IronFist's beginner option trading journal

IronFist said:
Options expired. Taking delivery on a bunch of shares @ $1.50 tomorrow. Average cost is probably $1.31 or so after premiums.
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:thumbsup:

Choices now:
1-Set sell limits at various levels.
2-Sell Oct. $1 calls for .27 (close to your break-even)
3-Sell stock & replace with Oct. .50/2.00 Call spreads for .30 in case the ship is sinking. Saves the last .50 in case going to zero. Stock as .83 so a bit below intrinsic value. (decent volume in the Oct. options)

***Or do several different strategies such as the list above. 100 shares for each strategy.
***Not much you can do with options in the near-term months.
***I know nothing about the company so "going to zero" isn't a prediction. :)
GL
sndl.png
 
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IronFist said:
They are a Cannuck Cannabis company with zero debt. Can you elaborate on option 3?
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Buy .50 Call for .44
Sell 2.00 Call for .14
Total cost = .30 ($30)
Sell 100 shares of stock for .83 ($83).

Call Spread now replaces the stock sold.
Losses limited to $30 compared to $83 (stock).
Profit limited to $120 compared to unlimited (stock).

***Prices based upon friday close.
***No need to do this if you're not concerned about the stock going below .50.
 
IronFist said:
I'm not sure what the lines on the chart mean.
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Sorry bout the lines, ...still and all I see on a chart of
sndl, no sign of strength yet imho sndl.png

IronFist said:
Earnings coming up on the 11th. Might buy some 1.00 calls since they're mad cheap ($0.03).
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A lot can happen before the 11th tho and make this work just fine.
 
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