MCP - Molycorp, Inc. - Page 15

yea..well..if he is averaging down..its great to work around that price

i bought ANR for 17

and i have been seeling covered calls on the 17 and puts for 15...(to average down)

doing it every month

its been great as anr has been sideways for over a year now!

Thanks for all your inputs!

BobK was right about the support and look at it rip today, as for ze20001984 I am tempted to sell puts but on a day like this, the price of the puts I sell would have already taken a beating. So I guess it's back to TA and decide what price to sell my puts at, and if i am understanding correctly in the puts I sell are in the money then I will have to buy the stock back if i am longing MCP right?

Thanks!

Quote:

Originally Posted by ze20001984 

Uncovered puts are...what price do I want to buy mcp at to average down?
U have 30
Buy at 20
Ave cost is 24ish

Naked options are risky.

i concur.. dont ever go naked, or be prepared to go home.

Quote:

Originally Posted by Bishop 

Naked options are risky.

why u mean risky? its supposed to be an uber conservative strategy...

unles u go willy nilly..writing puts on companies u dont want...

you write a contract/obligation for you to buy...

and bc its pretty otm...(BASED on the book i read...gives you a statistical 10-20% chance of hitting that price)--yes its statistics and NOT stock..but still

its like buying a stock at that price

Quote:

Originally Posted by ze20001984 

why u mean risky? its supposed to be an uber conservative strategy...

 

unles u go willy nilly..writing puts on companies u dont want...

 

you write a contract/obligation for you to buy...

 

and bc its pretty otm...(BASED on the book i read...gives you a statistical 10-20% chance of hitting that price)--yes its statistics and NOT stock..but still

 

its like buying a stock at that price

If you keep phrasing it as UNCOVERED, you are naked and don't have the capital to buy the stock if put the stock. Learn the damn terminology so you don't give shitty advice. If you have the capital, they are covered puts. Just like if you own the stock and sell calls, they are covered calls.

from what i know

covered calls/puts means...you bought the stock..and you are willing to sell it at price XX

uncovered puts means..you dont have the stock..and you are willing to buy it at price X

The biggest risk facing the uncovered put writer is that should the price of the underlying drops below the put strike price, he is forced to buy the shares at the put strike price. However, for a long-term investor looking to go long on the stock at a discount, writing naked puts can be a great way to buy stock. He can do that by writing uncovered puts with a strike price at or near his target entry price. If the stock price drops below the put strike and the puts gets assigned, he gets to make the stock purchase at the desired price.

Additionally, he gets a further discount in the form of the premium earned from selling the puts. Even if the put strike price was not reached and the stock not acquired, he still gets to keep the premiums!

You're an idiot. What you are saying is ass backwards. Anyone thinking of listening to him for options advice deserves to lose their capital.
 

here....read this...and learn

http://www.theoptionsguide.com/uncovered-put-writing.aspx

Quote:

Originally Posted by ze20001984 

here....read this...and learn

 

http://www.theoptionsguide.com/uncovered-put-writing.aspx

You probably should... notice where it says unlimited losses. Again, if you have the money in your account to buy the shares if put the shares, then writing puts would be covered. If you are writing puts without having this capital (the strike x 100), then it is uncovered... ie. naked. Which is risky as hell. Learn your damn options. If you keep repeating this misinformation, you are coming across as an even larger idiot.

Quote:

Originally Posted by ze20001984 

from what i know

 

covered calls/puts means...you bought the stock..and you are willing to sell it at price XX

 

uncovered puts means..you dont have the stock..and you are willing to buy it at price X

Quote:

Originally Posted by Bishop 

You probably should... notice where it says unlimited losses. Again, if you have the money in your account to buy the shares if put the shares, then writing puts would be covered. If you are writing puts without having this capital (the strike x 100), then it is uncovered... ie. naked. Which is risky as hell. Learn your damn options. If you keep repeating this misinformation, you are coming across as an even larger idiot.

 

now yout just using semantics....thats exactly what i said

we are talking uncovered NOT naked..and considering he wants to average down..means he has the capital...

ps...that definity is IN CORRECT ...having money DOES NOT MEAN you are covered!!!

IF you ALREADYY have the stock..THEN you are covered!!the money has nothing to do with it...

if you have XX you write a covered call (bc you have the stock..not the $$)

if you DO no you are uncovered!!

go get a book man...talking outta my ass! riteeeeeeeeeeeeeeee

(if you have no money you are naked...what you are talking about)

Quote:

Originally Posted by ze20001984 

 

 

now yout just using semantics....thats exactly what i said

 

we are talking uncovered NOT naked..and considering he wants to average down..means he has the capital...

Uncovered is naked so for you to keep rehashing write uncovered puts is telling that person to write puts when they don't have capital to buy the shares. If he has the capital to average down, they would be covered puts. All I have been getting at is use the right terminology.

Quote:

Originally Posted by ze20001984 

ps...that definity is IN CORRECT ...having money DOES NOT MEAN you are covered!!!

 

IF you ALREADYY have the stock..THEN you are covered!!the money has nothing to do with it...

 

 

if you have XX you write a covered call (bc you have the stock..not the $$)

 

 

if you DO no you are uncovered!!

 

go get a book man...talking outta my ass! riteeeeeeeeeeeeeeee

 

(if you have no money you are naked...what you are talking about)

If you have the shares, the only thing that is considered covered is writing calls as if they are exercised you would lose your shares. Having the shares and writing puts does absolutely nothing for you... Writers are willing to buy so holding stock in its place does nothing. Keep talking, I actually find this absolutely hilarious.

yikes.....im tired about dechipering your wikipedia definitions...

i suggsst the OP..write a cc for 33-34 on the stock he has

and an uncovered put for 27-25-24 area (aka where your bottom is)

worse case mcp falls to 20 and ur doubled down...

best case you averaged down and saved your ass on the premium and can dump

Hey guy I am guessing the next leg down for MCP will be 26 ? If I still remember correctly ZE20001984 said wait 2 weeks and see, If I double down do you think 26 is a good range or wait if it break $26 then double down or it's just not worth it?

Anyone think MCP bottomed now? I am thinking MCP should be good to buy on the next dip.