risk by talking the long position, why it is called a covered call. Say the stock went to $70 a share with out the long position, Boo would have to buy it at $70 and sell it at $64, but since he did a covered call, he would only lose $120 = ($64-63.76)x500. With the position he took, he is hoping the stock stays the same over term of the call.

The way I see it, he is losing big on both investments. DVN is currently $56.80, so he is down $3,480 on those 500 shares that he bought at $63.76. And since DVN is well below the breakeven mark on the call, he is down an additional $2265 (500 x $4.53). Total current loss is $5745.

Not exactly the 7% return in 6 weeks that he bragged about...as of this moment, it is a 17% loss in just 2 weeks. Of course, he can continue to be long on DVN and recoup his current losses over time, but he does not have time on his side with the call (and that's the "free money" he was boasting about). As I mentioned in my initial post, there were so many flaws in his line of thinking that he was essentially guaranteed free money.

You are right on the first sentence, but not the second sentence. The $2265 is his, so his current position $3,480 loss on the long position, so net loss is $2265 sold call, less long loss, net loss = $1,215.

Ahh yes, you are correct. He gets the $2265 upfront in selling and gets that amount of downside protection on his long position. So any amount under 59.23 on DVN, he is losing overall.

Wanted to make a correction, the red font should say "gain is capped at" $120 on the covered call..

Yes. He makes $4.53 per share selling the call, if the long position goes down more than that he loses. If the long position goes up, his gain is capped at $64-63.76 per share on the covered call.

Gentlemen ----- right now -- today-- dvn is $58.10 ----------- The market fell 2000 points in 2 days,,, oil was below $100 barrel. I bought dvn for $63.76 sold the calls for $4.53 ---------- so my investment is $63.76 -$4.53 = $59.23.
If the price is above $64 in 30 days I will then be forced to sell the stock for $64, thus make the 7%. ( $4.53 X 500), If the stock is below $64 in 30 days, the options will expire, and I keep the $2265. And resell another 5 option contracts.

Just fyi, I bought 200 shares 2 days ago for $54.27 ( when it really dipped) and sold the $60 June 17 calls today for $4. On June 17 if DVN is above $60, I will be called out --------- making 200 X $4 == $800, PLUS the $60 -- $54.27 = $5.73 times 200 = $1146 ,,,,,,, soooo $1146 + $800 = $1946 profit on a $11,000 investment in 50 days. equals 17.5% in 50 days ------------ if the stock stays below $60, I keep the $800 and resell the options.
This is all short term,,, the price of DVN will stay up as long as oil is $100 a barrel. I would not risk this long term.

You keep the $2,265 no matter what. If DVN stays above $63.76 during term, you are locked on your $2,265 gain. If it drops below $63.76, you start losing on the long position and if it drops more than $4.53 you have an overall net loss on the covered call you originally posted.

So Rolex releases their new models this time every year. Last year the new meteorite dial Daytona was the one that caught everyones eye. My buddy had been putting money back for a new watch and asked me which one was going to be the hot one to go after, which I replied it would be the white gold Oysterflex. He contacted our dealer and said he wanted first crack when one hit the market, few months later he was offered the vary watch at $65k, almost double retail. He passed, said he couldn't justify that much for a watch with rubber straps, went for the Meteorite Pepsi instead, same price. While his ROI on the Pepsi is good, hovering around $100k now, that Daytona he passed on is $275k. Not may other assets that will appreciate like that, period!

Humble brag.

That's a secondary market dealer, yes? Rolex sets the price not the authorized dealers. I have heard of authorized dealers setting their own price but they risk losing their dealership. I'd be very surprised to have seen any meteorite dial for $65k (too cheap) last year. Though maybe I'm wrong since I don't pay a whole lot of attention to them.

Oh it's not on me, that is my buddy....



That is correct, Grey/Secondary dealer DavidSW.com is who we both use.



And here is his Pepsi-

Yeah, I have a really hard time believing David offered anyone a meteorite Daytona for $65k when they were going for $100k+ right off the bat. If so, he really blew it by not buying it.

At any rate, yes, the Rolex market has been outstanding the last several years.

My wife is going to be mad if I told her my wrist is now worth more than her finger.

Looking back through our messages in November the full bracelet was $100k, OF was around $70k