Who uses options ?

DawgsCanDance said:

yah, sorry a typo the symbol is xom

Yeah. I know.

Certainly not relevant. Sorry.

Can the average joe sell a call or loan his shares to someone who can?

DawgsCanDance said:

@EwaDawg
yes if you have a 100 share piece of HCH [hardcore husky stock] you can sell a covered call [you own the stock as well] and earn the premium for selling the call keeping in mind that you now have sold option rights against your long stock position.

Thanks. That would be the only way I could play in the deep end.

Automatic $675 plus a chance at a 20 % gain and I only have to risk holding HCH for 45 days.

DawgsCanDance said:

@creepycoug @PurpleThrobber @EwaDawg
Another example and then I will quit:

So say I did go ahead and buy $100,000 of the the stock and the version I picked was to buy the 2X version at 13. So that means I would have purchased 7,500 shares of ERX in November of 2020. Going forward to now, the price is now sitting at 23 [a gain of +76%] and its a short term gain for tax purposes.

So say I'm now concerned about the additional risk of the stock moving back down in price to say the 16 level, and yet i still think that the upside is to 26 or 27. And I don't want to simply sell now because I think it will reach 26 or 27 and I don't want a short term gain for tax purposes as well.

So yesterday I would have been able to sell 75 calls at the 20 level for $7 giving someone else the right to buy my shares at 20 between now and the expiration of January of 2022. This now gives me downside protection to the 16 level [todays 23 stock value plus the $7 premium value] and a total sale price of 27 if they are exercised.

Perfect, exactly what I am hoping for and the exercise won't happen until after my long term holding period is achieved because the option will remain to be more valuable as an option right up until expiration because of remaining time value.

Okay. I understand the second example. I'll go back and look at the first later.

FYI, I do most of my trading in my Roth and in addition to contributions (My wife and I) I converted some IRA/401ks and paid taxes when I had less taxable income/lower tax rate. No capital vs vs short term gain concerns.

Thanks, again.

Bob_C said:

EwaDawg said:

Bob_C said:

Worst internet post of all time.

Maybe I should have just said I've posted much worse.

And, I could leave it there.

BTW, if you are referring to Stalin's post on the appalachian backwoods campfire (AKA tug tavern) Race has already confirmed the stupidity of the post I was referring to. Please, try to keep up.

Yea you have posted much worse.

So you admit that you, as a conservative, lie.

You are confirming just how lacking of intelligence that you are.

Thanks.