SE for PMCC

 yesterday I made a aggressive PMCC move on SE

SE stock price is quite high at $218 

I was choosing what delta should I buy

I decided that I should spend $8.2k

as that is how much I have left in the account

if I dont want to borrow money

today I sold call on SE

expiring on 31 Dec 21

the money is good, got $80 for strike price of $235

also I need to look into how I calculate the cost basis

from my excel, it seems wrong

as the price now is $220

and if I sell the long call which I bought,

I should make some money

the cost basis in my excel is $257 (price of contract + strike price)

which is very far away

TTCF at $14

 Sold Puts on TTCF for strike price for $14

I get $100 premium

expiry date is 4 Feb 22

which is a long time

but there may be a chance what Jeremy said is correct

that stocks will rise next year when people finish with their tax loss harvesting

and 4 Feb 22 is the last date that I can sell puts at $14

after that is multiples of 5, which is at $15.

if I get assigned, it is good as I get to lower my cost basis.

if not assigned, I managed to get the highest premium possible of $100

Learnings from Wheel

 Today is Christmas eve, and my wheel should only bring in around $353 this month

if I do this the long term, how do I get more consistent earnings monthly?

One thing I can improve on is to ensure I do not wheel stocks that have prices that are too high

for example, I got assigned TDOC at $140

each portion of my short puts is around $10k

TDOC crashed to around $100

but I am unable to Fly Rescue Mission

because one portion of FRM is around $3.3k, which is one third

in other words, I cannot make money selling puts at 70% drop in price

and also lower my cost basis

so for a $10k trade, the max price of a stock should be around $50

so that when it crashes 30%, the price will be at $35, which I am able to sell puts at.

Stabilization after IPO

 I read that stocks after IPO may have a big sell-off

because people who received shares will sell to cash in

went to see a few companies that IPO recently

Coinbase, LMND, HOOD

some of them reached a support or resistance

within 2 weeks, 1 mth or 2 mths

so for Grab, I guess the stocks should stabilize within 2 months,

which is around Feb 22

Bought another 200 GRAB

 bought another 200 GRAB

their sales is around US 2 bil

with market cap around 27bil

if they increase their sales to 2.7 bil

it will be PS ratio of 10

which is good for a growth company

also like the CEO 

young and man with a mission

read in an interview before that he is a staunch Christain

and also smart

his co founder and him both went to Havard

and SEA is also a region with good potential

young population with around 600 mil people

twice of USA

their app is also something I like and use

So i have an advantage of accessing the company more than westerners

GRAB a must buy

 options has been quiet lately

not much earnings

but one stock that I love is GRAB

it just recently IPOed

and I bought 100 of it today

I will transfer money to the TD account

as I want it to be separated from Options fund

and also, US$700 spent on GRAB today is very affordable

I want to have more shares of it

but also not sure how many should I buy

so I think 100 shares of it first is good

Aggressive on LC

 The market is rallying today

but LC is still down

after a big dip

tech stocks all dipped

I actually do not plan on spending anymore

already $10k US spent on PMCC

But I realized

For wheel backup fund

I only can only do rescue mission on 2 stocks

the other 3

which is SHAK, TDOC and Z

they are too expensive to do FRM

only PLTR and TTCF is cheap enough for that

my plan was to have $10k funds to do FRM on 3 stocks that dipped

so I have spare $3k

and I like this move I just made

I got up of bed at 1am

as I feel I could not sleep

I bought 300 Call of LC expiring in Jan 2024

which cost me around $1.1k per share

for delta of 0.77

LC current PS is around 3, and PE is around 15

Another ARKK

 bought another ARKK call

expiry in Jan 2024

Not sure if the price will dip again

but it hold stocks that I like

and I can also ride on Tesla boom

as that is their largest holding

still not very experienced with PMCC

and I have fully used up the US$10k for the strat

hope it works well

understanding it more, I find it very good

also ARKK has dipped a lot

I can also use the chance to buy cheap for many stock it holds

like TDOC and STNE

and also Cathie Wood forecasted that growth stock can 4x in 5 years

PMCC is better than I thought

 I thought that my PMCC positions are not very good

then I realized, the long call profit is better than the short call

lets say ARKK price went from 95-103, which is $8

the profit will be $8*0.8 delta = 6.4*100 = $640 profit

then my short call went from $97 to $103

which is a loss of $6*0.2 delta * 100 = $120 loss

so overall, I still profit by $520

I just have to keep rolling to avoid the loss on the short call.

More LC

 Bought another call of LC

at around $31

since there was a big dip yesterday

delta was around 0.78, but this time I bought expiry at 19 Jan 2024

PMCC is a strategy that you can take advantage of the stock price soaring

I have used around $3.5k for PMCC strat,

So I have around $6.5k for PMCC to use

which currently is a good time for it

as the market can keep dipping due to Omicron, Fed tapering and tax loss harvesting

First ever fly rescue mission

 

First time i can recall placing the trade before market opens

because previous day there was a big dip in the stock market

my logic is to sell puts when there is a dip

and today opening will be the best time to trade

to make use of the dip yesterday

rather than look at how the market will perform when open

also first time flying rescue mission

a term coined by Markus

which is very interesting

and you are not totally out of the wheel game when the price crash

you can still lower your cost basis

the logic is to use 1 third of the initial bet

to buy when there is a 30% fall

and hopefully at a support level

for example, initial bet on TTCF was $10k

so use around $3k to enter when the price drops 30%

I think it lowers my cost basis from $20 to $18